25-30K pa, lease, buy at £10k, or buy at £5k?

[Slackman99]

A new job means that i'll need to arrange my own car after 12 years of company cars. It won't be needed for a few months, so wondering if lease deals might improve.

I get a car allowance in the new role, with no restrictions on type/age etc although do feel if I turned up in a £500 shed then something would be said!

I'll be doing circa 15k commuting with another 10-15k of business miles for a total of 25-30k per year so I need something that is reliable, comfortable and cheap to run/good on mpg.

I would prefer an estate, but would also take a hatch or saloon if they provide better value

The car needs to have an mpg of at least 45 on the motorway (more than this is better so assume diesel would be the way to go), have cruise control and a phone connection. It also needs to be comfortable cruising on the motorway and preference would be an auto, but again, would take a manual if it's better value/more reliable.

I'm trying to weigh up options and struggling with what route to look into.

Options as I see them:

1. 24m Lease - For circa £360/m including maintenance (24m lease) it looks like I could get an Octavia (or similar), diesel, possibly with the DSG box. Should be good, decent economy, new, safe etc. Would also benefit from radar cruise control and Android Auto. This is quite appealing as it would be a new car that should be safe and reliable and wouldn't have any surprise big bills.

2. Buy something at circa £10k - Too many options at this price, from E class to Civic 1.6. Based on a few assumptions on servicing etc, and assuming no nasty surprises, this looks to be a similar cost to leasing over the 2 years, but then jumps ahead of leasing in year 3 as i'd still own the car and wouldn't need to add a new deposit for a new lease (and the higher monthly lease cost)

3. Buy something at circa £5k - Not sure if this is the right route, but do like the idea of having something that doesn't owe me too much, but am I likely to get something comfortable, reliable etc for this sort of money. Could add a new head unit if needed to give me phone/nav etc. Would be higher mileage, but again depending on general reliability that isn't necessarily a problem. Due to the deposit on the lease, this option is potentially cheaper than the lease after about 6 months or lease, so again appealing.

Lease
Octavia
A4 (if the good deals are still about)
Civic

£10k
Civic Tourer
Avensis Estate/Saloon
E Class (older) saloon
Mondeo (surprisingly expensive)

£5k
???
Have seen a 2010 Avensis Estate with the 2.0 D4D at a Toyota dealer with 70k on the clock and thought this might be a decent buy.

Just interested on thoughts as i'm struggling to get my head around my preferred route. Coming out in the best financial position (whilst having a comfortable, safe, and reliable way to get to work) is the key driver.

[Monkeylegend]

Just as an aside if this is your first privately owned car in 12 years does this mean you have not built up any no claims discount for insurance purposes.

If that is the case it might be worth running a few quotes to see how this impacts you on various cars.

[colin79666]

Good point above about insurance. Also be sure to check service intervals and costs as this could vary significantly between manufacturers. Japanese cars tend to have shorter service intervals, although this might be why they also tend to be more reliable...

[PistonAFC]

colin79666 said:

Good point above about insurance. Also be sure to check service intervals and costs as this could vary significantly between manufacturers. Japanese cars tend to have shorter service intervals, although this might be why they also tend to be more reliable...

No, Japanese cars are just better built/designed .

Edited by PistonAFC on Monday 22 June 21:42

[jwilco]

I'd probably say somewhere between the two values would make sense financially for buying. £10k and the car is still depreciating quite a lot, £5k and you're going to have to go higher mileage and/or older both of which aren't ideal for reliability. Leasing a decent car for 2 years is going to cost about £7k so if you spend that you can't go too wrong... It'll definitely be worth something if you look after it!

A few options are the classics like a Ford Mondeo (decent steer) or Vauxhall Insignia. Others to throw into the mix are a Volvo V60 or Mazda 6, plus too many others to list!

[Jag_NE]

If you can stomach 360 a month I’d get a 20k bank loan over 5 years and get something relatively new and nice. If you look after the car it should easily last the duration of the loan and you will have a good few grand in the car when the loan is repaid. You could get a 1-2 year old 520d for example.

[Jamescrs]

If you want something to eat the miles in relative comfort and with reliability and lowish running costs I'd suggest throwing your 10k budget at a Vauxhall Insignia.

It will be relatively new at that price, well specced and I doubt anyone will have an opinion on it either way in the company car park.

Not the last word in driver involvement but when you are doing 30k a year I imagine you want comfort and reliability more.

[hepy]

Regarding the insurance, will be worth contacting your company's insurer to see if they can issue you a proof of no claims letter. In my experience insurance companies will be happy with that.

[joropug]

You're spending that long in a car, make sure you enjoy it and it's comfortable.

Both in the 10k category, two of my previous cars:
F30 320d (Very good on fuel, 60mpg on the motorway - But the manual gearbox is horrible, get the auto).

W204/C204 Mercedes C Class (2012 on facelift) - Mine is a C220cdi, twin turbo 2.1d with great torque coupled to a 7 speed auto gearbox. Gets mid 50s easily on the motorway, 45 elsewhere and is suprisingly quick for the 160-170 ish HP.

I bought an AMG Sport Plus Coupe with 71k (2013) for under 9 grand a year ago.

The BMW is more modern feeling (especially entertainment) but actually, The mercedes has the nicer interior and seats and the entertainment is better quality with more functionality, just doesn't look as nice.



In the 5k category i'd look for an E60 Facelifted 530d - another previous car. 2007 57 onwards they had an upgraded gearbox, interior and lighting. Ideal motorway cruisers, 45mpg on the motorway.

[Slackman99]

Morning all, apologies for the slow response to the thread but PH had replied turned off for new users for a while.

Just to answer a few points above:

I wouldn't want to commit to £360/m for 5 years on a loan. Appreciate that I could get something nice, but would surely get hit with a fair amount of depreciation as well as the potential maintenance costs (although assume warranty would apply depending on car). If I'm spending that much I might as well lease and have a new car (at least in my head).

I had an Insignia Elite as a company car. It was ok, but I didn't find the seats that comfy. Also not sure I could bring myself to spend my own money on a Vauxhall (not that there was anything wrong with it and the same money seems to buy you more Insignia than it does Mondeo).

I do quite like the idea of a Merc as they look quite nice from the outside and understand that they are comfortable for long mileage.

Not that far away from Mercland, and whilst buying private is likely to get me lower miles etc, I assume that if I bought from somewhere reputable like that, at least I know I wouldn't have bought a complete dog?

[Slackman99]

Good point on the insurance. Ran a couple of quotes for new cars and it wasn't looking too horrendous, but haven't checked on used cars yet

[ZX10R NIN]

I'd spend 10K & get a low mileage rep car as they're designed to do miles comfortably & reliably, there are some great options for me it'd have to be an auto & I'd want something 2014> preferably with less than 50k, with this in mind these would be my picks, a lot of these have less than 40k.

Insignia Elite Nav these are designed for exactly what you require with most cars having long service intervals I'd say having an engine flush every other service is a smart move no matter what the car you finally choose is.

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

Mondeo Titanium 180 this is the best FWD steer but you do lose spec & are nearer to 50K than you would be with the Insignia

https://www.autotrader.co.uk/classified/advert/202...

150

https://www.autotrader.co.uk/classified/advert/202...

Infiniti Q50 Sport this would be my pick as it's the beast balance of spec mileage & power the big plus point for me is the Mercedes 2.1d drivetrain which has proven itself to be pretty bulletproof & it also means any decent Indy can service it making running cost lower.

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

Q70 Sport these have everything but the kitchen sink inside but the looks aren't to everyones taste & you'll have to stretch the budget.

https://www.autotrader.co.uk/classified/advert/202...

Citroen DS5 these are very underrated but are a great car for eating up the miles they're well appointed & have a very good ride.

DS5 Sport

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

Style

https://www.autotrader.co.uk/classified/advert/202...

508 Allure nice cars but I'd take the DS5 over one.

https://www.autotrader.co.uk/classified/advert/202...

[Slackman99]

Thanks for the detailed reply.

I had an Insignia in my previous job and didn't find the seats that comfortable.

I do like a Mondeo but have seen a few of the Q50 ads it it looks like you get a lot of cat for your money. How well are they screwed together? So could an MB specialist service the car/engine?

[Swoxy]

Buy a one owner Lexus IS 300h cash for around £10 - 12k.

[Slackman99]

Have just had a look and they are very nice looking cars! Serious budget creep though

I assume they are reliable being a Lexus? And would you realistically realise a decent mpg on the motorway as I assume the hybrid element wouldnt help other than around town?

[ZX10R NIN]

Slackman99 said:

Thanks for the detailed reply.

I had an Insignia in my previous job and didn't find the seats that comfortable.

I do like a Mondeo but have seen a few of the Q50 ads it it looks like you get a lot of cat for your money. How well are they screwed together? So could an MB specialist service the car/engine?

They're very well screwed together easily on par with Lexus/Audi yes any MB specialist can service one as the whole drivetrain is Mercedes as I said a good Indy let alone a specialist will be able to look after it for you.

If you fancy a Hybrid Infiniti do a couple of those too

M35h

https://www.autotrader.co.uk/classified/advert/201...

So do BMW:

335i Active Hybrid

https://www.autotrader.co.uk/classified/advert/202...

Or you could go for a diesel Hybrid & the DS5 ticks that box:

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

https://www.autotrader.co.uk/classified/advert/202...

[Jamescrs]

Slackman99 said:

Not that far away from Mercland, and whilst buying private is likely to get me lower miles etc, I assume that if I bought from somewhere reputable like that, at least I know I wouldn't have bought a complete dog?

Just picking up on this point, buying from a dealer doesn't mean you won't be buying a trouble car, all it means is that you will have some fall back if you do.

[Slackman99]

I'm not necessarily keen on a hybrid as my understanding was that a diesel is probably likely to be better for the higher miles and motorway driving with the hybrid benefits occuring in towns, traffic etc?

I do like the look of the Lexus, but then upping to budget to £13k just means that it'll then creep again!

The Q50 looks like a lot of cat for the money, and assume the MB engine and gearbox is generally well received and reliable?

[Slackman99]

Point taken on the dealer approach, but would assume that a dealer with a good rep would at least have checked the car over before they took it on so hopefully no hidden issues.

Appreciate that all cars can go wrong (even new), but as you say with a reputable dealer hoping they would at least sell in good faith and as you say, have some comeback

[Monkeylegend]

Slackman99 said:

I'm not necessarily keen on a hybrid as my understanding was that a diesel is probably likely to be better for the higher miles and motorway driving with the hybrid benefits occuring in towns, traffic etc?

I do like the look of the Lexus, but then upping to budget to £13k just means that it'll then creep again!

The Q50 looks like a lot of cat for the money, and assume the MB engine and gearbox is generally well received and reliable?

I certainly would not touch the E Class hybrid, very few dealers are able to sort out issues, and they do have more than their fair share, and you do not want to know the price of a replacement battery pack.