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  • FIRST POST
    • aye_right
    • By aye_right 15th Jul 17, 2:59 AM
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    aye_right
    What are the cheapest new cars?
    • #1
    • 15th Jul 17, 2:59 AM
    What are the cheapest new cars? 15th Jul 17 at 2:59 AM
    My old banger gave up today and I'm seriously considering a new car on finance to replace it.

    I'm thinking that a new car will probably be 0 road tax (as opposed to £20 a month for my ancient KA) no MOT for a while and hopefully 100% reliable. I have worked out that my £600 banger that lasted me for 2 years cost me a lot in tax and repairs and stress.

    What are the cheapest new cars out there? I know the Dacia is the very cheapest, but are there other models not much more than the 5 grand? Am I going to be better getting a car a year or two old?

    All I want is a basic run around for 2 adults that is cheap and safe. Mostly town and country road driving.
Page 2
    • motorguy
    • By motorguy 15th Jul 17, 10:01 PM
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    motorguy
    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&radiu s=40&onesearchad=Used&onesearchad=Nearly%20New&one searchad=New&page=1
    Originally posted by worried jim
    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.
    You are not special. You are not a beautiful and unique snowflake.
    • bigadaj
    • By bigadaj 15th Jul 17, 11:36 PM
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    bigadaj
    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.
    Originally posted by Iceweasel
    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.
    • thescouselander
    • By thescouselander 16th Jul 17, 8:41 AM
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    thescouselander
    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.
    Originally posted by bigadaj
    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.
    • bigadaj
    • By bigadaj 16th Jul 17, 8:58 AM
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    bigadaj
    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.
    • motorguy
    • By motorguy 16th Jul 17, 12:07 PM
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    motorguy
    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.
    Originally posted by thescouselander
    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 =1
    You are not special. You are not a beautiful and unique snowflake.
    • thescouselander
    • By thescouselander 16th Jul 17, 12:10 PM
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    thescouselander
    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.
    Originally posted by bigadaj
    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.
    • motorguy
    • By motorguy 16th Jul 17, 12:16 PM
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    motorguy
    #

    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.
    Originally posted by thescouselander
    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&o nesearchad=Used&onesearchad=Nearly%20New&onesearch ad=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%20 New&onesearchad=New&sort=price-asc&model=I40&advertising-location=at_cars&make=HYUNDAI&postcode=bt622hb&rad ius=1500&year-from=2016&page=1

    Yet theres the perception out there that german stuff holds its money well.....
    You are not special. You are not a beautiful and unique snowflake.
    • motorguy
    • By motorguy 16th Jul 17, 12:18 PM
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    motorguy
    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.
    Originally posted by thescouselander
    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.
    You are not special. You are not a beautiful and unique snowflake.
    • Mercdriver
    • By Mercdriver 16th Jul 17, 12:20 PM
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    Mercdriver
    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&o nesearchad=Used&onesearchad=Nearly%20New&onesearch ad=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%20 New&onesearchad=New&sort=price-asc&model=I40&advertising-location=at_cars&make=HYUNDAI&postcode=bt622hb&rad ius=1500&year-from=2016&page=1

    Yet theres the perception out there that german stuff holds its money well.....
    Originally posted by motorguy
    They are both about 45% depreciation. Almost identical.
    • motorguy
    • By motorguy 16th Jul 17, 12:23 PM
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    motorguy

    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.
    Originally posted by thescouselander
    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.
    You are not special. You are not a beautiful and unique snowflake.
    • Tarambor
    • By Tarambor 16th Jul 17, 12:28 PM
    • 1,028 Posts
    • 698 Thanks
    Tarambor
    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.
    Originally posted by aye_right
    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.
    • Tarambor
    • By Tarambor 16th Jul 17, 12:30 PM
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    • 698 Thanks
    Tarambor
    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.
    Originally posted by thescouselander
    My Mondeo when I bought it at 2 years old was 30% of its new price. For most cars there are sufficient of them being sold used at 2/3 years old that you can get the spec you want.
    • Stoke
    • By Stoke 16th Jul 17, 12:37 PM
    • 1,737 Posts
    • 628 Thanks
    Stoke
    There's nothing wrong with a new Dacia, and the only negatives will be from badge snobs.
    Originally posted by vikingaero
    They're dreadful.
    • motorguy
    • By motorguy 16th Jul 17, 1:08 PM
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    motorguy
    They are both about 45% depreciation. Almost identical.
    Originally posted by Mercdriver
    And the amount lost is much greater on the Audi, as it cost a lot more new, which goes against Scouselanders assertion that budget cars depreciate more heavily.

    If you bought the Hyundai you'd be several thousand better off over the same timeframe.
    You are not special. You are not a beautiful and unique snowflake.
    • thescouselander
    • By thescouselander 16th Jul 17, 4:20 PM
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    thescouselander
    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&o nesearchad=Used&onesearchad=Nearly%20New&onesearch ad=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%20 New&onesearchad=New&sort=price-asc&model=I40&advertising-location=at_cars&make=HYUNDAI&postcode=bt622hb&rad ius=1500&year-from=2016&page=1

    Yet theres the perception out there that german stuff holds its money well.....
    Originally posted by motorguy

    A poverty spec A4 like that only lists for £25k and realistically most people we'll be handing over more towards 20k after various contributions etc. £17k for a year old car doesn't seem like a good deal in that context and clearly the depreciation is a lot less than you're making out.
    Last edited by thescouselander; 16-07-2017 at 4:36 PM.
    • motorguy
    • By motorguy 16th Jul 17, 5:49 PM
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    motorguy
    A poverty spec A4 like that only lists for £25k and realistically most people we'll be handing over more towards 20k after various contributions etc. £17k for a year old car doesn't seem like a good deal in that context and clearly the depreciation is a lot less than you're making out.
    Originally posted by thescouselander
    Firstly, that Sport spec is mid range between SE and S-Line.

    Secondly, you're hopelessly out in terms of the price of a new one - it lists at £29,100 + metallic paint at £695. You local dealer would probably be aiming to knock a couple of thousand off, however i broker will get one for around £26,700 with metallic paint (and that will include the benefit of any finance contributions.

    https://broadspeed.com/new_cars/Audi/A4/Choose_Number_Of_Doors/Saloon/

    You were the one who was relating depreciation purely to list price, not me by the way, however the figures still look bleak for the Audi as you can get an easy £5,000 off the Hyundai via a broker.

    https://broadspeed.com/new_cars/Hyundai/i40/Choose_Number_Of_Doors/Saloon/

    It might not appear to you as "that good a deal" at £17K but its the cheapest in the country and realistically if a private seller bought one brand new from a broker at £26,700 they'd be licky to be getting £15,000 on a trade in so £11,700 to drive - in your words - a "poverty spec" Audi for a year. OR maybe £7,000 to do the same running in a Hyundai.

    Anyway, back to the main point, no its definitely not a foregone conclusion that you will lose less money by buying a so called premium brand car, over a budget brand one.

    The big problem with Audis, Mercs, BMWs, VWs, etc is that the country is coming down with them - everyone has them, therefore residual values have gone down the toilet.
    Last edited by motorguy; 16-07-2017 at 5:54 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • thescouselander
    • By thescouselander 16th Jul 17, 7:26 PM
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    thescouselander
    Firstly, that Sport spec is mid range between SE and S-Line.

    Secondly, you're hopelessly out in terms of the price of a new one - it lists at £29,100 + metallic paint at £695. You local dealer would probably be aiming to knock a couple of thousand off, however i broker will get one for around £26,700 with metallic paint (and that will include the benefit of any finance contributions.
    Originally posted by motorguy
    Actually the current Audi brochure lists the linked car's RRP as £27,300 + £600 for the paint.

    In reality it is a poverty spec car though, with the smallest engine, manual box and no options (save the paint) so there's no way anyone will be paying anywhere near that. I'd be expecting around £4 or £5k off at my local dealer and I could beat that even more if I went though the discount scheme at work.

    Even the ads you posted include the following:

    For the Audi "SAVE £10246 off new list price"
    For the Hyundai "SAVE £9226 off new list price"

    So that puts the cars very much in the same ballpark and I know which car I'd rather be driving.
    • motorguy
    • By motorguy 16th Jul 17, 7:46 PM
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    motorguy

    Actually the current Audi brochure lists the linked car's RRP as £27,300 + £600 for the paint.
    Originally posted by thescouselander
    For The Love of The Baby Jesus, the car linked to is the SPORT, you are looking at SE prices - £27,260 for an SE, the SPORT is £29,020. That is there in black and white on Audis website.


    In reality it is a poverty spec car though, with the smallest engine, manual box and no options (save the paint) so there's no way anyone will be paying anywhere near that. I'd be expecting around £4 or £5k off at my local dealer and I could beat that even more if I went though the discount scheme at work.
    Originally posted by thescouselander
    I quoted a broker price. They are the cheapest of the cheap. There is not a mission on Gods Planet of your average Joe Local Audi dealer supplying you with that car at £2,500 LESS than a broker.

    Not happening. End of. You are living in a Fantasy Land.


    Even the ads you posted include the following:

    For the Audi "SAVE £10246 off new list price"
    For the Hyundai "SAVE £9226 off new list price"

    So that puts the cars very much in the same ballpark and I know which car I'd rather be driving.
    Originally posted by thescouselander
    Uh huh - but not for EVERY trim level of EVERY model.

    You're wildly out if you think that buying a new Audi, running it three years and rinsing and repeating is in any way a financially smart thing to do. They drop like snow off a ditch and typically arent that special - they're a bit of an also ran behind Mercedes and BMW.

    Yes, if you want to drive one, great thats your prerogative, but lets not pretend its in any way financially astute to do so OR to recommend to others to do so.
    Last edited by motorguy; 16-07-2017 at 7:48 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • motorguy
    • By motorguy 16th Jul 17, 7:55 PM
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    motorguy

    In reality it is a poverty spec car though, with the smallest engine, manual box and no options (save the paint) so there's no way anyone will be paying anywhere near that.
    Originally posted by thescouselander
    So give us a real world example then of an optimum spec'd A4 with your choice of engine, trim and options and how much that would cost?
    Last edited by motorguy; 16-07-2017 at 8:30 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • cypher007
    • By cypher007 17th Jul 17, 10:13 AM
    • 237 Posts
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    cypher007
    another option
    you could apply for a 0% on purchases for 30 months card. then pay it off over the 30 months. that's what I'm doing.


    Tesco gave me a limit of £8.3k. so the rest I will pay in cash, though its looking like I will be able to pay a bit more off in cash than I originally worked out due to not getting the car until September.


    my new car is costing £12k but the list was over £20k. so ive probably got rid of at least the first years depreciation at a 42% discount.


    I would post a link to the deal but I get a bit of flak for asking people mention where they saw the link.
    Last edited by cypher007; 17-07-2017 at 10:19 AM. Reason: extra info
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