I have always owned my cars, should I go HP

[Babycakes1]

With help from a good friend, an engineer in the automotive industry, I always bought and owned my cars. He knew what he was doing. All of them were bought from auctions. I never had any issues. I currently do about a thousand miles a month for work and at least 400 for personal use. I am paid 40p per mile by my employer. But, I love nice cars. So, this is not a lot when you start replacing tires at £250 each. My friend is no longer available to help me. What are the advantages of HP? I don't like debt (well, apart from the mortgage of course.) Please advise.

[pad58]

If you want something nice and new and can afford it on a nurses salary then go for it, ya?

[funkyrobot]

[xRIEx]

Babycakes1 said:

What are the advantages of HP?

Piece of mind - warranty, dealer backup, first owner/user (apart from delivery mileage).
Known, fixed* monthly cost (*Depending on what is included, servicing, tyres, insurance such as Peugeot's "Just Add Fuel" thing, although I think that's a lease rather than HP - I'm not sure of the finer differences).
Choosing the spec you want.

Disadvantages:
Cost - it's still a new car and while may be cheaper than buying new with cash, you're still footing the depreciation bill
Versatility - if your situation changes what would it cost you to get out of the agreement?
End of contract - buy it or HP/lease another new car? Are you going to end up stuck in a finance loop?

[pastrana72]

You need to check as you should be paid 45p per mile for the the first 10000 miles and then 25p per mile after that. It has gone up from 40p.

[2 sMoKiN bArReLs]

pastrana72 said:

You need to check as you should be paid 45p per mile for the the first 10000 miles and then 25p per mile after that. It has gone up from 40p.

That's what the tax man allows tax free, not what you should be paid.

(but yes, it is often the same)

[JamesD1]

I think new cars are worth it if you need reliability etc. I would recommend leasing though as you get a cheaper monthly payment and a new car every few years.

[Nikolai Petroff]

Leasing is good when you like to change cars a lot and those cars are exotic. I had a two year lease on a Maser, drove it like I stole it then put it away wet after 24 months with no hassle of trying to sell it myself or haggle for a decent trade in price.

[750turbo]

2 sMoKiN bArReLs said:

pastrana72 said:

You need to check as you should be paid 45p per mile for the the first 10000 miles and then 25p per mile after that. It has gone up from 40p.

That's what the tax man allows tax free, not what you should be paid.

(but yes, it is often the same)

Also be aware of the tax implications if you get paid over or under the Gov rates.

[pastrana72]

2 sMoKiN bArReLs said:

pastrana72 said:

You need to check as you should be paid 45p per mile for the the first 10000 miles and then 25p per mile after that. It has gone up from 40p.

That's what the tax man allows tax free, not what you should be paid.

(but yes, it is often the same)

I know, but I think the OP is a nurse and that is what the NHS have or about to put the rate up to 45p to 40p. I work with the NHS and noticed it on a staff board in one of places I visit, my employer raised it a while ago and I work in the same sector.

[okie592]

Don't nhs staff get massive discounts on stuff like new cars anyway?

[5lab]

at ~20,000 miles a year, you might find lease costs prohibitive.

[pad58]

okie592 said:

Don't nhs staff get massive discounts on stuff like new cars anyway?

This ^^^

[HumbleJim]

okie592 said:

Don't nhs staff get massive discounts on stuff like new cars anyway?

Am I missing something? Who mentioned the NHS?

[deltashad]

If the car is yours at the end of the term, then it's just like a bank loan. Most of my cars until recently were bought with loans. I don't see the issue.

Also after you've paid 50% you have the right to hand it back with no real issues... please correct me if I'm wrong...

[okie592]

HumbleJim said:

Am I missing something? Who mentioned the NHS?

Op is a nurse. I'm assuming for the nhs

[Dave Hedgehog]

if your not that fussy over specific models / colours etc I would look at leasing

some very cheap deals crop up

[Babycakes1]

Thank you very much to you all. Great advice. I am still learning in here. I will start looking.

Yes, I am a nurse. No, I don't work for the NHS.

[HumbleJim]

okie592 said:

Op is a nurse. I'm assuming for the nhs

Assuming? Why?

[2 sMoKiN bArReLs]

HumbleJim said:

okie592 said:

Op is a nurse. I'm assuming for the nhs

Assuming? Why?

never heard of the law of probability?