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New car working out more expensive than second hand nearly new

(6 Posts)
Springmachine Fri 18-Jan-19 16:11:04

My car is old and is due a lot of money spending on it.

I started looking at replacing it with a nearly new second hand car. I only have £5k to put towards the car so will need to finance the rest.

After getting the quote for the pcp finance on the second hand car I selected the ideanticak car but brand new and due to contributions and better rates of finance the new one would cost £3k less over the whole of the term and save £40 per month in payments.
This doesn't seem right?!

Has anyone else found this to be the case?

OrchidInTheSun Fri 18-Jan-19 16:12:26

Do you get to keep the car at the end?

QforCucumber Fri 18-Jan-19 16:13:50

Sounds about right, the brand new one will have 0% offers in place,

however - are you eligible for a low rate loan to buy the 2nd hand one? You may find overall that works out cheaper again.

Helpmeltb Fri 18-Jan-19 16:16:21

I found it was cheaper to buy new (or at least no more expensive). However I also found HP was cheaper than PCP, so did that and paid off early making it even cheaper.

Springmachine Fri 18-Jan-19 16:16:22

The rate of interest on the new car is 5%, I'm currently being offered just under 4% on a personal loan but I wouldn't get the dealer contribution that way.

I'm m quite nervous about financing such a large purchase. I've always just bought 7 or 8 year old cars and kept for a few years but it's worked out so expensive in the long run I think I might be doing it all wrong

TiddleTaddleTat Sat 19-Jan-19 16:45:46

Interested in this OP. I'm confused though, I think your title contradicts your first post. Do you mean that buying the same car new is cheaper than nearly new?
Don't forget depreciation on a new car will be much steeper.

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