How to fund new car

[Starllight]

I’m totally stumped with how to fund a new car. I’m hoping for some advice.

To give some background info, DP owns his car outright. I‘ve always had a company car but will be moving jobs next month and need a new car.

Here are my options;

• get car on PCP (budget of around £250 per month)
• take out a £10k loan and pay off over 3 or 4 years. (Loan rate around 5% interest). Self fund around £6k. Total value £16k for car
• fund £16k entirely from savings and ‘pay’ savings back over the next few years to top savings back up.

I’m put off by PCP due to never owning the car at the end of the deal so essentially forevermore having a car payment. I’m reluctant to take £16k out of my savings as we are looking to buy a new home in the next few years.

Would taking a loan be a wise option?

Any advice would be much appreciated! (Also open to suggestions for what type of car to get as I’m clueless!)

DP had a Vauxhall Astra which he sold for £3k a year ago with 72k miles on the clock. It ended up being a money pit in the last year with oil leaks etc. That’s what puts me off buying a cheaper car in as I’d imagine they’re generally older with more miles on the clock. I could be wrong though!

Yes, but if we are doing 'anecdotal' on a sample of one car, my ds bought his first car at 17, (it was older than him, by a year ) for £300. Put 4 new tyres and a new battery on it (£140 and 35 respectively - so to all intents and purposes spent £475.). 9 months later it went through first MOT, passing first time. The following year it passed after replacing something like a wiper blade. The 3rd Year it was something like a light bulb. It was only the year after that it needed more work that then was worth doing.
That wasn't some 'one off' - I've bought cars for under £1k always. Generally last me 4 or 5 years before needing much doing. You can be unlucky, but you can be unlucky with a car that you paid £10K for as well - it will always wait until out of warranty for something to go wrong. But if you think about how many £800 cars you could afford to buy before you totalled spending £16K....... it is a LOT.

I do PCP x

I've just bought a car for £6400, a Hyundai i10, it's done 32000 miles and is 7 years old.

Just buy a cheaper second hand car 🤷‍♀️

I’d really recommend Kia and Hyundai. I’ve had both and they have long a long warranty, are very reliable and are also well priced. For 16k you’d get a medium SUV like a Sportage but if you want to spend less, consider and i10, i20 etc. you could also get a Kina but they are generally 1 litre engines. A Nissan Juke would also be a good bet for a smaller budget.