Advice please - New or used?

rodenal

chrismoll wrote: »

Thanks for the suggestion rodenal. I think my worry is that the car is still tied to the firm with PCP or personal hire e.g. have to stay within the mileage set etc where as if I put down a deposit and then just have to pay off the finance, it gives me more freedom from the car firm really.

Hope that makes sense! It almost did when i was reading it!

I can accept both sidees of the argument really - if you buy something at 3.5k you own it, can do as many miles as you like and depending on what it is you'd hope that in two years time you'll still be able to get back maybe 1.5k on it.

Where you hit issues is if the car needs work throughout the two years which could basically see you spending that £1.5k. If you chose carefully that should be unlikely, but these things happen.

With a pcp for example you'll be tied to a mileage but with an excess mileage charge, really depends on how many miles you're going to do but on say a 10k per annum allowance with a 3p per mile excess charge and you do 30000 over the two years you'll pay an extra £300. That's assuming you are handing the car back, if you trade it in or buy it after that time the mileage wont matter (well it'll matter for your resale price if you trade it in but not massively).

Both routes see, perfectly viable for you imo - just depends what you want from a car and what type of car you're looking for, some people just want as new a car as they can get. Personally I'd rather have something I actually like/want that's a bit older, I can do alot of work myself so repair costs are kept down (but still costly) and I just accept the cost of tax/mot for it. The other half simply wants a new car that doesn't need to be touched other than for warranty work and likes the thought of tax being paid / free and not having to mot it.

chrismoll

Thanks a lot for your advice. I have been back into Kia and they are now offering the Kia Rio Domino for £7,995 but with the finance I need for the extra £4,500 over 3 years it works out at £8,700 in total.

Am i missing a trick? Am i likely to get the finance being self-employed for the last 2 years?

bigjl

At any price the outgoing Picanto is overpriced, wait fot the new model if you want a Picanto, the new model is that superior.

There are many better cars than the old Picanto. Certainly one car that is good to have on a PCP, wouldn't want to own one after 3 years, it will be worthless. So they are really a car to be used when brand new then get rid.

Ever checked the price of a Daewoo Matiz?

They were the equivalent of the current Picanto, reliable little city car, but since they became part of automotive history they are now worthless, having seen one after a very minor RTC on the A13 I would touch one, what was the NCAP rating of the outgoing Picanto?

Can't help but think the new one will be a 5 STAR NCAP car.

Old shape Rio is a better bet, until the new one is released obviously then it will consigned to the automotive has been hall of fame for previous generation Korean motors.

Kia have really improved lately, don't buy into the hostroy of the company, buy into the future, the fact that thenew cars like the New Sportage and Soul are so superior is why they are doing deals on the outgoing Rio and Picanto.

This isn't like saving money by buying previous model Focus over the new one, as the old one was still top notch. The older KOreans are far from top notch.

chrismoll

just to clarify, it is the Kia Domino Rio I am looking at rather than the Picanto.

bigjl

A better car than the Picanto, but remember that it only sold in big numbers due to the scrappage scheme, don't forget that the new Rio is going to start at just under £10k, but that is rumoured to be the price of the entry level diesel one, with a 3 cylinder engine and co2 emissions of 85g/km it only has 69bhp but apparently has enough torque not to feel sluggish, it will also get over 80mpg, maybe more. Also comes with free road tax and free CC in London, so should hold its money a lot better than the outgoing model.

Don't forget to factor in depreciation, the old one loses money like somebody has set it on fire, this won't affect the new one, especially wityh free road tax and London CC, these two things will give it a welcome boost.

Also there are tax advantages to having a car with co2 emissions below 100g/km, discuss this with your accoutant, definately a consideration for a self employed person like yourself, I have looked into for a small business and basically the lease costs are 100% offset against corporation tax, though I have yet to investigate the full ins and outs of this.

The Fiat 500 Twinair was another car that comes under the 100g/km limit and several other manufacturers are also going to release similar cars.

jase1

I think you're being a bit unfair on the Rio (and the Picanto for that matter), they are both perfectly reasonable, reliable little runarounds. They are old-school, but I think it's more helpful to think of them as being old Hyundais rather than Kias -- when Hyundai bought Kia they phased out Kia's technology completely and replaced it with their own. This engineering is competitive with anything else on the market, whilst being distinctly old-school.

That's why I mentioned the Colt. It's also a car that is coming to the end of its life, but it's the 2004 generation of a leading Japanese manufacturer and hence probably a full generation ahead of the Kia Rio. It's also made in Holland and thus cheaper to run (common aftermarket parts).

bigjl

The Colt is a nice underrated car, and we looked at the Smart version ForFour when the wife got her Clio, but fuel costs needed to be considered.

The diesel Colt always seems to have the autobox fitted whenever I have found seen one for sale.

I drove the liitle petrol engined one and it was a nice nippy drive, but the fuel consumption wasn't as nice, didn't crack 40mpg!

The Colt is also a better car than any of the older Korean cars, especialy when you consider how good the new Kias are.

I understand your point about engineering, but knowing your car is dependable and reliable is no consolation when you get offered tuppence on it in three years time, a point you validly made earlier, 3 yr old Korean cars are bargains, but somebody has to lose the money, and that is anybody that buys any of the older generation Koreans.

Now if the OP was looking at a 3 yr old Rio my opinion would be different, they are a very good used buy as most old Korean cars are.

But the new Rio is apparently going to be right up there with the Japanese.

The other worry I had with the Colt was lack of dealers and parts prices, again something that affects many Korean cars.

I just thought it better to get the new Rio and Picanto into the thread, they appear from first drives by the press to be serious mainstream contenders, this would worry me if I had bought the older ones, they will take a resisdual battering.

However, as far as buying an old shape Rio used after the new one comes out, that will be another thing, they aren't bad cars, but depreciation is an equation that you only want to be the correct side of.

Remember when the Lacetti became a Chevrolet, the Daewoo Lacetti lost value, and they were still nearly the same car.

The Chevrolet Cruze is also a tempting buy now that they are rumourer to be bringing out a hatch, but I wouldn't buy a new one, two or three yr old one perhaps, they are worthless used.

The wifes old Accent, still being used by a friends son to learn to drive, was an example of being on the right side of the depreciation equation, old school engineering but reliable, what other low mileage automatic small car are you going to get for under £500 at auction, ok, it was nearly 10 yrs old when I bought it, but small autos are at a premium anywhere near to London. I wouldn't have been so happy if I had bought it new though.