Scrappage vs. Buying 2nd hand, which is better?

AdrianHi

terryya wrote: »

One other thing not mentioned is that the OP stated that a lot of the cost of the MOT is worn parts. Therfore he could easily have a big cost this time but then sail through the next one (or two) at not much cost. That is what happened to me - had a £600 MOT on my 8 year old Clio but then nothing at all on the next one.

I like Adrian's posts (not just in this thread) and think they are very informative but on this one the depreciation v's maintainance might not add up.

Agreed it might not. It's impossible to 100% acurately predict a cars real cost but you can "play the odds" and remove uncertainty in a number of ways which is the point fo view I'm coming from.

I am also drawing from my experience of running 3 cars through the 70,000 to 122,000 mileage ranges which is also about 5 years to 8 years of age. For every one of these cars there was a generally increasing trend in maintenance costs. It was always consumables like brakes etc. and there would often be a year (which is 15,000 to 20,000 miles) with £800 spent followed by may be £500 the next, then £900 the one after. The constant factor is once I got to around the 70,000+ mark more than just the service schedule would need paying for. My wifes car is now at 74,000 miles, in the last 3,000 miles we have spent £600 on brake pads, disks and a calipre - yes normal wear and tear but "here we go again" and I don't need to pay for that on a younger car.

The problem is when do you call it quits on a car and move it on? In the case of this Peugeot it could have been before this £600 bill, but you don't know it's coming.... but then again, as I've just said, every car I've had I've seen the bills start mounting beyond the 70,000 mile mark, so I do have an idea of when it's *probably* coming and play the game accordingly.

I have been in a situation where I had a car I liked so much I didn't care that I was spending £900 a year (18,000+ miles a year) on maintenance, there was nothing in the market I wanted to part with it for so I ended up still driving it at 122,000 miles. Still miss that car now

SavingTide

AdrianHi wrote: »

An i10 1.1 Classic can be traded in for about £4000 may be £200 more when it is 1 year old. So about £700 to £1000 depreciation in year 1, average depreciation over 3 years per year realistically £800.

And your spending £600 to repair the Pug.
... and £55 for an MOT
... and £100 for breakdown cover
... and ? for other maintenance a brand new car will not have (brake pads that will last years)
... and £125 road tax vs. £35 on the new i10

So do you want to pay £845 in maintenance, MOT, higher tax disk costs etc. on an N reg. 106
or
about £800 a year in depreciation + £100 finance charges (mortgage interest charge of £5000?) on a new i10 (or similar) that will not have anything of that £845 expense the old Peugeout has?

Yes the £2000 scrappage bonus will be eaten by depreciation over 3 years, but the alternative appears to be about the same amount eaten up in higher maintenance and running costs on the old car.
Hindsight is a wonderfull thing, would have been better to get rid of the Pug before MOT time IMO.

yes I agree that was an oversight : but thanks

Also many thanks to everyone who took the trouble to reply, gave me more food for thought, will think it over pros and cons and tell you what I decide

SavingTide

bryanb wrote: »

Another alternative, sell the PUG as is, Buy the Hyundai new without scrappage after beating down the price.

probably not a good option

as its only valued at £250 and i doubt i could beat the price down by £1750

SavingTide

[
QUOTE=jimbo_the_jetset;25516769]I have a 1991 Peugeot 205 - rust has never been anything to worry about.

I am also thinking about possibly getting a newer car at some point and think it is better to get a 2-5 yr old car (top spec) for 2k to 3k rather than getting the entry level junk that I could afford with the scrappage deal.[/QUOTE]

rust used not to be a problem on my 106; but current repair bills includes considerable corrossion to suspension which I am told will need welding - tis accounts for a good chunk of the £600 along with the brakes.

I wonder if that sounds a prob unusual for 106 or just wear?

I have also rust at drviers side underside door - a few years back it needed repair to body work after it was hit while parked (would u believe by police - they admitted liability and paid up on insurance)

I wonder if this is also the cause of my problems

Its a toough call, as one other respponder said, I may get it through this time and not have such a bad bill next years - certainly last year I only paid around £160 all in!

\it may come down simply to the idea of whether I want / like the car, I have not even tried it I am fairly sure that the old car repair bill will grudually creep over the next years though so maybe it is better to spend the money on something shiny and new than something that is old and may get worse

sabretoothtigger

You cant haggle and receive a scrapage discount. The advantage is obvious, second hand vs new. If you like new cars then might as well I guess but I doubt it will be cheaper

SavingTide

Sabretooth I would have thought the same, that you cannot haggle and get scrappage, yet the June issue of "What Car" says you can. they suggest you should try to get the list price down and then introduce your scappage allowance (as they get the same mark up)

I like their thinking, but are you saying they are wrong? I take the point from the other person who said that it would be hard ot bargain on the popular brands but I guess (e.g Hyundai i10 apparently a big wait)

flyingscotno1

I'd also say if you buy an approved used second hand car from a dealer it is far more unlikely to be a lemon or have outstanding finance and you have far more protection should something go wrong.

sabretoothtigger

I like their thinking, but are you saying they are wrong?

Im not sure its the law, in which case maybe its worth a go especially as the scheme might be extended I read somewhere.

The June issue would have been written in May and might be incorrect because of that

Anihilator

£1000 of the discount is dealer, the other £1000 is the government so if they give you a deal they wont knock another grand off for scrappage.

SavingTide

It looks like it is a clear choice between keeping banger and scappage

I ruled out option 2,buy 2-3 year car

As far I can tell, you will pay the same price for a 2-3 year car as one with scappage

I checked Fiat Panda - seems to cost on average £5,000, same as new panda with scappage, so that does not mae sense, it makes the depreciation irrelevant. Clearly better to go for a new vs 2-3 year car that costs the same! (or even slightly more_

re; holding on to it, I am beginning to favour scrappage as I think that though I will pay more it is not going to be a worry any more, (every MOT is going to become stressful in future) It will also have more safety features on the new Hyundai (and of course will have at least recouped what I lose on depreciation in first 2 years through the £2k scappage deal)

And it will...well last at least 15 years longer than my lovely 106.Its been a great car though!

not rushing in though, taking my time
(at leat getting though the mot will give me some thinking space

thx again