financing a car

[nykkieberry]

Can someone explain the pros and cons of leasing, hire purchase and getting a loan to finance a car? I can afford �5k cash or could boost it to 10k ish with another way of finance? And any recommendations for a decent car in the �5 - �10k bracket, no more than two years old? Something sporty but practical for a mum who uses it around town. Thanks my trusty friends!

[nona suomy]

I have driven a few cars (travelling for work and found the best to be (and by best I mean pleasure to drive), Mercedes A class (deceptively roomy too) but possible out of your price range. Golf TDi also heavy on the price range I suspect and the Ford Focus was pretty nifty too. I would avoid finance from a car dealer as I was stung about 5 yrs ago. They charges me 19.9%apr ina v ery sneaky fashion and I never realised that you don't own the car until the last payment is made. I got a loan from my bank at about 11% apr and the car was officialy mine. Things may have changed since then though - there are allsorts out there, I'm sure someone will be better informed than I.

[gilf]

I would say you could get a very decent car, for �5K these days. Golf's are expensive but thats because they are really reliable and also hold that value.

[nykkieberry]

Are Golfs actully that much of a better car? Or is it just clever marketing? They seem a lot dearer than the equivalent in their class. They do seem to be car of the moment and very fashionable - but does that necessarily mean they are the best! A garage suggested Japanese cars as more mechanically sound...I don't profess to know anything about them - i just wonder why they are so expensive...

[rinkytink]

nykkieberry - are Golfs really that much of a better car ?

Just take a look at how may old (over ten years) Golfs are still on the road and in excellent condition.

And yes I do drive one - 14 years old with 140,000 miles on the clock. Starts first time every time and looks and drives like a dream !!

[skelly]

I don't know much about the finance side I'm afraid but I could recomend some cars. I had a Ford Focus till recently and was very pleased with it. The one I had was a diesel and it was ok. A friend has a focus Tdci (diesel again) which is fairly quick and looks the part. Just now I have a MG ZS which I bought new and I'm thrilled to bits with. It's sporty but quite big. It's little brother the ZR however, is, again, quick and very sporty looking, and I think new they retail around �10k, so a second hand one would be within your budget. Another friend's girlfriend just bought a 2 year old Vauxhall Corsa (sxi I think, something sporty anyway) for about �6.5k.

[docklands77]

Buy a bicycle instead. Its much cheaper and you will get fit at the same time! ha ha!