Keep old car, lease or buy new?

astreet3

Hi,

there seems to be pros and cons to how you run your car.

Do you keep your old car with it's less economical engine and higher tax band? Or do you go for a new car with a "greener" engine, improved MPG and lowest tax band? If you go for new do you lease or buy?

This whole area seems completely confusing, I've seen nothing that shows good comparisons or simple pro's and con's and don't have the facts and figures to work it all out myself.

So what are other peoples thoughts and experiences on car ownership? Buy and keep a banger ? Or buy a new "green" thrifty car or lease it?

A

Ultrasonic

andrewd wrote: »

Do you keep your old car with it's less economical engine and higher tax band? Or do you go for a new car with a "greener" engine, improved MPG and lowest tax band?

If the old car is reliable and not costing large amounts in repair costs then generally speaking the most cost efficient option is to keep using it. Differences in fuel economy and tax aren't that dramatic - you'd need to be doing very high annual mileages before the fuel economy differences stack up financially. The much higher depreciation of the value of newer cars is also a significant factor. A newer (more valuable) car is also likely to be more expensive to insure (like for like with a similar vehicle).

astreet3

Thanks for the reply ultrasonic.

In my case it wouldn't be a like for like swap. I was thinking of moving from my Audi A4, a 2.0 turbo which it's a struggle to get over 33mpg from and move to a Alfa Mito, 1.3 diesel. So that would be a big saving in tax (Mito is band A), big difference in insurance group and a big difference in fuel costs.

That's what is making it so difficult to judge what the cost differences may be.

worried_jim

Easy- how much will it cost you to change from the Audi to an Alfa Mito. Then work out the annual running costs between the two cars. Now work out how many years of driving the Alfa will it take to cover the cost. Job done.
I suspect you will be better off with what you have, unless you sell the Audi and then buy another more economical car for no more than you sold the Audi for.

Ultrasonic

andrewd wrote: »

Audi A4, a 2.0 turbo which it's a struggle to get over 33mpg...

Is that a petrol or diesel turbo? I guess it's a petrol but if it's a diesel I'm sure you could improve that fuel economy. Might be worth looking here to see what others can manage. The same site also has figures for the real-world fuel economy of a new Mito.

From a purely financial point of view the cheapest option will probably be to switch from the A4 to a second hand car that is more fuel efficient. Yes the latest cars offer better fuel economy but not enough to outweigh the high depreciation of a brand new car.

astreet3

Thanks for your thoughts Worried Jim, I'm sure you are right but the appeal of a new Alfa is hard to be logical about! :-)

Ultrasonic, yes, it's a A4 2.0 TFSI petrol Avant (estate) S-line model. According to that site you linked to I'm getting quite good MPG from it. On a trip to work with no hold ups and driving very sedately I can manage 36-37MPG. When I got the car I think the total average was about 29MPG, I've got that up to 33.5MPG now.

Well, I guess the head should rule the heart and I'll stick with the Audi until it starts to cost too much on maintenance.

Thanks

A

vax2002

The MPG figures of new cars is Grossly over stated.
Real figures are usually around 10mpg lower.

Ultrasonic

andrewd wrote: »

Well, I guess the head should rule the heart and I'll stick with the Audi until it starts to cost too much on maintenance.

To really let your head rule you'll have to do some sums . There probably are cheaper long term options than your A4.

jaydeeuk1

Just get the alfa. If everyone went by their calculators we'd all be driving 90's diesels and Rover would still be making the 100... (shudder). Yes it will almost certainly cost you more, but you don't buy a new alfa to save on running costs.