Need a car but will need to finance - PCH v loan?
Discussion
Hi all, bit of a dry one but i would appreciate some thoughts. Quick background - just moved out of my parent's to my first home, but as I've been using their cars I am now without one, so need to get something sorted asap. Between new house costs, costs related to sporting ambitions etc, without pulling from ISAs I only have a few liquid thousand in cash, which doesn't get me something suitable for my current needs.
The requirements:
- Reliable and predictable - I have a new to me victorian house with associated renovations, an ongoing professional qualification which I'll be sitting exams for next year and very consuming sporting commitments, so don't have the capacity to deal with something that’s going to give me headaches for the next 18 months or so.
- Ideally 5 door hatchback to fit in tighter spaces. Also the more parking sensors the better.
- Able to fit a road bike without a front wheel in the back with seats down, so nothing smaller than a 3 door F56 Cooper
- Low/reliable running costs (tax, fuel and foreseeable maintenance)
- Comfortable enough to do nearly back to back road trips to and from Kitzbühel, Hamburg and Tallin with aforementioned bike inside
- Not a diesel, Ecoboost or PureTech engine
- Maintenance, Tax and Depreciation need to be significantly less than £3k per year
Budget to buy cash would be about £10.5k, but options that fit into the above criteria (and have a clean history) seems predominantly mind-numbingly dull, and not necessarily hitting all the above. The other option I have been seriously considering is just leasing a VW Taigo for 2 years, which would cost me £6k-ish, but would hit all the above requirements without needing to give it a second though, at the cost of basically any driving interest. It also just doesn't feel quite right - I've been sitting on the quote for 4/5 days now, and the thought of pulling the trigger on it feels like a mistake, even though I can't really put my finger on why.
Originally had my hopes set on an unmolested early M135i or Mk7 Golf GTI, but in both cases I'd need a very good car to come up at a very good deal, and as I'm informally limiting my search to within 1 hour of where I live, I can't hold on in hope that something will appear in a quick fashion.
Any thoughts on if I'm missing something? Should I just bite the bullet with the Taigo and accept mundanity for 2 years?
The requirements:
- Reliable and predictable - I have a new to me victorian house with associated renovations, an ongoing professional qualification which I'll be sitting exams for next year and very consuming sporting commitments, so don't have the capacity to deal with something that’s going to give me headaches for the next 18 months or so.
- Ideally 5 door hatchback to fit in tighter spaces. Also the more parking sensors the better.
- Able to fit a road bike without a front wheel in the back with seats down, so nothing smaller than a 3 door F56 Cooper
- Low/reliable running costs (tax, fuel and foreseeable maintenance)
- Comfortable enough to do nearly back to back road trips to and from Kitzbühel, Hamburg and Tallin with aforementioned bike inside
- Not a diesel, Ecoboost or PureTech engine
- Maintenance, Tax and Depreciation need to be significantly less than £3k per year
Budget to buy cash would be about £10.5k, but options that fit into the above criteria (and have a clean history) seems predominantly mind-numbingly dull, and not necessarily hitting all the above. The other option I have been seriously considering is just leasing a VW Taigo for 2 years, which would cost me £6k-ish, but would hit all the above requirements without needing to give it a second though, at the cost of basically any driving interest. It also just doesn't feel quite right - I've been sitting on the quote for 4/5 days now, and the thought of pulling the trigger on it feels like a mistake, even though I can't really put my finger on why.
Originally had my hopes set on an unmolested early M135i or Mk7 Golf GTI, but in both cases I'd need a very good car to come up at a very good deal, and as I'm informally limiting my search to within 1 hour of where I live, I can't hold on in hope that something will appear in a quick fashion.
Any thoughts on if I'm missing something? Should I just bite the bullet with the Taigo and accept mundanity for 2 years?
Sounds like you re on the up 
It also sounds like you need a £5-8k ish estate that is presentable but not something to stress about for bikes, renovation works and just giving you some flexibility (or at least that s what I d be doing, having had quite a similar mid 20 s to 30 s!)
Are Octavia vrs, volvo v60 or a 3-series appealing?
It also sounds like you need a £5-8k ish estate that is presentable but not something to stress about for bikes, renovation works and just giving you some flexibility (or at least that s what I d be doing, having had quite a similar mid 20 s to 30 s!)
Are Octavia vrs, volvo v60 or a 3-series appealing?
jagb said:
- Ideally 5 door hatchback to fit in tighter spaces. Also the more parking sensors the better.
- Able to fit a road bike without a front wheel in the back with seats down, so nothing smaller than a 3 door F56 Cooper
- Low/reliable running costs (tax, fuel and foreseeable maintenance)
- Comfortable enough to do nearly back to back road trips to and from Kitzbühel, Hamburg and Tallin with aforementioned bike inside
Why not a 5 door F56 Cooper?- Able to fit a road bike without a front wheel in the back with seats down, so nothing smaller than a 3 door F56 Cooper
- Low/reliable running costs (tax, fuel and foreseeable maintenance)
- Comfortable enough to do nearly back to back road trips to and from Kitzbühel, Hamburg and Tallin with aforementioned bike inside
I have a 3 door 1.5 Cooper for my daily duties and it does everything faultlessly. Cheap to insure, my year 2015 one is cheap to tax (£20), I get 43mpg on my commute (mix of dual carriageways and B Roads) and have seen 55mpg on a run. A part for basic maintenance and consumables, nothing else has cost me. Put some decent tyres on it and you'll get plenty of smiles per miles. If you're not often carrying passengers on a long distance then it's super comfy too.
Dg504 said:
Sounds like you re on the up
It also sounds like you need a £5-8k ish estate that is presentable but not something to stress about for bikes, renovation works and just giving you some flexibility (or at least that s what I d be doing, having had quite a similar mid 20 s to 30 s!)
Are Octavia vrs, volvo v60 or a 3-series appealing?
I would love to make an estate work, but parking really is an issue for me on account of having a number of neighbours who work at JLR and so fill up the already tight street parking with 130" wheel base Defenders, and there is very little alternative parking around! If I was to accept defeat then a Superb or Octavia estate would probably be first on my list. 3 series would be decent, but my budget doesn't stretch to one I would be happy to own which isn't high mileage. V60s in budget run too old, are too low of a spec engine wise & too high of a mileage.It also sounds like you need a £5-8k ish estate that is presentable but not something to stress about for bikes, renovation works and just giving you some flexibility (or at least that s what I d be doing, having had quite a similar mid 20 s to 30 s!)
Are Octavia vrs, volvo v60 or a 3-series appealing?
My worry with getting something in the £5-8k range is that we are squarely in the category of cars that will need preventative maintenance - I'm not able to do any DIY work on my own car beyond bare essential maintenance because I have no driveway, and I only have very limited spare time on the weekend (and non at all weekdays) so frankly the thought of needing to spend it a moment of it crawling on the floor trying to replace a worn subframe bushing, tracing a new oil leak etc depresses me.
Jayho said:
Why not a 5 door F56 Cooper?
I have a 3 door 1.5 Cooper for my daily duties and it does everything faultlessly. Cheap to insure, my year 2015 one is cheap to tax (£20), I get 43mpg on my commute (mix of dual carriageways and B Roads) and have seen 55mpg on a run. A part for basic maintenance and consumables, nothing else has cost me. Put some decent tyres on it and you'll get plenty of smiles per miles. If you're not often carrying passengers on a long distance then it's super comfy too.
Genuinely its solely the looks of the 5 door - its top 5 worst looking cars on the road for me! I have a 3 door 1.5 Cooper for my daily duties and it does everything faultlessly. Cheap to insure, my year 2015 one is cheap to tax (£20), I get 43mpg on my commute (mix of dual carriageways and B Roads) and have seen 55mpg on a run. A part for basic maintenance and consumables, nothing else has cost me. Put some decent tyres on it and you'll get plenty of smiles per miles. If you're not often carrying passengers on a long distance then it's super comfy too.
The main car I borrow at the moment is a 3 door F56 Cooper S which I do love except for the abysmal fuel economy given its size & power. I've only ruled it off the list because it is a bit of a game of tetris getting my bike into it, and I really would like more than 33mpg. I'll have a look at what 1.5 Coopers are available though, only ever scanned the S and JCWs.
I was also thinking of the F54 Clubman which i find ok looks wise in JCW spec, but i am struggling to find an approved used one which is specced as I'd like, and my local Mini dealer has none in stock for me to have sit in.
Countdown said:
Toyota Auris 1.2 icon or Excel.
My wife s got one and it does all of the above.
ETA apologies- didn t see the reference to mind numbingly dull
Beyond the dull, I'm also very conscious that a very large portion of them have done duties as pool cars, work lease cars etc because of how cheap they were for fleet buyers, so hard to know for sure how any given one was treated.My wife s got one and it does all of the above.
ETA apologies- didn t see the reference to mind numbingly dull
Edited by Countdown on Wednesday 5th August 11:12
The lease is the easy fixed price option but remember you’ll spend on repairing for dings etc. when you return it and this extra cost can mount up.
I prefer a private loan which you can pay off earlier if required. You can always take out say a 5-year loan now to keep your payments manageable even if you only aim to keep the car for 2-3 years, and either pay off the loan when your cash flow improves or when you sell the car.
You can pick up a nearly new VW Taigo for £17k. Nearly new reduces the depreciation you suffer massively compared to new. With some cash and a loan, does this work for you financially? This would be and has been my approach to buying cars for decades.
https://quotes.carwow.co.uk/deals/gva/8edb2e21a7a3...
I prefer a private loan which you can pay off earlier if required. You can always take out say a 5-year loan now to keep your payments manageable even if you only aim to keep the car for 2-3 years, and either pay off the loan when your cash flow improves or when you sell the car.
You can pick up a nearly new VW Taigo for £17k. Nearly new reduces the depreciation you suffer massively compared to new. With some cash and a loan, does this work for you financially? This would be and has been my approach to buying cars for decades.
https://quotes.carwow.co.uk/deals/gva/8edb2e21a7a3...
I don't have a lot to offer but when I have financed cars, I have done 3 personal loans. 2 of which I was open and advised was for a car. They were charged at 7.9% and 7.4% (basically Motonovo interest rates at the time). The most recent one I did, I chose the option for "something else" and got 5.4%. Worth a shout when looking into loan options. I've found loans cheaper than vehicle financing, but some loans are harder to overpay than others.
Phil. said:
The lease is the easy fixed price option but remember you ll spend on repairing for dings etc. when you return it and this extra cost can mount up.
I prefer a private loan which you can pay off earlier if required. You can always take out say a 5-year loan now to keep your payments manageable even if you only aim to keep the car for 2-3 years, and either pay off the loan when your cash flow improves or when you sell the car.
You can pick up a nearly new VW Taigo for £17k. Nearly new reduces the depreciation you suffer massively compared to new. With some cash and a loan, does this work for you financially? This would be and has been my approach to buying cars for decades.
https://quotes.carwow.co.uk/deals/gva/8edb2e21a7a3...
I prefer a private loan which you can pay off earlier if required. You can always take out say a 5-year loan now to keep your payments manageable even if you only aim to keep the car for 2-3 years, and either pay off the loan when your cash flow improves or when you sell the car.
You can pick up a nearly new VW Taigo for £17k. Nearly new reduces the depreciation you suffer massively compared to new. With some cash and a loan, does this work for you financially? This would be and has been my approach to buying cars for decades.
https://quotes.carwow.co.uk/deals/gva/8edb2e21a7a3...
RazerSauber said:
I don't have a lot to offer but when I have financed cars, I have done 3 personal loans. 2 of which I was open and advised was for a car. They were charged at 7.9% and 7.4% (basically Motonovo interest rates at the time). The most recent one I did, I chose the option for "something else" and got 5.4%. Worth a shout when looking into loan options. I've found loans cheaper than vehicle financing, but some loans are harder to overpay than others.
Family member is willing to do me a loan at 4%, so a better rate than most financing, but I'm limited by the monthly repayment. I can really only do about £175 without potentially putting myself at risk of negative cashflow in my reasonable worst case scenario forecast, which is the monthly on the new Taigo. The £10.5k budget to buy is made up of £8.3k loan, £2.2k down. The £8.3k loan on those terms, plus a £20 pm allowance for amortised VED and MOT costs which aren't applicable to the PCH deal, put me at the £175, so I don't think there's really a way to spin it to push for a used car above £10.5k-ish.
I don't think there's anyway to get a Taigo cheaper than this deal for me, even with the very cheapest used one, although I would stress I'm only interested in it because of the deal, not because I have a burning desire to drive a Taigo!
jagb said:
Beyond the dull, I'm also very conscious that a very large portion of them have done duties as pool cars, work lease cars etc because of how cheap they were for fleet buyers, so hard to know for sure how any given one was treated.
You're not wrong especially as the hybrids are the preferred car for Uber/taxi drivers. However there are a lot out there which are genuine low mileage cars owned by pensioners precisely because of their reliability and dependability. If you don't go for a hybrid or a diesel you've got a better chance of getting one that wasn't used and abused.P.s. My wife's has sensors all round plus a reversing camera. It is UNBELIVABLY easy to park in tight spaces. It's got to the point where I'm worried about my parking skills deteriorating
Sounds like you’ve answered your own question. Go for the lease deal because it has fixed costs and you can afford it. Having just bought a house and undertaking improvements you don’t want to over commit to car finance. In 2 years time your situation will probably be different. In the meantime get a new car and enjoy life rather than worrying about repayments.
It's the car dilemma, personally I hate depreciation and realise life is too short for dull cars
All options someone is paying the depreciation, it's a fact. Dealers maybe desperate to shift stock which is why you get some great lease/0% PCP but you have nothing to show for it (Tesla model 3 thread on here which went crazy as Tesla obvs desperate to shift units so deal was great for many) Basically you're paying interest and depreciation in exchange for using their car
So Tiago, costs are guaranteed but you have nothing after 2 years
PCP can be better and still covers depreciation and interest on the loan. Option to buy could be good but unless you think the optional payment is really advantageous generally you have nothing left at the end
I've always used savings and a couple of loans to buy the a 2-4 year old car, much depreciation done and yes occasional bills but the total cost of ownership over a 4 year or so life is always cheaper than lease/PCP and I have what I believe a better car.
Also too many stories of lease return fines and they even use UV lights etc to pick out smart repairs and fine you still are a hidden cost potentially, esp. if you park on the street
All options someone is paying the depreciation, it's a fact. Dealers maybe desperate to shift stock which is why you get some great lease/0% PCP but you have nothing to show for it (Tesla model 3 thread on here which went crazy as Tesla obvs desperate to shift units so deal was great for many) Basically you're paying interest and depreciation in exchange for using their car
So Tiago, costs are guaranteed but you have nothing after 2 years
PCP can be better and still covers depreciation and interest on the loan. Option to buy could be good but unless you think the optional payment is really advantageous generally you have nothing left at the end
I've always used savings and a couple of loans to buy the a 2-4 year old car, much depreciation done and yes occasional bills but the total cost of ownership over a 4 year or so life is always cheaper than lease/PCP and I have what I believe a better car.
Also too many stories of lease return fines and they even use UV lights etc to pick out smart repairs and fine you still are a hidden cost potentially, esp. if you park on the street
jagb said:
Jayho said:
Why not a 5 door F56 Cooper?
I have a 3 door 1.5 Cooper for my daily duties and it does everything faultlessly. Cheap to insure, my year 2015 one is cheap to tax (£20), I get 43mpg on my commute (mix of dual carriageways and B Roads) and have seen 55mpg on a run. A part for basic maintenance and consumables, nothing else has cost me. Put some decent tyres on it and you'll get plenty of smiles per miles. If you're not often carrying passengers on a long distance then it's super comfy too.
Genuinely its solely the looks of the 5 door - its top 5 worst looking cars on the road for me! I have a 3 door 1.5 Cooper for my daily duties and it does everything faultlessly. Cheap to insure, my year 2015 one is cheap to tax (£20), I get 43mpg on my commute (mix of dual carriageways and B Roads) and have seen 55mpg on a run. A part for basic maintenance and consumables, nothing else has cost me. Put some decent tyres on it and you'll get plenty of smiles per miles. If you're not often carrying passengers on a long distance then it's super comfy too.
The main car I borrow at the moment is a 3 door F56 Cooper S which I do love except for the abysmal fuel economy given its size & power. I've only ruled it off the list because it is a bit of a game of tetris getting my bike into it, and I really would like more than 33mpg. I'll have a look at what 1.5 Coopers are available though, only ever scanned the S and JCWs.
I was also thinking of the F54 Clubman which i find ok looks wise in JCW spec, but i am struggling to find an approved used one which is specced as I'd like, and my local Mini dealer has none in stock for me to have sit in.
Yeah the 5 doors dont look quite right, I would agree with you there. But if you manage to find a 1.5 Cooper with the JCW kit, they're not as horrendous as those without.
I think JCW Clubmans another big jump in terms of pricing? I'm contemplating replacing my Mini with one next year and the JCW's all seem to be around the 20k mark? Clubman S's are a more around the budget.
Option 3 - buy a older car for the £2.2k, then put the £175/month into the bank. some sort of old golf will be perfect for dump runs as part of your renovations
After a year, either buy another £2k car, or continue using the first one and keep saving. Then end of year two treat yourself to a 4-5k car, which will feel like a dramatic improvement compared to your current vehicle!!
Easiest way to avoid depreciation. And a fun gamble for reliability
After a year, either buy another £2k car, or continue using the first one and keep saving. Then end of year two treat yourself to a 4-5k car, which will feel like a dramatic improvement compared to your current vehicle!!
Easiest way to avoid depreciation. And a fun gamble for reliability
jagb said:
Hi all, bit of a dry one but i would appreciate some thoughts. Quick background - just moved out of my parent's to my first home, but as I've been using their cars I am now without one, so need to get something sorted asap. Between new house costs, costs related to sporting ambitions etc, without pulling from ISAs I only have a few liquid thousand in cash, which doesn't get me something suitable for my current needs.
The requirements:
- Reliable and predictable - I have a new to me victorian house with associated renovations, an ongoing professional qualification which I'll be sitting exams for next year and very consuming sporting commitments, so don't have the capacity to deal with something that s going to give me headaches for the next 18 months or so.
- Ideally 5 door hatchback to fit in tighter spaces. Also the more parking sensors the better.
- Able to fit a road bike without a front wheel in the back with seats down, so nothing smaller than a 3 door F56 Cooper
- Low/reliable running costs (tax, fuel and foreseeable maintenance)
- Comfortable enough to do nearly back to back road trips to and from Kitzbühel, Hamburg and Tallin with aforementioned bike inside
- Not a diesel, Ecoboost or PureTech engine
- Maintenance, Tax and Depreciation need to be significantly less than £3k per year
Budget to buy cash would be about £10.5k, but options that fit into the above criteria (and have a clean history) seems predominantly mind-numbingly dull, and not necessarily hitting all the above. The other option I have been seriously considering is just leasing a VW Taigo for 2 years, which would cost me £6k-ish, but would hit all the above requirements without needing to give it a second though, at the cost of basically any driving interest. It also just doesn't feel quite right - I've been sitting on the quote for 4/5 days now, and the thought of pulling the trigger on it feels like a mistake, even though I can't really put my finger on why.
Originally had my hopes set on an unmolested early M135i or Mk7 Golf GTI, but in both cases I'd need a very good car to come up at a very good deal, and as I'm informally limiting my search to within 1 hour of where I live, I can't hold on in hope that something will appear in a quick fashion.
Any thoughts on if I'm missing something? Should I just bite the bullet with the Taigo and accept mundanity for 2 years?
Buy an Insignia estate they're exactly what could work for you, you'll get a good one for around 4k, spend the rest on the house & then once you've completed your renovations you can go & but a more PH option:The requirements:
- Reliable and predictable - I have a new to me victorian house with associated renovations, an ongoing professional qualification which I'll be sitting exams for next year and very consuming sporting commitments, so don't have the capacity to deal with something that s going to give me headaches for the next 18 months or so.
- Ideally 5 door hatchback to fit in tighter spaces. Also the more parking sensors the better.
- Able to fit a road bike without a front wheel in the back with seats down, so nothing smaller than a 3 door F56 Cooper
- Low/reliable running costs (tax, fuel and foreseeable maintenance)
- Comfortable enough to do nearly back to back road trips to and from Kitzbühel, Hamburg and Tallin with aforementioned bike inside
- Not a diesel, Ecoboost or PureTech engine
- Maintenance, Tax and Depreciation need to be significantly less than £3k per year
Budget to buy cash would be about £10.5k, but options that fit into the above criteria (and have a clean history) seems predominantly mind-numbingly dull, and not necessarily hitting all the above. The other option I have been seriously considering is just leasing a VW Taigo for 2 years, which would cost me £6k-ish, but would hit all the above requirements without needing to give it a second though, at the cost of basically any driving interest. It also just doesn't feel quite right - I've been sitting on the quote for 4/5 days now, and the thought of pulling the trigger on it feels like a mistake, even though I can't really put my finger on why.
Originally had my hopes set on an unmolested early M135i or Mk7 Golf GTI, but in both cases I'd need a very good car to come up at a very good deal, and as I'm informally limiting my search to within 1 hour of where I live, I can't hold on in hope that something will appear in a quick fashion.
Any thoughts on if I'm missing something? Should I just bite the bullet with the Taigo and accept mundanity for 2 years?
https://www.autotrader.co.uk/car-details/202607314...
If you want something more modern with Carplay/Android auto etc then go for the 1.5T:
https://www.autotrader.co.uk/car-details/202607134...
https://www.autotrader.co.uk/car-details/202606103...
The standard hatchbacks have a big boot so they may well work for you & that'll land you the more powerful 1.6t comfortably under budget too:
https://www.autotrader.co.uk/car-details/202510307...
https://www.autotrader.co.uk/car-details/202607154...
Or a higher mileage 2.0T, which adds 260bhp & AWD:
https://www.autotrader.co.uk/car-details/202607144...
Edited by ZX10R NIN on Wednesday 5th August 22:54
Only you can decide if the £3000 ish a year is worth it to have nothing at the end of the term, sure cars depreciate etc but buying something used makes the most sense really.
With leasing once your in its hard to get out as you get used to having a new car, used stuff becomes less attractive.
If you can afford it then fine, I do it but often think its madness really but I don`t drink or smoke, have sky tv or go out for expensive meals.
I have just signed up to a Tesla deal, was going to go out and spend £20k ish on a used Estate but just decided to give one a go on the current pch deals that I saw here.
Everyone is different, depends how you like to spend your money. I like most have lived and breathed cars for the last 30 years and its bordering on an obsession that my missus hates!
With leasing once your in its hard to get out as you get used to having a new car, used stuff becomes less attractive.
If you can afford it then fine, I do it but often think its madness really but I don`t drink or smoke, have sky tv or go out for expensive meals.
I have just signed up to a Tesla deal, was going to go out and spend £20k ish on a used Estate but just decided to give one a go on the current pch deals that I saw here.
Everyone is different, depends how you like to spend your money. I like most have lived and breathed cars for the last 30 years and its bordering on an obsession that my missus hates!
Will just add this here if the OP is looking for an M135i that fits the budget.
I'm looking to move on my early M135i for approx £9k. It's a 63 plate car with the EWG and has covered 98k miles. Massive specification, in very good condition inside and out. Full service history, will need a service in the next 2/3k miles. It's been almost faultless in my ownership for the last 10 months apart from a new Steering rack fitted in December last year along with a few other consumables (track rod ends etc.). Michelin Pilot Sport 5 tyres all around with 5-6mm tread. I'm only looking to sell as my girlfriend is moving in with me and we are going to use her car and get an EV alongside it.
Noted the 1 hour radius - I'm no doubt ages away but would be happy to drive it to you and I jump on the train home. Drop me a PM if interested
I'm looking to move on my early M135i for approx £9k. It's a 63 plate car with the EWG and has covered 98k miles. Massive specification, in very good condition inside and out. Full service history, will need a service in the next 2/3k miles. It's been almost faultless in my ownership for the last 10 months apart from a new Steering rack fitted in December last year along with a few other consumables (track rod ends etc.). Michelin Pilot Sport 5 tyres all around with 5-6mm tread. I'm only looking to sell as my girlfriend is moving in with me and we are going to use her car and get an EV alongside it.
Noted the 1 hour radius - I'm no doubt ages away but would be happy to drive it to you and I jump on the train home. Drop me a PM if interested
GLWS (Good luck with the sale)! Sounds like a properly maintained M135i with all the right maintenance done (steering rack and decent Michelins make a massive difference). If I didn't already have a garage full of projects, I'd be tempted. Should sell fast at that price for an EWG model.
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