Define "best".
If you mean cheapest, then it's the longest time possible before any predictable repair bills. This will vary according to a model's reliability record but I'd suggest 5-8 years at average mileage. To get a really cheap, reliable, car buy a 3 year old and sell it at 8.
Changing after 3 years will give annual depreciation as your major cost factor - at 1 or 2 years the annual cost will rocket.
For me the "functional performance" is the prime factor in choosing a car - it's pointless buying a low depreciation car that doesn't do the job you need.
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Having worked at a Fleet management company the best point is between years 7-9 !! as this is when the cars stops depreciating at a significant rate and repair/servicing costs are typically bigger.
Everyone forgets the typicall depreciation on a car is over 2K per year; people only think that their HP Loan is 12 x £250 and forget that the car is losing close to that without you writing any cheques regard less of payment method.
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Having worked at a Fleet management company the best point is between years 7-9 !! as this is when the cars stops depreciating at a significant rate and repair/servicing costs are typically bigger.
I was going to say something similar.
It seems to me that modern small cars are made to last about 7 years at least. After that they start to go wrong, some more frequently than others, and the costs can add up. When big things go wrong, that might be the time to change. But if the car is driving nicely, hang on to it for as long as it hangs together. To change after a few years seems like madness to my fiscally prudent (mean) mentally.
The calculation is simple. A new small car costs maybe £6K. So over 6 years the purchase cost/year is about £1K. Servicing costs are low for the first 3 years, helped by the manufacturer's warranty, and even after 6 years they should not be too bad if the car is looked after, and a bit of luck is on your side. After 9 years the purchase cost/year is about £666. So if servicing costs approach £700/year, it might make sense to change. Of course this all depends on the brand of car, the reliability, and the cost of servicing.
I guess part of the game is to buy low in the first place, from discount brokers etc. I see that places like Trade Sales of Slough sell nearly new cars at massive discounts, and I wonder if these have been thrashed, and hence the lifetime shortened?
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Yes I am concerned about a car being within warranty. Modern cars are not reliable, not as far as I can see, but if it is within warranty, someone else has the hassle of fixing it and paying for it when it does go wrong.
I have a customer who has Range Rovers - last one she had needed new back axle at 25k, the current one, which has 6k on the clock made a loud bang and expired in the town centre. I also have a customer with an Audi Q7 with suspension issues at 14k.
And they are £60k cars, so yes, I want a warranty!
Im not so much interested in the long term costs - my misses and I can afford to save up approx £150 a month ( £1800 a year ) to put towards our next car after we buy the initial car in the summer for approx £9k. We are happy to pay for this as we decided we would like to treat ourselves every few years to a new car.
That means that effectively, we can afford a £9k car that depreciates by £5400 over three years and replace it with the latest eqiv model at that point. Or alternatively, if we can find a model that only looses £3600 over two years, we would change it then.
I have no idea at this stage whether any small car looses £5400 of its value in 3 years tbh and if infact it was the case that it lost less than that, all the better.
I did look at the Mini One - very impressive on the depreciation front AND since we arent planning kids for 3 years, maybe it would be a good treat for ourselves - while the initial outlay is higher, we would also get a much larger chunk of that outlay back come trade in time so the cost over 3 years would be quite low.
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Im not so much interested in the long term costs - my misses and I can afford to save up approx £150 a month ( £1800 a year ) to put towards our next car after we buy the initial car in the summer for approx £9k. We are happy to pay for this as we decided we would like to treat ourselves every few years to a new car.
I'm curious why a new car is a treat? Seems to me a car is for going from A to B in a comfortable and reliable manner. Or maybe I'm missing the point. ;)
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A car to me, esp this one, is to be enjoyed. We have decided to keep the old Rover diesel for the misses to go to work in as she will park in town - now its fixed, it should cost too much to run each year as the rest of the car is in good nick.
As such, Im taking some of the advice from previous threads about the boredom threashold and as its affordable to me and the misses, we decided we would do this instead.
We get a new car every two or three years and can also get something interesting if we fancy it. I am a car-guy and love cars as a hobby rather than just A-B transport. My misses isnt into cars but she does love driving and knows what she likes when she sees it car-wise.
We both absolutely love the buying process too. Honestly, Im very tempted by the Mini, Fiat 500 or Renault Twingo but never really know until you have a close look at something.
We think of it as a treat to ourselves, much in the same way as people spend loads on golf, home decor or holidays ( we do cheap ones in the UK ).
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We think of it as a treat to ourselves much in the same way as people spend loads on golf home decor or holidays ( we do cheap ones in the UK ).
Cheers. I was just curious. I too have ways to spend money ...
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From volume 1, 7th December
" I'd put money on your buying again within 3 years."
Fri 7 Dec 07 20:57
Long term new car purchase - stunorthants26, 7th December
"I couldnt afford to, its a one-time money offer, ten grand cash to buy a car, hence I want to get the decision right." ( 15 to 20 years car plan)
29th December
"We get a new car every two or three years and can also get something interesting if we fancy it."
(posted with warmth and humour ;)
Regards
Edited by oilrag on 30/12/2007 at 10:23
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There may a danger, OP, that over-analysis of this may rob you of the hedonistic pleasure of the treat you have in store (..as I gather from your related threads on these topics..) & you'll be left in the position where the 'operation was a success but the patient died' , if you see my point.
Most cars don't suffer horrendous mechanical failures, so this near-fetish over 'manufacturer warranty' is limiting you to new cars that cost ~£10K & may compromise not only your functional requirement parameters, but also the buzz factor. A suitable used car @ 2-3 years old will have shed 40-50% of list price & be within you budget, more than adequate funcionally & something you'll look over your shoulder at every time you park it up - the acid test in my view ;)
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We have changed our spending plans somewhat from our original idea of keeping car long term. Holidays have lost out and we are going conservative and buying a 2-bed house rather than 3.
I see what your saying woodbines but in my experience, cars that are either new or under £1k have given me the most pleasure. I consider buying a used car the eqiv to buying in a charity shop, just without the charity.
So if its very cheap, I dont mind that someone else has had it before but otherwise its just expensive secondhand goods.
Every car ive bought inbetween new and banger has been unsatisfying for one reason or another and silly as it may sound, but if I part with a decent wad of cash, I hate the idea of someone else having driven it - im very posessive over my cars - when my dad suggested that when his Astra dies, he shud use my Rover - I said not a chance so he is going to buy another car instead!
This car that I get is most likely going to get very light use for the most part and will be cosseted ( the car valeter in me ). As I said, we can afford it and its what we want to do, so the question isnt really should we, but more what should we buy?
I am, I must confess, extremely drawn to the Fiat 500 and all the options/personalisation you can do.
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As I said we can afford it and its what we want to do so the question isnt really should we but more what should we buy?
As you can afford it, buy what YOU want - you're going to drive it, not us !!
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