New or used car?

Sarita_86

Hi All,

I need some outsider advice as although my family have my best intentions at heart they are confusing me! I'll give you a little background:

My little V reg KA is on her last legs! She is literally rusting away and at the next MOT (January) it will cost me more to repair her than she is worth. I've been advised to buy a new car which has come as a bit of a blow, as I am trying to clear debts and save for things rather than take out finance. Sadly, I need a car to get to work, otherwise I would happily use public transport. I am just about one year out of university, so haven't had too much time to clear debts and start a savings fund for a new voiture. I do a lot of miles in my car due to my living situation, so I would ideally like to make this a long-term investment (I've had my current car since 2006 and I really don't want to part with her, even if she is starting to rattle!).

Anyway, to get to the point, should I invest in a new car in that it will be a 'good' future investment as I won't have to worry about MOT etc. for a few years? Or do I buy a second hand car? I really cannot work out what is better value! I have a small deposit at the moment, but think I could get it up to £1000 in the next few months as OD1 will be almost gone next month. Can anyone advise as to what is best to do? My family say get a new car at around £7-9k for peace of mind and my OH says second hand at around £6-8k. ARGH!

Please let me know what you think, and sorry this is so rambling!

Thanks,

S

Richard53

A new car is an expensive luxury. Great if you can afford it, but that drive back from the dealership to your home is probably the most expensive mileage you will ever do.

If you are on any budget at all, a new car doesn't make sense. Depending on what you can afford, go for something 2-3 years old with average mileage and a service history. 99% of the reliability of a new one for about 50% of the cost.

verityboo

My partner prefers the greater peace of mind which comes with a new car. How about something like a new Hyundai i10 for £7K which even has air conditioning and comes with a 5 years warranty and 5 years roadside assistance. You can also get lower rate finance on new cars as it is subsidised by the manufacturer.

There are pros and cons to new cars so its a matter of what your priorities are

w211

Consider leasing? A brand new car, under warranty, after the term, give it back and get another. Not much to spend on servicing, if driving average miles, you may not even have to change the brakes. On the whole, brand new cars are generally more fuel efficient, than older models.

Not sure of any downsides (I've recently taken out a lease), I'm sure someone will explain, though! At least the monthly payment will be fixed, and there isn't the hassle of trying to get rid of the car privately at the end.

However, you do need to hand it back in pristine condition though!

A basic Ford Ka, will be from £150 a month (10,000miles/year, 3+35 - ie three year term, first payment/deposit is £450, then £150x35months after that).

What do you (and others) think about leasing?

verityboo

The only issue with leasing I am aware of is that they are a fixed term. With a car on finance (HP, PCP or loan) you have option to get rid of the car if your financial position changes

neil_999

NO NO NO!!

I've had this argument with many people over the years for much the same reason. "Oh you should just buy a decent car...." Blah blah blah!

I spend £900 a year on cars, I buy one every 6months, for no more than £450, with a full MOT. Then sell it on with 6months MOT left for what I can get. Having a car for 6months means I don't do any maintenance to it and all they cost me is tax and insurance.

£900/yr = £75/month........how many brand new cars can you get for that? And bear in mind you will have to take in to account all the MOT's and routine maintenance of the new car over the course of its WHOLE life. And of course, you get back most of your £900 by selling/scraping them afterwards.

I admit it is a bit of pain changing cars so often, and you do have to be careful not to buy something that lasts a week, but it can easily be done and saves thousands.

Broadwood

I'd say definitely used every time.

We've had eight cars between us since we got married in 1979, 2 very used, 2 brand new and 4 lightly used.

My current car (VW Polo GT) is 8 years old with 80k on the clock, diesel and no intention of selling it. We paid £8k with 40000 miles on it five years ago and I've been offered £5k recently.

Wife's current car is 10 years old with genuine 21k on the clock, we paid £2k for it last year when it had only done 17000 miles and looked and sounded and drove like new. It's a petrol 1 litre Seat Arosa which averages about 40 mpg locally which isn't that good compared with more modern small cars but you have to look at total expenditure including depreciation which is by far the largest cost if you buy new.

P.S. Does help though that son is a VW technician.

Rain_Shadow

neil_999 wrote: »

NO NO NO!!

I've had this argument with many people over the years for much the same reason. "Oh you should just buy a decent car...." Blah blah blah!

I spend £900 a year on cars, I buy one every 6months, for no more than £450, with a full MOT. Then sell it on with 6months MOT left for what I can get. Having a car for 6months means I don't do any maintenance to it and all they cost me is tax and insurance.

£900/yr = £75/month........how many brand new cars can you get for that? And bear in mind you will have to take in to account all the MOT's and routine maintenance of the new car over the course of its WHOLE life. And of course, you get back most of your £900 by selling/scraping them afterwards.

I admit it is a bit of pain changing cars so often, and you do have to be careful not to buy something that lasts a week, but it can easily be done and saves thousands.

Would work for some. Might be far too high a risk strategy for others.

CFC

verityboo wrote: »

My partner prefers the greater peace of mind which comes with a new car. How about something like a new Hyundai i10 for £7K which even has air conditioning and comes with a 5 years warranty and 5 years roadside assistance. You can also get lower rate finance on new cars as it is subsidised by the manufacturer.

There are pros and cons to new cars so its a matter of what your priorities are

I have the Hyundai, a smashing little car. Even if you went for one 12-24 months old, it would have the remainder of the guarantee on it, buy it from the main dealers, get decent finance probably.

I'm a bit more stable and have graduated from second hand cars (bangernomics) to new ones because I want to keep them for years and just don't have the time these days to be in or out of a garage. Reliability is more important to me than cash therefore I go for new. But I don't chuck my money away - ergo my little red i10

OddballJamie

w211 wrote: »

Consider leasing? A brand new car, under warranty, after the term, give it back and get another. Not much to spend on servicing, if driving average miles, you may not even have to change the brakes. On the whole, brand new cars are generally more fuel efficient, than older models.

Not sure of any downsides (I've recently taken out a lease), I'm sure someone will explain, though! At least the monthly payment will be fixed, and there isn't the hassle of trying to get rid of the car privately at the end.

However, you do need to hand it back in pristine condition though!

A basic Ford Ka, will be from £150 a month (10,000miles/year, 3+35 - ie three year term, first payment/deposit is £450, then £150x35months after that).

What do you (and others) think about leasing?

Ling Cars have Up!s for £118 a month.

Also look at C1/107 I've seen them new from brokers for less than £6k, cheap insurance, great mpg, no RFL and depreciation is incredible.

DKLS

verityboo wrote: »

My partner prefers the greater peace of mind which comes with a new car. How about something like a new Hyundai i10 for £7K which even has air conditioning and comes with a 5 years warranty and 5 years roadside assistance. You can also get lower rate finance on new cars as it is subsidised by the manufacturer.

There are pros and cons to new cars so its a matter of what your priorities are

7k that much :eek: I had one on hire after a bump and it was terrifyingly under powered, pulling out at roundabouts was especially fun. It went back after 2 days for an i30 which could keep up with the traffic.

I always buy used, but am grateful for those who do buy new and swallow the depreciation, but I refuse to buy monkey metal bangers on chinese ditch finders with one exception a Mk1 Mx-5 for £650 which provided a summers fun before I sold it for £800.

Have a look at https://www.lingscars.com to see what lease deals are available, then compare accordingly with buying used, nearly new etc