Car Scrappage Scheme

losgiganteskid

I expect the depreciation on a new car is a whole lot more than £35 per month !!

m_k_dons

losgiganteskid wrote: »

I expect the depreciation on a new car is a whole lot more than £35 per month !!

Even used cars are not depreciation free.

I bought a used car two and a half years ago for £2500. It has now had so many problems it is almost about to give up and is worthless. That's comparable to the depreciation of a new small car of the size which is being discussed here.

I wish people would stop going on and on about depreciation. On these small cars, i10s etc the depreciation is no worse really than a used car from a more expensive manufacturer.

lisyloo

Even used cars are not depreciation free.

Not sure I agree.
I paid £3500 for my car 11 years ago.
You could do a straight division and say the depreciation was £320, but it's never a straight line. The depreciation is higher at the beginning.
I reckon mine has been zero for the last few years.

But you do have to keep them for a long time and be prepared to put up with issues, like noises vibrations, leaking oil, rust, water leaks etc.
Most people wouldn't be prepared to drive my car. Not that it's unsafe, but it has lots of issues that the majority would not put up with.
So you can get to zero but you have to go to extremes.

m_k_dons

lisyloo wrote: »

Not sure I agree.
I paid £3500 for my car 11 years ago.
You could do a straight division and say the depreciation was £320, but it's never a straight line. The depreciation is higher at the beginning.
I reckon mine has been zero for the last few years.

But you do have to keep them for a long time and be prepared to put up with issues, like noises vibrations, leaking oil, rust, water leaks etc.
Most people wouldn't be prepared to drive my car. Not that it's unsafe, but it has lots of issues that the majority would not put up with.
So you can get to zero but you have to go to extremes.

But your depreciation has been 0 because I'm guessing the car is worth basically 0, at least to someone else to buy from you.

And how much in repairs has it cost in that time. Because my 2500 car has had over 1000 of repairs and servicing. Meaning it has actually cost more like 4000 in that time. That's 4000 I have lost. Which is more than I will lose during probably double the time with a new i20.

anewman

oh_no wrote: »

Here's my back of an envelope rationale.

Old car road tax £212 new car £35
Old car insurance £400 new car £300
Old car fuel £900 new car £600
Old car MOT £200 new car £0
Old car servicing £100 new car £130

Total £747 per year EXTRA for the old car,or £62.25 per month.So I can have a new small car for £35 a month

---

it's a no brainer.

Not forgetting the £89 a month outlay (£1068 a year) to fund the finance of one of the cheapest Fiat Panda, most of which you won't get back after 3 years if you want to sell it (depreciation).

anewman

m_k_dons wrote: »

Because my 2500 car has had over 1000 of repairs and servicing. Meaning it has actually cost more like 4000 in that time. That's 4000 I have lost. Which is more than I will lose during probably double the time with a new i20.

You still need to service a new i20, and if things like the tyres, brake pads, shoes, discs, drums, or the clutch wear out you'll still have to fork out for them as they won't be covered by the warranty.

buglawton

oh_no wrote: »

....Here's my back of an envelope rationale....Old car servicing £100 new car £130....

Hmm, when I once had a Nissan Primera with remnant warranty, never got much change from £300 after an annual dealer service. Have things changed?

hethmar

Sometimes you need to just enjoy life a bit - and if buying a new (cheap) car gives that pleasure then ..................good luck to you.

flea72

buglawton wrote: »

Hmm, when I once had a Nissan Primera with remnant warranty, never got much change from £300 after an annual dealer service. Have things changed?

depends on what needs doing at the service. For most basic family cars an annual dealership service will be between £100-£150, its only major services that cost around £300

Flea

oh_no_5

buglawton wrote: »

Hmm, when I once had a Nissan Primera with remnant warranty, never got much change from £300 after an annual dealer service. Have things changed?

The £130 service cost was a ballpark guess based on the Toyota Aygo.About £100 for the first year,£150 for the second year and £100 for the third year.

as anewman and losgiganteskid point out depreciation is going to be a big factor in your cars running costs (a toyota aygo will lose £117 a month over 3 yrs) but as long as you stay at the cheap end of the market then the £2000 deposit is a useful insulator.