Advice on financing next car

[madevo]

So the time has come to purchase a new 'fun' car. All my previous car purchases have been cash only which I have not minded doing until my last car where I lost far too much and took me a while to sell the car on when I got bored. I am looking into various financing options, personal leasing being one of them.

I have no experience regarding car leasing/finance so seek the advice of you who are in the know. My situation:

I have around £50k parked up in an offshore mutual fund giving me a return of 11.5% pa. Profit/return is paid on a monthly basis which I can draw out monthly with no fees or penalties giving me roughly £450 pm (depending on currency fluctuations) to supplement my lease/finance payments without touching my capital.

I am looking at cars around the 50-60k mark. Would ideally not spend my capital if I don't have to. As somebody that does not know the first thing about car finance/leasing I would really appreciate some advice as to which route to take given my situation.

I thank you all in advance for taking the time to read my post.

[LukeSi]

Sagaris time.

http://www2.autotrader.co.uk/classified/advert/201...

£39,000 so you will still have £11,000 (plus anything you haggle) left.

And they are likely to eventually start appreciating. Honestly I would purchase outright.

Worst case scenario will be that you eventually sell and get back what you paid for it.

Edited by LukeSi on Wednesday 30th November 20:27

[Andy665]

Really depends if you want to release some of your existing funds and / or how much you want to supplement the return that you are currently getting.

There is not a definitive "best" option as everyone and their situation is different, so many variables its untrue. If you have an accountant he would be my first port of call.

I have no vested inerest in any company, funding method etc but I do have 20+ years experience in and around vehicle funding in the UK, please feel free to drop me aline if you would like to get some unbiased advice.

The one piece of advice I would give is that if anyone going by the name of Robsti comes along spouting "the only way is cash" then stop reading the thread as it quickly degenerates into an unpleasant situation.

[madevo]

Andy665 said:

Really depends if you want to release some of your existing funds and / or how much you want to supplement the return that you are currently getting.

There is not a definitive "best" option as everyone and their situation is different, so many variables its untrue. If you have an accountant he would be my first port of call.

I have no vested inerest in any company, funding method etc but I do have 20+ years experience in and around vehicle funding in the UK, please feel free to drop me aline if you would like to get some unbiased advice.

The one piece of advice I would give is that if anyone going by the name of Robsti comes along spouting "the only way is cash" then stop reading the thread as it quickly degenerates into an unpleasant situation.

Thanks Andy, would I be right in assuming that it is best not to go through dealer finance and look into leasing companies instead? Is there a catch with using a leasing company as they tend to be a lot cheaper than the leasing deals dealers offer?

Also to make things a little easier, given my situation, how would you fund a car for 50-60k? Would you draw up some percentage of capital or leave the entire capital and supplement the monthly returns with income to meet the monthly payments?

[RRS_Staffs]

11.5% from an offshore fund??

Please tell us about it

[Andy665]

Leasing companies - need to read the small print - mind you, I'd strongly recommend reading that on any agreement. They can offer better monthly payments / terms than the manufacturers but not always.

My sister has just leased a Mercedes C Class for £150 per month cheaper than a Mercedes dealer could do it at but her previous Audi was done through Audi Financial Services as they offered the best deal at the time.

You need to consider:

1. What term would you be happy with
2. Do you want the option of ownership
3. Do you want protection from a collapse in the market
4. How long do you intend keeping the car
5. Do you want maintenance included
6. What annual mileage are you looking at
7. What is your monthly budget
8. What car do you want

Many variables that may impact the decision that YOU should make about whats best for YOU

[madevo]

RRS_Staffs said:

11.5% from an offshore fund??

Please tell us about it

I'd rather not divulge into too much detail but think 3rd world.

[madevo]

Andy665 said:

Leasing companies - need to read the small print - mind you, I'd strongly recommend reading that on any agreement. They can offer better monthly payments / terms than the manufacturers but not always.

My sister has just leased a Mercedes C Class for £150 per month cheaper than a Mercedes dealer could do it at but her previous Audi was done through Audi Financial Services as they offered the best deal at the time.

You need to consider:

1. What term would you be happy with
2. Do you want the option of ownership
3. Do you want protection from a collapse in the market
4. How long do you intend keeping the car
5. Do you want maintenance included
6. What annual mileage are you looking at
7. What is your monthly budget
8. What car do you want

Many variables that may impact the decision that YOU should make about whats best for YOU

Many thanks Andy, will keep that in mind when doing my homework.