Car finance options

[Mookie81]

Hi all,
We are looking to buy a new car but we're unsure about which finance option to go for.
Which is best out of:
1- paying a deposit then monthly repayments until car is paid off and yours.
2- smaller monthly repayments then a lump sum at the end/giving back car/exchanging for another car and starting again
3- something I haven't thought of

Thanks in advance.

Some of these offer interest free credit, use whichever does that?

It depends what you want... New cars substantially depreciate in value .

Example I bought a b and new mini exactly two years ago, paid about £29k for it on finance (0%). I gave a £10k deposit and overpaid £3k a few months later. June this year I had to sell it as I needed a seven seater. By then I had paid 18 monthly payments of £300 so just below £6k . By the time I sold it I had already paid £19k. Sold it for £15k, owed £9k, kept £6k. So over 18 months I lost £13k!

If would.suggest buy an old car. If you're really into new cars then get a lease, I think you end up.losing a lot less money that way

I think the trouble with buying a car is that it's difficult not to lose money. Even if you end up paying a car off and owning it outright, by then it'll probably start to need work and you'll end up throwing money at it.

My 10 year old car cost £5k at a rate of £120 per month. Even with overpaying, I paid £7k in the end and it's now worth - bugger all!

I'm very tempted by PCP deals but on older cars.

Have had second hand cars since we first got a car so we would like new, but would get a secondhand one no older than 2 or 3 years.
Not worried about losing money as we know that's what happens, but the car we have at the moment is 10 years old so we get a lot of wear out of cars.