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Should I Buy New or Am I Being Seduced By Scrappage?
Comments
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4000miles pa means spend as little as you can
IS200 - yes well built but thirsty on juice , not v fast , or practical - better off with top spec repmobile0 -
tali,
"spend the least amount on car purchase you can"
OK lets experiment with that idea.
Lets buy a 3 year old Seat Leon 1.6S from a main dealer and run it for 3 years.
£8000 the dealer wants, lets say you get it for £7500 to be generous and also be generous with the 6 year old trade in value of £3000.
You have to pay for MOT, breakdown cover and we'll allow £250 a year for extended warranty/repairs. Your "cheaper" £7500 Leon costs £350 month in the long run compared to the more "expensive" £9999 Leon costing £300 a month.
"never pay any intrest to any financial organisation"
OK lets say you had £7500 cash and need to borrow £2500 over 36 months at 9% APR to get the new Leon. The new Leon now costs about £311 a month, still £39 month less than the "cheaper" Leon.
Are you going to change the top tips in your signature now because what you say is not always correct and may cost someone money if they follow them?
OK if you buy a £1000 Leon and don't have to repair it too much you might be mobile for around £250 a month saving about £60 compared to driving a brand new car and you don't have to fund the extra £8000 purchase price. Is that what you want though?0 -
tali,
"spend the least amount on car purchase you can"
OK lets experiment with that idea.
Lets buy a 3 year old Seat Leon 1.6S from a main dealer and run it for 3 years.
£8000 the dealer wants, lets say you get it for £7500 to be generous and also be generous with the 6 year old trade in value of £3000.
You have to pay for MOT, breakdown cover and we'll allow £250 a year for extended warranty/repairs. Your "cheaper" £7500 Leon costs £350 month in the long run compared to the more "expensive" £9999 Leon costing £300 a month.
"never pay any intrest to any financial organisation"
OK lets say you had £7500 cash and need to borrow £2500 over 36 months at 9% APR to get the new Leon. The new Leon now costs about £311 a month, still £39 month less than the "cheaper" Leon.
Are you going to change the top tips in your signature now because what you say is not always correct and may cost someone money if they follow them?
OK if you buy a £1000 Leon and don't have to repair it too much you might be mobile for around £250 a month saving about £60 compared to driving a brand new car and you don't have to fund the extra £8000 purchase price. Is that what you want though?
Not paying any interest to any financial institution is a virtual impossibility. How many self made millionaires haven't EVER borrowed?0 -
The new Seat leon at £9995 looks a very good price for a nice looking car like that, I'd be very tempted. Brother in law has had a '53 plate Seat for the last 3 years and it still looks and drives like new, very solid and reliable.
ML.He who has four and spends five, needs neither purse nor pocket0 -
The new Seat leon at £9995 looks a very good price for a nice looking car like that, I'd be very tempted. Brother in law has had a '53 plate Seat for the last 3 years and it still looks and drives like new, very solid and reliable.
ML.
Seems that deal ended with the month of September......0 -
tali,
"spend the least amount on car purchase you can"
OK lets experiment with that idea.
Lets buy a 3 year old Seat Leon 1.6S from a main dealer and run it for 3 years.
£8000 the dealer wants, lets say you get it for £7500 to be generous and also be generous with the 6 year old trade in value of £3000.
You have to pay for MOT, breakdown cover and we'll allow £250 a year for extended warranty/repairs. Your "cheaper" £7500 Leon costs £350 month in the long run compared to the more "expensive" £9999 Leon costing £300 a month.
"never pay any intrest to any financial organisation"
OK lets say you had £7500 cash and need to borrow £2500 over 36 months at 9% APR to get the new Leon. The new Leon now costs about £311 a month, still £39 month less than the "cheaper" Leon.
Are you going to change the top tips in your signature now because what you say is not always correct and may cost someone money if they follow them?
OK if you buy a £1000 Leon and don't have to repair it too much you might be mobile for around £250 a month saving about £60 compared to driving a brand new car and you don't have to fund the extra £8000 purchase price. Is that what you want though?
In 16 yrs of motoring my average car purchase price for 10 cars has been about 1k each -why pay more when i'm only doing 4000pa? And those bangernomics 1k cars have given no major problems- but that's not surprising with such limited mileage.Also i'm not too fussed about the invetiable scratches and dents that occur on a 1k car - but i would be when i my investment is 7 times as much.
I have 10 credit cards which i use reguarly 99% of the time -i have zero debts on them.
How much intrest have i paid to financial organisations?-in nearly 25 years i have paid £0.00.0 -
In 16 yrs of motoring my average car purchase price for 10 cars has been about 1k each -why pay more when i'm only doing 4000pa? And those bangernomics 1k cars have given no major problems- but that's not surprising with such limited mileage.Also i'm not too fussed about the invetiable scratches and dents that occur on a 1k car - but i would be when i my investment is 7 times as much.
I have 10 credit cards which i use reguarly 99% of the time -i have zero debts on them.
How much intrest have i paid to financial organisations?-in nearly 25 years i have paid £0.00.
Understand your sentiment. But there are no prizes for paying no interest. Debt in itself isn't a bad thing.0 -
It is wrong to assume all debt is bad. A loan might be what is needed to get you access to a vehicle which in the long run saves you money.
It's not unusual for a haulage company to borrow money, pay a bit of interest to save a lot on fuel because the new lorry they bought is fuel efficient enough to get a return on that debts interest payments.
Airlines do it, borrow money to get a cheaper to run aircraft to save money.
4000 miles is a low annual mileage, if you don't mind driving those older £1000 cars it almost certainly is the least costly option but possibly not by as wider a margin as you might think.
If you do higher mileages or simply want a younger more modern car borrowing can make sense, borrowing more for a more expensive to purchase but ultimately lower cost of ownership in the longer term can be the right thing to do.
A blanket "never pay finance charges" statement is not right.
Millionaires don't like tying up cash in depreciating assets, they lease cars
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