Buying vs lease vs PCP in 2023?
Discussion
So many variables its impossible to answer - personal circumstances, interest rates, GFVs, manufacturers contributions, mileages, deposits, vehicle, options etc
Leasing / PCH in general did get very expensive around COVID times with most manufacturers withdrawing support (simple demand / supply) but noticed in the last few weeks some much better better deals being advertised on certain cars
Leasing / PCH in general did get very expensive around COVID times with most manufacturers withdrawing support (simple demand / supply) but noticed in the last few weeks some much better better deals being advertised on certain cars
I pay cash for everything.
Carry it in a fortnum and mason bag.
Except for cars. I always use finance for cars, then invest the equivalent amount of cash and because I’m such a powerfully built and super smart investor I always outperform the finance rate and only ever buy cars that appreciate in value meaning I make double profits like a true boss.
Carry it in a fortnum and mason bag.
Except for cars. I always use finance for cars, then invest the equivalent amount of cash and because I’m such a powerfully built and super smart investor I always outperform the finance rate and only ever buy cars that appreciate in value meaning I make double profits like a true boss.
ChrisH79 said:
I pay cash for everything.
Carry it in a fortnum and mason bag.
Except for cars. I always use finance for cars, then invest the equivalent amount of cash and because I’m such a powerfully built and super smart investor I always outperform the finance rate and only ever buy cars that appreciate in value meaning I make double profits like a true boss.
This really tickled me ha! Very accurate PH stereotypes!Carry it in a fortnum and mason bag.
Except for cars. I always use finance for cars, then invest the equivalent amount of cash and because I’m such a powerfully built and super smart investor I always outperform the finance rate and only ever buy cars that appreciate in value meaning I make double profits like a true boss.
Matt.. said:
My aim would be keep for the long term as I believe it’s more cost effective? Perhaps 8 years.
I think for my situation the best is a small personal loan for 40-50% and pay the rest.
This would probably be better if you get a decent rate on a loan, also doing hire purchase you can pay it off quicker and reduce the interest. All comes down to your circumstances but to minimise interest costs I'd pay off as much as possible as quick as possible.I think for my situation the best is a small personal loan for 40-50% and pay the rest.
For our 'fun' car we paid cash, we didn't want to be tied in to a lease on an expensive car that we would potentially want to lose if we ever needed to really tighten our belts, it also helps with me feeling less precious about the car when taking it down country roads and alike.
For our main car we leased the current one and I regret it, not because it was a bad car or because of the price but actually because the OH has loved it and wants one, however the provider doesn't offer any end of lease purchase options and the car itself has stayed pretty steady on value since we got it and so they're still >£30k. If we had anticipated wanting the car then I would've paid more monthly and either HP or PCP'd if the rates were competitive. Instead I'm now car shopping and every time I think "let's just buy the same spec of this car and stomach the cost" I end up going down a rabbit hole of the alternatives I can get for the same money. Paralysis from too many options!
For our main car we leased the current one and I regret it, not because it was a bad car or because of the price but actually because the OH has loved it and wants one, however the provider doesn't offer any end of lease purchase options and the car itself has stayed pretty steady on value since we got it and so they're still >£30k. If we had anticipated wanting the car then I would've paid more monthly and either HP or PCP'd if the rates were competitive. Instead I'm now car shopping and every time I think "let's just buy the same spec of this car and stomach the cost" I end up going down a rabbit hole of the alternatives I can get for the same money. Paralysis from too many options!
Raptor7000r said:
This would probably be better if you get a decent rate on a loan, also doing hire purchase you can pay it off quicker and reduce the interest. All comes down to your circumstances but to minimise interest costs I'd pay off as much as possible as quick as possible.
I could buy it outright without much issue but think it's better to use a personal loan over ~4yrs for 40-50%. As a poster above mentioned owning outright might make me worry less about condition as it's 100% going down tiny roads in Wales/Lakes/Scotland and into fields!For my situation I find it hard to see a reason to lease, but I do need to check I'm not missing anything obvious.
For me, not a business and buy for personal use, I buy to keep for say 8 years as that has always been the cheapest way to run a car in my experience & if you buy something you want not changing it at the 4 year mark for a newer version of itself isn't too diificult.
How I do it is usually some cash from savings and personal loan over 2-3 years for the rest. If i was super disciplined I'd easily be able to buy it outright but I'm not and I don't want to deplete my savings too much when I buy a car.
How I do it is usually some cash from savings and personal loan over 2-3 years for the rest. If i was super disciplined I'd easily be able to buy it outright but I'm not and I don't want to deplete my savings too much when I buy a car.
Prob doing the right thing if buying for the long term.
Was thinking about just buying a brand new RAV4 outright earlier in the year but the dealer wouldn't sell me one because Toyota closed the order books. If I could have gotten one, and kept it 10 years, a few thousand in missing discounts that you might have gotten during more buoyant times is neither here nor there amortised over that time.
Was thinking about just buying a brand new RAV4 outright earlier in the year but the dealer wouldn't sell me one because Toyota closed the order books. If I could have gotten one, and kept it 10 years, a few thousand in missing discounts that you might have gotten during more buoyant times is neither here nor there amortised over that time.
The OP asks what is best for 2023.
This is key as things have changed again this year, as we all know cars depreciated heavily from new in the past then Covid and Ukraine happened and a shortage of supply meant that depreciation slowed considerably which meant ownership costs reduced and GFV/balloon increased for a while meaning cheaper PCP/lease costs.
This golden era seems to be ending/over due to supply vastly improved and higher interest rates slowing up the demand.
Where does that leave us in 2023?
I don't really know and that's why I've stalled changing my main car, I can sell for about what I paid for it as a new car in January but feel that I'll lose my shirt on an ongoing expensive purchase.
I am willing to buy the Mrs a new car on the basis that it will be less cash at risk should values plummet than if I go all in on something new. She will also keep her's longer.
I forecast finance deals becoming less attractive as future values look less certain and interest remains normal (the last 15 years have been very low).
In my view the better deals will be used purchases paid by cash, less depreciation and no exposure to interest rate fluctuations.
This is key as things have changed again this year, as we all know cars depreciated heavily from new in the past then Covid and Ukraine happened and a shortage of supply meant that depreciation slowed considerably which meant ownership costs reduced and GFV/balloon increased for a while meaning cheaper PCP/lease costs.
This golden era seems to be ending/over due to supply vastly improved and higher interest rates slowing up the demand.
Where does that leave us in 2023?
I don't really know and that's why I've stalled changing my main car, I can sell for about what I paid for it as a new car in January but feel that I'll lose my shirt on an ongoing expensive purchase.
I am willing to buy the Mrs a new car on the basis that it will be less cash at risk should values plummet than if I go all in on something new. She will also keep her's longer.
I forecast finance deals becoming less attractive as future values look less certain and interest remains normal (the last 15 years have been very low).
In my view the better deals will be used purchases paid by cash, less depreciation and no exposure to interest rate fluctuations.
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