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Cheaper per month or over life of ownership - well, actually new can be “cheaper”
Let’s say I buy a new car worth £40k. I do it on PCP and the dealer gives me a £4K discount, and the finance company a £2k contribution. I also part ex a car worth £5k
That gives us £29k to finance. The PCP deal shows a final value of £12k - so we are financing £17k over 3 years. As it’s new, the manufacturers scheme offers an APR of 3% to get me interested.
At the same time, there’s a nearly new on offer for £34k, but no discount is offered and the finance contribution is only £1k. I still have my £5k part ex, and so we have £28k to finance.
However the final value is only £10k with this one, so I actually have to finance £18k over 3 years, and the APR is 4.9% on Used. Thus, a higher monthly payment on the nearly new compared to new, and actually I’m paying more in real terms over the 3 years.
Anyway, I said a cheaper payment. A huge number of people are payment-driven. They want the newest/best/flashiest/most practical/whatever floats their personal boat car for a set amount of money they are prepared to spend every month out of their earnings, with upgrades every few years.
electric proddy probe machine
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When i was in my mid twenties all my peers were driving old bangers but could afford to buy a house. These days, young people cant affard houses but they all drive brand new cars.
I think buying a secondhand car is OK, unless it turns out to be unreliable, or requires expensive repairs. Then it can be an albatross.
I chose leasing new, the car has a 3-year manufacturer's warranty, and I don't have to touch the thing, or MOT it. I preferred that peace of mind. Not only that, but I would never have been able to afford it had I bought it new. I really don't give a shit about the kudos of having a new car, it's the reliability issue that drove my decision, and not having to pay for repairs if it breaks.
Be smart, stick £100 of the purchase on the credit card.
There are many cars for sale at low price. As its expensive to insure and tax them people just want to get shot of them these days.
So far so good. Getting more like 42mpg as opposed to 50mpg+ in the Skoda.
Nowehere near as powerful so need to be careful when I think I can overtake but can't.
Need more time to say whether it's comfier or not. It's defo quieter.
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Some people want new, some people look at depreciation and wince. Like me. The 'cost-per-month' thing is a way of changing the way people buy cars to drive new car sales. Clever SMMT!
I did the new-car thing once. Never again. I'm now 4 years and 40,000 miles into an 18yo car that cost me £1650 to buy and where even a peace-of-mind cambelt, water pump and aux belt job at a main dealer was just £501. It's still worth £1650.
However, much of the maintenance won't be warranty. Case in point. I bought a new car once on PCP or whatever it was. One day some b'stard (in a Audi TT) knocked the wing mirror and never stopped to apologise. Goodbye £250. Then in some snow, I slid into a grass bank and very very slightly buckled one aluminium wheel - not visibly noticeable - which then lost pressure on an irregular basis. When I eventually got fed up with the situation, it was goodbye to another £250 for a new wheel. Then I kerbed a different wheel, costing me £65 to repair. Then did it again on the same wheel a few weeks later. Another £65. I was unlucky, partly due to my own carelessness. None of those incidents were warranty issues, but it goes to show that maintaining cars is no financial picnic.
But some good warranty news - a few weeks after buying the car I got the dealer to replace the radio head unit when the display went awol, as well as a badly squeaking/rattling centre armrest.
Alas, when I sold the car privately after about 18-20 months of ownership, I couldn't quite get enough to clear the remaining payment to the finance people.
In the days when warranties and road tax were bargaining chips, always tried taking the longer road tax - e.g 12 months tax, 6 months warranty, instead of 6 tax, 12 warranty. At least road tax was worth something. Not like the bit of paper with a million plus one exclusions.
My car buying decisions are based around one simple fact: I do astronomical miles compared to most. Reliability and safety is incredibly important, and the fact is I spend a significant portion of my life in my car. If it was a 20 year old shit heap and I had to spend as much time in it as I do, I’d be depressed.
As it is, I’ve just changed mine. I’ve gone new for maximum warranty period. I’ve also gone super safe and super comfortable. I just did the maths - I spend over 1000 hours a year in my car. If it wasn’t really comfy and a nice place to be, I’d be crippled and would have gone postal well before now.
I guess it’s priorities.
Always the same.
I would always recommend a GOOD warranty; i.e.) an extended manufacturers.
I worked for many years at various (mainly Peugeot) dealerships; I never knew of any of our staff who would willingly rip anyone off. There are always exceptions, but GOOD dealerships are bound by many checks.
Thomas, at just over £380, the warranty is worth it as most repairs will cost this.
Like all warranties/insurances, they are worthless until you actually need them.
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