I’ve been doing a lot of research lately as I am in the market for a new car, I say new, what I really mean is I am in the market for a second hand piece of crap that will get me from A to B but will likely break down at some point in between. I’m not cash rich you see, my monthly income is fine and steady, and I am by no means poor, but I am absolutely useless at saving. Be that as it may my grandma has recently treated me and my sister to a lump sum of money, £2000 to be exact.
There isn’t much you can buy outright for 2 grand that doesn’t look like it is going to be a death trap, so I began thinking I would use the 2 grand as a deposit and go down the finance route. I’ve always loved the new Minis, and found a lovely looking blue Mini Hatch 1.5 5 door Hatchback (start/stop) that had only done 23,000 miles for £11,895. I figured I would be happy to own the car for at least 5 or 6 years so got a finance quote based on repayment over 48 months. This ended up as 48 monthly repayments of £283.66, which would be a pretty big outgoing cost for myself but affordable never the less. It just pains me that I’d ultimately be paying £13,615. With the acceptance that I was going to be paying a considerable amount a month for my Mini I did have a little look into Mini Hatchback personal contract hire, I say personal contract hire, I was browsing Hatch business leases for a good hour before realising I am not a business and therefore not eligible for Mini Hatchback business car lease deals #blondmoment!
Anyway, I must admit I was very keen on the idea of having a brand new Mini Hatch rather than the old 2015 model I was looking at. There were some very good offers, I could get a 1.5 litre Mini hatchback (Chili Pack) with an initial payment of £1,064 followed by 47 subsequent £177.49 monthly payments. So overall a contract hire Mini Hatchback would end up costing me £9406 and I’d have an extra grand to play with from my nans gift for a holiday or something! Furthermore over the course of the 4 years I would save £4209 which is an extra £90 a month in my pocket. On the other hand at the end of a finance deal where I own the car outright at the end of 4 years, I’d have an asset worth around £10,000, so I kind of see it like renting a second hand car for £3,615, whilst putting money into a savings account that will amount to 10 thousand pounds after 4 years that I can put towards a new car. So I think I am going to put the Mini Hatchback personal car lease on the back burner but was wondering if I’m missing something and if anyone on the blogosphere can help give some advice based on my specific situation! Comments Please!