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    0% finance or leasing?

    Im due to start my new career as a Police Officer and I have deciding instead of sharing a car with my partner, I should really have my own one. I've just come off Holiday so don't really have any savings.

    I was looking at 0% finance deals, but can't really find any used car deals. The Skoda Citigo does look a decent deal.

    Is leasing recommended? I'd just be scared of scratching the car and having big fees.

    Anyone know of any good deals on cheap smallish cars i'd be very appreciative.

    7 Comments

    you'll struggle to get 0% finance on used cars. its less common on new cars recently too.

    whether its PCP or leasing theres still an element that any damage can incur fees.

    if you might want to keep it, finance it. otherwise lease it.

    Bbc money Box, covered car finance on Monday this week I think? Go listen again online

    There are lots of 0% deals on used cars, they are called 0% spend credit cards. Got £12,000 limit for two years, after two years will switch £9,000 that's left on 0% balance transfer CC. 0% credit on used car, simples

    I got a loan for my car, it was £10000 and I only pay about 600 quid for having the loan over 5 years. The interest rate is in the gutter.

    Good luck with your new career!.

    First of all understand the difference between leasing (or PCP) and finance. And then get an idea of how much you can afford each month (don't forget to allow for insurance and maintenance).

    Lease/PCP contracts can have very attractive headline monthly for a new car. But - and these are big buts
    - mileage is limited in the contract. If you go over you pay quite a lot extra at the end of the term.
    - they will penalise you for all sorts of minor damage - scuffed wheels, little scratches or chips. You know how carefully you look after your car and will be able to judge whether this is a risk for you.
    - you never own the car. So at the end of the 2 or 3 year term, you have to give the car back and start all over again.
    - you may have to pay a lump sum up front.

    Finance is simpler: you borrow some money, buy car and pay off the loan. And it's your car from day 1

    Leases are great if you like having a new car every 2-3 years, treat your car carefully, and can estimate your mileage reliably.

    With finance, you can buy a used car - lots of perfectly good 2-3 year old motors around. If you're happy with a pre-owned car and keeping it for a longer period, it can be more cost effective than a lease or you can pay a similar amount and get a better model (bigger, better specification). On the downside, it's likely to cost a bit more to maintain than a brand new car as things wear out. It's worth doing the research to find out what's reliable and cheap to maintain eg Hyundai and Kia have long warranties which cover many unexpected bills as long as they are serviced regularly at the dealer.

    If you do go down the finance route, check out the advice on MSE about loans and getting best value.
    Edited by: "pcs7038" 12th May

    Don't the Police Federation do special deals for officers? They used to quite a few years ago.
    GL with the job. Try to keep a sense of humour :-)
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