Insuring a Second Car!?!?!? No claims Discount

andy88_2

I think MarkyMarkD gives the best advice. Depreciation on the Audi TT will happen anyway. You'll be paying 2 lots of road tax, insurance, maintenance. I think you'll be lucky to get much more than 25% introductory discount for the second car.

You should review what sort of car to use for all the functions you require and go for that. I you like Audi, how about an A4 TDI a couple of years old?

If you stick to having 2 cars, you'll have to prevent yourself calculating how much the TT is costing you per mile - probably between £1 and £2.

I reckon my Xantia HDI costs me 12 to 15p per mile.

MarkyMarkD

Thanks, Andy.

I don't believe your 12p to 15p though - certainly not as a full running cost including depreciation and everything else. Unless you bought it old, and do a huge mileage.

andy88_2

MarkyMarkD wrote:

Thanks, Andy.

I don't believe your 12p to 15p though - certainly not as a full running cost including depreciation and everything else. Unless you bought it old, and do a huge mileage.

Both; well modestly old. 4 years, 24000 miles £4500. Errrr, 42000 miles in the first year, including 3500 and 4500 in 2 weeks. 7p per mile fuel, 4p depreciation, 4p everything else.

Pricy147

MarkyMarkD wrote:

Answering the question you didn't ask, your original proposal is NOT financially sensible.

Whatever impact you think that the increased mileage will have on the value of your first car, it will not be cheaper to run two cars. Most of the costs are fixed - the depreciation cost, per extra mile, is really not that great.

If you really think that doing this will save you money, I'd suggest that your primary car is simply too expensive to run and you should just change it for something more sensible.

I think what I'm trying to say is, what's the point incurring all the time-related depreciation on the TT, whilst driving around in a banger?

What Car seem to say that each 1,000 miles knocks £120 off the value of a 4 year old TT. I don't know if that gives you any food for thought or not - you haven't said how much extra mileage you will be doing. If it's 10k per annum, that's only an extra £1,200 off the value - probably similar to the total costs (depreciation, road tax, insurance) on the second car. If it's 20k per annum, I can see where your logic comes from ... but it is logic which only applies because your main (current) car is such a flashy one!

I know where your coming from - but there is good reason behind my logic.

A) I don't want to sell the TT because I thoroughly enjoy driving around in convertables, and the TT is the car I have been after for some time...
Therefore, according to What Car, every 1000 miles I do in my car with depreciate the car by £175. My estimated additional business mileage is circa 20000 per annum. Thats £3500 depreciation on the TT per year.
C) On top of the depreciation, tires cost like £100 per wheel on a TT, wheareas a Vectra or 306 would cost around £40 per tire. Petrol would also likely be cheaper.
D) I have phoned around some insurers, and found that MArk Richard are able to offer a 63% introductory bonus so long as I show proof of my 9 year NCD on my first car. This reduces insurance on a 306 D Turbo to around £340, or a 2.0CDi Vectra to around £440. Say I buy the car for around 2k, to run the car for a year, I'm looking at around £2600 for the first year. I then also have the convenience of two cars, and a saving of around £900. Obviously the saving is greatly improved the second year as the purchase of the car has already been made. Even if I kept the car for 2 years, I would expect that I could still sell the car for around 1k at the end of it. Over two years, assuming a 1k sell on, I would save circa £5000. Not a bad saving.

Obviously this does not take into account repairs, but this is an unknown quantity, and I would prefer the wear and tear on the older car than the TT.

italiastar

We're with MoreThan
brill company,
can use your ncd on second car, no probs

I agree - try More Than, but not because they're a great company - because they're muppets. When we got a second car, they duplicated no-cliams for my wife - not sure if they will do that for the same person.

MarkyMarkD

Andy

Wow at your 45k miles per annum.

Pricy

Now you've given us the business mileage, I can see your point too, although I wouldn't personally ever consider having two cars for the reasons you've given. I'd rather have one nice car and use it all the time, than a nice car for weekends and a less nice car for work. Personal choice at the end of the day.