I notice in quite a few posts (and in particular the one about the A4 tdi 130) that people buy a relatively new car and only plan to keep it for a year or two.
Personally I like to buy a car and keep it until it is practicaly dead (although in practice this has not happened for one reason or another). I know that people like to change their cars regularly to try and get something back on it before it reaches a very low price, but surely this does not make sense as the big depreciation hit is during these first years.
What is the best thing to do, bearing in mind that the cachet of having a new car is unimportant to me?
C
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The best bet to my mind is to buy at 2-3 years old when the biggest chunk of depreciation has happened and then run it until it falls apart. Whatever the repairs cost, it'll usually be much cheaper than changing to a new car.
If I had pots of money then I'd probably buy new but living in the real world I can find better things to do with many thousands of pounds than wave it goodbye in depreciation. Good job everyone isn't like me though, as the economy would collapse!
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I've never, ever bought a new car and have no intention of doing so. Depending on your requirements, either low mileage used or high mileage used is where it's at for me.
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You tend to find that a lot of people want the security of the manufacturers warranty. So if the car is under three years old it will have some warranty left and also will not require an MOT.
Once it goes over this owners tend to think that its going to cost more because it will need work done for the MOT. What they don't realise is that once the warranty expires, they can take it to anyone they like to have it serviced, or simply NOT service it any more.
Personally, I think it is the snob factor that makes people buy a brand new car. I'd much rather have something classy, but a bit older (my current car is ten years old).
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Good point, Wally.
Anyone buying a new car should factor in the cost of having to use a main dealer for servicing/repairs/parts for 3 years rather than a good independant or DIY. Those big discounts might not look so good then! I'm sure cars are almost loss leaders these days and the real money is made on the finance deals and servicing/repairs/parts later.
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I've just had my Volvo V70 D5 serviced 12000 miles, at the main dealer in Worcester and it cost just under £200. Not too bad when compared with other makes.
VD5D
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I thought the EU legislation said that as long as the car goes to a reasonable garage, uses parts to the manufacturer's specification and is serviced in accordance with recommended intervals then the manufacturer's original warranty is still valid and the manufacturer cannot refuse to honour claims just because you haven't taken your car to main dealer? I know the extended dealer warranties may not be included in this but if they are so restrictive as to tie you to them for a couple of years when there are other capable independent specialilsts then I thought they could be ruled as having unfair terms and conditions and therefore unenforceable?
teabelly
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Teabelly. In the case of my Ford Ka the manual states that the 3 year warranty requires servicing at a Ford garage. Maybe what you refer to is the 1 year warranty which is I think a legal requirement anyway. The extra 2 years are a bonus from the manufacturer and I don't see being tied to a Ford garage as unreasonable since they can check the quality of their own garages.
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i do not consider myself a snob just because i have got a new car it is my choice,anyway if people like me did not buy them and sell them how would you get your classy secondhand car?
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Parts for cars are incredibly cheap these days. I was reading a roadtest of a Mk1 Golf GTI the other day, and brake pads etc. are all about the same price now as they were 25 years ago. Garage labour, on the other hand, was £6 an hour in 1977.
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Like nick, I buy a car at 3 years old and keep it for 5 years or 80,000 miles.
I usually trust a small independent with the servicing and maintenance.
Usually I part-ex it in for another nearly new secondhand.
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3500S: That is a common scenario. I wonder what fraction of the new price you paid? If you paid >5/8 new price then you have not saved. I would say that if you pay 4/8 = 1/2 new price then you have not saved as the used car has worn clutch, tyres, brake disks and pads etc.
However another factor is the cost of finance. If you can't afford to pay up front, then you pay interest for a loan, and that can load up the cost of a new car relative to used.
I bought a 5 year old Micra ~5 years ago. The purchase cost spread over 3.5 years (it expired at 8.5 years old) was equivalent to the purchase cost of a new car spread over 6 years. And I had much bigger servicing costs, and an older and less safe car. So overall buying new would have been better.
Mind you if you buy nearly new from auction you can save lots. You can also be diddled. A colleague has just bought a 3 year old from auction. 20K on the clock. Clutch and brake pads needed replacing so looks like it has actually done 60K.
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I recently bought a Subaru Legacy saloon, 2000W, 55k, for £6200 cash, cost new £15500. If it lasts to 150k, which it should as I do mainly motorway miles, I reckon that's pretty cheap motoring. I can't see how buying new could possibly be cheaper. As for a new car being safer, the Legacy has 4 airbags, seatbelt pretensioners and great handling. Can't see new being that much better.
Still each to their own, as I said before, if I was rolling in it, I'd buy new. But as I'm not, and have a mortgage, I'd rather put the extra £9k in there.
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I don't intend ever to buy new (can't really speak from experience as I'm only on my 2nd car). I bought this car at 3 years old and I intend to keep it until it becomes unreliable or dies completely. I'm not bothered about manufacturers warranties and I'd prefer to be able to my car to the local independent garage and after the first few years any recall problems or other glitches will have been smoothed out hopefully so as long as you shop round you can get a great car for a lot less than new.
My finance finishes at the end of December next year when my car will be about 6 years old but I'm going to keep transferring the same amount of money into another account to start the pot for my next car, as it's already being used I won't miss it. At a rate of £1300 per year if I keep the car until it's about 10 years old (with a bit of luck) I'll have enough saved up to buy another used car outright and can then start the saving process all over again.
As an aside I don't like any of the new cars that are being made at the moment - the smooth curves are being ruled out for harsh lines so when I finally do come to get another car I hope the curves are back in fashion!
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I reckon it depends on the make/model of car. Some people seem to minimise annual costs by changing every year if it's a low depreciation "desirable" model. Indeed some make better than list when they are sold on.
But if, however, it's depreciation graph goes down hill like a greased pig (did someone say Range Rover?)-
Then buying something that's 3-4 years old with most of it's depreciation hit already gone, is probably better.
Then run it 'till it dies.
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Isn't there a reason for lead balloon depreciation? Poor reliability perhaps? Or is it mainly image?
What you say makes sense as long as you get a good 'un.
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When my father bought his E-Class 320 CDI estate 18 months ago, the car actually appreciated for the first year - people were that desperate to get hold of one.
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Leif,
Absolutely right you do need a good 'un. But I'd spend a bit on getting it thoroughly checked - can save £'s later on for an outlay of £2-3 hundred up front.
If I didn't have a company car - I'd be seeking out something like an older 7 series with good history. Maybe spend £12k? Run it until it dies having it serviced at an independent.
You get far more quality than you could get new or nearly new - for similar outlay.
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Each to his own - I have a friend who buys new every 3 years, likes the security of having a car in warranty and no worries about MOT's and major repairs (he says) But then he is not really interested in cars or image, tends to buy the base model (Clios at the moment, used to be Golfs) and only uses it for getting to work and back so he only does about 5000 miles a year. I keep telling him that he is paying the depreciation for someone else but he doesn't care. Opposite philosophy to me - I always buy at about 3 years old and run them into the ground. He reckons he always has a nice new car and I'm always in an old banger 'cos I take a long time to run them into the ground but then I only use it for work as well so I don't care. I won't go into my wife's car buying philosophy which largely depends on colour! "Which new car would you like next my dear?" "A blue one I think - though I saw a nice silver one today,but they are a bit common aren't they? Definitely not red though....."
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I keep mine til the earlier of .........
(1) They become a liability; or
(2) I get bored; or
(3) Ooo, nice car, I fancy changing to one of those ....
clariman
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I bought a 7 year old BMW in November for £3900, ran it for 6000 more miles and sold it last week for £4100. Ooh, I feel so smug.
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I put 13000 miles on the 309 my family kindly bought me. Serviced it once and sold it for £600 - only £100 less. Potential reliability aspects cast aside, old cars can be a good choice. Nice to buy new though.
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Potential reliability aspects cast aside, old cars can bea good choice. Nice to buy new though.
Ahh the smell of a new car!!!
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I think it has been proved* that the new car smell is produced by brain altering chemicals added to the plastic by the makers.
These effect a slow release and cause the owner to look for another fix in about three years.
*By a trial conducted at the Porill University Research Lab** on two Ladas.
**Well we're getting close to the time of year that institution releases most of its findings.
MM
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I have the answer and antidote to this well-known chemical dependency. I buy it in the States and it's called "New Car Scent" by MEDO, Mt Vernon NY. You can buy it at Eckerds and Walgreens and those other big drug stores they have over there.
Hide it under a seat and the olfactory glands of yourself and your passengers will be pleasantly assailed by an indescribable bouquet delivering initial subtle and satisfying aromas of factory-fresh vinyl and thermoplastic mingling in perfect harmony, slowly mellowing to a relaxing after-scent redolent of recently tanned leather with those therapeutic gentle but seductive tantalising and elusive undertones of rubber that lifted your spirits on the day you drove out of the showroom. Costs about $2.50 + tax. Cheaper than a new car and lasts about 45 days.
Growlette says it makes her nauseous.
There's also a spray version if you run out of under-arm deo.
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What do Ladas smell of then? What a frightening thought!
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What do Ladas smell of then?
Depends whether the food has gone off or not!!
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