Cheapest new car deal?

[bitchstewie]

Asked on the main lease thread but didn't get any feedback so thought I'd ask separately.

I have a BMW M140i about half way through its lease which is likely to spend a lot of time sitting on the drive in the future as it looks like my workplace is considering a change to 75% to permanent remote working.

So if I don't want an expensive lump on the drive being used a few times a week on local trips and assuming I want to just pay an amount per month for "hassle free" motoring what is the cheapest way to get into something?

I'm actually shocked how little you can get something like a basic Aygo for if the figures on the leasing sites that headline on Google are to be believed.

Early days and of course it's tempting to just buy a £1000 Japanese runabout and swap it when I get bored.

Just exploring options.

[Terzo123]

Fairly cheap deal for a new Skoda

https://www.john-clark.co.uk/skoda/new-car-offers/...

[smn159]

I'm sure that there was a £99 / month sticker on one of the cars at my local Citroen garage when I walked past it the other day.

A shed is a second option, or a third option might be to spend a bit more on something more interesting that's at the bottom its depreciation curve... clearly not an option now but I ran a Porsche 964 as a daily a few years back, which I bought for £13k - retained its value quite well!

[CJ1]

I was pretty tempted by this. Fiesta ST Line on 10k a year.

https://www.leaseloco.com/car-leasing/ford/fiesta/...

[The Cardinal]

I used to do a lot of business miles and have gradually been switching these to train / bike, meaning that our van and car each do about 4,000 miles per year. So, the switch to Microsoft Teams and WFH hasn't made a big difference in that both vehicles already spent a lot of time sat around.

I would want to be careful that the current situation doesn't completely cloud my thinking... because some greater semblance of normality will return one day. In the meantime, you may find that longer drives in comfort come back into your life.

I freely admit that once I've cranked-up my spreadsheet and done the sums, it can be surprising entertainment to calculate which car would cost me the least. I have spent hours doing it. In fact, I recently sold a 2018 car (which was boring) for another 2014 car (slightly less boring and cheaper).

But it can be a short-lived pleasure to buy a "cheaper" car - and something like a new Aygo would be a huge step. Certainly, it's less satisfying than turning the key on the last 3.0 litre turbo RWD hatchback. If you're really going to go as far as an economy car, it might as well be used one to save the maximum amount of money.

I have found my own sweet spot is a car that I somewhat want to own, but isn't wasted on my current situation of low annual miles and driving for utility rather than fun. For me, a 6+ year-old used car in great nick has been a good answer... but think carefully, because selling up and then buying back into a car of your current type would not be cheap.

[ZX10R NIN]

Just buy something for 3-4K which will land you something decent & reliable:

325i SE

https://www.autotrader.co.uk/classified/advert/202...

CLK 280 Sport

https://www.autotrader.co.uk/classified/advert/201...

Audi TT

https://www.autotrader.co.uk/classified/advert/202...

Focus ST-2

https://www.autotrader.co.uk/classified/advert/202...

T5 C30

https://www.autotrader.co.uk/classified/advert/202...

Leon FR

https://www.autotrader.co.uk/classified/advert/202...

[bitchstewie]

Yeah I have enough moments when I just fancy an Ignis sport or something

Like I said all about options right now.

[mholt1995]

bhstewie said:

Asked on the main lease thread but didn't get any feedback so thought I'd ask separately.

I have a BMW M140i about half way through its lease which is likely to spend a lot of time sitting on the drive in the future as it looks like my workplace is considering a change to 75% to permanent remote working.

So if I don't want an expensive lump on the drive being used a few times a week on local trips and assuming I want to just pay an amount per month for "hassle free" motoring what is the cheapest way to get into something?

I'm actually shocked how little you can get something like a basic Aygo for if the figures on the leasing sites that headline on Google are to be believed.

Early days and of course it's tempting to just buy a £1000 Japanese runabout and swap it when I get bored.

Just exploring options.

Looks like you might have missed my post on the lease deals thread!

In Stock Corsa 1.2T SE Premium is one of the cheapest things at the moment. Amortises at ~£160 2yr/5k

https://leasing.com/independent-brokers/jet-vehicl...

After that you'll be looking at the Fiesta ST Line mentioned above - amortises at £175 for 2yr/8k

https://leasing.com/independent-brokers/alpha-cont...

[ElectricSoup]

This has got to be the best deal around on a brand new "proper" car, i.e. not a tumble dryer like an Aygo:

https://www.fiat.co.uk/new-car-deals/offers/tipo-s...

Quite tempted myself. There are a few pre-reg saloons about too on autotrader for under £10k with delivery miles. Hatches and estates are dearer.

[mholt1995]

ElectricSoup said:

This has got to be the best deal around on a brand new "proper" car, i.e. not a tumble dryer like an Aygo:

https://www.fiat.co.uk/new-car-deals/offers/tipo-s...

Quite tempted myself. There are a few pre-reg saloons about too on autotrader for under £10k with delivery miles. Hatches and estates are dearer.

Not at all.

That saloon in Easy trim comes out to £217pm ((169x48 + 2325) / 48) on a 48 months, 6k pa contract with 6p excess mileage.

This hatch is cheaper (£160pm - 7692/48) on lease for 2k miles more pa for a better trim level and with a better excess mileage cost (4p per mile).
https://leasing.com/main-dealers/bs-marson-and-son...

[ElectricSoup]

mholt1995 said:

ElectricSoup said:

This has got to be the best deal around on a brand new "proper" car, i.e. not a tumble dryer like an Aygo:

https://www.fiat.co.uk/new-car-deals/offers/tipo-s...

Quite tempted myself. There are a few pre-reg saloons about too on autotrader for under £10k with delivery miles. Hatches and estates are dearer.

Not at all.

That saloon in Easy trim comes out to £217pm ((169x48 + 2325) / 48) on a 48 months, 6k pa contract with 6p excess mileage.

This hatch is cheaper (£160pm - 7692/48) on lease for 2k miles more pa for a better trim level and with a better excess mileage cost (4p per mile).
https://leasing.com/main-dealers/bs-marson-and-son...

My mistake, I didn't spot the OP was looking at lease, not PCP. I'm considering a PCP on a saloon, putting a £3k deposit over 48 months comes out at £146 a month, plus final balloon of course. Which in my mind is a pretty good deal for a proper sized brand new car from a traditional manufacturer.

[mholt1995]

ElectricSoup said:

My mistake, I didn't spot the OP was looking at lease, not PCP. I'm considering a PCP on a saloon, putting a £3k deposit over 48 months comes out at £146 a month, plus final balloon of course. Which in my mind is a pretty good deal for a proper sized brand new car from a traditional manufacturer.

Hope this isn't coming off as condescending, it's not meant to! Just trying to understand the allure of the PCP in this scenario.

It's an "ok" deal and as mentioned, better ones can be had on a better spec car - it's only so cheap because the car is so cheap in the first place at £14,795.

Would you be looking to pay the balloon and purchase outright at the end?

If not, and this is the thing with PCP, it's a gamble on whether the car, at 4 years old and ~24k miles will be sellable for more than the final payment (£3,617) in this case.

Given a 3 year old base spec hatch with 33k miles is going for £6k at a car supermarket (https://www.autotrader.co.uk/classified/advert/202006200330046), and residuals appear to be poorer on the saloons - it's entirely possible (but again, only a prediction) you'll be looking at selling at potentially £4k at best, if not less, to the trade.

Using £4k as the assumption (so you get £400 of equity back at the end), you've spent £3k deposit + £146x48 (not sure if PCP operates the same as lease in counting the deposit as the first payment) = £10,008 minus any equity back to drive a Fiat Tipo for 4 years. Or looking at it another way, £208pm.

I'd be very surprised if you could get even £2k of your equity back (to break even vs the lease cost) and sell it for £5.5k at the end.

Or you can avoid the gamble entirely and go for the fixed cost lease option at £160pm.

Genuine question here - why would you not want to go for the lowest guaranteed total cost of ownership?

[ElectricSoup]

mholt1995 said:

ElectricSoup said:

My mistake, I didn't spot the OP was looking at lease, not PCP. I'm considering a PCP on a saloon, putting a £3k deposit over 48 months comes out at £146 a month, plus final balloon of course. Which in my mind is a pretty good deal for a proper sized brand new car from a traditional manufacturer.

Hope this isn't coming off as condescending, it's not meant to! Just trying to understand the allure of the PCP in this scenario.

It's an "ok" deal and as mentioned, better ones can be had on a better spec car - it's only so cheap because the car is so cheap in the first place at £14,795.

Would you be looking to pay the balloon and purchase outright at the end?

If not, and this is the thing with PCP, it's a gamble on whether the car, at 4 years old and ~24k miles will be sellable for more than the final payment (£3,617) in this case.

Given a 3 year old base spec hatch with 33k miles is going for £6k at a car supermarket (https://www.autotrader.co.uk/classified/advert/202006200330046), and residuals appear to be poorer on the saloons - it's entirely possible (but again, only a prediction) you'll be looking at selling at potentially £4k at best, if not less, to the trade.

Using £4k as the assumption (so you get £400 of equity back at the end), you've spent £3k deposit + £146x48 (not sure if PCP operates the same as lease in counting the deposit as the first payment) = £10,008 minus any equity back to drive a Fiat Tipo for 4 years. Or looking at it another way, £208pm.

I'd be very surprised if you could get even £2k of your equity back (to break even vs the lease cost) and sell it for £5.5k at the end.

Or you can avoid the gamble entirely and go for the fixed cost lease option at £160pm.

Genuine question here - why would you not want to go for the lowest guaranteed total cost of ownership?

You're probably right, and it's at least worth looking in to. I don't really consider leasing generally, as I don't fancy the hassle of being penalised for every little scratch and interior blemish at the end. PCP can be wangled down to lower monthlies, even if the overall cost can be higher in the long run. Yes, I expect I'd buy the car with the balloon at the end, so I won't be worried about condition, which is a consideration as a 17/18/19 year old will be driving it as well as me.

Things cost money, so it goes.

[mholt1995]

ElectricSoup said:

You're probably right, and it's at least worth looking in to. I don't really consider leasing generally, as I don't fancy the hassle of being penalised for every little scratch and interior blemish at the end. PCP can be wangled down to lower monthlies, even if the overall cost can be higher in the long run. Yes, I expect I'd buy the car with the balloon at the end, so I won't be worried about condition, which is a consideration as a 17/18/19 year old will be driving it as well as me.

Things cost money, so it goes.

No worries.

Makes sense - I've not done a PCP myself, only leasing and used outright but I expect scratches/blemishes etc. would still factor in at the end anyway by reducing your trade-in/sale price? Just a different way of going about taking the money as opposed to being directly invoiced for it.

If you'd be looking at buying outright, another thing to consider is the allure of the new car vs lightly used at the same price point (let's call it £12,500 after Fiat contribution). Appreciate we start veering into very different territory here and could easily get carried away into shed territory but let's stick inside warranty periods for now.

On that note, the warranty on the Tipo seems to only be three years, so you'd actually be running the car for a year out of warranty for a year on just the 4 year PCP deal.

As an example of what I would personally consider a smarter move, compare this to a 2019 Kia Ceed at the same price point (other cars are available).

https://www.autotrader.co.uk/classified/advert/202...

It'd almost certainly cost you less (not considering servicing/maintenance costs here as again, it's another conversation entirely) to run, say this for 4 years, buying outright with a personal loan for the full amount (minus whatever you want to put in as equity to reduce monthlies) over a longer term.

As a representative example, £12,500 over 5 years at 3.3% is £226 a month. Stick your £3k equity into it as a "deposit" and it goes down to £171.

After 4 years of the term, you will only owe £2,712 / £2,052 respectively on the loan, I'd put money on you getting more than that for a 5 year old Kia Ceed even in average condition with evidence of use by a new driver!

PCP isn't as good an idea on used cars however as the interest rate jumps but a personal loan will give you ultimate flexibility.

You'll be in warranty for the whole period (making it more hassle free) and even beyond the 4 years. I imagine it's a generally much nicer car than the Tipo and it's likely you'd get a similar amount of money if not more if/when you want to sell/trade in vs the Tipo.

Things do indeed cost money, which is why I like to make savings where I can so I can have more things

[codenamecueball]

If you've sat inside a Tipo you might change your mind.

[ElectricSoup]

codenamecueball said:

If you've sat inside a Tipo you might change your mind.

I have both sat in one and driven one for a considerable time/distance. I like them, they are great value for what they are. In my experience they're no worse than an Astra or pretty much any other car in the sector, but significantly cheaper. A Focus size car for Fiesta money.

[loskie]

I had a rental one it was saggy feeling and pretty bloomin awful

[drgoatboy]

I've explored the cheapest new car possible idea a few times (although not recently)
Not long after they came out the Aygo deals were amazing. I wangled a 3 day test drive from my local Toyota dealer as I liked the look of them and the maths to run one made it insanely cheap.
Loved it round town, was almost sold, then a trip on the motorway sealed it's fate. I got a 350z instead which was in no way cheap or fun around town.

I digress.... Sorry I have no idea what's cheap at the moment. Bit off topic really... Soz.

[ElectricSoup]

loskie said:

I had a rental one it was saggy feeling and pretty bloomin awful

Well, rentals are rentals - whatever the make, they're abused.

Top Gear magazine disagrees quite strongly:

https://www.topgear.com/car-reviews/fiat/tipo/driv...

"might even embarrass the supposedly sportier Alfa Giulietta"

Edited by ElectricSoup on Thursday 9th July 09:20