Advice on financing a new car

[Blue62]

I've always had company cars but now find myself having to fork out for my own and want to ask for a little advice. I would prefer to change every couple of years and hand the keys back, what is the best option for non business, based on around 10k per annum?

[Butter Face]

PCP.

Minimum deposit, set your mileage right at the beginning, try and get something with servicing included.


Or a personal lease.

[davey68]

On a pcp is it always best to put in minimum deposit? surely it's better to put in a bit more to keep payments down or is it better to keep the cash in your bank and just pay out higher monthly charges?

[Vladimir]

Save up for it.

Buy it.

[Butter Face]

davey68 said:

On a pcp is it always best to put in minimum deposit? surely it's better to put in a bit more to keep payments down or is it better to keep the cash in your bank and just pay out higher monthly charges?

Depends on the rate obviously but you don't get the money back anyway so it's really swings and roundabouts.

The more you put in, the lower your monthly payments, but at 5-6% APR I'd rather keep £0000's in my pocket and pay £20pm more.

[Blue62]

I had read that lease (as opposed to PCP) is the way to go if you don't intend to keep/buy the car at the end of the term, but there was no explanation as to why.

[LukeR94]

Vladimir said:

Save up for it.

Buy it.

There's always one, fk off, mate.

Edited by LukeR94 on Tuesday 5th November 09:44

[Butter Face]

Blue62 said:

I had read that lease (as opposed to PCP) is the way to go if you don't intend to keep/buy the car at the end of the term, but there was no explanation as to why.

It just comes down to figures TBH. There isn't one way that is always better.

The simplest way is to find out what car you want, find out the deposit and monthly cost (and anything else you're liable for, servicing etc) and add it all up.

It's a crap site but lingscars always has cheap lease deals if you don't really know what you want but want to see what you get for your budget.

As always, go in with your eyes open, work out all of your costs and get as good a deal as you can.

[dizzy1uk]

Have you thought about PCH (personal contract hire, aka personal leasing)? Minimal deposit, low interest rates, no balloon (because you never own it) and you get a new car every 2-4 years. You need to keep within mileage limits but there seem to be some great deals around when manufacturers discount.