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

[Hotfootit]

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?

brittbug, what do you lease for £80 a month?

Peugeot 208, currently on a 17 plate.

Admittedly there was an upfront charge. About £1400 from memory. The whole contract is c.£5k. It works for me. I'd do it even if I had the cash upfront I wouldn't buy. But as I said, it ain't for everyone. I wasn't fussy about colour/engine etc. Just wanted a medium sized modern motor that wouldn't cost too much and would not cause me stress. The way I see it, £60 pm is approximately what the new IPhone is. I give sky a miss and use sim only contracts. That enables be to have a brand new car every other year.

Thanks brittbug. I couldn't even consider a car that small. I think PCP really does depend on what kind of car you want.

For some people, PCP works very well. It is probably not the cheapest possible way to own/run a car but it does have other advantages.

I am not sure how a less cheaper way to own a car will help those who can't afford repairs.

What's possible is that you can view pcp as some kind of insurance. you pay more, but are protected from being unlucky.

I think the insurance analogy is a good one. For people on a tight budget a sudden, significant repair bill might be very difficult to pay (especially if the car is being funded by a loan and therefore there are still monthly payments to make) whereas a fixed monthly amount can be budgeted for.

In reality a lot of people will need to use finance of some sort (ie a bank loan) to buy a car.