What I meant was...
I bought my E320cdi 2 years ago for £18k cash.
I then decided that I wanted to finance it so borrowed £13k on it over 36 months, I think it was, which cost me £350 a month.
I could contract hire a new E250cdi sport estate, Edition 125 so all the toys, for £310+vat a month, so around £20 more than my 5 year old 100k car.
Sure, the car is not mine at the end, but knowing me I will sell it before the finance is paid and I own this anyway, and I will probably not get anything back out of it, I will just clear the finance.
If I pay it off and run it for another 5 years it will be cheap motoring (if nothing goes wrong) but I can't see myself doing that.
At the end of the day I buy a car, run it for a year or two and then sell it and buy something else, right now contracting hiring them is cheaper than buying them.
We were discussing the contract hire deals on the Merc forum, and I posted this on there....
Originally Posted by gizze on the Merc forum
My car was bought at 4 years old cash, it has lost more in the last 2 years than I could have contract hired a new one for, plus I have had to pay out for more repairs than I would have with a new car under warranty.
For those that like to run newer cars for peace of mind, then contract hire is probably the way to go at the moment as it is cheaper than buying cash.
You need to buy around 4 years old and 50k+ miles to get the costs around the same.
Buy an 07 plate E Class estate for example, or a C Class estate and you will be looking at around £15k, and it will loose around £10k over the next 3 years, so around £280 a month.
You then need to consider a warranty, will be around £50 a month, so £330 a month.
If you need to borrow the money you will need to pay some interest on it, around £70 a month on £15k, so up to £400 a month.
After 3 years it is yours, and costing you nothing, but at 7 years old so many people just start over again with something else, and so the cycle starts over.
You can hire a new C250cdi sport estate edition 125 for £300 a month including vat.
OK so you never own it, but then how many people keep their cars for more than 3 years anyway?
£300 a month for a brand new car, that has better toys, better mpg, no warranty worries and is costing you less than a 4 year old one with 50K+ miles.
I reckon you have to be in a 10 year old 100k mile + car to see any real financial benefit.
And even then, once you have paid insurance, tax, servicing, tyres and fuel are the savings all that?
We all like doing things differently, go with what your happy with I say.