New car or lease?

Wavey75

I’m trying to figure out which is the most cost effective, but I’m having trouble deciding and thought I would reach out to my betters for their advice and experience.

I’ve had a notability car for my wife and I, as she’s disabled and entitled to join the scheme, but I’ve also owned my own car and found this to be cheaper over a 3 year period than hiring or leasing via motability.

I bought a 10 month old car for £9,600 which sold brand new for £14,000 3 years ago and it’s now worth £7,200. That’s a cost of £2,400. If you add up my premiums for the same 3 year period and the cost of breakdown and any costs such as new tyres, etc. then it has cost me a total of £3,400 over 3 years, which is £94.44 per month. Motability costs £200 per month and you don;t earn no claims bonus (ours is currently 6 years NCB)

I’m considering buying a brand new car and trading it in every year, which I’ve been told will cost me around £1,000 every year, which is even cheaper than my cheaper alternative to motability.

I can’t see how going from a 1 year old car to a brand new car is going to be so cheap, especially as I paid £4,400 less than sticker for my 10 month old car and everyone knows that as soon as you drive a brand new car off the forecourt it’s already lost 20% of it’s value, the VAT loss.

I’m looking at another nearly new car, which if I sell my old one I can buy for £2,500 difference, but if I can save money buying a new one every year I’m OK with that, I just can’t see how I would save money doing that.

Motability vs Owning your own over 36 months.

Motabiity total cost = £7200 Owning your own cost = £2400

Many would say that the piece of mind of the lease scheme means that you’ll never get an unexpected bill, sun as for a puncture or a problem with the car, but as my car will be less than 1 year old it will still be under warranty and will not need an MOT for another 2 years.

missile

I have had a similar discussion with a friend who has a mobility car. The example you quote is not the whole story. Few cars sell for full list price. I doubt your £9,600 car sold for £14000 when new. What make/model ........ / ....... ?


Do you really need a new car every year? Most of us are happy to keep a car for 3 years. On the example we considered, the lease for three years cost less than the anticipated depreciation.

Hintza

Wavey75 wrote: »

I’m considering buying a brand new car and trading it in every year, which I’ve been told will cost me around £1,000 every year, which is even cheaper than my cheaper alternative to motability.

Tell you what if you can get one at £1,000 I will lease it from you and pay you £1,200 for the year!

Wavey75

Hi Missile,

i would be very interested in reading how you worked out that a motability car was cheaper than buying a brand new car, it's possible, but not with a 6 to 12 month old car and doing it my way, as explained below.

I have the original receipts and paperwork for the car as it also came with 4 years free dealer servicing.

Brand new my Honda Jazz ES 2012 sold for OTR £13,750. I bought it 10 months old for £9,600 and It's currently valued at £7,200.

When we looked around for cars with a smaller engine for ecconomy, but with a large enough boot to leave a fold up wheelchair in it, without it poking up the parcel shelf, there were only 3 cars available, Honda, Mitsubishi and Hyundai.

The Honda Jazz was the most confortable, so we choose that one.

If I buy a car every 2 years like I've done so with this one, then over 6 years my 3 cars will cost me a total of £9,000. over the same 6 years a motability car will cost £14,400.

By doing it this way, I'll save £5,000 over 6 years, or £800 a year, not counting the constant value I'll hold in my cars, trading them in every 2 years, I'm only counting the difference as I already own my 2012 Honda Jazz.

Hi Hintza,

To follow on from above, my car will cost 9000 / 6 = £1,500 a year.

The downside is not knowing the actual values that the 2 year old car will sell for, but the figures are roughly the same as outlined above, they may be slightly more or less, depending on inflation I guess.

forgotmyname

A/C have 2012 models for closer to £6000, Are you sure yours is worth £7000+ ?

As a trade in i would have thought £5000 ish...

Wavey75

Hi forgotmyname,

Who's A/C ?

My dealer has already offered me £7,200 for my car trade in.

Wavey75

Just to update this thread...

I found a 2014 Jazz ES Plus that's ex loan-out car for services for the cost of my car plus £3K, and they are servicing it and delivering it the 177 miles to my front door ... for free!

So, if my orginal cost of my car was 9,600 and it's now worth £7,000, then for 2012-2014 it's cost me 2600 + 500+100 (insurance & breakdown cover)

For 2014-2016 it will cost me 3000+500+100.

Assume the worst and that for 2016-2018 it will cost the same, then for 6 years it will have cost me a total of:
3200 + 3600 + 3600 = £10,400.

If I were to have gotten a motability car for the same 6 year period, it would have cost me £200 a month which is 72 x 200 = £14,400.

A minimum saving of £4,000 over 6 years, or £55.55 per month less than the motability scheme.

This also doesn't takei nto account the additional benefit of having the flexibility of changing my car every 2 years, instead of 3 years and I will continue to earn NCB, which you cannot do with motability.

Happy hunting all.

OddballJamie

Buying an ex-courtesy car that you haven't seen from a garage 3 hours away.

Nope, can't see anything going wrong there.

Carry on.

Wavey75

Hi OddballJamie,

Wiht HD pictures, HD video and a full 12 month warranty, I can't see anything going wrong either!

OddballJamie

Only 12 months warranty on a 2014 vehicle? That's a little tight.

Do you also have HD dashcam footage of the umpteen drivers generally mistreating it?

I'd never buy ex hire.

Also your figures seem to include a rather generous part ex, which suggests the dealer is overly keen to get rid.

A local find would be a wiser choice and save future problems, just read some of the posts on this forum about problems buying from dealers miles away. Jazz's are ten a penny so finding one shouldn't be hard.

Wavey75

Hi OddballJamie,

Finding a Jazz in my local area is 2,000 to 3,000 more expensive than buying further away.

It's not ex-hire, it's the dealers couresy car for other owners to drive while there's is being serviced.

My 2012 Jazz also comes with 2 years dealer servicing left, plus with optional extras that would cost £300 to buy from the dealer, as well as new brand tyres and full service history.

The dealer's keen to get rid of this 2014 Jazz because the newer 2015 Jazz Mk 4 is out in March, and the couresy car is a sales tool, plain and simple.

Any problems down the line will be the responsibility of the next new owner, whoever that is when I part exchange in 24 months for the 2016 Jazz or even another brand.