I have never bought a car on finance, cash only for me. But, I am looking at the Skoda Citygo for £100 a month with tiny deposit for my mrs to use around town.
If you lost 100% of the Dacia's value in 3 years (unlikely) the annual depreciation would be less than £3k pa. I doubt there are many newish cars you can buy with depreciation that low. The guides seem to indicate 3 year Dacia depreciation to be around 50%...... so it is likely to be around £1.5k pa.
As far as diesels are concerned, modern Euro IV and V emmission regulations mean they are generally more expensive to buy, service, fuel, and repair than older engines. DPF regeneration can be problematic on cars used for short, low speed trips, not to mention other diesel related problems with turbos, EGR, DMF, piezo injectors, high pressure fuel pumps.
May have to swap my current car dues to possibly going from 4K Miles PA to 24K Miles PA.... I will get a MK4 1.9TD Golf or Passat Sub £1K ...
I had a problem this year where my Rover 25 was causing more problems than it was worth. I tried searching for a car for sale nearby but the cars were either not as good as advertised, or there was something wrong with them, etc.
I went to Peugeot on a Sunday just to take a look, and ended up with an 07 206 Sport 1.6 Diesel on Finance... I didn't really want a brand-new-out-the-wrapper car partly because I couldn't afford 13k for one and because new cars tend to have a few teething problems.
They're not as bad or devious as some showrooms - I only had to put down £200 on the Sunday and signed up to a 4 year deal. I also traded the Rover in (was valued at a quid, but got £200 for it) - I didn't have a few grand to put down as a deposit (Was trying to move flat at the same time as well) so it was a bit more expensive than I'd like but it's covered parts wise for the next 5 years, has free breakdown and a replacement car to use, some sort of Guardex stuff splashed around to protect the car, free valeting up to 3 times a year, and there's a few other things that I can't remember right now.
Mr money mustache says it is a bad idea to buy depreciating consumer goods on credit!!
I've only ever bought one car, and I took out a personal loan to pay for it. I knew I needed the car, I was able to shop around for the best interest rate and actually started paying off the loan before I found the car that I wanted to buy.
Effectively it also made me a cash buyer so I was able to use that to my advantage....particularly at month end.
My 09 plate Pergeot 308 is on Finance. Traded in the wife's old Renault Clio and gave her my 206. Got £500 for it, plus put down £2500. I also know the chap who sold me the car so got a slightly better deal because of it. I got it when Howards Pergeot had a four years interest free offer on and only pay £146 per month. Just under 2 years left on it. :)
Nope. I save in a "car fund", but tend to buy older machines in cash from my current acc. One day I may use the car fund..it's about 9k at the mo. However, my £2100, haggled to £1900 89k 2 owner ex-Motability Astra is still going strong. Heh.
That's now my preferred method..the last 2 Astras have been ex-motability machines. Both have had 2-3 owners max (including Motability), service history down to new wheelnuts (yes really, they have to), and full dealer servicing (again, terms of motability). The MK3 was £1600, and I haggled the MK4 down £200 with a full service, auto gearbox oil change, full valet and a tank of fuel, plus delivery from Wolvo to work in Telford. It helped the airbag light was on, and the engine warning light was on (loose plug under the seat (common), plus a duff EGR (common)). Both cleared down using the laptop.
No complaints. Yes it's a 2001 machine. However, it's reliable and it was paid off by 2 months wages, 5 years ago.
Ex-Motability Auctions..WELL worth it.
Yes, cant remember the exact details but had a car and a bike (at different times). Something like £250 and £300 a month. Hated every single moment of it, twice. Always thinking that I could be spending that money going out, entertaining ladies and having fun rather than having it tied up in a car. Also worth factoring depreciation into the monthly payments to see if it still looks good...
£300 * 48 months
+ depreciation of £5k over same period makes it actually cost £404 per month....
Would rather put that £400 into an ISA for two years and buy a nice car outright.
Modern petrol engines are getting just as complicated. With any new car, get an agreement for fixed servicing, or buy the package like you can for VW. Make sure you get a full, long term warranty, 5 years minimum now is the norm, and some do 7 or longer.
I would never buy outright for a new car. with apr at 0% for some deals, its worth thinking carefully. I used to end up spending between 3 and 6 grand on a three year old car, and then anything up to 250 plus almost every other month for repairs or new exhausts or what ever. Putting down a grand and then paying between 200 and 300 a month for the car over 3 years, with no ongoing costs almost saved me money, and certainly allowed me to never have to worry about finding money for repairs, etc.
Its not for everyone though, and when money is tight, the agreements can be hard to get out of.
As for financing things generaly.
If there is a 0% option on anything - I Take it as long as the overall cost is not more.
I keep the money in my bank which effectivly earns me 4% .
There's always the old adage "If it depreciates, lease it. If it appreciates, buy it". I'm leasing a Kia, paid just under £2k upfront and now paying £270 a month, with everything bar insurance in. End of 3 years I give it back and then decide what car I want next.