Having had company mainly but also lease, pcp, hp and cash bought cars over the years what are people’s preferences ? I was surprised to learn that over 85% of new cars are financed. I think I favour cash now. I buy older turn them round quickly and don’t lose much. It looks as though leases cost people thousands for something they never own to have something looking nice and new on the drive. Then again it allows them to buy a car they probably can’t teally afford. I think a pcp or hp actually offers better value than a lease if you get a good rate.

If you’re going for a new car then lease it, there’s plenty of offers about if you’re not fussy about exactly what you want.

If you don’t want a new car then buy second hand.

I cash buy, my wife does PCP and my son leases. Horses for courses and a highly competitive market means there are good deals all over the show regardless of deal type.

Second hand for cash. Get a reliable 4 year old for £4-£5k, run it for between 5 and 10 years depending on when it starts to fall apart, replace and repeat.

Cash usually a 3 to 4 years old one, last car paid 9500, kept it 4 years, got 5500 to trade it in.

Being an oldie and brought up with the mantra “ if you can’t afford it” I’d still go with cash. As mentioned finance works for a lot of people, especially if they don’t have immediate cash available, but for some people they like a new motor on the drive. I generally look for a demonstrator or nearly new with the dealers warranty in place and the discount with it being 6/12 months old. At the end of the day it’s what you’re comfortable with.

I think leasing is an excellent way to finance a vehicle. Set monthly cost, no hassle at the end of the term trying to sell/part ex it. Flexible first payment amounts/length of term etc. A car is a depreciating asset so I'd rather lease (if it's a good deal) then it becomes someone else's problem 2-3-4 years down the line. There don't seem to be too many good deals about at the moment, used prices are very high due to a shortage of new vehicles and very lengthy lead times.

If I was buying used I'd either pay cash or personal loan, much cheaper than PCP/finance IMO.

Cash for secondhand, maintain it well & keep all the service invoices & documents & sell private or trade in & start again.

PCP for me;
A better car than I could afford to buy outright
Fixed affordable monthly cost
Trade in every 3 years so the car is always under warranty
Never need to MOT
Rarely need to replace tyres
Piece of mind that I'm not going to have unforeseen maintenance costs
Nice new car every few years

beddie wrote: ↑

Mon Jun 21, 2021 10:55 am

Being an oldie and brought up with the mantra “ if you can’t afford it” I’d still go with cash. As mentioned finance works for a lot of people, especially if they don’t have immediate cash available, but for some people they like a new motor on the drive. I generally look for a demonstrator or nearly new with the dealers warranty in place and the discount with it being 6/12 months old. At the end of the day it’s what you’re comfortable with.

Bought the wifes car 2 years ago ... Citroen C3 auto ... just 6 months old with 76 miles on the clock (ex demo car) ... to replace the DS4 she drove previously ... so we got an £18k car for under £12k ...a 30% saving and a new car in all but the registration plate ... win win

PCP.

Go smash em down at the dealership, start at 30% below the list and work upto 25-20% off.

It'll cover the cost of the finance and a most of the VAT

PCP for me, with as low a deposit as possible.

We’re 18 months into PCPs on an X3 M40d and a Range Rover Evoque. Used car prices have rocketed recently which means we’re already at break even point on both cars (settlement figure is the same as WBAC are offering) so we’ll chop these two in early and start the process over again.

What are you actually after anyway?

Mrs Herts got a Ford Kuga in Sept, car with the extras was approaching 30k new, 12 months old and we got it for 16700. Sold her Mondeo privately for 4.5k so financed 12k at very low APR over 4 years. All being well the car will be worth 10k at the end of the loan period so will have cost 7.5k for 4 years motoring, plus fuel and running costs of course. Leasing the same car but from new for 4 years would cost around 18k at 10k miles pa. No brainer for me.

claretandy wrote: ↑

Mon Jun 21, 2021 9:27 am

Cash usually a 3 to 4 years old one, last car paid 9500, kept it 4 years, got 5500 to trade it in.

We paid 12.5k for our latest after the 5.5k trade in, so it cost us 7k. The sales guy tried to extoll the virtues of the rent a car schemes, but he couldn't get anywhere near the 1k a year our trade in had cost us in depreciation.

I tend to want to change cars every 2-3 years.

Paying cash for me does not make any financial sense whatsoever as that cash will not be working for me in the best possible way.

Over say a 10-12 year period - I could have 3-5 cars and to have say £10-20k tied up in a car which still requires me to save on a monthly basis so I can maintain a new/nearly new car is just stupid.

I lease the car because I never want to own it at the end. I accept I pay the depreciation on the car.

However I use my capital to grow and with compound returns, I could see my 10-20k worth 20-40k or more if invested. By buying I would still have £10-£20k in a car and my lease payment being a savings payment which I can’t invest as I need to use this to keep topping up my car deposits etc.

Now if you want to own the car or want to keep the car for a longer period then the solution may be different depending on your circumstances.

clarethomer wrote: ↑

Mon Jun 21, 2021 12:55 pm

I tend to want to change cars every 2-3 years.

Paying cash for me does not make any financial sense whatsoever as that cash will not be working for me in the best possible way.

Over say a 10-12 year period - I could have 3-5 cars and to have say £10-20k tied up in a car which still requires me to save on a monthly basis so I can maintain a new/nearly new car is just stupid.

I lease the car because I never want to own it at the end. I accept I pay the depreciation on the car.

However I use my capital to grow and with compound returns, I could see my 10-20k worth 20-40k or more if invested. By buying I would still have £10-£20k in a car and my lease payment being a savings payment which I can’t invest as I need to use this to keep topping up my car deposits etc.

Now if you want to own the car or want to keep the car for a longer period then the solution may be different depending on your circumstances.

Agree. I really don't get the benefit of PCP over leasing. You pay a much larger 'deposit' and a big final chunk if you want to own a 3 year old+ car at the end of the term. Why?

NickBFC wrote: ↑

Mon Jun 21, 2021 1:43 pm

Agree. I really don't get the benefit of PCP over leasing. You pay a much larger 'deposit' and a big final chunk if you want to own a 3 year old+ car at the end of the term. Why?

PCP is often cheaper than leasing, especially if you like to add optional extras.

I buy 6 to 12-month-old very low mileage ex-demos. Run them for a couple of years with the manufacturers warranty and rinse and repeat. Suits me - I like to own what I drive or ride.

Whatever method you choose the old saying still stands:- “There is no cheap way to run a car”.

Best Grand I've Ever spent. Does every thing I want = £££££

Billy Balfour wrote: ↑

Mon Jun 21, 2021 4:08 pm

I buy 6 to 12-month-old very low mileage ex-demos. Run them for a couple of years with the manufacturers warranty and rinse and repeat. Suits me - I like to own what I drive or ride.

Same, it’s not just that you can pretty much do what you want to it without fear of financial reprisals, I guess in a way though you could equally argue if you abuse it the resale value will drop.

My view is that if you’re leasing a Range Rover at the expense of paying into your pension then I look forward to you serving me in Cafe Nero when you’re 80.

Depends on your circumstances and what you are buying. I did a lot of PCP training before I retired. Its a great product as you can keep your cash in the bank and budget for it. It however is not for me as I have retired and I did not like the thought of of paying a significant amount of money on my "last car" when the finance ended. Since retiring 18 months ago I have bought 4 used vehicles including my wife's and paid cash for all. If you are looking at buying something prestige and new ie Discovery, Audi A5 etc, then lease, as depreciation on some of these exclusive cars is quite significant. Dont know if you are aware but new cars sales are very low as the manufacturers are struggling to ramp up production again as there are many shortages of raw material, namely steel. This has put huge demand on good quality used-there is even gazumping going on, with values increasing. Buy a used car wisely now and you might minimise your depreciation or get your money back when selling in a year or so. I bought a Kia Sportage 12 months ago and sold it at the same money a week ago. Just reinvested this into a newer car which I collect today

LS7 wrote: ↑

Tue Jun 22, 2021 8:26 am

My view is that if you’re leasing a Range Rover at the expense of paying into your pension then I look forward to you serving me in Cafe Nero when you’re 80.

Sadly this probably applies to many.

I leased for the first time in December just gone and the experience has been good so far. Prior to that I've done PCP and cash purchases and there are positives and negatives to all options.

My main reason for leasing was I'd ideally like to get an electric vehicle, however I wanted to wait a little to let the infrastructure mature and for more options to become available over the next few years. Leasing means I can walk away nice and free in a couple of years and hopefully make the transition then.

It will be interesting to see how the market handles the mass market move from ICE to electric and whether people will be able to move on their ICE vehicles easily in say seven or eight years time.

I only leased one car in the past but found that the provider can be ruthless on the inspection at the end of it. I looked after it but all you need is one idiot in a supermarket to dent it in a bad place and the repairs have to be done immaculately which is very costly. This isn’t a relaxing way to own a car imo. They also don’t seem to stack up for higher mileage travellers.

Yep, relaxing is the word. It's bad enough getting a supermarket dint when you own the car outright.

LS7 wrote: ↑

Tue Jun 22, 2021 8:26 am

My view is that if you’re leasing a Range Rover at the expense of paying into your pension then I look forward to you serving me in Cafe Nero when you’re 80.

I know someone who moans like **** about not being able to get on the property ladder and resents paying their rent as 'dead money' each month. Thing is, both him and his other-half have two high-end cars on the drive, 'bought' on either lease or PCP, that must cost them a mortgage each month. Also, regarding the property ladder thing - they want to get on it halfway up, not a few runs down. Cake and eating it springs to mind every time he moans about renting.

Pretty much each to their own as you can see on here and what suits your wants and needs.

I'm mid-30s, been driving since I was 17, owned a car from my early 20s and only had 2 cars - Mitsubishi saloon for 10 years and Skoda estate for the last 4.

Both were second hand cash. Mitsubishi £6K, Skoda £4K.

Done the job for me. I don't like the idea of money going out of my bank account every month on something I already have and I'm not too fussed about having the latest or best car - hence having an estate and no kids, I'm the coolest 30-odd year old on the block

But if you want a nice new car etc. then fair enough.

My biggest concern is where I go next when my current car packs in. I want to go electric but not that impressed with the current mileage range and obviously the second hand market will not be so rife and won't have the new range/tech that comes with the next generation of models.

No idea how true this is as I’m on finance but got told it’s better in future to put the deposit down as per and get a bank loan for the rest if you can cause it’s cheaper APR than the finance companies.

Hard to say, the interest rate you get could be completely different to the person who told you.

Never leased and can’t imagine I ever would.

Not that you buy a car to make money on. But just can’t imagine why I’d pay a healthy sum every month for something I never owned.

Current cars actually gone up in value despite adding miles to it. Granted other cars will have too. But personally I’d buy every time.

Whatever you buy, and however you pay for it, make sure it burns hydrocarbons. Anything else is the preserve of woke *****.

SammyBoy wrote: ↑

Tue Jun 22, 2021 2:54 pm

No idea how true this is as I’m on finance but got told it’s better in future to put the deposit down as per and get a bank loan for the rest if you can cause it’s cheaper APR than the finance companies.

Car dealers making mega money Leasing...and pushing finance. Never seen a poor Bookie applies to the modern day card dealer now. Heard of one Local dealer taken order of a 3 million boat to cruise the Med. While a top of the Range black Ferrari is Housed in his "Pendle" Show Home.

tim_noone wrote: ↑

Thu Jun 24, 2021 10:08 pm

Car dealers making mega money Leasing...and pushing finance. Never seen a poor Bookie applies to the modern day card dealer now. Heard of one Local dealer taken order of a 3 million boat to cruise the Med. While a top of the Range black Ferrari is Housed in his "Pendle" Show Home.

Where cars are concerned my advice would be that they are not worth going into debt for, so simply buy what you know you can afford.

boatshed bill wrote: ↑

Thu Jun 24, 2021 10:15 pm

Where cars are concerned my advice would be that they are not worth going into debt for, so simply buy what you know you can afford.

Without doubt.BB.

Hi, I’m looking at a pcp deal at £399 p/m and £2999 deposit at 3.9% Apr but can anyone please tell me if a put in an extra £1000 how much would my monthly payment come down by? Thanks

Rule of thumb over 4 years a grand is about 20-25 quid

I don’t have anything against any of the methods, all have benefits. As said all are competitive but obviously leasing is slightly more expensive as you don’t have the risk of mechanical problems leaving you needing costly repairs. Although modern warranties negate that risk.

What I don’t agree with is those who feel the need to jeopardise theirs and their families future by spending great chunks on leasing a white Range Rover evoque which they can’t afford and isn’t even good car. Christ they get them to look good...

Thanks Tarkys_Ears, My last pcp has just ended but every grand i put in on that deal reduced my payments by £33 p/m i was on a 0% deal then! Thought it might have been worked out by the Apr rate, Cheers

SammyBoy wrote: ↑

Tue Jun 22, 2021 2:54 pm

No idea how true this is as I’m on finance but got told it’s better in future to put the deposit down as per and get a bank loan for the rest if you can cause it’s cheaper APR than the finance companies.

It is cheaper generally. Don’t know why more people don’t do this. A car lease is still a loan and a big commitment if your circumstances change. It depends whether you want something brand new that you often can’t afford to actually own. Based on the number of young drivers driving brand new cars I suspect that’s what a lot of them want. The total finance costs are huge so no wonder dealers are raking it in.

Personally I like leasing over owning. I can pay £x per month and that’s all I need to think about, then change it every 3 years. There’s always some cracking deals around if you shop around a bit.

Boss Hogg wrote: ↑

Mon Jun 21, 2021 8:58 am

Having had company mainly but also lease, pcp, hp and cash bought cars over the years what are people’s preferences ? I was surprised to learn that over 85% of new cars are financed. I think I favour cash now. I buy older turn them round quickly and don’t lose much. It looks as though leases cost people thousands for something they never own to have something looking nice and new on the drive. Then again it allows them to buy a car they probably can’t teally afford. I think a pcp or hp actually offers better value than a lease if you get a good rate.

Never bought a new car because of the large depreciation involved and never will.

As it happens some makes of cars are far better then others now, Honda being one of them so when our Honda Jazz conks out we will just get a another one second hand for a pittance compared with a new one.

Our is 13 years old and drives superbly with little or nothing spent on the annual MOTs, also our mechanic at the garage has one and wouldn't buy anything else.