Ever worth getting a new car?

Cluckers21

bluesnake wrote: »

This sounds very expensive. Considering you are paying a deposit then a monthly payment for 3 years. All the servicing must be done probably by a vw agent and the body and bumpers must be scratch free. At the end of 3 years no car. If you wish to buy the car i have never heard anyone say they psid market prices, but have heard 1000's above the market price was asked for

So tell us the figures, how much is the deposit and payments that makes it a good deal?

Hey!

erm deposit was as much as i could afford and vw pay £1000 so i only had £12k left to pay but thats because i had upgraded options...the basic model could have been a lot cheaper.

i only pay £240 a month because i get free insurance and free tax.

but i have no mot for 3 years and then at the end i can get another brand new car with no worries...im just treating it like another utility bill...suits me fine

xx:o

steve-L

ddebski_us wrote: »

Thank you for these, but I don't intend to buy bigger than I need just because it's not much more expensive and will cost me more to run - I intend to buy what I can afford to run and need, which will be something small like a Fiesta.

I don't think he's suggesting you buy those, they are examples of what you could buy.

In other words your statement is a bit contradictory.

I intend to buy what I can afford to run and need

You don't NEED a NEW car..... If its worth it to you then that's a different matter but you don't NEED one

The point is that over 3-5 years (this being MSE) what is cheapest.
That you have the money to spend is great and I for one are not going to say 'buy a £500 banger' .... but when you consider the depreciation, running costs, repair costs and having to either sell or part EX for something else then a new fiesta might not be the cheapest....

If that's what you want and you can afford it that's also fine but if you want to justify it to yourself on financial grounds at least do it fully including what its worth to sell in 3-5 yrs.



Funnily enough I also thought the other day (coming back from Ikea in the OH's Honda estate) and when we moved house just how much we saved on van hire over the time we owned the Honda estate. (Not suggesting you get one of those either ... just pointing out TOTAL cost is sometimes not that obvious)

Depreciation
edits: The convincer for me has always been to buy a copy of Parkers and then see what car X will be worth in X months, years etc. stick it all in a spreadsheet and then go from there.

Then justify to yourself the non financial aspects....

GolfBravo

Cluckers21 wrote: »

i only pay £240 a month because i get free insurance and free tax.

but i have no mot for 3 years and then at the end i can get another brand new car with no worries...im just treating it like another utility bill...suits me fine

xx:o

I think this is the key here - cars are not assets/investments, they are expenses. Depreciation, servicing, insurance, tax, etc. At the end of the day your car is just another expense, just like a utility bill/airline ticket/pay TV.

There is nothing wrong with driving a £500 used car, and there is nothing wrong with £500 monthly lease payments.

And there is nothing wrong with flying Ryanair for £50, and there is nothing wrong with flying the same route BA Business Class for £800. If Ryanair is better because of the lower price, how come people still fly BA?

It is all about the value, not the price. It all depends on your particular circumstances.

You can't just simply say that paying X amount monthly lease, where you don't own the car at the end, is a bad deal. In return for for your payments you receive reliable transport, in colour and specifications that you want.

How does Sky TV compare to this? Is £60 per month a good deal? Over 5 years that's £3600, and at the end of that 5 year period you end up with nothing. Is that a bad or good deal?

Whatever makes you happy.

CKhalvashi

pgilc1 wrote: »

Nonsense.

Very often it can work out cheaper to buy say a BMW new than to buy a pre-reg or ex demo.

Depends on what you're buying, when you're buying it, and how you're paying for it.

We only managed to get a £500 discount on a brand new BMW (2010 535d M-Sport).

This may be dealer-specific, but for only a £500 discount, we certainly won't be buying another one for the foreseeable future!

We only keep them for about 2 years/100k miles, so it's not worth it on these prices, and if the company wasn't paying for it, I wouldn't be driving something so expensive at all.

CK

ddebski_us

I've been looking at this one online, planning to go see it tomorrow. My research on Parkers website suggests this is already a good price, but it is obviously what the dealer wants, not what he is prepared to let it go for.

I was thinking of trying to get him down to around £8,300?

steve-L

CKhalvashi wrote: »

We only keep them for about 2 years/100k miles, so it's not worth it on these prices, and if the company wasn't paying for it, I wouldn't be driving something so expensive at all.

CK

Which actually seems like the answer to the OP's question.
I understand (financially) why a business would buy a new car...

What remains is why a private individual would on financial grounds.

steve-L

GolfBravo wrote: »

I think this is the key here - cars are not assets/investments, they are expenses. Depreciation, servicing, insurance, tax, etc. At the end of the day your car is just another expense, just like a utility bill/airline ticket/pay TV.

There is nothing wrong with driving a £500 used car, and there is nothing wrong with £500 monthly lease payments.

And there is nothing wrong with flying Ryanair for £50, and there is nothing wrong with flying the same route BA Business Class for £800. If Ryanair is better because of the lower price, how come people still fly BA?

It is all about the value, not the price. It all depends on your particular circumstances.

You can't just simply say that paying X amount monthly lease, where you don't own the car at the end, is a bad deal. In return for for your payments you receive reliable transport, in colour and specifications that you want.

How does Sky TV compare to this? Is £60 per month a good deal? Over 5 years that's £3600, and at the end of that 5 year period you end up with nothing. Is that a bad or good deal?

Whatever makes you happy.

I agree... that's what I was trying to say earlier except I don't have Sky.

I have internet (I need it for work) ... and I'd probably have it anyway but I don't have Virgin/Sky ....

My main expense I don't need is for my iPad .... (as I have a iPhone) I don't technically also need a contract for my Ipad.... (I can use the phone to share the 3G)

The Ryan air example is interesting......
I once took a Ryan air from 'Oslo' to 'London'.
I had to pay for the coach from Oslo to the middle of nowhere...
then a train from Luton (or was it Stanstead?) to London..... then that train got cancelled and .... to cut a Long story short I lived in Reigate at the time and due to flight delay and getting from Luton basically ended up getting to Redhill on the Gatwick line and getting a Taxi.

All in all I could have flown BA economy to Gatwick, arrived hours earlier and got a taxi for a lot less! (Not even including my time/stress).


However, I agree, it should make you happy.....and if you can afford it why not. What I am saying is work out the depreciation first. If knowing that you still want a NEW car... and can afford it go ahead!

Relentless01

st999 wrote: »

I bought a brand new car, just because I could.

And when a friend asked if I got a good finance deal I told him I paid cash.

The look on his face was worth it.

Thats because you are considerably richer than him!

andygb

steve-L wrote: »

Not being critical or funny but honestly, so does a GOOD 5yr old one.

Its amazing in both directions - i.e. what a good valet and polish can do with a 5yr old and how quickly a new car no longer feels new.

So, so true, a polish every couple of weeks together with an interior clean (including glass) will leave many five to seven year old cars (mine is a 55 reg) looking and feeling like new.
A spotless, nice smelling interior is a pleasant place to be, and if you keep on top of suspension and brakes, then the car will feel nice and tight.
I have been in nearly new cars which have been neglected (lazy owners) and they feel and look like a garden shed:(

A new car is a very temporary entity - it is only new until you drive it out of the showroom, and it will start to feel decidedly "second hand" when the first stone chips arrive on the bonnet.

steve-L

andygb wrote: »

So, so true, a polish every couple of weeks together with an interior clean (including glass) will leave many five to seven year old cars (mine is a 55 reg) looking and feeling like new.
A spotless, nice smelling interior is a pleasant place to be, and if you keep on top of suspension and brakes, then the car will feel nice and tight.
I have been in nearly new cars which have been neglected (lazy owners) and they feel and look like a garden shed:(

A new car is a very temporary entity - it is only new until you drive it out of the showroom, and it will start to feel decidedly "second hand" when the first stone chips arrive on the bonnet.

Yep my OH came home from Morrisons the other day with a nice new scratch ....were it new, price to repair would be £500 for a new panel and spray! Its not so t-cut and polish! (£0.50)....

(Incidentally, Honda paint is known to be made of a mix of jelly and custard.... our Honda has so many touched up spots from stone chips.... I only do to stop rust - alternately someone tried to key my BMW New Years Eve... and didn't manage to get through the paint - both pi**ed and impressed at the same time)

What I'm saying/agreeing is regardless of the care you lavish you can easily get a scratch at the supermarket or parking elsewhere.... that will make your NEW car into a not new car... or investment to get a whole panel resprayed ... and in other other direction as you point out a bit of care and attention can make even a 5 yr old look new and if you don't put that attention into your NEW car it will soon not feel new anyway.