Hi all,

Over the next twelve months there is a chance I will have to buy a new car. Does anyone have any experience of these Option type deals, where the repayments are lower, but usually with a higher deposit and then a Guranteed Future Value where, I assume, if you don't cough up that figure, you either have to sign up for a new deal and get another new car, or just hand the vehicle back.

Anyone actually managed to stump up the GFV fee, or have you just kept rolling on the deal with a benefit of a new vehicle every 3 or 4 years? Is that good value?

Have you looked at leasing? Seems effectively the same thing if you never buy it outright.

I know a couple of people who do it (privately not company) - talking about smallish cars, not rich folks toys. I think it includes servicing etc.

(I've got no idea re numbers other than for company cars)

It does seem a kind of leasing doesn't it? I think some companies even call it Personal Contract Hire, and many do include servicing deals. It seems to me that with servicing and no MOT's on cars under 3-years old, you are kind of taking the depreciation out of the deal and covering yourself for the basic service costs.

Seat for the Ibiza have a particularly good deal at the moment which has got me thinking, but I hadn't actually considered an actual personal lease deal.

When you say new I take it new off the forecourt - why not get one about 9 months old ? New cars depreciate about 30%. Best to have one a few months old with a balance of the manufacturers warranty left on it. I would never enter into a loan agreement with a manufacturer - someone, usually the salesman, will cream off some commission as a result. Better to save for 12 months and have more of the money up front first ? If you must take out a loan, what can your bank lend you, especially if you have a mortgage ?

I wouldn't necessarily be plumping for brand new, and appreciate the depreciate advice. I have always been one to buy outright and have felt in the past the option to purchase deals a bit of a no go area - I can't think many hand over the cash to keep the vehicle at the end of the term, and most just upgrade and carry on with a new finance deal.

However, I am currently driving a vehicle which is 12 years old next March, and I had it from new. As lovely as it is to be finance free for such a long time, the fact of the matter is you pay X amount of money for X amount of time for a car which is losing value quicker than you are paying it off, and it isn't worth a great deal if you hang onto for any length of time after the finance has finished.

I am just toying with the idea that with this kind of deal, you can just roll it on, never having to worry about servicing or MOTs or that the car is getting on in years, because every 3 years or so you get a brand new up-to-date model. And, maybe after doing that a couple of times, I could well have the option to purchase amount to own it outright for a few years.

Best loan rate I can get is from Nationwide (as a Nationwide bank account holder), and they are quoting more than the monthly figure than Seat are offering for the same amount of money.