Considering PCP

Nasqueron

If you can afford it and the finance is 0% then go for it, car sellers are desperate at the moment due to fears of customers about Brexit, new emissions tests etc and car sales are down (September was the worst since the crash in 2008 - source) and you may well find plenty of deals/offers.

A deal where you intend to buy at the end has no issues with mileage and you can of course tailor your monthly payments based on deposit though keep the balloon money in a savings account (ideally a fixed term one) so you aren't tempted to spend it. In that sort of deal you don't even need to use the manufacturer for servicing, though might be advisable for the warranty if applicable. In that situation too, depreciation can be ignored as you are not looking to trade in or swap it so the car value is irrelevant, particularly if you want to use it for a long period until it becomes uneconomical to keep running.

If you are paying interest I'd agree with others on here to buy an older car which has already come down in price.

System

photome wrote: »

yes i paid interest but £1000 interest in 32 months isnt to bad in my opinion.

It is horrific. If I got a £16500 loan over 3 years at what my bank offers I'd pay just £723 interest on £16500.

Given you paid £5000 upfront and £8000 before the end of the 3 year agreement you paid £1000 interest on just over £11500 over a period of just over 2.5 years. I fail to see how that is good.