What are the cheapest new cars?
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I couldn't agree more.
I used to buy a 2 years old car and sell it at 5 years old to avoid the 'huge' depreciation that I thought existed.
Then I discovered with dealers 'promotion assistance', manufacturer's 'contribution', and finance company's 'incentives' that I could get a huge discount on a brand new car with the exact spec that I was always searching for, but never finding.
On my current car I achieved 22.5% less than list price.
When I went to collect it I realised that I was paying less for it than a 21 month old similar car standing on the dealer's forecourt with 20K miles on the clock and less of the extras that I had chosen.
Just don't mention the word 'discount' - no-one gives discount - it's incentives and contributions you want.
And don't pay cash up front - you'll get a better deal if you take the finance - and then settle it early - i.e. within a few days of collection.
That way you pay only a few days interest and keep the reduction they offered as an incentive.
Note that you do not cancel the finance - you just pay it off early - very early.
The problem is that list prices have become so unrealistic for many vehicles.
I've had my car 2.5 years, bought it from a main dealer at a year old and paid just under half list. So even assuming a 25% discount on new that's another 25% devaluation in the first year.0 -
The problem is that list prices have become so unrealistic for many vehicles.
I've had my car 2.5 years, bought it from a main dealer at a year old and paid just under half list. So even assuming a 25% discount on new that's another 25% devaluation in the first year.
What car was that? I think if I saw 1 year old cars going for 50% of list I'd quickly discount it as a possible purchase due to unfavorable depreciation.
That said some makes do depreciate extremely quickly and these tend to be brands at the cheaper end of the market - Dacia and Kia seem to be particularly bad. Counter intuitively this makes apparently cheaper cars more expensive to run when using PCP or lease. The cheapest car I've run in recent years was my Audi A4 which kept its value very well.0 -
It's an Astra.
The difficulty is that if you're paying more for the A4 in the first place then the actual pounds of depreciation rather than the percentage will be more painful.
You obviously can't go below 0 in terms of depreciation, and the maintenance costs for an Audi, particularly when combined with the repair costs if and when soemthing doe go wrong mean that even lower depreciation comes with a higher risk, there's no free lunch.0 -
thescouselander wrote: »What car was that? I think if I saw 1 year old cars going for 50% of list I'd quickly discount it as a possible purchase due to unfavorable depreciation.
That said some makes do depreciate extremely quickly and these tend to be brands at the cheaper end of the market - Dacia and Kia seem to be particularly bad. Counter intuitively this makes apparently cheaper cars more expensive to run when using PCP or lease. The cheapest car I've run in recent years was my Audi A4 which kept its value very well.
Cars that are used for short term leases / hire cars tend to be easily picked up for 50-60% of list price after a year or so - so stuff like Astras, Golfs, Focus, Passat, Mondeo, etc
You can get a year old Passat TDI from a VW main dealer for as little as little as £12,450. Thats only a little over 50% of list price after a year.
http://www.autotrader.co.uk/classified/advert/201704294914991?model=PASSAT&advertising-location=at_cars&postcode=bt622hb&sort=price-asc&year-from=2016&radius=1500&make=VOLKSWAGEN&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&page=10 -
It's an Astra.
The difficulty is that if you're paying more for the A4 in the first place then the actual pounds of depreciation rather than the percentage will be more painful.
You obviously can't go below 0 in terms of depreciation, and the maintenance costs for an Audi, particularly when combined with the repair costs if and when soemthing doe go wrong mean that even lower depreciation comes with a higher risk, there's no free lunch.
Surprisingly not. The Audi didn't lose that much as measured in pounds and servicing was extremely reasonable, especially when the long service intervals are factored in. At the time it certainly worked out cheaper than buying a Mondeo or Insignia and it also makes my current Mazda look expensive.
Quite often the more expensive car can work out cheaper to run if the plan is to swap every 3 years. It's always best to work the costs out carefully and not make any assumptions.0 -
thescouselander wrote: »#
That said some makes do depreciate extremely quickly and these tend to be brands at the cheaper end of the market - Dacia and Kia seem to be particularly bad. Counter intuitively this makes apparently cheaper cars more expensive to run when using PCP or lease. The cheapest car I've run in recent years was my Audi A4 which kept its value very well.
You're wholly upside down with your view here. You can buy an A4 at a year old for approx 50% of its retail price without much difficulty - heres an A4 1.4TFSI, new today its nigh on £30K with metallic paint, Motorpoint will sell you an ex lease one for £16,999, so £13,000 depreciation in a year.
http://www.autotrader.co.uk/classified/advert/201704274867039?year-from=2016&postcode=bt622hb&radius=1500&make=AUDI&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&sort=price-asc&model=A4&advertising-location=at_cars&page=1
A new Hyundai i40 1.7CDTI is just over £20,000 new, and you can buy a year old one for £10,999 so just over £9,000 depreciation in a year.
http://www.autotrader.co.uk/classified/advert/201707037022074?body-type=Saloon&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&sort=price-asc&model=I40&advertising-location=at_cars&make=HYUNDAI&postcode=bt622hb&radius=1500&year-from=2016&page=1
Yet theres the perception out there that german stuff holds its money well.....0 -
thescouselander wrote: »Surprisingly not. The Audi didn't lose that much as measured in pounds and servicing was extremely reasonable, especially when the long service intervals are factored in. At the time it certainly worked out cheaper than buying a Mondeo or Insignia and it also makes my current Mazda look expensive.
Quite often the more expensive car can work out cheaper to run if the plan is to swap every 3 years. It's always best to work the costs out carefully and not make any assumptions.
Comparing list price v list price and relative values after 1,2,3,4 years the Audi will work out more expensive than say a Hyundai or Kia saloon equivalent.
Frankly common or garden stuff like A4s, 3 series, Passats etc drop in value (relatively speaking) like snow off a ditch.0 -
You're wholly upside down with your view here. You can buy an A4 at a year old for approx 50% of its retail price without much difficulty - heres an A4 1.4TFSI, new today its nigh on £30K with metallic paint, Motorpoint will sell you an ex lease one for £16,999, so £13,000 depreciation in a year.
http://www.autotrader.co.uk/classified/advert/201704274867039?year-from=2016&postcode=bt622hb&radius=1500&make=AUDI&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&sort=price-asc&model=A4&advertising-location=at_cars&page=1
A new Hyundai i40 1.7CDTI is just over £20,000 new, and you can buy a year old one for £10,999 so just over £9,000 depreciation in a year.
http://www.autotrader.co.uk/classified/advert/201707037022074?body-type=Saloon&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&sort=price-asc&model=I40&advertising-location=at_cars&make=HYUNDAI&postcode=bt622hb&radius=1500&year-from=2016&page=1
Yet theres the perception out there that german stuff holds its money well.....
They are both about 45% depreciation. Almost identical.0 -
thescouselander wrote: »
Quite often the more expensive car can work out cheaper to run if the plan is to swap every 3 years. It's always best to work the costs out carefully and not make any assumptions.
I would be extremely surprised if buying any new A4 or 3 series or Mercedes C class would work out cheaper than a discounted new Mondeo or Insignia over the same timeframe.
Moreoften the so called "premium" variant will work out a lot more.0 -
It wasnt just the cost of the MOT test, the KA needed welding, shocks and lots of work on the brakes to get through the MOT so was costly overall. I know all cars will need things like brake pads obviously.
Pretty much expected it to be welding on an older generation Ka, they're notorious for it. Rust is for me the only reason it is ever valid not to repair a car. By the time it has got to the point the bodywork has corroded sufficiently for a structural part of the car to fail an MOT then that car is end of life even if you patch it up simply because other safety critical areas will be badly corroded too and no longer functioning, it is just that the metal hasn't got thin enough to have a hole in yet. So I think it is safe to say you've run this car to the end of its life.
Plenty of decent cars out there but as I hope you're starting to work out you're better off getting something at least 2/3 years old letting someone else take the hit on the depreciation than it being you.0
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