The best MoneySaving way to have a car

Chris4

I'm 29 and I've had a driving licence for 11 years, but I've never owned a car. I've always wanted one, but never needed one for work or to get around and so it didn't make financial sense to pay the high cost. I've rented a number of times, so my driving skills are still fine. But right now I really want the freedom of having a car, as I moved to a smaller city where getting back to my hometown would be easier. Something to use on the weekends.

I'm financially stable so it's something I can afford, but I don't want to waste money. I'm not a gambler. I like to think of myself as a MoneySaingExpert, and this sometimes means I spend a long time deciding on things to choose the most cost-effection option, and a car is one of those which I'm really struggling to decide. There's so many factors and risks to consider, and I know little about mechanics. I've at least decided I want an automatic hatchback - I can drive manual, but as an inexperienced driver automatic would be easier. By design, I like Ford Focus - it's roomy, popular and hopefully fairly reliable. But I'm keeping all options open.

I look at this like an investment, and have weighed up some options in a spreadsheet. Over a two year period, I compared a few leasing, subscription (Evogo, etc.) and buying options. Cost of buying a used car (lump sum) vs monthly lease on a new one, tax (if buying), insurance, fuel cost (using each car's combined mpg), deprecation of the car (if buying, using a calculator) and from this the asset value I'd have at the end (e.g. 20% less if owned, £0 if leased). Buying came out cheaper overall than all the leasing options, which is probably no surprise for most but I needed to confirm as a newbie to this.

It's hard to know if you're paying the right price if you don't know much about cars, so I use Autotrader's valuation tool and some others, but they vary greatly.

The only thing I wasn't able to factor in was the cost of servicing, which is where the cost of a car can vary greatly and could send it through the roof and more than a new car lease - which is what concerns me most. To reduce the risk, I plan to get a £99 RAC vehicle inspection on one or two cars to confirm there's no major issues and estimate when things will likely need replacing. Hopefully then I'll achieve my goal of having a car which won't cost the earth.

So as you can see I've gone through a fair amount of thinking with this, but I'm still afraid to go ahead with it. So I thought I'd reach out and ask for some advice from car owners on here. Am I looking at this in the right way? What would you suggest I do? Many thanks!

Grumpy_chap

Buying will almost certainly work out better than leasing / PCP.  Some exceptions, such as taking finance incentive and repaying very quickly.

If you opt for something like a Focus, there is a massive choice available, so look out for a good one at good price - don't get cajoled into an over-the-odds car.  Also, any independent garage can service and maintain, so you can avoid main-dealer rates.

You've not given any indication of likely budget to buy, desired age of vehicle or likely mileage (though I suspect this will be towards the lower end given the car is an optional item for you). 

I am not a big fan, but for weekend use a couple of times a month, car club might be a sensible option to consider.

Petriix

It absolutely depends on how many miles you want to do. Whatever way you look at it, it will be expensive compared to not owning a car: tax, insurance, mot and maintenance all add up before you even think about the fuel.

We spent £4500 on a diesel Peugeot (2005, 30,000 miles) 206sw in 2010 and it is basically ready to be scrapped now. Depreciation has cost around £35 per month with maybe £50 per month on insurance, tax and maintenance and £50 per month on fuel.

We're trading up and buying a new EV at great expense. Not the best money saving plan as depreciation will be massive, but running costs will be very low and emissions will be zero. Seriously look at whether an EV would work for you.

knightstyle

Focus is a good choice, ask at local ford dealer, tell them what you want and get them to source one, we go for 3-4 year old ex-motability automatics. 
Check servicing carefully and if a powershift auto when was the gearbox oil changed? This is very important so make sure you see evidence in writing or get it done when purchasing.
Plus if you have it serviced by Ford you get free breakdown insurance.

daveyjp

Do not go anywhere near a Powershift gearbox. 
One of thousands of tales of woe.
https://forums.moneysavingexpert.com/discussion/6219345/gear-box-failure-on-ford-mondeo-hybrid-any-advice-please#latest

mgfvvc

Well maintained older cars can be a good option. Most modern cars will last 15 to 20 years and 150,000 to 200,000 miles in normal use. An 8 to 10 year old car should still be be quite reliable and won't cost a great deal of money in depreciation.
I've just bought a 2011 car with 2 owners from new and full service history for less than £2000. It's a bit high mileage at 120,000 miles, but that doesn't matter much to me as I will probably do less than 5,000 miles a year in it. I expect it will last me at least 5 years and if I'm wrong, it was cheap enough not to be a big loss.

missile

Buy cheap car with MOT and scrap it if needs expensive repair.

knightstyle

Nothing wrong with powershift!!!   The problems come when the gearbox is not maintained properly.  That is why I said about it on my previous post.  We tow a caravan with our 2013 powershift Cmax now on 76000 miles and smooth as silk.  Previous focus was on 120000 miles when the person who I sold it to wrote it off, again powershift with no problems.
The problem is that you can get full Ford service history when you buy buy then find the gearbox oil has not been changed as required because the previous owners baulked at the cost of having this essential job done.

fred246

You're very young to go down the "I only drive automatics" route. I personally wouldn't recommend it. There are lots more small automatics than there used to be but it's very restrictive when you are shopping. Hiring a car you'll always want automatic. Automatics are fine when they are working well but can need expensive repairs when they aren't.

sheslookinhot

Sounds like a case of overthinking things. Buying a car should be a simple, pleasurable experience.

mgfvvc

sheslookinhot said:

Sounds like a case of overthinking things. Buying a car should be a simple, pleasurable experience.

This is a  money saving site and people here are expected to think seriously about their spending.

Buying a car without thinking it through might be pleasurable in the short term, but the long term consequences of getting it wrong can be expensive and stressful.