Is it worth changing my car in this scenario?

charlie71

Evening all.  I have a dilemma.  I have a 3 year old car with 36k miles on it.  I like it lots. There is no issue with it.  Including dealer/manufacturer discount it cost £27,500.
I entered the detail into WBAC this morning and it came up with a valuation of £21,500.  I thought that was pretty good - and I got similar figures on similar car buying sites. 

So.. The way I am looking at it is that depreciation on this car has been £6000 for 38months worth of driving.  £158 a month, or £1900 a year.  I couldn't get a similar specc'ed car for even close to that on a lease deal. 

Given it is a 7 seater - decent specc'ed car (albeit a Skoda) - I reckon that is pretty good value.

My question is  - if I was able to get a similar deal on a new version of the same car (around 27/28k) - Is it worth selling it and buying a new one.

I've not checked the cost of a replacement yet - and I'll fill out a carwow request in the morning.

I usually buy cars and keep them till they are on their last legs - but the numbers in this case tell me it may be worth swapping it. 

Thanks for your thoughts in advance. 

C. 

ontheroad1970

If you are spending more money to get something, then you aren't saving anything, no matter how you tell yourself that.  

Grumpy_chap

Is the car you have fully paid for?

The assessment should not be on past depreciation but different depreciation between current car and new car for the next three years.  Include a consideration for different maintenance costs, though I would not expect a 3yo 36k mile car to need any unusual maintenance.

charlie71

Hi Grumpychap- The car is paid for.
I don't expect anything to turn up on current car maintenance wise. So just usual servicing/tyres. 

I'm not keen to change it, as I said it does what I need and is a great car- but if I could 'always' swap it every 3years for only a loss of £6k, it makes perfect sense - so even as a one off it probably makes sense too. 

The original plan is to keep the car for about 10 years - so this way, just resets the 10 year clock, and I'd have two cars over 13 years, for a reasonable 'additional' cost of £6k.

I hope that makes as much sense on screen as it does in my head. I just am not sur eif there is anything obvious I can't see. 

C.  

AdrianC

If you chop it in for a new one the same, you'll spend ~£7k to be driving exactly the same thing but a little bit newer.
Over the 36k miles you've covered, that's 20p/mile in depreciation.

Is it just a case of you want the vanity boost of the new plate? Because there's no functional benefit to spending that £7k.

In three years time, your existing car will probably have lost another £4-5k. The new one will have lost another £7-8k. So that's £13k extra you'll have spent for that little vanity nudge of two different characters on the plate.

charlie71

Thanks Adrian.  No vanity boost.  It is just a Skoda- and it will almost definitely be the same model, in probably the same spec and colour.  

I am  thinking about the longer term ownership. In my head, a cost of £2k a year to extend the 10 years to 13 years make sense.  

I'll find out later if I can get a nother for a similar price purchase and see how I feel about it after the costs come in. 


C. 

AdrianC

charlie71 said:

I am  thinking about the longer term ownership. In my head, a cost of £2k a year to extend the 10 years to 13 years make sense.  

Why not just chop it in after 6-7yrs, then?

The first three years are the steepest depreciation.

Penelopa.Pitstop

Just make sure there was no facelift or refresh that makes car more annoying, since all new cars get these safety gadgets and new infotainment which can drive you crazy. I personally regret getting 2020 car model from VAG and preferred 2017 one.

charlie71

Thanks all.  Have had some quotes back from carwow/drivethedeal - The spec we have is no longer being made - and the prices have shot up too, so we'd be paying more money for a lower spec if we were to change.
I reckon we'll keep be keeping this car for some time!

C.

Ibrahim5

It is just a Skoda

What a crazy comment. It's the brand to be seen in. People who want a VW but are clever enough to pick the brand with the best quality to price ratio.

scaredofdebt

You'd be getting an extra 3 years warranty and a car that should be pretty much bullet proof (brand new) for some time, versus a 3 year old car that could develop faults that aren't under warranty etc.

Personally I'd do it if the figures do work out as you say.