Buying new or s/h Focus - is this a good deal?

[haynes]

On a budget of £3k deposit and £150 month i'm looking at an £8K s/h car to replace our old focus.

However, on a new focus, Ford dealer is offering £2k off + £1K deposit contribution so i can buy a brand new car for £3.5K deposit and £148pm based on £12k miles pa and £7300 gmfv over 2 years. 4.9% APR. Cost of finance is £850

Is this a good deal? What am i missing (ok you never own it) whats the real con of this sort of deal? APR seems quite low. What about depreciation, an oft sighted reason not to buy new?

Pleased if those with more insight/experience than i could advise. Are there any previous threads or web articles that cover this? (Should i have posted this in the Ford section?)

[PumpkinSteve]

I have my car on the same thing with Ford. I would say the downside is that after two years you have to pay £7500 to buy a car that probably isn't worth that much, although you can just give the car back, in which case you've basically paid £3500 in repayments plus your £3500 deposit to lease a car for two years.

[haynes]

hold on a minute, thats actually £7000 being shelled out over 2 years, the deposit + monthly payments for privilege of having it for 2 years. Hmmm, doesnt sound so good.

[va1o]

If you are buying on finance you are nearly always better of with a new car IMO. Just find anything on contract hire for around that price and run it for 2/3 years then hand it back and get a new one. Simple and cost effective motoring IMO.

[Scootersp]

How old is the old focus? if it's an age/shape thing then I'd get a clean early (55/56) new shape one if your old focus is already a early 55/56 new shape one then I don't know what to suggest as we're poles apart on our views of what is an old car!

[Iain XR4i]

My wife bought a 2 year-old 04 Focus 1.6 Edge, then changed it for a new 59 plate 1.6 Zetec but we both quickly agreed that the old car was better in almost every way.

In October, she changed to a new 61 1.6 Zetec and it is light-years ahead of them both in terms of comfort and quietness. The build quality, dash and interior are far better but I'm not wild about the hard plastic trim on the doors. The first car remains the best drive, though.

We're also on Options, and with the difference in GFV and the px value, + £1000 deposit, she has two years in a brand new car with breakdown cover and a years tax and pays about £226pm.

When the 2 years are up we will make a decision to either buy the car or start again.