Have you ever bought a new car?

wisbech_lad

Once. In Indonesia, and the method for passing on ownership docs for second hand cars was dodgy, and didn’t ever want to give police an excuse for asking for a bribe.
New car was about 10,000, and depreciation was low. Sold it after four years to friends at 35% less than we paid for it – market price was less 25%.
But in the UK? No way. Of all the cars me, my sisters or my parents have owned (except company cars) all have been second hand, with a lot of inter-family transfers. Bought as demos or from auction.

AdrianHi

Dan29 wrote: »

I have and wouldn't do it again. The fact that no one else has owned the car before doesn't make up for the huge depreciation you suffer IMHO.

As is being discussed in the Changing cars... Every 3 years or much longer? thread, I'd probably go for a 6 month old car at a 20% or so discount on new price, or something 6 or 7 years old that has already done most of its depreciating, as that's usually the greatest (albeit 'hidden') cost of owning a car.

This is the formula for a car that holds it's value well, like the Audi A3 mentioned above. As also said, bit of a 'mare getting the spec. you like this way.
If you are buying a fast depreciating car (like 33%-39% 3 year residual) then hunt for the youngest one you can that is as close as possible to the 33% price. You might find a good deal on a 1 to 2 year old worth having where you've got some warranty cover left.

I am in the one car I bought new now, I might do it again in the future when I have no mortgage to worry about just to have my exact choice, but until then I'll do the 3/6 to 36 month or 6/7 year old BMW and similar or if keen to save more cash a cheap young Vauxhall or similar.

If you like your cars, a penny spent on something you like just because it's £20 a month cheaper than what you'd really like is a bit silly if you can afford the extra £20. Even a bangeromics car is costing a few hundred a month in total ownership costs if you are doing at least "average" miles.

BillScarab

We've bought two brand new cars. years ago I bought a brand new Rover, because of who I work for there was 22.5% discount off the price and I kept it for 6 years. The other was in December 06 when we bought a Suzuki Swift for my wife. We looked at second hand but ti was a fairly new model and a year old car was only about £1000 cheaper. As she'd never had a brand new car herself we decided to go for a new one. She is planning on keeping it for a good while so she should get her money's worth.

Apart from the Rover I bought all of my other cars were whatever cheap interesting banger I fancied at the time. Nowadays I get a company car so don't have to worry about it.

leehal

I buy new cars using the manufacturers finance schemes i.e. buy the car over 3 years and then pay a balloon payment if you want to keep the car.

I have to buy fairly new for work (we can only keep a car until it is 4 years old), we have a car allowance scheme but there are constraints with regards to the age and value of the car.

Personally I would rather buy new as I know how much my monthly repayments will be, I take out the manufacturers maintenance and tyres schemes too. The only extra payments I need to make are insurance and road tax, I therefore have fixed cost motoring.

I have no doubt it costs me more, but I like the reassurance of knowing how much I will pay regardless of things going wrong with the car or not.

lilac_lady

I'm thinking of buying a small car with a 1200cc engine instead of the 1600cc one I have now. I think I'll buy a new one as I plan to keep it for years (accidents permitting, fingers crossed etc). I've never had a new one as I don't buy a car for status, just transport. I like the idea of not having to replace exhausts, tyres etc for a while, also no MOT for 3 years.
I was thinking of a VW Polo, A Ford Fiesta or a Toyota Aygo. I'm sure I'll never be able to buy another new car I'm going to take my time before I decide. Interesting views on new car or secondhand one.

Stephb1986_2

i ordered a brand new car in november and got it in march its lovely got everything i want and i dont regret it one bit the best 25k ive ever spent! i dont think it will depreciate that much its a vw its also a hard top convertible and im thinking of keeping it for a good while as im only 21

Steph xx

MrsE_2

lilac_lady wrote: »

I'm thinking of buying a small car with a 1200cc engine instead of the 1600cc one I have now. I think I'll buy a new one as I plan to keep it for years (accidents permitting, fingers crossed etc). I've never had a new one as I don't buy a car for status, just transport. I like the idea of not having to replace exhausts, tyres etc for a while, also no MOT for 3 years.
I was thinking of a VW Polo, A Ford Fiesta or a Toyota Aygo. I'm sure I'll never be able to buy another new car I'm going to take my time before I decide. Interesting views on new car or secondhand one.

That was my reason, you know you will have x amount of years of trouble free motoring.
You know its never been in a bad crash.
You know how well (or how badly!:rolleyes: ) its been looked after.

My milage is light & I reckon I will get 5 years out of mine & still probably only have 30k or so on the clock. So it will still be ok for a trade in.

Plus you gotta weight up how much you save in not constantly paying out on a car.

Good luck:D

meester

Dan29 wrote: »

So you're buying the car for about £15,000 and then 3 years later trading it in for £9,000 or so - i.e. about £2,000 a year depreciation?

Interesting to compare that to leasing which would be more like £3,000 a year.

According to Glass's:

Audi A3 SE
2.0TD Diesel 3-door Hatchback
6 Speed Manual Front Wheel Drive
Year: 2005 05
Mileage: 30,000




Part-exchange Price:
Excellent condition:
£11750
Average condition:
£10600
Below average condition:
£9440
Cost new £20,330

So that's £9k lost. Add in the cost of capital of tying up £20k for 3 years of about £4,500 over 3 years, and it comes to £13,500. About £375/month. Surely not cheaper than leasing.

meester

MrsE wrote: »

For your "loss" of £8,500 over 6 years, did you have 6 years of virtually trouble free motoring? If so thats not too bad for £1,417 per year.

more than that, you need to take into account the cost of the capital/your interest payments

AdrianHi

lilac_lady wrote: »

I'm thinking of buying a small car with a 1200cc engine instead of the 1600cc one I have now. I think I'll buy a new one as I plan to keep it for years (accidents permitting, fingers crossed etc). I've never had a new one as I don't buy a car for status, just transport. I like the idea of not having to replace exhausts, tyres etc for a while, also no MOT for 3 years.
I was thinking of a VW Polo, A Ford Fiesta or a Toyota Aygo. I'm sure I'll never be able to buy another new car I'm going to take my time before I decide. Interesting views on new car or secondhand one.

Smaller engine does not necessarily translate into better MPG (especially on new cars) and the 1600cc might give better fuel consumption on the motorway than the 1200cc of the same age.

Buying new is not going to be money saving over your current older car, and as I often post, when considering a new car check the cost of depreciation first then worry about fuel and finance charges. I've done the sums on cars like the VW Polo for my sister in law before. For low depreciation and therefore lower long term costs it's a choice between Skoda Fabia, Mazda2, Mini One 1.4 with Pepper pack (yes with the incredibly high purchase price but it hold's it's value so well is is the cheapest car here in the long run and it's 1.4 petrol engine gives 53mpg).
The other option is leasing a Vauxhall Corsa (the Fiesta might be just as good as a lease, not checked up on it) which is much cheaper in the long run over 36 months compared to buying and selling unless you can get a 20%+ discount and 0% finance on the whole value of the car over 36 months from a Vauxhall dealer. For hassle free motoring, 10,000 miles a year and if you can afford to pay a 130 to 140 a month lease forever leasing makes a lot of sense. You can take the lump sum you might have sunk into the car and invest it or clear some off the mortgage.
Assuming residual values are as predicted the single cheapest option here is still the Mini if you can finance the £13,500 purchase price - even when you take into consideration finance charges and cost of cash tied up in the car - unless you have high interest loans to clear when the cash is best used for that.