It depends - a colleague has a 0% finance deal on her Citigo car. She worked out that was cheaper than a lease.

You need to look at the car you want and go and get quotes - it depends on the car and the deals out there.

Reply 5

ddrrzzeerr

It's too simplistic a question. They are both forms of finance. You get a car and they get payments from you over time. Which is better depends on the terms of the respective agreements.

Reply 6

stack__

Original post by Sternumator

It's too simplistic a question. They are both forms of finance. You get a car and they get payments from you over time. Which is better depends on the terms of the respective agreements.

But finance you keep and lease you change every couple years and get a newer one but I guess it just depends on the person and their salary id personally go for leasing

Reply 7

ddrrzzeerr

Original post by stack__

But finance you keep and lease you change every couple years and get a newer one but I guess it just depends on the person and their salary id personally go for leasing

What is better, renting a house or buying one with a mortgage? It depends.

Reply 8

stack__

Original post by Sternumator

What is better, renting a house or buying one with a mortgage? It depends.

House is a whole differing thing lol keep houses out of this

Reply 9

IWMTom

As I'm sure @WoodyMKC will tell you, leasing is generally much more cost effective as the maintenance is all thrown in, unlike generic financing.

Reply 10

Muttley79

Original post by stack__

But finance you keep and lease you change every couple years and get a newer one but I guess it just depends on the person and their salary id personally go for leasing

PCP finance means you pay off a final sum or trade in for another car.
It's a third option -

http://www.moneysavingexpert.com/car-finance/personal-contract-purchase

(edited 6 years ago)

Reply 11

username2877554

Original post by IWMTom

As I'm sure @WoodyMKC will tell you, leasing is generally much more cost effective as the maintenance is all thrown in, unlike generic financing.

Well said, as usual!

Reply 12

username1802765

Original post by stack__

Hello which is a better option and why? Lease a car or finance a car?

Save up and buy a car you can afford. Get one at least 3 to 4 years old because the largest chunk of devaluation has already happened otherwise with finance you will be in negative equity until the very end of the term and you''ll be better off not having those monthly payments hanging over you.

(edited 6 years ago)

Reply 13

IWMTom

Original post by Steljoy

Well said, as usual!

Love you

Reply 14

cherryred90s

Original post by Aidan.reed

Save up and buy a car you can afford. Get one at least 3/4 years old because the largest chunk of devaluation has already happened otherwise with finance you will be in negative equity until the very end of the term and you''ll be better off not having those monthly payments hanging over you.

A car that's 3/4 years old will be so expensive

Reply 15

username1802765

Original post by cherryred90s

A car that's 3/4 years old will be so expensive

Hence 'That you can afford' that was the minimum age. The monthly payments are what are expensive and when it comes to the end of your term or you trade up half way through they take the negative equity across to a new loan at that point you're in the cycle. What can you afford to buy out right and what cars are you looking at on finance?

Reply 16

IWMTom

Original post by cherryred90s

A car that's 3/4 years old will be so expensive

I'm going to hazard a guess the poster meant 3 to 4 years, not three quarters of a year.

Reply 17

cherryred90s

Original post by IWMTom

I'm going to hazard a guess the poster meant 3 to 4 years, not three quarters of a year.

Yeah I know, but wouldn't that still be expensive? Like a 2013 car ?

Reply 18

IWMTom

Original post by cherryred90s

Yeah I know, but wouldn't that still be expensive? Like a 2013 car ?

In comparison to a brand new car, no, definitely not. Mileage dependant, it'd be affordable for the vast majority of people - expense is subjective towards your financial situation, though.