[gIzzE]

Plus you have the benefit of the newer car, like warranty.
After a year if you want warranty on the 10 plate you are looking at another £60 a month, not something will need to worry about on the 62 plate for 2.5 years.

[gangzoom]

Originally Posted by Mike in Hampshire

I suppose it just depends on whatever deal they put in front of you, and whether you want to keep the car or change it at the end of the term.

Mike.

I think this is the key, I can never see my self spending £400/months + for 24-36 months and than just handing the car back. But I understand the argument about loosing money on depreciation etc but I just cannot justify it to myself.

But at the same time I could never spend £30K on a brand new car and watch it deprecate like mad...which probably explains why the newest car I've ever bought was 24months old.

My wife on the other hand bought her Civic as an Ex-demo for cash. The dealer tried his hardest to make her go down the PCP/Finance route, trying to tempt her with the idea of driving a new car every 3 years etc..but she wasn't having any of it.

It cost £15K newish 5 years ago, we've put 70K miles on it, and apart from fuel/tyres and servicing not spent a single penny on it. I have no idea how much its worth, she doesn't really care either (which is good because it means the 335 never has to do any of the long trips or vist any multi-storey car parks with high kerbs). We'll probably replace it in another 4 years when its got well over 120K on the clock....

By than it'll be worth £1k+ at the most so she would have "lost" £14K over 9 years. But had she gone done the PCP/Hire purchase route say spending £250/months (I have no idea if thats realistic) over 9 years that would have cost her £27K (not including any deposits).

[chrisbin]

Originally Posted by gangzoom

I think this is the key, I can never see my self spending £400/months + for 24-36 months and than just handing the car back. But I understand the argument about loosing money on depreciation etc but I just cannot justify it to myself.

But at the same time I could never spend £30K on a brand new car and watch it deprecate like mad...which probably explains why the newest car I've ever bought was 24months old.

My wife on the other hand bought her Civic as an Ex-demo for cash. The dealer tried his hardest to make her go down the PCP/Finance route, trying to tempt her with the idea of driving a new car every 3 years etc..but she wasn't having any of it.

It cost £15K newish 5 years ago, we've put 70K miles on it, and apart from fuel/tyres and servicing not spent a single penny on it. I have no idea how much its worth, she doesn't really care either. We'll probably replace it in another 4 years when its got well over 120K on the clock....

By than it'll be worth £1k+ at the most so she would have "lost" £14K over 9 years. But had she gone done the PCP/Hire purchase route say spending £250/months (I have no idea if thats realistic) over 9 years that would have cost her £27K (not including any deposits).

Fair argument but your bill for fuel/tyres/servicing/repairs (esp when older) needs to be factored in....

[gangzoom]

Originally Posted by chrisbin

Fair argument but your bill for fuel/tyres/servicing/repairs (esp when older) needs to be factored in....

Yeaph, but on a Japanese car you really don't need to worry about repairs/warranty, I've only ever owned/bought Honda/Nissan before getting the 335. I'll be amazed if anything big on the Civic needs fixing in the next few years.....but it seems the 335 will be a whole different story

[Mike in Hampshire]

Originally Posted by gIzzE

Plus you have the benefit of the newer car, like warranty.
After a year if you want warranty on the 10 plate you are looking at another £60 a month, not something will need to worry about on the 62 plate for 2.5 years.

Completely agree Gizze, there seems no point in paying £28k for a two year old X3 when new ones aren't much more. Same seems to apply to the Audi Q5 and the RR Evoque (three contenders for me). Plus you can spec a new one exactly how you wish. And it's got that lovely new car smell!
BMW X5, however, a well specced two year old M Sport 40d can be had for £38k for a low mileage one; they are £52k new even with a decent discount. So that is more of a temptation. But then you don't get the low cost PCP deal..........
Mike.

[davyk31]

No low cost interest on the 2 year old X5 but you might be able to drive a hard deal on it and also because its lost a fortune in years 1 and 2 you are at a sweet point of depreciation. You may find a PCP not too bad but on other hand it could be a similar figure to leasing a new car.

This is a debate I've had in my head many times and sometimes leasing seems th only way, other times buy a 2 year old car and put down a hefty deposit if available sounds wise.

The example above about the Civic isn't really apples for apples. Yes it will cost a lot more to PCP and get a new car every 3 years but thats the point, you drive a max 3 year old car and get a brand spanker every time. That to most peoples minds can't be considered the same as keeping one car for 9 or 10 years and then changing which will always be a cheaper option unless repairs kick in but you are always driving an older car, to some that doesn't matter but to others it would.

[mowflow]

...however, the example of the Civic is a good one in terms of when it is wise to use your own money to pay for a car. Buy one that is ex demo, pre reg or slightly used for whatever reason but is still within warranty so has most of the benefits of a new car minus a chunk of depreciation. It makes even more sense if you are going to run the thing until it gets pushed into the scrap yard one day. Although it would be nice to know what the total amount of expenditure would have been now (after 5 years) had they went PCP and were 2 years into their second car.

[Mike in Hampshire]

Originally Posted by davyk31

No low cost interest on the 2 year old X5 but you might be able to drive a hard deal on it and also because its lost a fortune in years 1 and 2 you are at a sweet point of depreciation.

Indeed, great minds think alike. Actually I was thinking of a two year one for sale privately, rather than through a dealer. Obviously no finance in that case.
2 year old X5 from a private seller, am I mad to even consider it?
Mike.

[gIzzE]

No, just get a someone to do the funding for you, many will for around £250 admin fee.

Plus it still has a year warranty.

[Mike in Hampshire]

Originally Posted by gIzzE

No, just get a someone to do the funding for you, many will for around £250 admin fee.

Ah, is that people like Prestige Vehicle Finance or something?

Also, if I had, say, the money in the bank earning 2.25%, why would I pay someone £250 to get me a higher % cost? I'm just wondering why everyone says "never buy with cash"?

Mike.