The thought of buying a car and never seeing the inside of a bus again is titillating but seems way too expensive sighs whilst staring out of bus window. When car finance experts Parkers told usthat we can buy a car on finance for a monthly cost of less than a night out, we naturally assumed a Rihanna-at-a-strip-club night out, but turns out NOPE… Just a regular ole night out! Less than £100 to be exact. (So, the cost of a lap-dance, in Rihanna-lingo.)
Buy A Car On Finance: 5 Cheap and Cheerful City Cars on Finance
These five cute cars can be yours for under £100 a month with the cheapest costing a mere £43 a month. Yes, a real live car. No, not a toy one. They are available on PCP finance (Personal Contract Purchase) which is the most popular form of new-car finance. PCP allows you to keep monthly repayments super low by deferring payment of the car’s future residual value until the end of the contract. At the end of your term you can either pay a lump sum and own the car, swap it and get another brand new car, or just give the keys back and be done with it.
1. Renault Twingo - £43 a month
If you’ve got some savings aside and can cough up a (rather hefty) deposit of £4,300, you can get the nifty little Twingo Play SCe 70 for 43 quid a month. This is offered on a Renault Selections PCP with an APR (Annual Percentage Rate) interest rate of 6.4%.
What you’d have to give up: 20 lattes a month (so that's one for every weekday morning, maths fans)
2. Toyota Aygo - £52 a month
A £3,000 deposit can get you a city car like a Toyota Aygo for just £52 a month on a three-year PCP deal, with repayments spread over three years at 4.9% APR.
What you’d have to give up: 9 Leon Thai Green Chicken Curry Hot Boxes a month.
3. VW Up - £64 a month
For only a £384 initial payment and a two-year contract with Yes-Lease.co.uk (an independent finance provider), you can get this cute little number for £64 a month. Worth noting that there’s a 5,000-mile-a-year usage limit.
**What you’d have to give up: 4 bottles of ok-ish wine in the pub a month **
4. Suzuki Celerio - £79 a month
Suzuki is offering its Celerio on a PCP deal for just £79 a month, provided that you give a £1,889 deposit and sign a 43-month contract on 5.9% APR.
What you’d have to give up: 4 Pizza Hut Texas Meat Meltdown large pizzas a month.
5. Citroen C1 - £99 a month
Citroen’s Elect 3 PCP finance program gives you a Citroen city car for £99 a month and as part of their special offer, they’ll add £500 on top of your initial payment of £2,147.
What you’d have to give up: A lap-dance.
Buy A Car On Finance: Options Other Than PCP
Everyone’s getting cars on finance nowadays. Well, 80% of car buyers to be precise. Apart from PCPs or just buying a car with your savings or a bank loan, the main 2 car-finance options available are HP or Leasing:
Car Finance: Hire Purchase (HP)
Hire Purchase lets you spread the total cost of the car over a set period and pay off the loan monthly, but you don’t actually own the car till you’ve made the final payment.
Car Finance: Leasing
With Leasing, or 'Contract Hire,' you never own the car. It’s basically renting.
Have a look at the pros and cons of each car finance option. Non-deposit car finance is also available and not just an urban legend but you’ll have to make sure to read the small print.
*Deals are correct at time of publication. Everyone’s financial circumstances are different and credit is not always available – Parkers cannot recommend a deal for you specifically. These deals are indicative examples of some packages available at time of publication.
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This article originally appeared on The Debrief.