Go to any dealer these days and you can "buy" a new car just by:

Paying your monthly fee for it (ex £200) for 3 years and then just hand it back at the end of the 3 years. Apparently you lose virtually no money at all doing this??

Do you mean leasing a car?

http://www.autotraderleaseguide.com/

This is very common in the US, where some people like to drive a new car every few year(s), or don't want the hassle of selling a car themselves.

But beware. There are very strict restrictions on mileage (12,000/year) is about the limit. Anything OVER that, and you pay a premium price for each and every mile over the limit that's driven. At the end of the lease period, depending on how many miles over you are, it can run into hundreds or even thousands.

Also, they are oh so picky about the condition of the car when you turn it in. Basicaly, if it looks like it's been driven at all, they will charge you for THAT.

What you are doing, is renting a car. Except you pay for all maintenance, repairs (except for the stuff that's covered by the warranty) fuel, insurance, etc.

At the end of the lease period, you are offered the chance to buy the car, or turn it back in. If you buy it, the dealer sets the price (usually unrealistically high) and you are charged for any wear and tear. If you turn it in, they charge you for any wear and tear, but you can walk away.

Another thing sneaky US car dealers do is, if you owe any money to get out of the lease, they will offer to "roll over" what you owe into a NEW car. The idea is to keep you making that monthly payment to them forever.

We looked into leasing a car, and found it to be not such a great deal. The best thing, IMHO, is to buy a car outright, maintain it well, and just drive it until it won't go anymore.

I've no idea what the laws are in the UK for this sort of thing, but I would really look into it if you are serious. Good luck.

:) Sierra

Sierras got it. It's just a way to keep you paying forever.

How can you think it would be a good deal to pay nearly 10k over 3 years (£200/month) and then hand the car back and have nothing to show for it. Where else would you consider spending 10k and having nothing to show?

Originally posted by Cyclone
Sierras got it. It's just a way to keep you paying forever.

How can you think it would be a good deal to pay nearly 10k over 3 years (£200/month) and then hand the car back and have nothing to show for it. Where else would you consider spending 10k and having nothing to show?

True. very true. 10k?? wow, thats what it would be?!
So whats the point of the deal then?? Its a rip off..
So what is the best way to buy a new or nearly new car??

Car supermarkets= APR's too high
Main dealer= overpriced
Private= you could get done plus you need the money cash..

Originally posted by Diesel

So what is the best way to buy a new or nearly new car??


Buy a cheap car and save your money until you can buy a newer one cash.

Originally posted by Diesel
True. very true. 10k?? wow, thats what it would be?!
So whats the point of the deal then?? Its a rip off..
So what is the best way to buy a new or nearly new car??

Car supermarkets= APR's too high
Main dealer= overpriced
Private= you could get done plus you need the money cash..

£9600 actually.

Independant garage, arrange your own finance, be prepared to haggle/walk away.
You can get interest rates at around 6.0% APR at the moment.
Depending on what you want in a car a brand new one starts at around 6k and ignoring silly cars goes up to around 25 - 35k.
If you're going for the top end then you should be putting some of your own money in and p/x'ing something against the new car.
So lets say you borrow 10k from northern rock over 3 years with no payment protection £330/month.
The actual cost of the finance is £1180. Or around £400/year.

Every so often main dealers will offer 0% finance on some models. You just have to either be flexible as to the car you want, or patient, or as others have said, just be patient and save up / buy a cheaper car.

When I was picking a new car recently, one dealer was determined to get me to take on their finance package, despite the fact I told him I wanted to pay in cash. He was very persistent, (they get comission on selling finance), and his sales talk was very persuasive - at no point during it did he actually say how much extra the car would cost me (£2-3000) over the 3 years - a couple of hundred pounds payment a month sounds nice, which is how they get people!

Lets see - 3 years at 200 a month is 36 months by 200 .....

I get it to 7200. Am I missing something?

But still a lot of money for something that is not going to be yours at the end of the 'day'.

Dragon

If you MUST buy new, go to one of the car supermarkets and save as much as you can on the deal, avoid high interest (get a bank loan)
Have you considered an imported car? Usually the same spec as UK models, and a lot cheaper. Another option is a 1-3 yr old car, with history and a warranty.

Originally posted by Dragon
Lets see - 3 years at 200 a month is 36 months by 200 .....

I get it to 7200. Am I missing something?

But still a lot of money for something that is not going to be yours at the end of the 'day'.

Dragon

200£ per month = 2400£ per year = 7200£ for the 3 years.

Either cyclone's having an off-day or I'm missing something too.

In any case, cars are pretty expensive, whatever you do.

Originally posted by Cyclone
Where else would you consider spending 10k and having nothing to show? By buying a ford mondeo/vectra brand new with cash out of your pocket (or 7% bank loan) etc and trading it in 3 years later = £7.2K lost in more or less the same fashion.

Originally posted by UnkleBob
....car supermarkets and save as much as you can on the deal, avoid high interest (get a bank loan) Have you considered an imported car? Usually the same spec as UK models, and a lot cheaper.Car supermarkets and save in the same sentence? :hihi:

Imported cars can cost you more in insurance (sometimes) and be harder to sell on later - though I'm not saying its bad to consider this.

www.broadspeed.co.uk is probably the best way to buy a new car imho.

ermm, yes, somehow £200 * 12 worked out at 3200 in my head. Must have been too early in the morning.

Just doing a quick check on Mondeo.

New £12000. 3 years old (same model and trim) £5000.

So yeah, cost £7000 over 3 years.

If you bought it one year old though, £8000, so in the next two years you loose another 3, and probably another 1000 in the year after.
Cost £4000 over 3 years and the car is just nicely driven in for you in 1 year.

Originally posted by Cyclone
Sierras got it. It's just a way to keep you paying forever.

How can you think it would be a good deal to pay nearly 10k over 3 years (£200/month) and then hand the car back and have nothing to show for it. Where else would you consider spending 10k and having nothing to show?

Cyclone is absolutely right.

In my (rueful) experience, car leasing is a total scam - you pay out for your car for 3 years, then hand it back with nothing to show for your money.

As if that's not bad enough - you think that's it - THEN you get a whopping great bill for 'extra mileage'.

Don't touch with a bargepole if you've any sense.

StarSparkle

What about companies such as http://www.nationwidevehiclecontracts.co.uk/vw.html
for example.

£200/month for a brand spanking new Golf. Keep it for 12 months then if you fancy a change get another one.

Seems to good to be true.I am getting sick of pouring money into an old car so why not rent a new one??

Originally posted by Sony
What about companies such as http://www.nationwidevehiclecontracts.co.uk/vw.html
for example.

£200/month for a brand spanking new Golf. Keep it for 12 months then if you fancy a change get another one.

Seems to good to be true.I am getting sick of pouring money into an old car so why not rent a new one??

with a £600 deposit and a 10k annual mileage. Go over that and it will cost you!

Oh and that doesn't include VAT, so it's actuall £234/month for 3 years.

This is no different to an HP agreement except that they take care of the maintenance.

Right Cyclone. So you're better off @ a main dealer.
I know this "nothing to show for it after 3 yrs" is a bit of a pain, but at least you're not in debt, and you've made the most out of the car without worrying about when it'll start going wrong etc...
Still think its worth it really!

Originally posted by Sony
Right Cyclone. So you're better off @ a main dealer.
I know this "nothing to show for it after 3 yrs" is a bit of a pain, but at least you're not in debt, and you've made the most out of the car without worrying about when it'll start going wrong etc...
Still think its worth it really!

given that it would be covered by 3 years warranty anyway and that modern new cars rarely go wrong I don't think the maintenance side is much of a bonus. At least it means the tyres and annual service will be covered for you though, so that cost is spread out.
I wasn't suggesting that a main dealer would be better though.

I'm still firmly in the camp of around 1 year old from an independant garage. Just got to work my way up to it!

Just got my cougar in for service. So that's £120 straight away, then 6 * platinum plugs £46, new tyre (split on inside wall, again) £65, and they were advising to change pads all round and rear disks. I've passed on the brakes as I checked them the other day and think they've got another 5k in them. But that would probably be another £200.
Cars are bloody expensive. Oh and insurance was due from Sept, another £639, at least I'd planned that in though.