New car on credit vs second hand banger

gibbiem

Hi all,

This has probably been asked a million times so apologies.

I'm looking to sit my driving test next month and buy a car as soon as I pass. I've been trying to weigh up my options and not sure whats best, buying new, on credit, with all the extras such as maybe free tax, no MOT's and warranty etc or buying second hand and hoping nothing will go wrong.

I have about a grand to buy one or put a deposit down. The second hand cars I'm looking at are Clios. I've ran insurance checks and I'm looking at about 1,500 fully comp on a new one but that would only cover me third party on a banger.

I know having a car will make life so much easier but this is a bloody nightmare! haha!

Thanks in advance for any advice.

Alias_Omega

A really old car without an immobiliser will be expensive to insure as the theft risk is far greater than those with. These days its practically impossible to steal a car without having the keys, so you see the risk of car jackings increase, and car keys stolen in break-in's.

I dont know what age Clio you are looking at, but i know that the 2001 (51) Clio's started having the immobiliser chips fitted into the key fob, which the 1.2 8v (Authentique) is very basic and slow, that the 1.2 16v (Expression & Dynamique) maybe more appealing to you in performance, and available options.

gibbiem

Yeah its the 1.2 16V I'm looking at from around 2001. Heard a lot of bad news about Clios but I think any first car around that age will be a risk. This is why I'm tempted to go with a new or newer on finanace. Dont really want to be paying out each month but think the pro's out weigh the cons

Strider590

What on earth makes you think it's more expensive to insure an older car? AND i'd love to know what makes you think that 3rd party is cheaper? (it's often more expensive).

Buying new....? Crazy! I let other fools fill up the second hand market and then take my pick.
Buying on credit....? Great until your made redundant, lose the car and are end up having to panic buy a proper old banger to replace it.

On that subject, a 2nd hand car a few years is old is NOT an old banger.... It's this attitude that keeps the population of this country in debt and making money for the fat cat bankers.
Sure the friends/family/co-workers will be impressed (for about 5 minutes until they go out and buy a newer car to beat it), but is that really worth the debt for the next XYZ years?

It's also your first car, so remember it's gonna get dinged and scratched to hell.

Oh and avoid French cars only a little bit less than Italian one's.
Ideally you want something you can pay for in cash, run for a few years, save a bit more cash and buy something else.

Enfieldian

A banger for a year or so will allow you to collect all those scratches and dings that most new drivers get as they are still woefully inexperienced, even after passing their tests, without crying your eyes out because you have marked your brand new metal box.

JimmyTheWig

If you can find a cheap car that you trust (e.g. friend of a friend getting rid of it for a good reason, or you can take a mechanic with you to view it) then I think that's got to be the cheapest way forward.
Then set aside the money you would be paying on the loan each month and when your cheap car becomes too expensive to repair in a few years time you should have a nice deposit to put down on a new one, or buy something fairly new outright or buy another cheapie and have money left over!

gibbiem

Strider590 wrote: »

What on earth makes you think it's more expensive to insure an older car? AND i'd love to know what makes you think that 3rd party is cheaper? (it's often more expensive).

Buying new....? Crazy! I let other fools fill up the second hand market and then take my pick.
Buying on credit....? Great until your made redundant, lose the car and are end up having to panic buy a proper old banger to replace it.

On that subject, a 2nd hand car a few years is old is NOT an old banger.... It's this attitude that keeps the population of this country in debt and making money for the fat cat bankers.
Sure the friends/family/co-workers will be impressed (for about 5 minutes until they go out and buy a newer car to beat it), but is that really worth the debt for the next XYZ years?

It's also your first car, so remember it's gonna get dinged and scratched to hell.

Oh and avoid French cars only a little bit less than Italian one's.
Ideally you want something you can pay for in cash, run for a few years, save a bit more cash and buy something else.

Bit harsh, but well said. Love your honesty!

I ran a quote on a 2001 Clio 1.2 16v third party fire and theft and it was around 1200. I then ran a quote on a Mini Cooper 1.6 from 2010 and it was 1500 fully comp?? Your other comments are spot on! I'm not bothered what I drive, I just want to do this the most economical way! I'd rather buy something outright which might get knocked etc but dont like the risk of maybe needing to spend the same as the car is worth in repairs over a year!

I think I just need to face facts its better to get older second hand and just need to pray not much goes wrong!

What car would you recommend?

gibbiem

JimmyTheWig wrote: »

If you can find a cheap car that you trust (e.g. friend of a friend getting rid of it for a good reason, or you can take a mechanic with you to view it) then I think that's got to be the cheapest way forward.
Then set aside the money you would be paying on the loan each month and when your cheap car becomes too expensive to repair in a few years time you should have a nice deposit to put down on a new one, or buy something fairly new outright or buy another cheapie and have money left over!

Yeah I know some one selling a pretty decent Corsa within my budget but think insurance is a little higher. Its not too bad as I've passed the 25 year old mark. I think second hand is the way to go

vaio

gibbiem wrote: »

.....but dont like the risk of maybe needing to spend the same as the car is worth in repairs over a year!......

Buy a car for £500-£1k, spend the same every year on repairs (if you are really unlucky) and after three years you have spent £1500-£3k and have a car that is still worth most of what you paid for it.

Buy a new clio for £12k, and even assuming zero interest cost & no repair costs whilst you have it then after three years you’ll have spent at least £12k and have a car that’s worth about £3 maybe £4k.

If you are really only looking at costs (rather than the new car buzz) then it’s a no brainer

Top Tip, often FC insurance is cheaper than TPFT, and even more so if you take the biggest excess you can.

Ghostrider

The new car will cost you more if you're getting it on any type of finance package, but that why it's a pivilege and only people that can afford the luxury should get a new car.

A secondhand car is probably the best way forward, especially considering you'll be a new driver. Please don't take offence as it' not intended to be so, but you are far more likely to have incidents in the first couple of years of driving than an experienced driver (generally speaking) so by this Imean anything from nudging the bumber into a post, scraping the wheels on the curb etc. If it's a banger it won't matter so much, in a new car you'd be really upset!

Go with cheap and cheerful and have fun and save your money.

gibbiem

vaio wrote: »

Buy a car for £500-£1k, spend the same every year on repairs (if you are really unlucky) and after three years you have spent £1500-£3k and have a car that is still worth most of what you paid for it.

Buy a new clio for £12k, and even assuming zero interest cost & no repair costs whilst you have it then after three years you’ll have spent at least £12k and have a car that’s worth about £3 maybe £4k.

If you are really only looking at costs (rather than the new car buzz) then it’s a no brainer

Top Tip, often FC insurance is cheaper than TPFT, and even more so if you take the biggest excess you can.

Wow, I knew that new cars depreciate but didnt realise it was by that much!! So a second hand car kept in good nick keeps better value?

Defo think second hand is the better option. Just ran a quote on a Corsa, a friend is selling one, and its around 1200 fully comp which is well within my budget