Topic should read Which Finance.

I am currently looking at changing my car. Current motor is on has a final finave payment roughly equivelent to the value of the - therefore no equity in the car. I have no complaints as I understood this would be the sitution all along.

Am looking at 2 options - an Octavia 1.6CR TD elegance or a Madza 3 1.6d TS2.

Octy is probably on balance the better car but dealer is a hour away and I am fed up with having to trail away for servicing/warranty work ect

I can get a Mazda at short notice and Octy is looking like January (VAT free offer is safe if I order by the end of Sept.)

anyway, and bearing in mind that there is still some hard haggling to be done -

Octy currently looking at monthly payment of abou £348 over 3 years + backend payment that will be about equivelent to the carrs value at that point.

Mazda is £346 for same deal.

But Mazda car do same car in a Private Contract Hire deal at £306!!! Car would be handed back at the end of 3 years but as theer would be no equity in teh other deals anyway I don't see much difference.

Dealer "thinks" Mazda must be putting some money into teh PCH deal that is not avaiable for him to use under the PCP deal but we are looking at a savinf of over £2000 over the 3 years!!!

What's the catch guys????

Edited 7 September, 201015 yr by slider

I don't like to discourage your enthusiasm for a new car, however I am paying back a loan for a car (£270 per month) and to be honest with you, it is not a nice feeling. I will be glad when it is paid off and I hope never to do it again.

Next year the VAT is going up, expenses are going up and everybody is having to push a bit harder. Losing that money each month is quite a burden and ultimately not really worth it. Running an older car does not have the feelgood factor but the extra money in the pocket gives a real boost.

One other aspect having a loan does is take away breathing space. If for some unforseen reason you need to stop work, the finance company will continue to take that money - even when the car is bottom of your 'important' list.

I don't like to discourage your enthusiasm for a new car, however I am paying back a loan for a car (£270 per month) and to be honest with you, it is not a nice feeling. I will be glad when it is paid off and I hope never to do it again.

Next year the VAT is going up, expenses are going up and everybody is having to push a bit harder. Losing that money each month is quite a burden and ultimately not really worth it. Running an older car does not have the feelgood factor but the extra money in the pocket gives a real boost.

One other aspect having a loan does is take away breathing space. If for some unforseen reason you need to stop work, the finance company will continue to take that money - even when the car is bottom of your 'important' list.

Thanks for your comments - I did consider running an older car, and have not yet totally discounted the idea and I do worry to a certain extent about the current finacial pressures. I have no equity in my car so will need to finance to whatever level in any case.

However, I do 25-30K per year and a reliable car is a must. My policy in recent years has been to buy new cars and keep within the warranty period. The only things I have paid for for over 12 years are normal wear & tear items such as tyres and servicing. Current car is coming up 3 tears old and has done £80 and I propably worry even more about facing a huge repair bill for something such as a turbo or gearbox - maybe I spend too much time on these forums and see everyone elses sob storys!

Anyway, point of the original post was to enquire about various types of finance, if I decide to go that route and I would appreciate views on that subject.