Lease, Finance, PHP, Cash??

sheffield_soldier

Hi,
I am now in need of purchasing a new car and looking around the 12k mark in purchasing.I am unsure what to do whether to go lease, php, finance or just pay cash.
I am on a decent wage and currently have surplus of 13k savings. However, these savings are for a house deposit.
What recommendations would you say for purchasing a car - should I keep my savings and settle for a monthly payment on either PHP, L, HP?

The_Rainmaker

When are you buying the house?

If not in the next three years, pay cash and replenish your savings by around £350/month and you will be better off.  Might be worth taking out a PCP deal and settling it within a month to get best discounts.

Don't pay interest if you can avoid it because you will not be getting any on your savings.

AdrianC

If you take finance out, then any mortgage lender will take that into account when considering your assets.

Do you need to spend as much as £12-13k on a car?

Grumpy_chap

Don't spend your house deposit on a new car and, if you want a mortgage soon, don't get a new loan which will likely mean a mortgage is harder to get.

If you are not buying a house soon, then buy a car cash, but consider finance if the incentives are good (and then pay it off quick).

Whenever you plan to buy the house, spend as little as possible on the new car so that you retain maximum flexibility to get on the housing ladder.

Scrapit

if you have the cash arrange for the best deal on finance (I'm assuming you are buying from a dealer from the methods of payments you have mentioned) then pay it off starlight away once the car is delivered. Finace is one of the best ways of bartering now days.

sheffield_soldier

I will be looking to buy house in the next 12-18 months.
I do want a reasonable car as I can afford it for one, and I also need something to tow a caravan. I'm not one for changing my car every couple of years normally so don't want to get one too old. My current car is 2011 so has been going 9 years and nearly 100k miles. 

Thanks for your comments.

The_Rainmaker

Buy a car for around £6k then. (£350/month for 18 months)

You need to make a choice here car or house.  You seem to be choosing the car, that is your choice.

Ectophile

sheffield_soldier said:

I will be looking to buy house in the next 12-18 months.
I do want a reasonable car as I can afford it for one, and I also need something to tow a caravan. I'm not one for changing my car every couple of years normally so don't want to get one too old. My current car is 2011 so has been going 9 years and nearly 100k miles. 

Thanks for your comments.

So unless there's something obviously wrong with it, then it should be good for at least another couple of years.

[Deleted User]

Any kind of loan will affect your mortgage application, but maybe not by much. Main thing you need is a big deposit.

Make sure whatever deal you take you can get it of it quickly if needs be, i.e. you can pay it all off and be debt free. Some schemes don't allow early repayment or have big fees.