Second hand or new (+ Are new car warranties worth it?)...

attila_

Warranty on a car is something i've never experienced. But wouldn't you need to have it serviced my the manufacturer for 7 years to get that warranty?

Gloomendoom

It isn't necessary for the manufacturer's approved dealer to service it, but it is likely save a lot of hassle in the event of a claim.

Netwizard

attila_ wrote: »

Warranty on a car is something i've never experienced. But wouldn't you need to have it serviced my the manufacturer for 7 years to get that warranty?

You can get it serviced by an independent if they use genuine parts but like Gloomendoom says, best stick with dealer servicing, at least that way you stand a good chance of a goodwill contribution if anything goes wrong after the warranty period is up!

hanvyj

gilbert_and_sullivan wrote: »

I suspect you don't really want the loan aspect and rightly so.

I don't think you'll get cheaper motoring than the less than £1000 used car, espcially if you go for one of the less fashionable makes, often bought by older drivers who have looked after them and not too many miles on the clock.

As for peace of mind, my idea of it is not owing anyone a bean, true liberation.

Your right, I'm not keen on a loan. But I've got a 35 year mortgage so not paying owing anyone isn't going to happen for a long time!

I got my spreadsheet out, and over the long term - assuming we'd be buying two second hand cars in the 10 years a new one would be used for:



Anyone spot any expenses I've missed off? I assumed that a 2k scoda fabia would cost the same in services/repairs & mot as a new car's fancy services.

The wife seems keen on an estate, so I shoved the diesel estate version of the sandero (logan) in and it actually comes out significantly cheaper over the long run.

The difference isn't much over 10 years, but there's a lot more weight up front.

*Updated version without mistakes later on

INT1

Never had a problem with manufactures warranty (the first 3 years of a new car).

Approved car or second hand car warranties are a different matter, more clauses and less chance to pay out.

I find the BMW warranties very good, as mentioned never had an issue.

jimjames

hanvyj wrote: »

Y

Can you explain your calculations? I'm struggling to see how a second hand car with the same service costs will come out at the same cost after 10 years compared to a loan of £1800 per year.

Ultrasonic

I'm can't follow those calculations either to be honest.

A proper comparison needs to include estimated annual repair bills, which will be higher for the second hand car. Which works out cheaper depends on how these compare when added up with the higher depreciation and loan interest costs for the new car.

For the mpg figures you're using I assume at least some of the cars are diesels. Have you looked into whether they are suitable for your driving pattern, thinking particularly in relation to DPFs?

Ultrasonic

hanvyj wrote: »

I assumed that a 2k scoda fabia would cost the same in services/repairs & mot as a new car's fancy services.

That will likely underestimate repair costs for the Fabia I'd have thought.

I realise now that I think you've just excluded service and repair costs from the calculation?

I still can't follow the rest of the calculation though. Let's take the Sandero...

Your fuel, tax and insurance costs £2156 per year.
Over the first 5 years it looks like your purchase costs are £2000 + 5*£1380, which is £8900 total, or £1780 per year.
Adding these gives an average of £3936 per year for the first five years, or £328 per month. Where does your £461 come from?

Ultrasonic

To answer my own question, it looks like the £461 comes from counting the £2000 initial payment every year for 5 years, rather than just in year one? The second hand option also looks like it is counting a purchase price of £2000 every year for 5 years.

I think the second 5 years of Fabia costing should also be identical to the first five, since the plan would be to buy a second theoretically identical car after five year, selling the old one for £1000. The second one will equivalently have a final value of £1000.

I'd taken those with more expensive fuel to be diesels, but 50 mpg would be rather conservative for a diesel Fabia I think.

hanvyj

Ultrasonic wrote: »

To answer my own question, it looks like the £461 comes from counting the £2000 initial payment every year for 5 years, rather than just in year one? The second hand option also looks like it is counting a purchase price of £2000 every year for 5 years.

I think the second 5 years of Fabia costing should also be identical to the first five, since the plan would be to buy a second theoretically identical car after five year, selling the old one for £1000. The second one will equivalently have a final value of £1000.

I'd taken those with more expensive fuel to be diesels, but 50 mpg would be rather conservative for a diesel Fabia I think.

Yep, mistake in the calculations.

Service and repair costs... well I'm really not sure how to quantify those. I can perform basic services myself. Oil/plug/filter changes, along with simpler things like brake pads & shoes. With a new car and warranty I'll likely be forced to go and have expensive £100-£200 services throughout that period. But if the engine chews itself up I'm not footing the cost.

I figured I'd take it out of the equation and add that to the "second hand is more of a risk" consideration. It could be that nothing goes wrong with it and it works for 5 years with only simple oil changes.