Which One? Lease, Car Sub or get a Used Car?
Discussion
My current lease is due to end in September, had a PCH on a CLA 220 for 4 years now with Rivervale Leasing.
I'm paying around £365pm atm just for the PCH. Insurance is around £70pm, Petrol costs about £80-100pm.
I've been looking at car subscription sites, not sure if they're actually worth it or not, the main benefit being one payment for all an all inclusive service.
I've only got around £2k to spend up front on a car if i'm to buy a used car.
Looking ideally for a NO DEPOSIT, 0% finance deal for an SUV, not fussed about the specs, other than it has to be AUTO.
Any advise on which option I should go for and are there any good offers to suggest?
I'm paying around £365pm atm just for the PCH. Insurance is around £70pm, Petrol costs about £80-100pm.
I've been looking at car subscription sites, not sure if they're actually worth it or not, the main benefit being one payment for all an all inclusive service.
I've only got around £2k to spend up front on a car if i'm to buy a used car.
Looking ideally for a NO DEPOSIT, 0% finance deal for an SUV, not fussed about the specs, other than it has to be AUTO.
Any advise on which option I should go for and are there any good offers to suggest?
No particular advice on car models I'm afraid.
But just wanted to put forward the view that when you're leasing, the amount pay per month is a mix of the cost of hire, and interest on borrowing something for a bit.
My point is that you could easily borrow money to pay an up front cost (preferably a purchase) and then repay this over the duration of your ownership.
This is no different than what a lease does, albeit a bit more fiddly to sort out. Might give you more options?
Hth
Ian
But just wanted to put forward the view that when you're leasing, the amount pay per month is a mix of the cost of hire, and interest on borrowing something for a bit.
My point is that you could easily borrow money to pay an up front cost (preferably a purchase) and then repay this over the duration of your ownership.
This is no different than what a lease does, albeit a bit more fiddly to sort out. Might give you more options?
Hth
Ian
milkshaykh said:
I've only got around £2k to spend up front on a car if i'm to buy a used car.
Looking ideally for a NO DEPOSIT, 0% finance deal for an SUV, not fussed about the specs, other than it has to be AUTO.
No deposit and zero finance sounds ideal. Don't forget you can invest your £2k in the stock market and practically get a free car!Looking ideally for a NO DEPOSIT, 0% finance deal for an SUV, not fussed about the specs, other than it has to be AUTO.
Oh wait....that's the other thread.
Failing that I'd use the 2k deposit and get a cheap personal loan for whatever your £365 a month will get. Pay it off over 3 or 4 years and the car is yours. Also leaves you free to choose whatever used car you'd like on the used market.
Canon_Fodder said:
PCH leasing is dead.
Maybe I don’t get PCH, but it’s value goes over my head; unless it really is based on low deposits (whatever you can afford) and then pay the monthly. I was always told unless you can afford a cash purchase (and most cannot), then a loan equivalent to the monthly you can pay is sensible. The view is that the asset is yours, but some don’t care about that and would rather get a nice new car.
milkshaykh said:
My current lease is due to end in September, had a PCH on a CLA 220 for 4 years now with Rivervale Leasing.
I'm paying around £365pm atm just for the PCH. Insurance is around £70pm, Petrol costs about £80-100pm.
I've been looking at car subscription sites, not sure if they're actually worth it or not, the main benefit being one payment for all an all inclusive service.
I've only got around £2k to spend up front on a car if i'm to buy a used car.
Looking ideally for a NO DEPOSIT, 0% finance deal for an SUV, not fussed about the specs, other than it has to be AUTO.
Any advise on which option I should go for and are there any good offers to suggest?
OK I'll bite. Sadly, due to component shortages, the chances of getting any new car by September are not great (although Kia/Hyundai seem to be doing ok). Trying to find a finance deal with zero interest and zero deposit will be incredibly difficult.I'm paying around £365pm atm just for the PCH. Insurance is around £70pm, Petrol costs about £80-100pm.
I've been looking at car subscription sites, not sure if they're actually worth it or not, the main benefit being one payment for all an all inclusive service.
I've only got around £2k to spend up front on a car if i'm to buy a used car.
Looking ideally for a NO DEPOSIT, 0% finance deal for an SUV, not fussed about the specs, other than it has to be AUTO.
Any advise on which option I should go for and are there any good offers to suggest?
As per others on this thread, get a loan (rates are available sub 3% APR). Alternatively, see if you can extend your existing lease at a lower rate. Subscription services are expensive by the looks of it.
georgeyboy12345 said:
Just a quick note on APR, it's getting very difficult to get sub 3 % now that the base rate is starting to go back up.
Yep, depends on what you're borrowing too. I needed the money quickly so went with a slightly higher rate of 3.1% from MBNA. But...the process was very smooth. Went via Moneysaving expert, only had to answer another couple of questions and had the money in the bank same day.Thing is, if I’m going to borrow money, it has to be 0% interest, I APR, so personal loans will be out of the question.
I don’t really need a brand new car, a second hand car is fine as long as it can run for 2 years after which I don’t mind getting a PCH again.
So it seems that a secondhand car would probably be the best option for now, but would I be able to find an SUV for £2k for the next 2 years? Any suggestions would be helpful. Meanwhile I’ll have a look around.
I don’t really need a brand new car, a second hand car is fine as long as it can run for 2 years after which I don’t mind getting a PCH again.
So it seems that a secondhand car would probably be the best option for now, but would I be able to find an SUV for £2k for the next 2 years? Any suggestions would be helpful. Meanwhile I’ll have a look around.
ChrisH72 said:
No deposit and zero finance sounds ideal. Don't forget you can invest your £2k in the stock market and practically get a free car!
Oh wait....that's the other thread.
Failing that I'd use the 2k deposit and get a cheap personal loan for whatever your £365 a month will get. Pay it off over 3 or 4 years and the car is yours. Also leaves you free to choose whatever used car you'd like on the used market.
Oh wait....that's the other thread.
Failing that I'd use the 2k deposit and get a cheap personal loan for whatever your £365 a month will get. Pay it off over 3 or 4 years and the car is yours. Also leaves you free to choose whatever used car you'd like on the used market.
You can apparently get 2 years 0% on a credit card. I only know this as a colleague of mine is planning to buy a cheap car this way. No idea how much you can borrow on it but if you're very confident you can pay it off withing the period then it could work?
Don't think I'd buy an suv for 2k
Don't think I'd buy an suv for 2k
milkshaykh said:
Thing is, if I’m going to borrow money, it has to be 0% interest, I APR, so personal loans will be out of the question.
I don’t really need a brand new car, a second hand car is fine as long as it can run for 2 years after which I don’t mind getting a PCH again.
So it seems that a secondhand car would probably be the best option for now, but would I be able to find an SUV for £2k for the next 2 years? Any suggestions would be helpful. Meanwhile I’ll have a look around.
Why does it have to be 0% APR? Quoted APR figures are completely misleading with many new car PCP finance deals. The APR doesn’t take any deposit contribution discounts into account, so a 4.9% APR setup with a large deposit contribution could cost less than a 0% APR ‘deal’ with no deposit contribution.I don’t really need a brand new car, a second hand car is fine as long as it can run for 2 years after which I don’t mind getting a PCH again.
So it seems that a secondhand car would probably be the best option for now, but would I be able to find an SUV for £2k for the next 2 years? Any suggestions would be helpful. Meanwhile I’ll have a look around.
ChrisH72 said:
Failing that I'd use the 2k deposit and get a cheap personal loan for whatever your £365 a month will get. Pay it off over 3 or 4 years and the car is yours. Also leaves you free to choose whatever used car you'd like on the used market.
The best value deals often require you to put down a deposit/larger deposit, as this reduces the risk to the lender. Can’t imagine many lenders feeling the need to offer zero deposit and 0% APR right now.
SUVs are typically more expensive than similarly practical estates or people carriers, so you’ll get less car for £2k. You say you’re not fussed about specs, but are you fussed about it having to be an SUV specifically? The only one that seems half decent to me for around that money is the Mazda CX-7, though one reason that’s cheap is because it costs £615 to tax and uses lots of fuel.
ChrisH72 said:
You can apparently get 2 years 0% on a credit card. I only know this as a colleague of mine is planning to buy a cheap car this way. No idea how much you can borrow on it but if you're very confident you can pay it off withing the period then it could work?
Don't think I'd buy an suv for 2k
Problem is that many dealers won't take credit cards for full payment. What you could do though is move existing credit card spend via a 0% balance transfer, if you can find one.Don't think I'd buy an suv for 2k
E.g. If I spend £2k on a credit card each month, to be paid off in full on pay day, I could balance transfer it instead to free up £2k in the bank.
Still probably not enough for anything decent though, depending on your monthly credit card spend.
BTW, finding a 0% APR deal on a used car will be impossible and very difficult on anything else.
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