Financially best way to buy a car?
Discussion
We're looking for a new/2nd hand car for Mrs M.
Nothing flash (sorry) :blush: possibly a Focus Titanium 1.6 diesel and spending around the £15k mark.
We'll probably be keeping it for 2 perhaps 3 years.
But our dilema is how to pay for it.
The options as we see them are;
1) pay cash.
2) Buy in HP.
3) Buy on a PCP contract.
If we go for option 2) or 3) then we've got the decision about how much deposit to pay (large or small).
What is the collectives oppinion on the best way (financially) to buy it?
Nothing flash (sorry) :blush: possibly a Focus Titanium 1.6 diesel and spending around the £15k mark.
We'll probably be keeping it for 2 perhaps 3 years.
But our dilema is how to pay for it.
The options as we see them are;
1) pay cash.
2) Buy in HP.
3) Buy on a PCP contract.
If we go for option 2) or 3) then we've got the decision about how much deposit to pay (large or small).
What is the collectives oppinion on the best way (financially) to buy it?
Marcellus said:
We're looking for a new/2nd hand car for Mrs M.
Nothing flash (sorry) :blush: possibly a Focus Titanium 1.6 diesel and spending around the £15k mark.
We'll probably be keeping it for 2 perhaps 3 years.
But our dilema is how to pay for it.
The options as we see them are;
1) pay cash.
2) Buy in HP.
3) Buy on a PCP contract.
If we go for option 2) or 3) then we've got the decision about how much deposit to pay (large or small).
What is the collectives oppinion on the best way (financially) to buy it?
1st if you have the £15K then it is down to which gets you the best deal, cash possibly won't. So with finance and deposit consider that for HP you are borrowing the remainder that isn't deposit, so the bigger the deposit the lower the repayment. With PCP you are effectively financing the difference between the sale price and the future value increasing the deposit cuts your payments but you may well be best putting in a deposit that brings the payment down to what ever you are happy paying a month, as when it comes to the end of the PCP deal you either refinance the future value, trade it in and walk or start a new deal, so keep some deposit for the future deal. Nothing flash (sorry) :blush: possibly a Focus Titanium 1.6 diesel and spending around the £15k mark.
We'll probably be keeping it for 2 perhaps 3 years.
But our dilema is how to pay for it.
The options as we see them are;
1) pay cash.
2) Buy in HP.
3) Buy on a PCP contract.
If we go for option 2) or 3) then we've got the decision about how much deposit to pay (large or small).
What is the collectives oppinion on the best way (financially) to buy it?
Biggest thing though get some sensible advice from else where as well as this place is anti financing anything they only have mortgages to preserve liquidity or atleast that's what some would have you believe.
Munter said:
The only reason not to buy with cash is if you intend to use the cash to make more money than you'll lose in interest on the finance options.
Most of us can't turn enough of a profit on the cash to make it worth getting finance rather than buying the car outright.
If you have the cash available now. If you don't then the choice is finance and get the car now or save and get the car later (assuming you can afford the finance payments).Most of us can't turn enough of a profit on the cash to make it worth getting finance rather than buying the car outright.
Well, financially pretty much the worst thing you can do is 'buy' a new car, especially something like a Focus.
You put down your deposit, pay every month for two or three years, then they'll talked approximately the cars worth off of you if you want to keep it. Plus you'll most likely have to stay in milage limits, the car ian reall yours so you can't modify it or sell it in a hurry...
For the cost of a deposit, you would have choice of a huge range of used cars which can be just as reliable and pleasant to own as a new car (and to be honest even if they do break down you'll be unlikely to spend more than two hire purchase payments to put it right).
Look long and hard at why you want a new car - and the financial implications of making that choice - before you commit.
But there are few ways the 'average' person can lose money faster than buying a new car privately.
You put down your deposit, pay every month for two or three years, then they'll talked approximately the cars worth off of you if you want to keep it. Plus you'll most likely have to stay in milage limits, the car ian reall yours so you can't modify it or sell it in a hurry...
For the cost of a deposit, you would have choice of a huge range of used cars which can be just as reliable and pleasant to own as a new car (and to be honest even if they do break down you'll be unlikely to spend more than two hire purchase payments to put it right).
Look long and hard at why you want a new car - and the financial implications of making that choice - before you commit.
But there are few ways the 'average' person can lose money faster than buying a new car privately.
Cash is best of course. Rule of thumb; try to never finance a depreciating asset - you end up paying interest for the benefit of losing money......
Can you not just buy a cheaper car for cash? £15k seems a lot for a mid range Ford. Surely £10k gets you into a decent one?
Just a thought.
Can you not just buy a cheaper car for cash? £15k seems a lot for a mid range Ford. Surely £10k gets you into a decent one?
Just a thought.
2009 FORD Focus 1.8 TDCi Style
Trade Seller: Stag Motor Company
5 Doors, Manual, Hatchback, Diesel, 10,000 miles, Blue, 1 Owner. Remote locking, Passenger airbag, Electric windows, Alloy wheels, Central locking, Alarm, Audio remote control, ABS, Air conditioning, Side airbags, Cloth seat trim, Radio/CD. Insurance Group:6
£8,990
edo said:
I'm less worried about the cash/finance question, and more worried about spunking £15k on a focus that will be worth £7k in 12 months... Depresciation is by far the biggest cost looking at this sort of car.
Get a £30k car that has depreciated to £15k but is still in warranty etc.
It is for his Mrs though. So he may well be prepared to lose £7.5k over 2/3 years just to keep her quiet and avoid the "Well if you'd got me the car I wanted it wouldn't have broken down because it was new." discussion.Get a £30k car that has depreciated to £15k but is still in warranty etc.
Munter said:
edo said:
I'm less worried about the cash/finance question, and more worried about spunking £15k on a focus that will be worth £7k in 12 months... Depresciation is by far the biggest cost looking at this sort of car.
Get a £30k car that has depreciated to £15k but is still in warranty etc.
It is for his Mrs though. So he may well be prepared to lose £7.5k over 2/3 years just to keep her quiet and avoid the "Well if you'd got me the car I wanted it wouldn't have broken down because it was new." discussion.Get a £30k car that has depreciated to £15k but is still in warranty etc.
As for cash/finance, I'd say spend whatever you can afford in cash, provided it's not cash from a loan.
£5k cash will buy you any one of a huge range of great servicable modern little hatchbacks, and the worst of depreciation will be behind it already.
OK OK OK enough on the choice of car (please)!! 
I accept all the points about depreciation on new cars.
The reason why the Focus is the current choice is that Mrs M has a car allowance from work and the car must be less than 3 years old, so we're thinking buy something possibly 6/12 months old and be able to keep it for 24/30months.
The only ones we've looked at thus far are from Ford Direct thinking that it would come covered by their used car warranty.
(TBH the Focus is much better than Mrs M 1st choice of car which was a Peugeot 3008!!!
)
I accept all the points about depreciation on new cars.
The reason why the Focus is the current choice is that Mrs M has a car allowance from work and the car must be less than 3 years old, so we're thinking buy something possibly 6/12 months old and be able to keep it for 24/30months.
The only ones we've looked at thus far are from Ford Direct thinking that it would come covered by their used car warranty.
(TBH the Focus is much better than Mrs M 1st choice of car which was a Peugeot 3008!!!
)Is the car allowance paid monthly as part of her salary or a lump sum?
I looked at leasing something new and found Quashqais to be very cheap to lease when compared with stuff like a focus. If the allowance is paid monthly and the car needs to be 3 years old then leasing a new car could be fairly painless.
I looked at leasing something new and found Quashqais to be very cheap to lease when compared with stuff like a focus. If the allowance is paid monthly and the car needs to be 3 years old then leasing a new car could be fairly painless.
edo said:
2009 FORD Focus 1.8 TDCi Style
Trade Seller: Stag Motor Company
5 Doors, Manual, Hatchback, Diesel, 10,000 miles, Blue, 1 Owner. Remote locking, Passenger airbag, Electric windows, Alloy wheels, Central locking, Alarm, Audio remote control, ABS, Air conditioning, Side airbags, Cloth seat trim, Radio/CD. Insurance Group:6
£8,990
Buy that instead. The 1.8tdci is nicer than the 1.6 imo.Trade Seller: Stag Motor Company
5 Doors, Manual, Hatchback, Diesel, 10,000 miles, Blue, 1 Owner. Remote locking, Passenger airbag, Electric windows, Alloy wheels, Central locking, Alarm, Audio remote control, ABS, Air conditioning, Side airbags, Cloth seat trim, Radio/CD. Insurance Group:6
£8,990
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