Buying two cars, what's the most optimal way of purchasing?
Discussion
Hello,
I just wanted to ask for your opinions. I've always loved cars however only now I can afford the credit and outright payments for more expensive vehicles.
I'm purchasing my partner a Mercedes a200d (premium) 2019 and I'm purchasing an Audi S3 Saloon or Mercedes a35 saloon.
I have 999/999 credit rating according to Experian and I can get loans for 3-4%. I've looked through PCP but I'm not entirely convinced that I want to go down that route.
What would be the best option for me to purchase these vehicles?
I just wanted to ask for your opinions. I've always loved cars however only now I can afford the credit and outright payments for more expensive vehicles.
I'm purchasing my partner a Mercedes a200d (premium) 2019 and I'm purchasing an Audi S3 Saloon or Mercedes a35 saloon.
I have 999/999 credit rating according to Experian and I can get loans for 3-4%. I've looked through PCP but I'm not entirely convinced that I want to go down that route.
What would be the best option for me to purchase these vehicles?
Depends on lots of factors and what is most important to you.
Decide how long you expect to keep the cars then see which is the cheapest option over that time frame. Then factor in non-financial things like ease of servicing/peace of mind etc. Saving in advance and buying outright (or better, buying used) is obviously the cheapest, but that's not always possible.
There's loads already on here about leasing deals - while interest rates are often higher than typical loads, the effect of discounts might be to lower the equivalent rate, so make sure you compare the total amount payable over the period of ownership. Car resale value should be the same whether you go for leasing or loan - they have to fairly accurately predict the value of the car for a given mileage when a lease ends so you can use the same figure.
Just remember at the end of the day there is a fairly large cost over an ownership time frame (largely depreciation) and that cost is going to be met by someone - given manufacturers find leasing very profitable (I've heard some even think cars are a loss-leader in order to get finance deals!) it's not them that's paying it.
Decide how long you expect to keep the cars then see which is the cheapest option over that time frame. Then factor in non-financial things like ease of servicing/peace of mind etc. Saving in advance and buying outright (or better, buying used) is obviously the cheapest, but that's not always possible.
There's loads already on here about leasing deals - while interest rates are often higher than typical loads, the effect of discounts might be to lower the equivalent rate, so make sure you compare the total amount payable over the period of ownership. Car resale value should be the same whether you go for leasing or loan - they have to fairly accurately predict the value of the car for a given mileage when a lease ends so you can use the same figure.
Just remember at the end of the day there is a fairly large cost over an ownership time frame (largely depreciation) and that cost is going to be met by someone - given manufacturers find leasing very profitable (I've heard some even think cars are a loss-leader in order to get finance deals!) it's not them that's paying it.
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