What are the cheapest new cars?

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  • Jackmydad
    Jackmydad Posts: 9,186 Forumite
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    Cars that are a couple of years or so old have always made more sense financially than new.
    New might be very nice, but once you've driven it, it ain't "new" any longer. The initial depreciation is eye watering, and it gives a chance for the "early failure" period of components to be well over.
  • wgl2014
    wgl2014 Posts: 1,144 Forumite
    If you pay near list price then yes the initial depreciation is painful, if you can get a good deal it may start to make sense.
    I have gotten a few quotes out of interest online and have had offers of upto 28% discount on list. This means a new car is the same price as one 18 months old (roughly).
  • forgotmyname
    forgotmyname Posts: 32,547 Forumite
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    RichardD1970 wrote: »
    £20 a month. ;)

    I misread that but the old KA isnt £20 a month either, £120 a year?

    £12 or £13 a month?

    So not a huge saving especially as mentioned the depreciation in the 1st year will be approx £3000.

    That pays for a lot of repairs and tax.
    Censorship Reigns Supreme in Troll City...

  • aye_right
    aye_right Posts: 5 Forumite
    It was the head gasket that went on the KA.

    It was £20 per month tax, it was a 1.4 I think. I was shocked at how high the tax was on such a wee car.

    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.

    Food for thought. I definitely don't want another banger, will research slightly older cars.
  • DUTR
    DUTR Posts: 12,958 Forumite
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    aye_right wrote: »
    It was the head gasket that went on the KA.

    It was £20 per month tax, it was a 1.4 I think. I was shocked at how high the tax was on such a wee car.

    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.

    Food for thought. I definitely don't want another banger, will research slightly older cars.

    £240 a year seems high for a 1.4 car, my current Golf is £145 and the previous £265, depending how you are going to finace your purchase do consider a broker.
  • peter_the_piper
    peter_the_piper Posts: 30,268 Forumite
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    From watching tv it would seem worth trying for a bank loan rather than finance, the rates are far cheaper. Probably be able to haggle down more.
    I'd rather be an Optimist and be proved wrong than a Pessimist and be proved right.
  • thescouselander
    thescouselander Posts: 5,542 Forumite
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    Jackmydad wrote: »
    Cars that are a couple of years or so old have always made more sense financially than new.
    New might be very nice, but once you've driven it, it ain't "new" any longer. The initial depreciation is eye watering, and it gives a chance for the "early failure" period of components to be well over.


    I always used to think cars a year or two old would work out cheaper (and in fact that's what I was buying) until I realised the discounts that were available on new cars - the difference between a year old car and a new one is barely anything a lot of the time. Now I don't bother with newish second hand and just buy new as it's less hassle and I can get the exact spec I want with no compromises.
  • Iceweasel
    Iceweasel Posts: 4,702 Forumite
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    thescouselander wrote: »
    I always used to think cars a year or two old would work out cheaper (and in fact that's what I was buying) until I realised the discounts that were available on new cars - the difference between a year old car and a new one is barely anything a lot of the time. Now I don't bother with newish second hand and just buy new as it's less hassle and I can get the exact spec I want with no compromises.

    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. ;)
  • motorguy
    motorguy Posts: 22,473 Forumite
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    Tarambor wrote: »
    Then you're an idiot if you do. Don't buy a car on finance. Don't buy a new car unless you like setting fire to money

    I can guarantee that the 2 years of repairs and tax are a damned sight less than the depreciation hit you'll take in the first year with a new car and the stress of knowing you have to meet a 3-5 year finance deal when you have a drop in income will be higher than the inconvenience of having to fix your banger. Yeah you're correct you won't have a MOT but you will have higher servicing costs which will far exceed the £30-£55 cost of a MOT as it will have to be serviced to the manufacturers specification using genuine parts in order to maintain the warranty.



    What do you think?
    car-depreciation-ownership-graph-uk.jpg

    4/5 year old Ford Focus.

    For kick off, your graph is showing someone paying list price on a new car. Nobody does that for any "normal" car, thus your off a cliff depreciation wont apply.

    Secondly, if the O/P buys a brand new car at £5995, then runs it 10 years and scraps it, they'll still only have "suffered" £595 a year depreciation.

    Hardly burning money is it?

    I would personally spend the little bit extra on the next model up in the Dacia range, at £7,395. If you used their finance you get a £400 finance contribution and an extra 2 years warranty, meaning the spec upgrade is equivalent to just £995 and you're getting 5 years warranty.
  • motorguy
    motorguy Posts: 22,473 Forumite
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    worried_jim wrote: »
    I've been in a few Dacia taxis in Turkey and all were fine. But you can pick them up second hand for peanuts so maybe get one a year or two old and save even more money.

    This is £5k and looks smart- http://www.autotrader.co.uk/classified/advert/201706306922365?sort=price-asc&advertising-location=at_cars&postcode=bn424sn&make=DACIA&radius=40&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&page=1

    Thats a 3 year old one at £6,000, has 50,000 miles on it and has a lot of bits the O/P hasnt said he wants or needs? Its already outside manufacturers warranty.
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