Car finance questions

21
Posted 25th Feb
You lot seem the right sort of people to know what will be the best way to buy/hire a car!

My car is currently in the garage being repaired after someone hit the rear. The courtesy car I have has made me realise how dated my 10 year old car is getting!

I'm quite liking the idea of getting a new car. I've not had too much experience with new cars as I've tended to buy something that is a few years old and run it for a good few years - I have always tried to not lose more than £1k per year including repairs.

Obviously for the privilege of driving a new car, I will have to pay more.

I've looked at a few options but keep coming back to the fact that I don't think I can beat leasing, but I feel I'm missing something!

For example I had a quick look at the courtesy car I've got (not necessarily what I'd buy) - Renault Kadjar 1.3 GT Line.

Leasing will cost me £7500 for 3 years all in plus servicing.
The RRP is about £26000.

In terms of depreciation a 1 year old one is about £16-£17k.
A 3 year old is about £12500 (not the exact model as it wasn't done then)

So looking at that alone it loses £13500 over the 3 years, so I would be better off by £6k to lease and just hand it back.

However, shopping around - the new car discount website has the GT Line for about £18,500, which then makes the 1 year depreciation minimal and the 3 year to be less than the leasing cost.

So that makes me think that leasing isn't so good - but then I remember that I haven't got £18,500 spare! I could arrange it but I'd be paying interest in some form - I could add it to my flexible mortgage which would incur the 4% interest that my mortgage is currently on. My other option is to use PCP finance but then that would cost £10,250 for the three years - if I hand it back then, I would be about £3k worse off than if I'd leased!

So as you can see, I go round in circles! Am I missing anything out? What do you think the best value way is to own a new car. My idea would be to get into the habit of having a new car every 3 years. It will cost me more but I don't have to worry about MOTs or expensive repairs.

Really I don't want to spend more than £200 per month.
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Leasing is moderatly hassle free but beware of charges for damage. The other issue is how you get out of it if circumstances change/you need a different car. a lease is a fixed term contract.

PCP is a half/half option. You have the choice of handing it back or paying the balloon to keep it. Often the cheapest way to buy new because of contributions from the manufacturer.

Always check drivethedeal/carwow etc.

Remember that because residual values are higher it can be cheaper to get 'better' brands on pcp/lease.
Thanks, I'm not too worried about circumstances changing - the only possibility I could have is an increase in mileage required if I move jobs - my current requirements are very low. This would be inconvenient and may add to the cost a little but it isn't a huge cost.
My mates wife wants the Renault Kadjar or Nissan quasi.
He was tempted by the offers on at the moment.
But as he wants to keep the car for around 10 years, he is now looking for a 2016 model.This is due to the road tax cost.
Pre April 1st 2017 have lower road tax, the 1.5 diesel is £0.00.
The new versions are at least £145.00 a year. Over 10 years that will be over £1500.00.Also like you he only wants to lose
£1000.00 a year
I’ve got a Peugeot 5008 1.6 bluehdi auto 66 plate. Good mpg, Motorway at 70 gives 50 + mpg.
Local gives 30-40 mpg. £30 road tax.
Its been very reliable, only 1 issue. One front parking sensor went. All fixed under warranty. ( 3 days before warranty ran out ).
Ive opted for a 1 year extended warranty with MOT insurance for £224 I think it was.
If you have an older car it is unlikely to cost £200 a month in repair bills. If you mot'd it and it failed on uneconomical repairs then scrap and buy another older car and it will be much cheaper motoring than lease or pcp. Unless you kept blowing engines and burning through clutches

Ps avoid Nissan CashCow and Renault Kadjar unless you're happy for them to be in the garage more than on the road.
Edited by: ".MUFC." 25th Feb
If I had my way I would still be driving a Rover 218 or 418 diesels.
I had 7 or 8 of them.
I did 100K in each of them. As soon as I purchased one it got a Cam belt water pump brakes front down pipe and fuel filter housing. About £300 - £350 of work, apart from service costs and wear and tear plus a set of glow plugs that was it.
They just ran and ran even on veg oil. Only one ever broke down with a dead battery.
Plus the odd clutch.
I had 3 Jukes on lease through Nissan, they all developed the same fault (rattle from engine area in drivers side - didn’t impact driving just highly enjoying) and 2 of them were recalled just because they could. Toyed with idea of getting a new vehicle by way of PCP but decided against it. I got a loan through Zopa and purchased a JCW Mini Coupe with barely any miles on it, strangely it’s the most economical (diesel) car I’ve ever owned. It came with 2 years remaining of a TLC service pack paid for by previous owner, I’ve not had a single issue with the car but saying that learnt the service pack isn’t worth the paper it’s written on. Sounds like you’ve done a lot of shopping around, I’lm sure you’ll go with what works best for you eventually...
Edited by: "joeydeacon" 25th Feb
bigwheels25/02/2020 21:40

If I had my way I would still be driving a Rover 218 or 418 diesels.I had …If I had my way I would still be driving a Rover 218 or 418 diesels.I had 7 or 8 of them.I did 100K in each of them. As soon as I purchased one it got a Cam belt water pump brakes front down pipe and fuel filter housing. About £300 - £350 of work, apart from service costs and wear and tear plus a set of glow plugs that was it.They just ran and ran even on veg oil. Only one ever broke down with a dead battery.Plus the odd clutch.


Those were the days. Cars these days are generally even more reliable. It's your little electric/technical things that generally go wrong.

If you want better technology in an older car then buy a more spec'd up model or perhaps a more prestigious brand etc..
.MUFC.25/02/2020 22:05

Those were the days. Cars these days are generally even more reliable. …Those were the days. Cars these days are generally even more reliable. It's your little electric/technical things that generally go wrong. If you want better technology in an older car then buy a more spec'd up model or perhaps a more prestigious brand etc..


My dad just returned his 3 year old Mercedes c class estate, in 3 years it went back on a tow truck 4 times and 3 times they came and got it. Not good as was a motobility car.
bigwheels25/02/2020 22:09

My dad just returned his 3 year old Mercedes c class estate, in 3 years it …My dad just returned his 3 year old Mercedes c class estate, in 3 years it went back on a tow truck 4 times and 3 times they came and got it. Not good as was a motobility car.


I guess German engineering isn't always what it's cut out to be. Tbf I don't have much experience with Mercs. However I know of several Nissan and Renault owners that have had issues with theirs etc.. Like my brothers Qashqai that decided to apply it's brakes at 50mph on an open road, No traffic etc.. Scary stuff.
.MUFC.25/02/2020 21:26

If you have an older car it is unlikely to cost £200 a month in repair …If you have an older car it is unlikely to cost £200 a month in repair bills. If you mot'd it and it failed on uneconomical repairs then scrap and buy another older car and it will be much cheaper motoring than lease or pcp. Unless you kept blowing engines and burning through clutches :)Ps avoid Nissan CashCow and Renault Kadjar unless you're happy for them to be in the garage more than on the road.


I've done a lot of that but quite fancy having a new car. I spent a few years buying cars that had practically nor MOT, fixed them up and MOT'd, ran them for a year, MOT'd again and sold them with a years MOT for a profit. Leasing or buying will cost me more but as my job role has progressed over the years, I get a bit more money and less free time! So don't have the time to tinker with cars any more, our other car is a 20 year old camper van so that demands enough time, I could do with one reliable car that doesn't need thinking about.

I need something Kadjar size or bigger, and I don't need many miles at the moment (but need to know it isn't horrendous to pay for more).

The best value for money deal I've found so far is the Vauxhall Grandland X. It seems a nice size. Total lease cost is £4350 for 2 years (£2175 per year) - so including the initial payment it roughly works out as £180 per month. Oddly the 24 month works out the cheapest with the Grandland and means I can swap it in for a new car earlier on. That is a fairly basic spec though - upping to the Elite Nav makes it the equivilant of £214/month all in (but over 36 months) - £34 / month seems a lot for a few toys in the car!
nbuuifx25/02/2020 22:23

I've done a lot of that but quite fancy having a new car. I spent a few …I've done a lot of that but quite fancy having a new car. I spent a few years buying cars that had practically nor MOT, fixed them up and MOT'd, ran them for a year, MOT'd again and sold them with a years MOT for a profit. Leasing or buying will cost me more but as my job role has progressed over the years, I get a bit more money and less free time! So don't have the time to tinker with cars any more, our other car is a 20 year old camper van so that demands enough time, I could do with one reliable car that doesn't need thinking about.I need something Kadjar size or bigger, and I don't need many miles at the moment (but need to know it isn't horrendous to pay for more).The best value for money deal I've found so far is the Vauxhall Grandland X. It seems a nice size. Total lease cost is £4350 for 2 years (£2175 per year) - so including the initial payment it roughly works out as £180 per month. Oddly the 24 month works out the cheapest with the Grandland and means I can swap it in for a new car earlier on. That is a fairly basic spec though - upping to the Elite Nav makes it the equivilant of £214/month all in (but over 36 months) - £34 / month seems a lot for a few toys in the car!


I get you. Perhaps you deserve a treat then. You could always go back to older bangers if you get bored or it gets too expensive. Been tempted myself but then I come back to my current car and think erm nope, It's mine, I own it, All the spec I need/wanted so I'll stick for another few years etc..

The Grandland X is based on same platform as the Peugeot 3008/5008 and they're pretty decent cars. Rather have one of those than the Nissan/Renault

If I was going for one I'd probably go for Skoda Karoq, Seat Ateca or VW Tiguan but they'd cost a little more.
Edited by: ".MUFC." 25th Feb
I'd be more concerned about your 4% interest on your mortgage. That seems way too high when interest rates can be had for under 2%
MonkeyMan9026/02/2020 09:19

I'd be more concerned about your 4% interest on your mortgage. That seems …I'd be more concerned about your 4% interest on your mortgage. That seems way too high when interest rates can be had for under 2%


That will be for review shortly, got an extension underway. Once that is complete, I'll remortgage to get a better rate.
.MUFC.25/02/2020 22:22

I guess German engineering isn't always what it's cut out to be. Tbf I …I guess German engineering isn't always what it's cut out to be. Tbf I don't have much experience with Mercs. However I know of several Nissan and Renault owners that have had issues with theirs etc.. Like my brothers Qashqai that decided to apply it's brakes at 50mph on an open road, No traffic etc.. Scary stuff.


Renault group is pretty terrible tbh. If you’re looking for a car to take you from A to B then they’ll do the job most of the time but their electronics are rubbish and in recent years even their reliability has taken a turn for the worse as can be seen by the steep depreciation on the Nissan Qashcai series.

German cars aren’t much better. Great to have within warranty but hopeless elsewhere a lot of the time. Even with regular maintenance, they will develop problem and being as highly engineered as they are today, a lot of the time it is very costly to repair things that didn’t used to be the case going back maybe 10/15 years ago.

Comes down to what you want from a car. Japanese cars are the most reliable in general. Not the best interiors but they generally have good room and premium makes like Lexus have better interiors than you’d believe with a lot of kit. They’re not as sophisticated as German cars but they are economical and will do a good job.

The least said about companies like Fiat…the better. Ford do pretty well in the UK also.
Been for a test drive in a Kia xceed today. I was quite impressed to be honest. They are really good value at the moment. I quite liked the look of the top of the range one but I can't fit in it. It has fully electric seats which means it can't go quite as low and it has a panoramic roof which is lower so my head rubs on it.

The next model down though fits fine! So I'm seriously considering a isg 3. Quite well spec'd. Just deciding on the engine. I test drove the 1L turbo and it was plenty powerful enough but it was a bit noisy. They didn't have a 1.4 in stock but they cost a little more.
nbuuifx15/03/2020 19:09

Been for a test drive in a Kia xceed today. I was quite impressed to be …Been for a test drive in a Kia xceed today. I was quite impressed to be honest. They are really good value at the moment. I quite liked the look of the top of the range one but I can't fit in it. It has fully electric seats which means it can't go quite as low and it has a panoramic roof which is lower so my head rubs on it.The next model down though fits fine! So I'm seriously considering a isg 3. Quite well spec'd. Just deciding on the engine. I test drove the 1L turbo and it was plenty powerful enough but it was a bit noisy. They didn't have a 1.4 in stock but they cost a little more.


Test drive xCeed today as well. Spec 3.
Like it tbh but I've been driving Kia Nero for a year and all those beeps are getting so annoying for me so looking at some other option as well.
I drove the 1.4 model and enjoyed it.
D3SI17/03/2020 21:44

Test drive xCeed today as well. Spec 3.Like it tbh but I've been driving …Test drive xCeed today as well. Spec 3.Like it tbh but I've been driving Kia Nero for a year and all those beeps are getting so annoying for me so looking at some other option as well.I drove the 1.4 model and enjoyed it.


What beeps were annoying?

I've pretty much convinced myself to go for one. Pretty sure it'll be the 3, just undecided on the 1L or the 1.4L. I've only tested the 1L as they dodn't have any 1.4s in. I think I'd better book a test drive with a 1.4
When you turn ignition on, it been 6 times for seat belt warning.
When you turn the car on itll beep again.
Same for when you turn it off.
If someone pulls the rear seat belts by mistake itll beep for 30 seconds. Etc
D3SI17/03/2020 21:54

When you turn ignition on, it been 6 times for seat belt warning. When you …When you turn ignition on, it been 6 times for seat belt warning. When you turn the car on itll beep again.Same for when you turn it off.If someone pulls the rear seat belts by mistake itll beep for 30 seconds. Etc


I didn't notice too much on the XCeed, there was a welcome noise but I noticed an option in the menu to disable that.
nbuuifx17/03/2020 22:04

I didn't notice too much on the XCeed, there was a welcome noise but I …I didn't notice too much on the XCeed, there was a welcome noise but I noticed an option in the menu to disable that.


Ohh I see
Maybe they added the option in newer revisions.

I'm going back again tomorrow and I'll check the system closely.
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