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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to want to buy a new (second hand) car rather than lease a new car

180 replies

Hotfootit · 12/10/2017 13:10

We have two cars. Our second car is breaking down and the MOT is due very soon. Our first (family) car has been in the garage for 6 weeks and we have tried to manage with one car. We can just about do it, but it's a real performance and we've had ask for lifts to out of school activities (not being a CF as we've given most of these friends reciprocal lifts at one time or another).

DH wants to look into leasing a new car (is it PCP?). I think I would rather buy second hand and then we will will own the car (might have to buy with a bit finance, we're not sure yet). We've had what is now our second car for 12 years - we bought it second hand and it was our only car for 9 years, and was the first car either of us had ever owned - so we're not into changing cars regularly. What are the benefits of a leased car?

OP posts:
ShellyBoobs · 12/10/2017 17:24

M a bit Hmm at people comparing new cars with old ones.

Of course an old car is going to be cheaper to buy.

It's like someone coming along and saying they're planning to buy xyz handbag and people telling them to just get an Asda carrier bag instead.

They will do the same thing but they aren't the same thing.

SusanTheGentle · 12/10/2017 17:33

Actually the figures I ran were for new cars - it was still cheaper, with the service plan and gap insurance included, to pay outright and get a bank loan for what I couldn't do in cash.

I'm not saying leasing/PCP doesn't have some positives - but it's not a financially sensible way to purchase a vehicle.

scottishdiem · 12/10/2017 17:36

PCP is not leasing. DP and I leased our last car in the UK - via the Ling Lease website (which is a comedy website but the service is first class). A simple Nissan, no repairs, only new tires and services and one MOT (no work). It was brilliant.

It worked so well for us we are very disappointed that Ireland doesnt have anything close to the equivalent. We are not bothered by the idea that we would never own the car as its just a car.

If you want to buy OP then thats one route. I recommend leasing. I dont think I would bother with PCP.

ShellyBoobs · 12/10/2017 17:39

I'm not saying leasing/PCP doesn't have some positives - but it's not a financially sensible way to purchase a vehicle.

I'm intrigued to know why you say that?

What is the financially sensible way to purchase a vehicle?

19lottie82 · 12/10/2017 17:42

but it's not a financially sensible way to
purchase a vehicle.

Another one here wondering why you say that? It's a bit of a sweeping statement, no?

Nettletheelf · 12/10/2017 18:33

In the business, are we, Shelly?

ShellyBoobs · 12/10/2017 18:50

In the business, are we, Shelly?

You must be joking!

PashPash · 12/10/2017 19:04

I usually lease or PCP.

i like having a newer car. It's got fuck all to do with keeping up with the joneses. The thing is usually covered in mud to the point you can't really tell wether it's brand new or not anyway.

I have kids. Having a new car means a crash is significantly more survivable. I don't want to transport the most precious thing in my life round in something I KNOW isn't as safe as it could be. It is also more comfortable, produces less emissions and is nicer to drive than an old car.

I don't get the snobbery about new vehicles on here.

Original poster
Hotfootit · 12/10/2017 19:13

Thanks all. Some great advice. Now to sit down and crunch the figures. Glad to see my initial hunch isn't so far from the mark.

OP posts:
Original poster
Hotfootit · 12/10/2017 19:13

Thanks all. Some great advice. Now to sit down and crunch the figures. Glad to see my initial hunch isn't so far from the mark.

OP posts:
Original poster
Hotfootit · 12/10/2017 19:13

Thanks all. Some great advice. Now to sit down and crunch the figures. Glad to see my initial hunch isn't so far from the mark.

OP posts:
Original poster
Hotfootit · 12/10/2017 19:14

Oh dear - sorry! Excited fingers fail.

OP posts:
dangermouseisace · 12/10/2017 19:40

If your car is written off in an accident and it's on finance you're likely to be significantly out of pocket, due to the payout being what the car is worth at that point, rather than what you've agreed to pay.

I bought a 5 year old car for £4500. I love it- all bells and whistles and I've spent less than £700 on it in the 3 years I've owned it, including servicing/MOT (one of the services being the complete doing everything service). It's extremely fuel efficient and it still looks nice and shiny. Fully comp insurance is cheap too (under £400 per year). And the car is MINE all mine 😊

I think finance is for fools...

Sunshinegirl82 · 12/10/2017 20:08

You purchase GAP insurance to cover the difference between the finance owing and the insurance pay out.

I have my car on PCP, works out really well for me. Currently have a Renault Kadjar which I love! I don't have £5k in the bank to get a half decent second hand car. The sort of loan that would cost a similar amount to my PCP would mean I'd need to get a car that was 4/5 years old, by the time I paid the loan off it would be 8/9 years old and I'd imagine you'd be starting to look at the possibility of significant repairs.

If you're working to a budget a PCP can work well because it's a fixed cost and you can factor it in. An older car might suddenly need a lot of money spending on it and I'd find it hard to come up with that.

I also have a young child and prefer him traveling in a new, safer car. Newer cars are also generally more efficient and cheaper to run.

Finally I was told by an accountant years ago never to buy depreciating assets (like cars) because it's not worth it. Makes sense to me!

I'm not saying it's never the right idea to buy a second hand car outright for many people that's a great option but having a PCP or lease can be a pretty good option too. There isn't a one size fits all, depends on your circumstances and priorities.

ShellyBoobs · 12/10/2017 20:43

I think finance is for fools...

Haha. Good one. Grin

SusanTheGentle · 12/10/2017 22:08

If you want to pay the smallest amount of money for a car overall, and you want to keep the car afterwards, every calculation is ran for the car I bought made it cheaper, long term, to not use PCP. That's why it's not financially sensible.

If you want to have a new or newish car every few years and keep the monthly payment low, then it probably is better for you. But it's daft long term as it ultimately costs more.

missymayhemsmum · 12/10/2017 22:25

If you want a prestigious new car, want to look after it like it's gold on wheels, watch your mileage and replace it every 3 years forever, and you don't mind being committed to hefty monthly payments, PCP is the way to go.
If you usually buy a car and drive it for years until it stops going, you want to get it fixed at the cheap street corner garage, fill it with hairy animals, vomiting children, muddy boots and garden waste, and mostly care about having cheap reliable transport then buy used from a reputable dealer.

With regard to safety, it's perhaps a good reason not to buy a retro old banger, but I'm not sure that there's much difference in the last 4/5 years.

scottishdiem · 12/10/2017 22:28

"Finally I was told by an accountant years ago never to buy depreciating assets (like cars) because it's not worth it. Makes sense to me!"

DP is the same. Accountant and Auditor. Did the numbers. Leasing was the way forward.

Sunshinegirl82 · 12/10/2017 22:44

I don't think it's fair to say that you're daft because you choose not to spend the absolute minimum on something. There is a difference between cost and value in my view. There will be a sliding scale of cost on almost every item/service a person buys and often people won't choose the cheapest option because a more expensive option provides them with something they, in their particular circumstances, want or value.

Cost is obviously a factor when buying/leasing a car but there are also lots of other considerations. Everyone has to weigh up those various factors and make the best decision for them.

I think it's quite simplistic to say a second hand car is the cheapest option and is therefore the best option for everyone come what may.

SusanTheGentle · 12/10/2017 22:53

I didn't. I bought a new car, but not using PCP, using a loan. It's red and shiny.

And I didn't say you were daft, I'm sorry if it came off that way - I said they financially it's daft if you want to keep the car for a long time because you end up spending more long term. If what you want is a spanking new car every three years it's probably worth it but I don't think getting a be car every three years is the best use of money.

If you look up thread I did say there were advantages to PCP or leasing, but the OP did say she didn't want to change cars regularly.

My SIL leases for exactly the reasons you said up thread - she needs to have a very very tight budget per month and can't handle unexpected car bills with her current financial situation. That's another reason, but it'll still cost her more long term while saving her in the short term.

ujerneyson · 12/10/2017 23:06

We've decided to only lease. We would buy if we wanted to spend a couple of grand on a small basic car but we like nice cars with bells and whistles and leasing makes much more sense. A few years ago we bought an XC90 for £16k cash. 3.5 years later it was worth £4.5k and we had had 3 services at £1200, about 6 new tyres at £250 each, 3 years of tax at £220 per year. After that we decided never again. Currently lease a prestige 4x4 for less than £300 a month. It's a no brainier

ShellyBoobs · 13/10/2017 06:53

If you want to pay the smallest amount of money for a car overall, and you want to keep the car afterwards, every calculation is ran for the car I bought made it cheaper, long term, to not use PCP. That's why it's not financially sensible.

So you've looked at a specific circumstance (your own car purchase) and decided PCP is "not financially sensible", per se, based on that.

How do you explain this one then: there is currently an offer on the BMW 320 where if you buy it on PCP it's 1.9% APR and BMW pay a deposit contribution of £5,650 towards it for you.

If you don't take the PCP deal there is no deposit contribution from the manufacturer. You can't negotiate that with the dealer because it's not them providing the discount. You might get a couple of thousand from the dealer, but you can still get that with the PCP as well.

How are you going to buy that car cheaper than using PCP?

You simply can't.

Go and look at a site like drivethedeal or coast2coast. They are independent (all car makes are available) and will tell you the same thing.

What is NOT financially sensible is assuming that your specific circumstances, around one specific purchase, means the same applies to anyone buying any car. That's just nonsense.

greendale17 · 13/10/2017 07:05

**“If you get a cheaper brand such as Honda you could get years of relatively cheap motoring”.

Honda is not a cheap brand whatsoever. They are very reliable though and solid built. Worth the money.

Wiggler1 · 13/10/2017 07:10

Pisacake, my point is that if it was your own car you wouldn't necessarily get it fixed. For e.g. I had a small hole in my bumper I couldn't get repaired so needed a replacement. Was told I had to get it done at the main dealer to get the colour match. Goodbye £1200. If it was my own car I wouldn't have bothered, it was barely noticeable.

Something has gone wrong with my diesel, so just paid £1500 for one part and potentially looking at another £2k for another part, god help me if it's the turbo.

I've just bought a small second hand low mileage runaround for £2.5k that should last me a couple of years, working out far cheaper than the monthly payments and repairs.

I think PCP is probably fine for a new car, wouldn't recommend it on anything that isn't covered by warranty.

Headofthehive55 · 13/10/2017 07:18

Hmm. I bought brand new (10k) cash ten years ago. Never broken down, no big bills.
It works out at about 100 pounds a month. Which I put back into an account ready for the next time.