Getting off the finance train - £5k budget

[Burny16v]

Hi all,

For the best part of a decade I've been endlessly financing new hot hatches and recent car prices, along with higher interest rates, have made me realise I'm not sure I want to do it anymore! I also work from home so don't have a daily commute at the moment and the £300 a month often feels like a waste.

I've been thinking about getting something a bit more comfortable and refined than a hot hatch (I plan on getting another track car in the future), but that also has some petrolhead credentials so I don't get too bored. I don't have any kids and probably do about 7,000 miles a year, with most of that mileage coming from occasional 100 mile round trips to the office and random longer trips to see friends etc. around the country, hence preferring something a bit more refined. Many other days it's just pottering around town or sitting on the drive. As long as the performance is comparable to a hot hatch I'm happy to prioritise reliability and a good overall driving experience.

My budget is £5k, not including a bit extra for any maintenance and general running costs. Another thread in this section got me thinking about BMW E92's, most notably 325/330i's with the N52 engine as my research implies the N54 has a few more (expensive) common issues. Other than this I'm completely open to any suggestions! I'd prefer it not to be another hot hatch, or diesel - but happy to hear any particularly compelling arguments for the former. I'm a big Renault/Renaultsport nerd so Megane's are on my mind, but I might prefer to get one as a track car in the future.

Edited by Burny16v on Tuesday 12th November 17:28

[mike9009]

I had an e92 330i for a few years. It is very comfy, great cruiser, nice acceleration and on a run could get 40mpg +. Mine was an N53 with the potential injector issues.

However, despite being RWD, it was quite boring. It was too competent for me, having come from a MCS. I don't particularly miss it.

I now have a diesel DS3 which is 'okay'. But I do hanker after a hot hatch type car again.....

[ZX10R NIN]

2.5T Focus ST-2:

https://www.autotrader.co.uk/car-details/202405219...

https://www.autotrader.co.uk/car-details/202411035...

2.0t:

https://www.autotrader.co.uk/car-details/202410145...

208 GTI:

https://www.autotrader.co.uk/car-details/202410295...

https://www.autotrader.co.uk/car-details/202410235...

https://www.autotrader.co.uk/car-details/202409214...

Clio RS:

https://www.autotrader.co.uk/car-details/202405169...

Leon Cupra:

https://www.autotrader.co.uk/car-details/202410024...

https://www.autotrader.co.uk/car-details/202406110...

[crusty]

Golf GTi surely?

[jaydeeuk1]

So refined, decent performance and reliable?

An old lexus is probably your only option. Probably a lexus SC. Prices starting to creep up, which means if you look after it you'll get what you paid for it and won't deprecating on your drive, plus it's nicer than the usual VW and BMW dross you see at this end of the market.

Lexus Gs another option, 450h is in budget and nice to waft in. 0-60 under 6s if you do decide to give it the beans

[Mr Tidy]

I bought my 2005 manual E90 330i with the brilliant N52 engine in March 2019 and still have it because there is nothing I'd rather have without spending loads more and it has been great.

If 6.3 seconds to 100kmh isn't quite quick enough there is always the 130i with the same engine that trims the time to 6.1 and is a hot hatch really just with RWD!

Depends what you really want at the end of the day.

[junglie]

Mr Tidy,

Always going to ask but never got round to it. You are a BMW beard (in an excellent way.

N52 vs M54?

I have only had M54, which I love, but keen to have a crack with an N52 (prob E86 / E89) if it is a step up?

[Scootersp]

A low mile decent IS250 (06-10) would be very refined (most have cooled and heated seats for example) and likely reliable but not exactly exciting.

You could get a 5, 6 or even 7 series BMW but with higher chances of running cost issues?

Infiniti Q50 2.2d (some are £35 tax) I think it has the reliable Merc engine (but no ULEZ compliant)

I suspect all of these are quite/very refined for a motorway trip depends what you value most after that.....

[culpz]

Interesting, as I'm thinking on going the other way and getting back on the finance train into a (hot) hatch. The only thing stopping me is the current lease deals out there being way more expensive than they used to be. I miss the practicaity of a hatch, the tech and having fixed monthly costs. Like you, I WFH most of the time and don't do much mileage anymore, but cheap used cars can be hassle.

I also currently have an N52 powered E92 currently. It's a nice cruiser, but it's cost me a fair bit since getting it in Jan and I'm not sure it's worth it really.

[Mr Tidy]

junglie said:

Mr Tidy,

Always going to ask but never got round to it. You are a BMW beard (in an excellent way.

N52 vs M54?

I have only had M54, which I love, but keen to have a crack with an N52 (prob E86 / E89) if it is a step up?

Thanks for the compliment - I think!

I only had one M54, an E46 Compact 325ti, but I'm on my fourth N52. Two in Z4s, one 325i and currently a 330i (all manual).

The M54 was fine, but they do seem to suffer from more cooling system issues.

N52 is more powerful, revs higher but still feels more refined. Both seem to suffer from the same oil leaks from cam-covers and oil filter housings but N52s do have the electric water pump that will die with no warning and a new one costs £250 to 300 so long as you don't buy from BMW - they charge over £500.

But M54s are fitted to E46s and early Z4s which seem to be more prone to rust than facelift Z4s and E9* 3 Series which has to be a consideration.

Apologies to the OP for going slightly off-topic, but I bought my 330i in March 2019 and it hasn't thrown up too many issues given it's now 19 years old!

[Burny16v]

Thanks all for the replies. Getting another hot hatch (one I own outright this time) is a distant possibility, but as mentioned I do fancy a bit of a change. I'll also look into the Lexus and Infiniti options - I bought a Saab 9-3 on a bit of a whim when I was 21, so some under the radar sophistication isn't totally new to me :

Mr Tidy, no need to apologise! The BMW's were where I ended up with my own thought process, so the extra insight into the various engines etc. as someone who clearly has some experience with them is very welcome. It sounds like you've covered the bases on common issues, is there anything more terminal I should look out for, or are those the main things specific to N52-equipped cars?

culpz said:

Interesting, as I'm thinking on going the other way and getting back on the finance train into a (hot) hatch. The only thing stopping me is the current lease deals out there being way more expensive than they used to be. I miss the practicaity of a hatch, the tech and having fixed monthly costs. Like you, I WFH most of the time and don't do much mileage anymore, but cheap used cars can be hassle.

I also currently have an N52 powered E92 currently. It's a nice cruiser, but it's cost me a fair bit since getting it in Jan and I'm not sure it's worth it really.

Interesting - there's always someone out there with the opposing thought process! I'd probably have just financed something new next year without really thinking about it if the deals were good, but they're not and it got me thinking that I want a break from the monthly payments. I've only done 4,000 miles so far this year (and managed 7,000 last year) and it feels like a waste. That's not to say I won't get back on the train eventually, but right now I fancy doing something different while the commuting stakes are low! Any interest in a swap for a financed Polo GTI? Out of interest, how much has your E92 cost you and for what?

[Hammy98]

I'd go 130i. A lot of these get modified so you occasionally see them for sale with an LSD which would be ideal...

[Mr Tidy]

Burny16v said:

Mr Tidy, no need to apologise! The BMW's were where I ended up with my own thought process, so the extra insight into the various engines etc. as someone who clearly has some experience with them is very welcome. It sounds like you've covered the bases on common issues, is there anything more terminal I should look out for, or are those the main things specific to N52-equipped cars?

culpz said:

Interesting, as I'm thinking on going the other way and getting back on the finance train into a (hot) hatch. The only thing stopping me is the current lease deals out there being way more expensive than they used to be. I miss the practicaity of a hatch, the tech and having fixed monthly costs. Like you, I WFH most of the time and don't do much mileage anymore, but cheap used cars can be hassle.

I also currently have an N52 powered E92 currently. It's a nice cruiser, but it's cost me a fair bit since getting it in Jan and I'm not sure it's worth it really.

Interesting - there's always someone out there with the opposing thought process! I'd probably have just financed something new next year without really thinking about it if the deals were good, but they're not and it got me thinking that I want a break from the monthly payments. I've only done 4,000 miles so far this year (and managed 7,000 last year) and it feels like a waste. That's not to say I won't get back on the train eventually, but right now I fancy doing something different while the commuting stakes are low! Any interest in a swap for a financed Polo GTI? Out of interest, how much has your E92 cost you and for what?

The only other place N52 engines can leak oil from is the sump, which is an expensive fix as the front crossmember has to be removed to drop the sump.

Mine had just had a new cam-cover gasket when I bought it in March 2019.

It had been feeling a bit wayward so in July 2019 it got new track control arm bushes for about £200.

New rear shocks in June 2020 for £400.

May 2022 it needed new rear top mounts and a rebuilt control unit for the "lights out" function, a repair to a split wire in the loom for the boot lid came to £500.

September 2023 it needed a new rear door lock and door membrane another £500.

Everything else has just been routine services and a new battery. Those costs were what I paid my excellent ex-Sytner guy.

I don't mind chucking a few hundred a year at it to keep it as it should be as it isn't depreciating!

[braddo]

Buy a sports car. Hire a van or borrow a car when you need more practicality.

A 2.7 986 Boxster would be my choice. Steering feel, control weights and a seating position which will all be night-and-day better than a hot hatch.

Or a Z4. Maybe some 350Zs are in budget?

[Panamax]

Burny16v said:

I've been endlessly financing new hot hatches - I'm not sure I want to do it anymore!

Excellent decision.

Burny16v said:

I'm happy to prioritise reliability and a good overall driving experience.

And another excellent decision. I think it means buying something relatively low key to get you started but after a year or two your savings compared with leasing a new car should be mounting up nicely.

Remember the rules of successful buying which are, 1) overall condition, and 2) service history. You don't want to be picking up unnecessary bills ten minutes after you've bought the car. In this respect I can't help thinking a cheap Porsche would be the wrong direction to go.

[Jiebo]

5k isn't the right budget in todays market.

For ordinary run arounds, I've found that 7k is the bare minimum, 12k gets you into something acceptable and 16k is the sweet spot.

Outside this they get beyond 10 years old or very leggy. If you've come from new cars, don't get a 20 year old BMW, that's a great way to end up back on PCPs.

[Robertb]

Budget might stretch to an F56 Mini Cooper.

These are great cars… modern enough, fun to drive, economical and characterful, with the 3 cyl turbo engine.

None of the issues of the Prince engine in the R56.

[Robertb]

Jiebo said:

5k isn't the right budget in todays market.

For ordinary run arounds, I've found that 7k is the bare minimum, 12k gets you into something acceptable and 16k is the sweet spot.

Outside this they get beyond 10 years old or very leggy. If you've come from new cars, don't get a 20 year old BMW, that's a great way to end up back on PCPs.

What happens to cars at 10 yrs old? Still seems quite new to me!

[bennno]

Personally, I’d suggest taking the 5k, then adding an affordable amount per month over 3-4 years for HP.

That’ll get you a much newer car than you own outright at the end of the term.

[Jiebo]

Robertb said:

What happens to cars at 10 yrs old? Still seems quite new to me!

In general, they tends to need repairs, tech is old, engines uneconomical, tax can be high, it won't drive as well as a newer car. A 3-4 year old car would still feel quite new and modern for someone who's spent the last decade in new cars. 15 year old BMW will feel ancient.

I'm sure your banger is the exception to the rule.