DH & I currently lease a car. We paid a deposit (around £1600) and pay £230 per month.
DH is in the Army and is due posting in a couple of years. We don't want to lease this time due to the fact that the charges are huge if you need to get out of the lease early. We could end up with an overseas posting so could have no choice but to cancel.
The car DH wants us to get is £14,000. It's a couple of years old with around 30,000 miles on the clock.
By the time we need to buy it, we'll have about £2,000 saved towards it. We can take a loan out for the remaining £12,000, pay off over 3.5 years at £300 per month. The only thing that worries me is that leaves us with £70 per month less than we currently have.
The other option is to pay a £1,400 deposit and have the car for £215 per month on PCP. I don't fully understand PCP but the lady I spoke to at the leasing company recommended it to me. She said that whenever we need to end the contract, people often come out of it with a little bit of money rather than having to pay a cancellation fee. Her company don't offer PCP so this wasn't a sales pitch from her.
I understand the PCP deal would work our way more expensive if we completed the contract because there's a final sum you pay at the end to own the car but it's highly unlikely we'd stick with that car until that point.
I'm massively attracted to paying less per month. That seems like it would be the best way for us to go but I just want to make sure I've got all the facts right 👍🏻
Can anyone help?
Thank you.