I’m currently leasing a vehicle and I like the way it works, especially since I got a really good deal on my current vehicle. However, it is due to go back in the next few months so I am looking at my other options. Unfortunately there are no good lease deals floating around recently.

The car I like will cost around £8000 over 2 years amortized, which is way overpriced. However, I found an ex-demonstrator (6 months old, 700 miles on the clock) for £14000. This is the best deal in the country by far, I don’t think that the vehicle will lose more than £8000 in depreciation during my 2/3 year ownership. It will most likely lose around £4000-£6000. There I believe purchasing the car would be the best option. Correct?

Now, to buy in full (and essentially have zero savings), buy in part (£10000 deposit, followed by a loan of £4000) or PCP/HP more of the value?

Your thoughts on this would be appreciated, for more information I am based in the UK, 21 years old and have a good credit rating. Also worth mentioning that I can get a loan for £4000 for 5% APR or a loan for £7500 at 2.8% APR. Also, with this said; would it be wise to split the payments across 2, 3 or 4 years in order to lower the monthly payments and then pay off the finance in full before I decide to sell the car? (Assuming there are no early termination fees, which there aren’t).