The Best Way to Use £10k for a 'New' Car?

[Seeker UK]

I am coming to the end of my PCP on my 2017 A5 V6 Diesel Quattro (218). As a man in his 50s, I have, of course, decided that now would be the right time to get something a bit more special on the drive than the A5. It's a great car but just not special enough. Because Covid, I have been fortunate to increase my car deposit pot to £12k (twice what I'd normally have). The question is, what to do with it. I reckon that the sensible course is to keep £2k back for any maintenance in the first year (unless I buy from a main dealer), so that leaves £10k to spend with a monthly budget of £400. Any finance deal I may have, I don't want to go beyond 36 months.

MPG / VED / insurance are not concerns but comfortable seats for Mrs Seeker and I (I regularly have 200-mile round trips for work and don't want to come out the end of it crippled), enough room to carry the weekly shopping (5/6 bags for life and a box of beer) and something that is going to make me feel good to park on the drive and have that 'just one more look' factor.

I think that gives me five options:

1. Buy something outright for £10k like an MB CL500, SL500 or leggy DB7 and £400 a month to spend on fuel, maintenance and sweets.
2. Deposit of £10k and HP. Depending on loan providers, 36 months gets me £23k. That would buy me something like a 6 series, XKR or Cayman
3. Deposit of £12k and PCP at a main dealer. I reckon that could get me an S5 or M4 or a Cayman with Porsche warranty.
4. Deposit of £10k and 'sports car finance'. Something like an AM Vantage or 997 gen 2.
5. (Wildcard) Deposit of £10k and 6 year finance. That gets me £35k but I take the risk that after 3 years, selling the car clears the outstanding finance. That will limit the sort of car I should buy (ie won;t lose more than 50% of value in 3 years).

So PH'ers:

• Which would be the approach you would take, or have taken, and why?
• I've run out of good ideas for suitable cars to look at - what else might you recommend and why?

Thanks

[swanseaboydan]

You may get a nice Porsche Macan around the 30k price. It’s a great all rounder - or are you only keen on a coupe type car - if so - jag xkr ?

[ACCYSTAN]

£10k cash would get you a brand new Dacia Sandero

[Seeker UK]

swanseaboydan said:

You may get a nice Porsche Macan around the 30k price. It’s a great all rounder - or are you only keen on a coupe type car - if so - jag xkr ?

Thanks for taking time to reply, Dan.

I've had a Cayenne and really liked that but I think the Macan is the option for when I'm a bit older and can't get into a coupe. I'm not 100% determined to get a coupe but in my mind a coupe has more of a cachet than a big-engined saloon or estate: an M6 looks a lot more prestigious than an M5.

The XKR seems like an option and gets me a lot of the AM vibe without the risk of breaking the bank.

[nickfrog]

I am not sure a Sandero is that much more special than a A5.

[Seeker UK]

ACCYSTAN said:

£10k cash would get you a brand new Dacia Sandero

Thanks for replying.

Yes it would, but a Dacia Sandero isn't special enough to me. I've spent a lifetime avoiding Euroshoppers and I'm not going to start. Well, not until I've retired maybe.

[swanseaboydan]

M3 or m4 ?

[samoht]

Seeker UK said:

3. Deposit of £12k and PCP at a main dealer. I reckon that could get me an S5 or M4 or a Cayman with Porsche warranty.

You could also look at the new Supra (3.0) or the Alpine A110, both of which would fit your new-car budget. I don't know if the new M2 CS would be too much.

[Fusion777]

CLS63? There's the CLS350/400 and the E400, too. Depends how much power/exclusivity you want. This would be option 2 I guess- £10k down and the rest from a bank loan for the best interest rates.

[Seeker UK]

swanseaboydan said:

M3 or m4 ?

M4 is on the list to try - it's all down to the seats.

[Seeker UK]

samoht said:

Seeker UK said:

3. Deposit of £12k and PCP at a main dealer. I reckon that could get me an S5 or M4 or a Cayman with Porsche warranty.

You could also look at the new Supra (3.0) or the Alpine A110, both of which would fit your new-car budget. I don't know if the new M2 CS would be too much.

I've thought about them and may well go and try them but my main concern is seat comfort. I am a big chap and have a bad back and the seats in the Supra, if they are like the BMW 'standard' (ie non-M) sports seats are too uncomfortable,

[Seeker UK]

Fusion777 said:

CLS63? There's the CLS350/400 and the E400, too. Depends how much power/exclusivity you want. This would be option 2 I guess- £10k down and the rest from a bank loan for the best interest rates.

Before the A5, I had a CLS 350 Grand Edition which was pretty good so a CLS AMG is an attractive prospect.

[LeeM135i]

Given you budget and the low personal loan rates I would be using your £10k as a deposit and borrowing £25k over 5 years at 2.9% APR on a personal loan. Total interest is less than £1,800 over the 5 years, way less than the 9.8% most dealer finance will charge.

With the large deposit you will be able to sell the car and pay off the loan at any point. £35k gets you into the 911/Cayman/AMV8V you want, be careful with the running costs which can be large given the original value of the car.

I did this last time round and have just paid off the M135i albeit with a £5k deposit and £19k loan, now have a car that's still worth £12k to P/X for a newer car with another £5k cash and a £20k-£25k loan........

[ZX10R NIN]

I'd get a loan for 5-8k that give you 17-20k to play with & that gives you a lot of options to play with.

CL500 5.5 N/A these are pretty much bulletproof, the air suspension can suffer the same issues as any car with air.

https://www.autotrader.co.uk/car-details/202104271...

https://www.autotrader.co.uk/car-details/202103310...

The 4.7TT 500 is the better option though:

https://www.autotrader.co.uk/car-details/202103190...

https://www.autotrader.co.uk/car-details/202104050...

4.2 Jaguar XKR well proven a great drive & comfortable seats.

https://www.autotrader.co.uk/car-details/202104101...

5.0 XK Porfolio

https://www.autotrader.co.uk/car-details/202104281...

https://www.autotrader.co.uk/car-details/202104251...

Maserati Gransport a very special car but it does have high running costs:

https://www.autotrader.co.uk/car-details/202104251...

V8S Panamera

https://www.autotrader.co.uk/car-details/202104271...

https://www.autotrader.co.uk/car-details/202101258...

640i

https://www.autotrader.co.uk/car-details/202104040...

650i GC

https://www.autotrader.co.uk/car-details/202104141...

[Seeker UK]

LeeM135i said:

Given you budget and the low personal loan rates I would be using your £10k as a deposit and borrowing £25k over 5 years at 2.9% APR on a personal loan. Total interest is less than £1,800 over the 5 years, way less than the 9.8% most dealer finance will charge.

Thanks for the reply, Lee.

Yeah. I can get 2.9% on a PCP from some franchised dealers but that means a car < 3 years old. The best offer I got from a 'classic sports with balloon' package through a finance broker was about 6.9% hence I think that I should sort out my own loan if I go that route.

WRT AM and AMG ownership, I've done a lot of reading and I have some very good specialists around me that should keep the costs down (ish). Having said that, my boss has just had two rear lights replaced on his AM Vanquish and that was a bit of an eye opener with the majority of the £6k bill on parts not labour.

[raspy]

Take your £12k and put it into some growth stocks that are likely to double in the next 12 months. Then next summer, your profit can be used for your car deposit &#128578;

[Adam y0]

Supra?

[Seeker UK]

raspy said:

Take your £12k and put it into some growth stocks that are likely to double in the next 12 months. Then next summer, your profit can be used for your car deposit ??

Thanks but (a) I am risk averse when it comes to savings so don't gamble on stocks and shares and (b) the PCP ends soon.

[Seeker UK]

ZX10R NIN said:

I'd get a loan for 5-8k that give you 17-20k to play with & that gives you a lot of options to play with.

CL500 5.5 N/A these are pretty much bulletproof, the air suspension can suffer the same issues as any car with air.

https://www.autotrader.co.uk/car-details/202104271...

https://www.autotrader.co.uk/car-details/202103310...

The 4.7TT 500 is the better option though:

https://www.autotrader.co.uk/car-details/202103190...

https://www.autotrader.co.uk/car-details/202104050...

4.2 Jaguar XKR well proven a great drive & comfortable seats.

https://www.autotrader.co.uk/car-details/202104101...

5.0 XK Porfolio

https://www.autotrader.co.uk/car-details/202104281...

https://www.autotrader.co.uk/car-details/202104251...

Maserati Gransport a very special car but it does have high running costs:

https://www.autotrader.co.uk/car-details/202104251...

V8S Panamera

https://www.autotrader.co.uk/car-details/202104271...

https://www.autotrader.co.uk/car-details/202101258...

640i

https://www.autotrader.co.uk/car-details/202104040...

650i GC

https://www.autotrader.co.uk/car-details/202104141...

Some food for thought there. Cheers.

What's the advantage of the 4.7 over the 5.5 CL?

The Panamera looks good too.

[Summit_Detailing]

XKR or SL500 would be where my money would go in your scenario.

Happy shopping!

Cheers

Chris