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

hanvyj

jimjames wrote: »

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.

Newer cars are more efficient - and given a lot of the cost goes towards fuel, in the above calculations it works out to break even. (Though they aren't correct. See below for updated version)

Also, there is a "new car" line that, if buying a second hand car, assumes I'll spend £1000 selling and buying a new one after 5 years. The new car would be expected to last 10 years.

hanvyj

Ultrasonic wrote: »

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?

I have also been reading about DPFs and come to the conclusion that the type of driving I do would make there no point in getting a Diesel - not because I worry that I wouldn't make up the difference in price (tax alone would do that over a few years) but I think the engine wouldn't get hot enough on our typical trips. So I'll probably go for a petrol, which makes these calculations a little out of date.

hanvyj

Tried to improve it, and updated it to look at two petrol cars (mileage figures accuracy debatable)

And yes, I messed up the calculation for the per month cost before!

Lucy_Lastic

I have recently bought a new car, for the first time. Previously I always went for 2nd hand, but there are such good deals around on new cars at the moment with servicing deals, 0% finance, longer warranties, AA cover included etc.

One thing I would say is that I was advised by a friend that once I had decided exactly what car I wanted, to check Autotrader on line for that same car and see if it was cheaper at another dealer. I did that and saved myself over £1000. I thought a new car would be the same price at all dealers - how naive!

Idiophreak

You don't have servicing, MOTs, breakdown, wear and tear etc in your calculations.

Also, you have to be real with yourself - will you really keep this car for 10 years? Or will you earn more in 5 years, have changing needs, just want a change...makes a big difference to your sums...

hanvyj

Idiophreak wrote: »

You don't have servicing, MOTs, breakdown, wear and tear etc in your calculations.

No, I assumed they were too complex to effectively model - I think it's more suited to a qualitative decision. The second hand car will probably cost more in servicing, mot etc. It could potentially cost a lot more. It might cost less.

Idiophreak wrote: »

Also, you have to be real with yourself - will you really keep this car for 10 years? Or will you earn more in 5 years, have changing needs, just want a change...makes a big difference to your sums...

It's hard to say, but I think I could live with one car for 10 years, if it's reliable. I have a 'fun' car, already paid for so I'm not relying on this one to fulfill that!

Factoring in changing requirements: That's why I think it's best to go for a reasonable sized estate and not a 'super-mini' type. I cannot forsee my requirements going past an estate type car - my family has never owned a car larger, it would cover two future kids and still have boot space for camping trips etc.

The only other requirement change I can think of is a major commute change. If, say, I got a job 100 miles away or something a diesel might be better - but a petrol would certainly be sufficient.

My big worry would be a loss of income.

Idiophreak

hanvyj wrote: »

No, I assumed they were too complex to effectively model - I think it's more suited to a qualitative decision. The second hand car will probably cost more in servicing, mot etc. It could potentially cost a lot more. It might cost less.

...but you *know* that you're not going to have MOTs at all for the first 3 years of owning your new car, which knocks a hard £150 off that option...and you know there's a lot of stuff which would be done under warranty...not so easy to quantify, granted...but you could guestimate something into the budget.

hanvyj

Idiophreak wrote: »

...but you *know* that you're not going to have MOTs at all for the first 3 years of owning your new car, which knocks a hard £150 off that option...and you know there's a lot of stuff which would be done under warranty...not so easy to quantify, granted...but you could guestimate something into the budget.

That knocks £150 off, but being forced to get a new car serviced every year adds £350 on!

You're right in that the new car would cost a fixed amount in warranty - just the servicing & consumables.

I could try work out a minimum for the second hand, which is just MOT and consumables - assuming nothing brakes, and compare them.

bigjl

The only car warranty worth anything is a new car warranty.

Buy it is likely the later years are a dealer warranty rather than a manufacturers warranty.

A dealer warranty is invalidated by servicing outside the dealer network and doesn't come under block exemption.

I and lots of family and friends must be really lucky.

Have owned many Renaults over the years and they have been trouble free.

All cars can break down and have problems, VW seem very bad in recent years, but people still consider them better than Renault because it has a soft touch dashboard.

The Dacia Duster(badged Renault in Ghana) is on the short list of cars my wife and i are considering for use in Ghana.

There is nothing wrong with Renault engines, though the 1.9dci could be a bit of a bu@@er.

Wifes Clio has been a good reliable vehicle over the last 4 1/2 years. Due to lots of town and stop start use it could do with a new clutch as it occasionally judders a bit when cold.

It still returns around 60mpg

And apart from a full set of brakes and a cambelt/water pump 2 years ago has cost us next to nothing.

Aircon still works fine.

It has an intermittent airbag light. Which is a common issue. But is is Ncap 5star.

The Dacias have less electrical bits and bobs. A more European no frills specification. So i suspect they will be reliable if slightly boring transport.

bigjl

hanvyj wrote: »

That knocks £150 off, but being forced to get a new car serviced every year adds £350 on!

You're right in that the new car would cost a fixed amount in warranty - just the servicing & consumables.

I could try work out a minimum for the second hand, which is just MOT and consumables - assuming nothing brakes, and compare them.

£350 to service a little city car.

You need to some more research.

I would do brakes myself at a local garage and buy the parts fom EuroCarParts.

Main dealers tend to advise changing them far too early. Around half worn sometimes.