Target budget for an old car

[Deleted User]

I know that essentially the correct answer to what I'm about to ask is "it just depends" but I was wondering what the common consensus is on a target budget for an old car purely from the perspective of saving money in the long run.

Basically, my situation is that I've always driven brand new cars on PCP deals. I was happy doing that, but for the next 5-10 years I want to try and go all out to pay my mortgage off as quickly as possible and switching to a cheap car I can buy with cash seems like an obvious sacrifice I can make. I live in a rural area and need a car to get around but I work from home and probably only do about 3-4,000 miles a year. I don't have a particularly restricted budget (I could pay anything up to say £10,000 in cash) but what I'm looking for is maximum savings and minimum hassle in this case.

So far I'm torn between two different strategies. The first strategy is to pay something like £2,500 cash for an old Vauxhall Corsa or something of that nature. I've seen some at that price bracket under 50,000 miles and less than ten years old. My logic would be I was paying roughly £2,500 a year in PCP payments on my previous car so as long as it lasts me at least a year I'll feel like I haven't really lost much from the experiment. On the other hand if it lasts me longer I'll have made a massive saving. My big concern with this approach would be that it dies a few months after I buy it.

My other option would be to pay slightly more (say £7-8,000) and get something a bit newer, maybe via one of the approved used schemes. This would give a bit more confidence that it won't break down shortly after I buy it, but if it did break down say a year into ownership I'd have lost out far more than I would have with the cheap Corsa option. In this case using the above logic I need it to last something approaching three years without dying. And yes, I plan to do all the usual stuff to check I'm not buying a lemon beforehand (I have a mate who's a mechanic who can come along) but I'm just at the stage of setting a budget on what I should look for and not sure what the best route to go down is. I also don't want to go into proper old banger sub-£1,000 territory as I feel that would create too much hassle - I don't really have time to deal with multiple cars dying on me until I manage to pay the mortgage off.

GunJack

for that sort of mileage and really cutting costs, you're looking at too much money!!  I'd be looking at an older, non-DPF diesel like ford fusion/fiesta, peugot 206/7 etc., £30 annual tax, 60-odd mpg average (depending on your distances covered per journey),k and £1k or under to buy. I've just had 3.5 years with a Fusion like the above, for a total cost (buying & maintaining) of £901. Checkout the Bangernomics thread on here, you would appear to be a prime candidate for that kind of motoring

https://forums.moneysavingexpert.com/discussion/3803929/your-bangernomics-successes/p178

Grumpy_chap

I would not totally rule out the sub-£1k territory.  In reliability terms, a £1k car is as likely to be good as a £3k car to be honest.  Get a car for £1k and it only has to last 3 months and you are saving against PCP.  Choose wisely and it will last until the mortgage is done.
https://www.autotrader.co.uk/car-details/202104291972774
https://www.autotrader.co.uk/car-details/202103160227523

mobileron

Reliability Skoda,Kia, Hyundi. Forget Vauxhall Ford Etc.
This link will give you an idea of costs.
https://www.aristocarsmk.co.uk/showroom

Martin_the_Unjust

Another vote for a sub 1k car, buy based on service history and have a full service done on it as soon as you can, then take out decent breakdown cover.

Its as near as you can get to worry free bangernomics!

AdrianC

Buy unfashionable. If it's a car that's got a good rep for reliability with Joe Average, you'll be paying too much for it.
A £1k Skoda or Kia or Hyundai that's been neglected will be far less reliable and more expensive than a £1k Peugeot that's been maintained properly.

Maintenance is not just ticking the service box once a year. It's understanding that your Gran was right when she went on about a stitch in time saving nine, and spending on the small things before they get big. Mechanical sympathy is free and saves a fortune.

Bigphil1474

OP, if your mate is a mechanic, ask him if he can source you a cheap car. If I was in your position, I'd be looking at getting a sub £1k hatchback, like a fiesta or similar, and petrol. If you're doing low mileage a petrol would be better IMO. Something popular like a fiesta is good for getting cheap spares. If you can, go for a lower spec option. e.g. My old fiesta had electric folding mirrors, which were nice, but cost about £180 when I had to get one replaced. Going back years, I bought an old escort for £75 one year, ran it for a couple of years and sold it for £75. Got it from my mechanic brother who checked that it was mechanically sound even though few of the panels were the same colour blue, and it had been blinged up a bit. I wasn't that bothered about how it looked, so long as it wasn't a mechanical money pit.

BOWFER

At that mileage, buy a used Nissan Leaf or Renault Zoe and enjoy damned cheap motoring with very little in terms of reliability to worry about.
A used Leaf, in particular, will hold its value really well.
The Zoe would be a lot newer than the Leaf for a given cost, but it has monthly battery rental on top (around £50-£70) whereas the Leaf doesn't.

jimjames

As per the replies above an older car doesn't need to be unreliable. Both my cars are sub £2000, one was £1000 and I've now owned it 3 years with no major issues other than servicing. But it has had parts replaced that were identified as worn but not failed so it does pay to fix things before they break.

In terms of it "dying" the chances of that are pretty low if it has been maintained. There may be issues you need to fix but that will still be way cheaper than your PCP.

Herzlos

I'd be going for something older than 2016 for the lower tax rates, small boring and petrol that teenagers would be embarrassed about. Honda Jazz, Skoda Fabia, etc. Loads of parts availability, pretty cheap to run and so on.

If you're doing super low mileages, then you should investigate what it'd cost you to do the same trips without a car - buses and taxis etc and it may be eye opening.