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Original poster

Do you buy your cars outright or on finance/lease?

204 replies

Daddypigsglasses · 09/03/2020 16:37

I’ve always saved up and brought a nearly new car then run it into the ground. It was instilled into me as a child that borrowing money was bad and this is the way my parents always did it.

I need to replace my car soon and it’s become blindingly obvious to me since my kids started school last year and I began noticing the other parent’s cars that we are the only ones (and I mean only ones) driving around in anything like a 12 year old focus.

Do most other people else get cars on finance? Is it the sensible thing to do? I can’t get my head around it. I’ve got around 8k to spend so likely that would get me a 15 plate decent car, which is still going to be older than everyone else’s!

I’m not usually showy but I seem to have serious envy where the other parents are concerned.

OP posts:
Equimum · 10/03/2020 22:08

We have always bought outright. Currently driving an 11 year old vehicle which we bought three years ago. We are looking at getting the next car on finance, though. I plan to return to work soon, so we will have more money coming in and suspect we will save quite a bit by having something that is more economical to run. It will be a purchase finance, though, and we will keep the car for a number of years I suspect.

Theroigne · 10/03/2020 22:10

Outright second hand. Our latest was 2 or 3 years old when we bought it and cost 17k. Our previous one was about 4 years old and cost us 10k. We would have kept it for longer but needed a bigger car due to long legged teens plus big dog.
I’ve thought about finance etc but like pps, it scared me!

FireandFury · 10/03/2020 22:10

Always outright and never brand new. I always get cars that are a year old.

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JollyGiraffe12 · 10/03/2020 22:13

I have no problem with finance but I buy outright

turnedabout · 10/03/2020 23:04

Dealer finance is always the most expensive way to borrow the money.
Instead get a zero percent purchase credit card to buy the car and pay it off bit by bit. Of else get a personal loan - will still d cheaper than the car dealers rates.
Check out money saving expert website to review credit cards and loans

AnotherEmma · 12/03/2020 08:53

OP, let us know which car you go for in the end - I feel invested now Grin

Original poster
Daddypigsglasses · 12/03/2020 09:25

Ha ha!

We are looking at 2 Octavias at the weekend 🙂 Also a Nissan Juke and a KIA Sportage, but I think those might feel a bit big.

OP posts:
turnedabout · 12/03/2020 09:47

Hey OP, given the bank base rate reduced significantly yesterday, you might want to wait a week or two to let lenders catch up and offer lower rates on personal loans etc . Could be a big saving for you rather than taking the deals currently on offer

Original poster
Daddypigsglasses · 12/03/2020 10:01

Thank you.

We’re planning on just using savings though, so no finance. But I’m still umming and ahhing about that as who knows what will happen in the next few weeks. Can’t imagine cars are selling like hot cakes at the moment.

Will still test drive a few as we do need to do it eventually.

OP posts:
Ninkanink · 12/03/2020 10:17

Don’t get the juke. Awful car. Comedically huge on the outside with no space on the inside!

Sorry, can’t help myself, I just find that car so obnoxious!

MrsExpo · 12/03/2020 10:26

Buy outright, second hand and as new/low milage as we can find within the budget. We try to change them whilst they still have some reasonable trade in value against the next one. Just can't get my head round these leasing arrangement, which seem like a total rip off to me.

AnotherEmma · 12/03/2020 14:08

I was going to say exactly what Ninkanink said!

Anyway, enjoy your test drives Smile

Pedallleur · 12/03/2020 14:18

the lease arrangement is just a clever way to get more people in new cars. the car firms have enough clout to manage the financing and then they have control of their products over 3 yrs which in theory generates products for the used car market. But you have people who have bought into the new car idea and want to stay in it. when I got mine it was 0% anyway but the devil is in the details

LadyEloise · 14/03/2020 08:33

Yikes, I'm in Ireland and apparently 70% of new cars are bought on PCP.
With the current Coronavirus and the country on an almost lockdown, businesses are suffering, staff are being let go or given less hours = less salary.
I would hate the extra worry of a big car rental payment loan.
The impact of the Coronavirus on not just the health but the wealth of the people is huge. Sad

ANuggetOfTheFinestGreen · 14/03/2020 08:46

I buy outright, I'm a petrol head and I'm not allowed to tune/re-map engines or modify under lease/pcp terms!

AnotherEmma · 16/03/2020 13:14

How did your test drives go?
(Told you I'm invested Grin Blush)

Ariela · 16/03/2020 13:53

I always had company cars since my early 20s (and before that drove my brother's car and later DH's if I was short of a car, so it wasn't until a few years ago we needed a car. We bought one a year or two old, and keep for 5-10 years and then repeat. Low mileage, don't lose out on depreciation. DH is a mechanic, and we don't do many miles per year, one car used to not even top 2K between MOTs.

TiddleTaddleTat · 16/03/2020 13:57

I was same as you, OP. Then I needed a car to get to work (long commute and lots of travel required) so I bought on HP.
Paid half up front and half financed. Continued to save up and paid off the rest under six months later. I only saved about £500 in interest than if I'd left it on the hire purchase.
Kind of regret putting all my cash into it as I think it's sensible to have an emergency fund - especially now.
I'd buy another car on HP.

Original poster
Daddypigsglasses · 16/03/2020 14:18

@anotherEmma

We didn’t end up going in the end as DH is working round the clock (self employed) to get funds up for when we’re likely off in a week or so.
I will let you know 🙂

OP posts:
Smallfacesfan · 23/04/2020 17:33

Can anyone recommend a good car leasing company they’ve used and have been happy with please?

Dowser · 23/04/2020 18:50

Outright

LittleMachine · 23/04/2020 20:11

I have my current one on finance. I have a Mini, the model I have is over 16k new, I don't have that in the bank. For me it's worth the extra I'll pay in the long run for having a car I like. DH leases his. We both have a good income but no savings, so we can afford the monthly payments but not to buy outright. When I've paid this car off later in the year I'll keep it a bit longer then sell it and lease one. I kept my first car for about 8 years, it was wrecked 😁 Then my second car was stolen and written off.

lifestooshort123 · 23/04/2020 21:15

Always bought outright. I hate credit of any kind as you've no idea what might be round the corner...

samandpoppysmummy · 23/04/2020 22:31

Outright. I've never bought anything on Finance.

StillMedusa · 23/04/2020 23:05

Outright, and a good few years old. Even just commuting to work and back I clock up at least 12k miles a year but my current little Twingo 62 plate cost me just £2,500 a year ago with 48k on the clock and will hopefully go at lest 5 years before I look at replacing.
Our reliable Peugeot estate is 11 years old, 90k on the clock and has never flinched at an MOT.
I guess I'm a skinflint but I couldn't bear the thought of paying out £200 a month on a car I don't own just cos it's shiny and new. As long s the aircon works I'm happy!