Advice - Looking to finance or lease. What's best?

[devuk]

I'm looking for some advice on what the best option would be. I currently commute about 30 miles a day, motorway/A roads and a bit of city traffic each way (60/40).

I'm looking for something relatively economical but not too dull if that's even possible. I'm a bit stuck for an initial deposit on a lease but I could probably scrape together £1000 at a push.

I was looking at 0% finance deals at places like Bristol Street motors. I think I'd qualify based on my credit rating/earnings.

So, my budget would be in the £150 p/m ball park so possibly £7k on a financed used car. Is this a silly idea?

One car that has got my interest is a 13 plate Honda Civic 1.6 I-DTEC with 55k miles. 0 tax is appealing! This is just shy of £7k, and I have no idea if you can even haggle with these large chain places.

I haven't really looked at PCP/leasing. It's a bit of a mystery to me if I'm honest.

I just sold my Subaru WRX wagon after 3 years of fun, but settling down. I bought a well specced 54 plate Vectra elite estate to replace it at half the money I sold the WRX for, but it's bitten me and turned out to be a massive oil burner and I need it gone. Lesson learnt.

Edited by devuk on Tuesday 31st October 10:19

[a]

Look at the lease deals thread (https://www.pistonheads.com/gassing/topic.asp?h=0&f=255&t=1663457&i=7120) where you'll occasionally see fantastic deals - far better value than financing or buying (brand new) outright.

Just be aware that with a lease you're pretty much stuck with the car. It's best not going for one over 24 months, and even then are you sure the car will be suitable for the entire 24 months? You definitely won't need the money for anything else? You have excellent job security? No chance of a new dog/baby/etc that will require a bigger car?

We lease one car but have bought the other. The leased car wins hands-down in terms of finances - newer, more valuable car for less money. But I couldn't bring myself to committing to two leased cars, life is unpredictable and you never know what could happen.

[devuk]

a said:

It's best not going for one over 24 months, and even then are you sure the car will be suitable for the entire 24 months? You definitely won't need the money for anything else? You have excellent job security? No chance of a new dog/baby/etc that will require a bigger car?

There's a chance. I get married in March and we are planning to try for a kid next year possibly. So the Civic I mentioned is kind of on the button for what I'd be looking for in terms of size and economy taking that into account.

Job security is pretty good (been here 11 years, nothing changing any time soon). I get a steady pay rise every year for the next 4 years too.

My other half has a PCP deal on an Audi A1 TFSI at the moment, but I don't pay towards that.

[Amateurish]

How about an Audi A4 for £750 up front then £185 a month?

https://www.contracthireandleasing.com/independent...

[devuk]

That's not bad at all. A little over my monthly but I might be able to stretch to it. I'll read up on that thanks.

Can someone just confirm, the 3+23, 9+24 etc language...

Does 9+23 mean you pay 9 times the monthly rental cost upfront, and then 23 payments of the monthly figure?

So say £150 monthly would be 9*150 (£1350) + 23*150 (£3450) = £4800 total over the 24 month lease?

[Amateurish]

devuk said:

That's not bad at all. A little over my monthly but I might be able to stretch to it. I'll read up on that thanks.

Can someone just confirm, the 3+23, 9+24 etc language...

Does 9+23 mean you pay 9 times the monthly rental cost upfront, and then 23 payments of the monthly figure?

So say £150 monthly would be 9*150 (£1350) + 23*150 (£3450) = £4800 total over the 24 month lease?

Correct. 9 would be the first payment, followed by 23 monthly payments.

Most brokers will charge an admin fee on top, usually £200-£300. Dealers do not normally charge an admin fee.

[a]

devuk said:

So say £150 monthly would be 9*150 (£1350) + 23*150 (£3450) = £4800 total over the 24 month lease?

Yes.

Sometimes the "headline" deals ask for massive up-front payments to make the monthlies look more appealing, but most of the time they'll agree to go down to 3 months up front (sometimes even 1 month up front) and it means the monthlies are more, but usually it works out the same over 24 months.

The other thing to take into consideration is leasing company fees (payable with up-front payment). It can range from £0 to £600.

[devuk]

OK, sounds interesting.

So any comments on financing a second hand car?

[jas xjr]

take a look at yes lease. they quite often have zero deposit deals

[Amateurish]

devuk said:

OK, sounds interesting.

So any comments on financing a second hand car?

It's usually a bad deal. A personal loan will be better in most circumstances.

[Amateurish]

jas xjr said:

take a look at yes lease. they quite often have zero deposit deals

Most brokers will quote for a 1+23 if that's what you are after.