need new car: what to look for/offers?

pigeonpie

In January we will need to buy a car, either new or one that has a decent no of years of its warranty left. We don't really know where to start looking.
We know nothing about engines etc so it does need warranty. We would prefer a down payment and then a reasonable amount monthly as can't afford even a basic new car outright.

I suppose it makes sense to get a small car for insurance (London), tax and petrol reasons. I saw a deal for a Peugeot 3 dr ('all in' insurance, car tax, euro breakdown cover and warranty for 3 years) but assume that the monthly amount actually covers what we'd pay anyhow on this car (?).

The car must be one that retains as much 2nd hand value as possible.

OH likes bigger cars (safer, comfier, more fun to drive) but I'm arguing that the price of fuel, tax and insurance outweighs this. We don't often drive long distances, although have done so in the past in a tiny car and it wasn't fun.
Can we assume that with new car sales falling, that the dealers will definitely pass on the VAT increase if we wait until January?

Any suggestions please? (car must look nice....neither of us likes Fords or Corsas)

frothey

pigeonpie wrote: »

Can we assume that with new car sales falling, that the dealers will definitely pass on the VAT increase if we wait until January?

if cars get discounted too much, the residuals will be poor too!

TBH sales of small, economical cars are still strong, especially 2nd hand as that is what "everyone" is after. Even the right "bigger" cars have long lead times at the moment.

The Peugeot 107 (?) isn't as great as it makes out - if you buy a Toyota Aygo, although you will pay for servicing it will actually work out cheaper than the "all in" cost of the 107.

It's also cheaper to buy/tax/insure/fuel a small car for the 50 weeks a year you need it, and with the money you save hire something bigger/more fun for the odd trip

Miss_J

I've just got a new Panda, through a really good lease deal at work, however I know that they're really cheap to buy too. I thought my hubby would hate it, but quite the opposite he loves it. We have 2 children and the car is a 5 door and suits us perfectly as a family car, plenty of leg room inside and even though the boot is small, it's high so I can still get shopping in it.

Petrol is much cheaper in this car, we do lots of urban miles but we're getting about 43mpg. I really like the city button it has too which lightens up the steering to make parking in small city spaces easy.

Can't go wrong with this car, also Topgear have rated it highly.

davidjwest

I'd suggest a nearly new car as you'll get better value for money without so much depreciation and some warranty - something either about a year old or just under 3 years old is usually a good idea. If you go for a car coming up to three years old they tend to be discounted as they'll be due the first MOT.

German cars as a rule tend to hold their value well, not that I'm a huge fan of them myself, overpriced IMHO.

SEAT or Skoda might be worth a look, not quite so good at holding values but German build quality, although that's not all it's cracked up to be.

Personally I'd go for a high mileage ex fleet car (diesel) as it's lost most of its value but should have been looked after and motorway miles aren't such a problem. Should be able to pick up a good one at around 2-3 years old, lots of choice.

frothey

If you are financing the car then nearly new cars won't get the attractive rates - if buying cars on PCP's (as most seem to) it can actually work out more expensive. at best, marginally cheaper, but have less warranty, etc. Also diesel isn't great when it comes to urban type trips - and with a lot of small cars you won't get the benefit as a lot of the petrols are in the £20/£30 tax bracket anyway. The "break even" mileage can be 80k+....

BTW the car market is actually just under 5% up on last year, up until the end of October, and last year was a strong year due to scrappage. Not that bad when we're in a "supressed market" (or so the press would have you believe) and you think that you haven't got the "scrappage effect" that was around last year. The trick is to find the manufacturers that are down, but then you are buying a car that people don't want.....

pigeonpie

davidjwest wrote: »

I'd suggest a nearly new car as you'll get better value for money without so much depreciation and some warranty - something either about a year old or just under 3 years old is usually a good idea.
Personally I'd go for a high mileage ex fleet car (diesel) as it's lost most of its value but should have been looked after and motorway miles aren't such a problem. Should be able to pick up a good one at around 2-3 years old, lots of choice.

any ideas on where to look, online or actual dealers?
Someone I know bought just this kind of car (he got a great price on a high mileage BMW) but he's a mechanic and knew for sure it had done motorway miles, not urban miles. It still had 2 years on its warranty. But this was in France, where they don't pay car tax.

I thought about Toyota but worry about the neg publicity they are getting and what it may do for value of the car on resale.
I like french cars as they are comfy but think their value in the UK is dodgy? German cars (ok have only ever tried polo and golf) had uncomfy seats for long drives.
Lots to think about...good to know that the media story on bad car sales isn't the case. We may then have to look around in December not Jan?

Inactive

In these uncertain times, I certainly would not get in to debt for a car.

Buy what you can afford to pay for.;)

frothey

pigeonpie wrote: »

I thought about Toyota but worry about the neg publicity they are getting and what it may do for value of the car on resale.
I like french cars as they are comfy but think their value in the UK is dodgy? German cars (ok have only ever tried polo and golf) had uncomfy seats for long drives.
Lots to think about...good to know that the media story on bad car sales isn't the case. We may then have to look around in December not Jan?

Toyota's residuals didn't suffer at all from the publicity - well, no worse than anyone elses. "The trade" will happily take them back as they still know they get few problems compared with other cars - and hence get less aggro, and most people have forgotten about the recalls anyway! They have still had fewer recalls and better reliability than pretty much any other make. I drive an Audi BTW, so no "fanboy".
Leave it until december and you might miss the boat with regards to the VAT increase - realistically you would have to get the car before chrimbo as the transport co's all shut down around then, and there's no way to "transact" the deal early with finance involved.
Most small cars don't have massive margins, it won't make much difference to the finance, but a tenner a month is a tenner a month.....

Hintza

I slightly disagree with frothey on the effect of that VAT will have. The manufacturers I suspect will be quite keen to deals in the new year. Have a look at this article:-

http://www.telegraph.co.uk/motoring/columnists/mike-rutherford/8072962/Dont-get-caught-in-the-VAT-trap.html

My greater concern would be the rate of finance you will be paying. In this day and age of potential job losses and frozen pay and astronomical (relatively) interst rates you really should not be borrowing or borrowing the smallest amount possible.

frothey

That article is arguing that there's no point changing your car just to avoid VAT - which I'd agree, same as most of the time it's pointless changing your car just to save money on fuel/tax etc. BUT if you are changing anyway, it makes sense to change before it goes up - at worst case the car won't cost any more in January, but your PX will only be likely to go down in value. It's easy for him to say the extra cost will just be an "annoyance", but its still another tenner+ per month.... that'll nearly pay for a gallon of petrol lol!

Astronomical rates on new cars? Most new cars vary between 0% and 5.9% - apart from the models manufacturers don't have to "try" to sell - hardly astronomical! I'd be more concerned with the amount being financed, rather than the rate.....

Strider590

pigeonpie wrote: »

OH likes bigger cars (safer, comfier, more fun to drive) but I'm arguing that the price of fuel, tax and insurance outweighs this.

Incorrect....

If you buy second hand, large cars are worth much less.
Why? because everybody blindly believes as you do.

In 2008 I bought a 2004 Vauxhall Vectra for £3000, it has aircon, leccy windows, etc etc etc
The same year basic bog standard Toyota Yaris was nearly £7000

It doesn't take a genius to work out that iIn the time I own this car it would be impossible to spend £4000 on the extra petrol/tax/insurance.