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I have had my license since 1987 and never bought or leased a new car. On two occasions, I have had to arrange a small amount of finance for second-hand purchases, but I suppose I have been lucky in what I have been able to get.
Since moving to the UK, I have had help buying second-hand (but relatively new) larger vehicles for family use, but for the second car, have largely run on the bangernomics model.
Now, my second car is being fussy enough that I am disinclined to spend any repair money on it, and am thinking it might be time to actually get something newer that would require more of an investment.
The thing is, I hate debt, and there are a million things I would rather have than a car.
How do you lot get yours? When modern car threads come up, I often feel like I'm missing out on something...
Call office, place order, wait.
The thing is, I hate debt, and there are a million things I would rather have than a car.How do you lot get yours? When modern car threads come up, I often feel like I'm missing out on something...
Stop making arbitrary decisions, pick the most cost effective method to get what you need. Borrowing/lease may be much better than other methods.
Lease.
I'd rather have a car than a million and one other things.
1) Decide roughly what requirements are
2) Research a shortlist on the web
3) Go visit dealers to see them in the flesh
4) Test drive
5) Pay in cash
Cash.
I receive a car allowance as part of my salary.
I bank this in a separate account and save it up until I have enough to trade in my current car and use the cash to buy the car I want.
Always buy cars that are low mileage and 2.5 years old to catch any warranty issues. I then keep them for 2.5 - 3 years. (apart from my beloved Nissan Pathfinder which I kept for 6.5 years and shed an actual tear when I traded it in for my current car)
Too tight to pay for a brand new one.
Cash. If you need to borrow to buy something that'll depreciate like a car then you can't afford it. Otherwise you're just stealing from your future.
Just come out of a lease that was uncomfortable because we were scared the kids would do damage to the car that would cost us ££s when we turned it in. It was very cheap, and we had a brand new car for a couple of years, but won't be in a rush to do it again.
Just got a decent sized loan to leave us paying about the same per month on a second hand car out of warranty, potentially more expensive, but at least it's ours, and we can do what we want with it and get rid any time we want.
TBH loans are cheap at the moment, but it depends how new a car you want I don't want to spend more than £200 pm on cars for the family, so I don't, but I would love a nearly new fancy 3 series touring. So the plan is to save the bit thats missing so we only need to finance £200pm worth. Piece of piss 😕
Couple of years ago I bought my first car in at least a decade after previously having lease cars through work. Paid cash (~£6k) as I too hate debt. When the Mrs needed a car to replace her runabout, we paid cash for that too, albeit quite a bit less.
As above, leases started to look less appealing when the kids got older and started clambering over everything!
Lease.
We just have the one car so something modern and safe and all that stuff is nice to have.
I consider there to be a minimum cost of running any car at all - if it's not depreciating then it'll be costing you more in maintenance, tax, etc. There's a premium beyond that I'm willing to pay to rent something nice for a couple of years.
Damage and stuff is all down to how you think about it - unless you're buying a shed that you'll run into the ground then damage matters. If you own the car, it'll hurt you when you come to sell or p/x - if you lease it you'll get charged if you don't fix it.
I hate debt too. However, we do a lot of miles for work, me particularly, and need reliability.
This has meant that the last two cars have been bought with small loan, savings and old car trade in/sale money.
I too do not get running new cars. My Galaxy would be £28-30k new, would be 3 years old now, and be worth £12-16k. 3years depreciation = £12-18k
I bought the one I have for £7k, run it for 3years/75k and it is still worth £2k, with only a couple of bills for wheel bearings in that time above service costs. 3 years depreciation and bills, £6k.
If I did not need so many miles at work, I would drive an older still car.
Always buy cars that are low mileage and 2.5 years old to catch any warranty issues. I then keep them for 2.5 - 3 years.
Pretty much exactly what I do.
If you absolutely must have a new car then leasing is the way to go but snapping up someone else's lease car after three years works out a lot cheaper if you are okay with having a 3 year old car
Search through Auto-trader / piston heads for cars near me filtered for general criteria i want, size, age, milage, performance.
Make a list of the top 10 that interest me.
Phone them up and arrange to look at car.
Cycle there with a wedge of cash. I will generally do a bit of research so i know common issues with the model of car and what to look for.
If i like the car i make an offer there and then but if i can't get a good price i am prepared to walk away. Having cash in hand helps to get a good deal. Nowadays i usually do an HPI check on my phone before handing over the cash.
I would rather drive a basic boring car than borrow money, i always wait until i have saved the money as borrowing money is just making money lenders rich at your expense.
I am currently in this dilemma - my lease is soon to finish on a flash A6 V6 but I have had enough of the cost (and worry of damage from kids/dogs) so started to look at second-hand options (such as a Honda CRV) but I'll end up paying the same (per month) as I am on the lease for a loan (or I could pay cash, but with the lifetime cost of loans so little just now, it makes sense to me to borrow).
But at the end of it, I would have a 6 or 7 year old car that will be worth very little but I won't have had the enjoyment of driving something newer/nicer whilst I owned it.
For example, the lease was 3 years at around £400 a month. I could get a three year loan and pay back around £14,000 at £400 a month. For that £14,000 I would probably only be able to get a 3/4 year old CRV.
I too do not get running new cars. My Galaxy would be £28-30k new, would be 3 years old now, and be worth £12-16k. 3years depreciation = £12-18k
I bought the one I have for £7k, run it for 3years/75k and it is still worth £2k, with only a couple of bills for wheel bearings in that time above service costs. 3 years depreciation and bills, £6k.
the thing you're probably missing is the level of discount available on new motors, especially mundane ones (like the galaxy)
https://broadspeed.com/new_cars/Ford/Galaxy/Choose_Number_Of_Doors/
£7k off without trying, which means the depreciation is actually £5-11k - or around £100ish a month more than your car. If you add into that it might save you £20 a month on tax, and £30 a month on fuel, £50 a month to drive something nicer isn't that bad (and you get piece of mind, which for a lot of people is worth that much)
Cash. I don't see money spent on repairs and maintenance as money badly spent. Most people 'value' the car and see maintaining it as a necessary evil. I see it the other way round, I don't see the car itself as a valuable asset but I do value the services of people who make it useful and reliable. I spend as little as practical on the capital of buying the car itself (or van these days) on the basis that I can then well afford to maintain them. And then I don't sell/change them unless my requirements change significantly. Typically they then cost very little to maintain in the grand scheme of things. Most years are incident free. Now and then you get a bigger repair bill but over the lifetime of the vehicle its pretty modest and crucially I can easily afford them because I'm spending little on capital, nothing in terms of regular repayments and negligible amounts on depreciation.
Cash - hate debt
Plenty of time spent in emerging economies to recognise the folly of our obsession with motor cars.
Maintain well and run for long time - easy to guess favoured brands!
We lease one and have one on a loan.
I cant see the point in saving for years to have the cash to buy a car out right. Not sure how people manage this? ie where do you get your lump of cash from?
Just do the sums to work out what is most cost effective for you.
I've never leased a car. Usually we pay cash for them but have occasionally taken 0% finance deals when those have been available. My wife tends to prefer to have a new car whereas I'm happy with 2nd hand so we tend to have a mix. We also usually keep our cars for quite a few years as well - some of them as long as 10 years.
Bonus = cash = car.
Cash from the auctions.
I recently moved out of the bangeromics model and take the following approach...most people value fuel economy as a priority out of proportion to it's affect on the total running costs of a car, so use this to your advantage.
I buy 8-10 year old prestige cars fitted with engines that use above average fuel from private sellers and only buy cars that are pristine from people who's home is also pristine - ie: people who don't penny pinch. I was taught to buy the seller over the car.
Varied between cash, lease, and finance.
Most have been cash. Last one was a lease. One I ordered on Friday is being financed on PCP. Nothing wrong with debt if you can service it. In this case, I'm taking cash instead of a company lease car, and the cash covers the PCP payment comfortably.
Means I get exactly what I want, with no BIK to worry about, and can potentially get out of the arrangement should I need to, which you can't with a lease.
As mentioned above you can get some very good discounts. I've got 11% off this car, to my exact spec from a prestige brand, just by using Carwow. Even with interest, and if I decide to buy it at the end of the term, it'll have cost me list price and I'll know where it's been.
I bought both our current cars with cash, but about to lease a new one for my wife. She does a lot of business miles so need the assurance and back up of a new car, or a hire replacement. Plus there are some stunning deals around that work out as cheap to own per month over 2 years than our second hand Yeti has cost pr month to own over 4.
Find a car 2 or 3 years old, ~20k miles, most likely at a main dealer and do it during week 2 of the month.
Negotiate a few hundred off and "free" floor mats. Many times they have sales targets to meet by the end of the month, and looking mid month means the deal can be done and dusted by the end of the month.
Take the further PCP finance incentives (£500-£1000 off and multiple free services).
Call up and pay off the finance the day after taking delivery of the car without any penalty (its in the finance contract small print, but don't mention you re going to do this to the salesman).
Enjoy for 5 years. Repeat.
1) Only look at cars that have stopped depreciating (15 years old minimum).
2) Pick something people wanted when they were young but probably couldn't afford.
3) Buy a well kept example of the top spec model.
4) Run for a few years or until your needs change.
5) Sell to middle aged person for more than you payed for it.
6) Repeat.
Might not suit everyone but always worked for me.
Save up until I have enough to go car shopping then buy what I like best
Last car I bought on a credit card then transfered it another 0% CC. Was only 7k thought so not silly money. Paying it off over 2 years.
I tend to keep cars for a fairly long time, the last car I had was up to 200k miles before I sold it.
I would like a new one but nothing silly, i'm not a petrol head but a nice new car would be nice.
I buy 8-10 year old prestige cars fitted with engines that use above average fuel from private sellers and only buy cars that are pristine from people who's home is also pristine - ie: people who don't penny pinch. I was taught to buy the seller over the car.
+1 !
Nice people sell nice cars.
Every few years I buy a 10 year old Subaru for a couple of thousand pahnds, cash. Thirsty, but I've had to pay bugger all for repairs, virtually zero depreciation, Very comfortable, highly practical, etc, etc...
Save up until I have enough to go car shopping then buy what I like best
So how do you get to work etc without having a car in the first place? Or do you start with a £200 car and slowly work up?
My next car costs £40k to buy, it would take me 10 years to save up for it at the amount it is going to cost me per month, and then of course in 10 years time that £40k Ive saved wouldn't buy me the same amount of car.
Paid cash for all my motors; I don't allow myself to get into debt.
Given up driving for the moment though so I can be eco-smug on STW. 😀
More or lessOr do you start with a £200 car and slowly work up?
Started quite some time ago tbh and providing you can keep it going the next - hopefully better - motor is never too far away
Cash - either save, sell, barter, etc till the amount necessary it there.
Selling the last of mine at the moment to top the savings back up!
FunkyDunc - MemberSo how do you get to work etc without having a car in the first place?
[eco-smug] You could always choose a job and accommodation that don't require a car.[/eco-smug]
Opportunities everywhere! 😀
I've had all sorts but the latest one is PCP after buying in a rush following a company takeover and me losing the company car sharpish.
Was going to lease but the PCP was cheaper and I can get out of it if need be.
[Non eco-smug] I like driving cars, and considered where I work now because its a nice drive through the countryside 😀 [/Non eco-smug]
Done a bit of everything really depends. Tend to keep cars quite a while 5-10 years. Some new, most 1-2 years old. Never done a personal lease as too worried about deductions etc. Quality of cars has improved so much over 35 years I have been driving, 10 year old cars these days can still be very solid. Generally pay cash although when I was younger took the odd loan out. Quite staggering that when I was 20 a 3 bed semi was £30k now that buys an ok family car
I've bought cheap cars for cash that have cost me a lot in the long run, one caught fire at 80mph and tried to kill me.
Bought a slightly better car that cost me a fortune.
Bought a very cheap banger which I hated and less me down all the time.
Bought a 2 year old car which cost a bloody fortune, needed finance, but the interest I paid on it, was less than the cost of keeping cheaper cars on the road and including it's final value into the equation meant it's been one of the cheapest cars I've ever owned, and the nicest.
Finance interest is just another cost to consider - it's all well and good saying "save up" and "I don't do debt me" but it's a blinkered view IMHO, some people can't see value past pounds and pence, there's a value to being ale to use it now, there's a value to not having to worry about it breaking down and there even, get this, a value to having nice things that aren't bikes.
Usually fall into two camps.
1- agonise over specs and models for months and test drive. Pay by debit card and drive away
2- get drunk, log into eBay, convince myself I really need a tank, monster truck, amphibious car etc etc and pay by PayPal.
Interesting thread...
We paid cash for our car (single car household..) - £5k for an 07 Octavia a few years back.
Unfortunately had about £2k worth of Air-con repairs needed (the garage were 'impressed' with my perseverance to remedy the situation!)
I often toy with getting a nicer, newer car..but...I like the way it drives, I like teh fact it's sort of 'tipped' passed the 'I REALLY really care about this car' phase, so we look after it, but I'm not precious...
Bikes and kids don't half wreck a car!
Hmm...food for thought above though...
DrP
I pay cash ,never more than a grand .I hate spending money on cars as they are just a tool to convey you.Current car cost 400 quid 3 years ago.My cars are also usually full of bikes and or outdoor kit so there is no point having anything decent to get messy inside with chain marks and mud
Bikes and kids don't half wreck a car!
Add dogs into the mix...
My two did more damage to a mercedes E300 in one month than they did to my Forester in ten years!
The answer is none of the above.
Most people finance cars, I like to keep the term short and get some free motoring after its paid. So a find a car you like in budget, usually for me that'll be one thats a fee yeas old but from a dealer and in as new condition.
Pay for it with either a Tesco loan or finance from the dealer over no more than a three year term. Drive the car for five years, then sell it or give it to someone.
Start again.
Which is fine if you like spending a couple of hundred quid or more on a car a month .I prefer to drive crap cars and drink beer on weekends away !
Buy it with money, cant be doing with debt or renting a car.
1) Decide roughly what requirements are
2) Research a shortlist on the web
3) Go visit dealers to see them in the flesh
4) Test drive
5) Pay in cash
This - although it probably says more about the STW demographic than anything else
I often toy with getting a nicer, newer car..but...I like the way it drives, I like teh fact it's sort of 'tipped' passed the 'I REALLY really care about this car' phase, so we look after it, but I'm not precious...
Bikes and kids don't half wreck a car!
Exactly. I've got a 7 year old Octavia Vrs that Ive had for 4 years and has done 140,000. I was starting to "wobble" about driving around in a car with that much mileage but on our recent trip to france my girlfriend managed to reverse it into the gate of the place we were staying at. It would be about £800 to repair , but the damage is purely to the plastic bumper, has no effect on the safety or roadworthiness of the car, so why bother.
I think I'll just keep it, keep it well maintained mechanically and see if gets me to 200,000.
the cost to change would be £300ish per month to rent a comparable new car at the mileage we do which pays for a lot of maintenance.
i set out to buy the one with the good service history and low owners.
i usually end up buying the one with little/no service history because mechanically for the money it drives and sounds better.
people believe a full dealer service history on a 7-8-9 year old car means you can charge a premium for a wrecker.
However i dont give a shit about dents or even cuts and tears on the interior... .but if i turn up to view a dirty car i walk away.
I avoid old low miles cars as well - time kills cars more than miles + people seem to think that a 10 year old car with 30000 miles is worth not much less than a 3 year old car with 30000 miles .....
but yeah cheap and with cash.
the only thing that will change that is if i need to have a car for my work and work are paying for me to have a car for my work .....
Ill be damned if im paying a dealer to keep my financed/leased/rented car in good nick to stay within teh terms .... when i can do it my self at a more convenient time for about 1/8th the price......and while im under there i can check out the rest of the car and evaluate what i needs - what its likely to need soon ....
I wait till an older relative is thinking of buying a new car and dive in with £200 more than the part exchange offer they have had.
Never paid more than 2k for a car in 20 years. Hate debt and would rather have a nicer older car than a boring new one. And if I'm going to have a boring car I'd rather just have a boring old one that doesn't cost me a fortune. Leaves me more money for bikes...
Almost all of them have only had minor niggles, and I've never had to pay £100s on repairs.
Have thought about buying new cars, and can can see the appeal of not having any worry about mechanical failures, MOTs, etc. But I kinda like the old school mindset of motoring, where you're involved in the whole package, and it's not just a consumable object. I like to get my hands dirty now and again, and it saves a shit load of money. Last car I just sold, cost me about £100 a year.
Usually, buy 3yr old for cash and keep it until I think it's about to die then sell it for a few £100. Last replacement, I bought a new one at 22% discount and decide that was worth it compared to 3yr old, given that I'm keeping it; I save some maintenance and MoT costs, I get a newer and more fuel efficient model (£20 pa tax), I know it's been maintained and not thrashed and I could choose my extras. And all the hassle of replacing roof rack, boot liner, etc isn't due for an extra 3 years.
I can't remember. It's been 11 years since I bought my Honda.
Credit, lots of it.
If I had to buy again I might go for the 4-5k bracket. Any money you may spend on repairs will be less than you will fork out for a newer motor.
I spend up to £1,500 on something in good condition and low mileage. Buy them when you see them. Had a £900 Skoda Felicity with 27,000 miles on it. Sold it when I saw a Peugeot 406 on a dealers forecourt for £650. Low mileage, one owner car in mint condition. Knocked him down to £600 😀
I loved that car, smooth, comfortable and spacious. Mrs Z wrote it off twice. Once I paid the difference in the repair bill and the insurance payout. The 2nd time I didn't.
Then got a Citroen C5 which she also wrote off. She reckons it was cos they were red! Now have a £1,500 Xsara in blue. 12 years old and 50,000 miles when we bought it. We've had it 2 years so I expect a prang any time soon.
Get them serviced on schedule and you shouldn't go far wrong. Get a huge bill and scrap them and buy another. Not always one around when you need them, but it saves tying up thousands in a depreciating asset. Especially as Mrs Z tends to treat them as disposable.
I've often wondered if she might look after them more if she bought them. Life's to short to suggest it to her though 😛
I personally run a lease vehicle through work. My mileage per year is 25k so it's actually cheaper and less stress to do that. I could buy with my car allowance but the service and support make a lease a no brainier.
We have a run around too that the wife drives and that was bought from a dealership as an ex demonstrator with 600miles on it. That was bought cash. This car does 400 miles a month!
A lot depends on what it is used for.
I also ge a car allowance. It covered the loan, insurance and tyres when I had the loan; now it's been paid off for yeqrs I am quids in. Car is still more or less the same as when I got it inside.
Car is still more or less the same as when I got it inside.
Inside what?
Bought cash, but kind of picky over what we get.
The wifes car is generally the fun one and tends to depreciate slowly, although the previous increased in value.
My car is the practical one, although not that sensible in a hope of cheap motoring, it caught my eye and was cheap. It can only be devalued by not having a MoT certificate.
My current car fit my criteria of-
1- less than £2500
2- big estate
3- good history
The seller was genuine, and accepted my low ball offer.
If it appreciates buy it, if it's depreciates lease it...
Said Getty (a billionaire)
I grew up poor, but was taught practical stuff, repairs, engineering etc.
I bought most of my cars under £500, in fact the last three didn't add up to that much together. If they become uneconomical to repair I sell as much of them as I can before scrapping them.
I did 15K miles in my last Golf which, apart from normal servicing parts, mot and tax, cost me £300 over that mileage. It's sat waiting for some love as I'm running a Jag I bought, repaired and moted for under £400, it would sell this week for £2k.
It's a PITA way of doing things but I like it.
I cant see the point in saving for years to have the cash to buy a car out right. Not sure how people manage this? ie where do you get your lump of cash from?
Eh...? My last car cost £2300, a not insurmountable figure...
11 years old, drives great, spent a few hundred on it over the last 2 years.. Still drives great. Is clean and tidy inside and out, no rust. Looks pretty much like a newer car...
I don't see the need to get into debt. Just shop smart. And buy at the shallow end of the depreciation curve. Maintenance costs are an order of magnitude smaller than depreciation losses.
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So how do you get to work etc without having a car in the first place? Or do you start with a £200 car and slowly work up?My next car costs £40k to buy, it would take me 10 years to save up for it at the amount it is going to cost me per month, and then of course in 10 years time that £40k Ive saved wouldn't buy me the same amount of car.
Yeah kind of, actually my first car they started out asking for £100 but we negotiated and settled on £50 if they kept the car stereo. It is all about being frugal when you start earning money so you don't have debt and are not losing money to interest payments. When you don't have loan payments/credit card interest coming out of your paycheck it is surprisingly easy to save money.
Buying anything on loan/interest you end up paying out far more in total than if you bought it up front, even if you find a deal where you get a 0% finance for the car, that same car can be bought cheaper for up front cash.
I think you need to be some kind of maniac to consider buying a £40k car on finance/lease, but thanks though, because it is supporting the UK market of cheap 2nd hand performance cars which I have enjoyed 😛
Is it really "debt" if you are buying an asset...? As long as the value of the car is dropping at the same rate or slower than the balance on the loan, I am not sure I see why people get so worked up about financing cars.
Yes there is a cost of interest, but it also leaves capital free to do other things, so thats what you really need to assess.
How do you lot that say you don't do debt afford to buy a house?
Is it really "debt" if you are buying an asset...?
You might maintain positive equity but it is still a debt
Yes there is a cost of interest, but it also leaves capital free to do other things, so thats what you really need to assess.
True, but history has shown me that I am not a good enough investor to reliably get a better return on a wedge of cash than a typical loan rate. You may have better skills/luck if so then fair play to you.
This does remind me of when a colleague asked me what I thought of him buying a luxury Audi for £25k on finance. I told him I thought he was a maniac and if he was insistent on spending that much money he should at least get a Nissan GTR, Porsche 996 or something that has a decent chance of appreciating. Since that conversation he tried to sell the Audi but can't get a good price because most people in the market for a £20k Audi need finance so don't buy private and the GTR's have roughly doubled in value. I wish I bought a GTR when they were cheap, you miss 100% of the shots you don't take and I admit I am too conservative and don't take enough shots 😡
How do you lot that say you don't do debt afford to buy a house?
People can usually buy a car that meets their basic needs, even ones with a warranty, for a couple of thousand - but people choose to get a much more expensive car on finance just for status/pride/enjoyment.
Property is different because people often cannot realistically buy one meeting their basic needs without a mortgage.
Usually the alternative to a mortgage is renting which is just throwing the money away. A mortgage, as long as it isn't an interest only repayment one, you are at least accruing some capital for every payment that you make.
Houses don't wear out and depreciate like cars do.
People can usually buy a car that meets their basic needs, even ones with a warranty, for a couple of thousand - but people choose to get a much more expensive car on finance just for status/pride/enjoyment.
Without those people the 2nd hand market which everyone is banging on about would collapse very quickly
Property is different because people often cannot realistically buy one meeting their basic needs without a mortgage.
Nah thats just aspiration and fiddling the markets on a grand scale. Houses have been forced up to make them unaffordable.
Usually the alternative to a mortgage is renting which is just throwing the money away.
Recent studies have shows that so long as you can spend the difference wisely a rental property can be an even investment to buying, many factors but things like stamp duty and moving fee's along with remortgage etc and repairs can tip the scales.
A mortgage, as long as it isn't an interest only repayment one, you are at least accruing some capital for every payment that you make.
Houses don't wear out and depreciate like cars do.
No but they do wear out, there is a large amount of housing that was built to some shoddy standards, at what point does the remortgage go tits up as the valuation has gone through the floor as it needs a new roof etc. All the appliances need replacing and the heating system is on it's last legs?
If the asset you have sunk your cash into is worth half what your original loan was for then the amount you paid for something is astronomical. Current trends mean something has to give in markets around the world.
Hmmm, tell that to the people who bought "luxury flats" in certain northern towns in 2008.
I am being slightly facetious, but my point is that seeing all debt as bad is not necessarily helpful. As this thread shows, there's many ways of doing it. I see motoring as an operating cost rather than a capital cost so have no problem with spreading the up front cost over the time that I'm using the asset as long as I'm not paying silly rates of interest. That buys me reliable, fixed cost, risk free, fuel efficient motoring, which in itself is of value to me.
If the asset you have sunk your cash into is worth half what your original loan was for then the amount you paid for something is astronomical. Current trends mean something has to give in markets around the world.
Well yes it is a good idea to buy a well built house etc and it is one of those things where YMMV I guess.
I did think the outlook was looking a bit risky so in March I sold my house for double what I bought it for 6 years earlier. Something which may or may not turn out to be a wise decision in the long term (London property prices still seem to be going up).
I got a personal loan for 7k paid over 3 year'a for a 3 year old car. It is now 10 years old and I will run it into the ground.
We had a second car bought for 3k sold six years later for 2.7k !
Both cars requied less than £500 a year on servicing and repairs averaged out.
I would never lease a car and now I would never get a loan out for a car.
I view debt repayments on cars as a service. No different to leasing except you are on the hook for repairs, but even then you can put money by to cover that. You're only a spreadsheet away from being your own lease company. With the bonus that you keep the car at the end. And you arent paying for the lease company's office. Loans can be had cheaply if your credit rating is good. My car was bought on 4% Apr iirc so the cost of finance isn't necessarily significant.
Debt isn't bad in itself. Too much debt or too expensive debt is.
Novated Lease as I work for the gov't. Car gets "leased" and I pay a figure from my pre-tax salary, and a certain amount every fortnight goes to my petrol card (tax free fuel!) and for my running cost / rego / tyres etc
At the end of the "lease" period there's a settlement fee and I keep the car, or use the car as trade in towards another car. Also pay less tax through the year as my salary looks smaller than it is. Winner winner.
Winner winner.
Really?
When my colleague worked it out he'd have been over £500pm worse off for a Nissan Qashqai due to BIK. He bought a Superb instead, pays something like £200pm and will end up owning it.
I have come to hate debt too, so avoid loans like the plague. I saved up for my latest car which I bought outright, but then replaced my Wife's two cars with an XC60 on their 3yr deal. I paid a hefty deposit, so the monthly payments were almost trivial, but liked the idea of a safe trouble free car for her and the family.