Buying a brand new car?
Buying a brand new car?
Author
Discussion

gaz1234

Original Poster:

5,233 posts

249 months

Monday 14th October 2013
quotequote all
now it used to be silly (so most people said to me) as you lose money straight away. However, a lot of people i know are buying new. One reason was that its cheaper (if leased or on HP or whatever it is) than biuying a 1 or 2 yr old car.
example, a brand new skoda octavia with all the toys costs c£250 a month, 0% finance, servicing, low tax (i assume), 50+mpg and after 3yrs give it back...

Is it me or is new the way to go?

Jasandjules

72,633 posts

259 months

Monday 14th October 2013
quotequote all
Do it if you want to.


NorthernBoy

12,642 posts

287 months

Monday 14th October 2013
quotequote all
I just have. It was a little bit cheaper than a nearly new car, but not as cheap as a 2 year-old model.

I reckon that the new one will drop 6k per year for the first two years, whereas used would drop about 4k. That's a small enough difference that I prefer to go with new.

Matt UK

18,084 posts

230 months

Monday 14th October 2013
quotequote all
If you are considering nearly new then new deals are very enticing.

But if you are considering used, ie 3+ yrs old, then not really in the same ballpark. Either the costs for the same csr are too different or the type of car you can buy for the same budget are too different.

Condi

20,484 posts

201 months

Monday 14th October 2013
quotequote all
gaz1234 said:
example, a brand new skoda octavia with all the toys costs c£250 a month, 0% finance, servicing, low tax (i assume), 50+mpg and after 3yrs give it back...
You're not buying, you're renting.

Welshbeef

49,633 posts

228 months

Monday 14th October 2013
quotequote all
Condi said:
You're not buying, you're renting.
That's irrelevant what's important it the total cost for you to have the car in your possession.

Unless you buy a car and run it for. 20 years then running a car for x years will be not too dissimilar. One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.

CraigyMc

18,369 posts

266 months

Monday 14th October 2013
quotequote all
Condi said:
gaz1234 said:
example, a brand new skoda octavia with all the toys costs c£250 a month, 0% finance, servicing, low tax (i assume), 50+mpg and after 3yrs give it back...
You're not buying, you're renting.
It was cheaper for me to spec the car I wanted, run it as a company car for 2 years then buy it outright at the end of those years, than it would have been to buy it outright initially -- and cheaper by a ridiculous sum.

anonymous-user

84 months

Monday 14th October 2013
quotequote all
If you are saying "after three years, give it back" then it's not really ownership.

However, if you want to splash the cash and spec a car exactly how you'd like, go for it!

Matt UK

18,084 posts

230 months

Monday 14th October 2013
quotequote all
Welshbeef said:
One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
OK. We should let all those people buying 7 year old cars know its actualky cheaper to buy a new car...

So why didn't you buy a new rs6 using this rationale?

anonymous-user

84 months

Monday 14th October 2013
quotequote all
Got a link to the 250 a month octavia with all the toys?
Or is it 6 months deposit/250 + vat etc etc like the 'cheap' headlines usually are!!
My local BM garage had a nice M6 with 0% interest. The small print was 80k down and interest free on 20!!!

AmitG

3,570 posts

190 months

Monday 14th October 2013
quotequote all
I found that even when you take leasing off the table, it can be cheaper to buy new than nearly-new.

My current car had a retail price of 26.4K, with nearly-new (less than 1 year old) examples between 23K and 26K. I paid 22K for a brand new one with some extra stuff thrown in. This was cash plus trade-in, no finance, no options, my choice of colour. And I am a crap negotiator.

I guess that manufacturer incentives, dealership sales targets etc. end up distorting the pricing.

IMHO if you are looking at buying nearly-new it is well worth trying to do a better deal on a brand new example. I was quite surprised.


Welshbeef

49,633 posts

228 months

Monday 14th October 2013
quotequote all
Matt UK said:
Welshbeef said:
One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
OK. We should let all those people buying 7 year old cars know its actualky cheaper to buy a new car...

So why didn't you buy a new rs6 using this rationale?
Note I'm my quote I said "could".

I'd say that most are not cheaper but there will be some special offers or costly to run older 7 year old car.

a311

6,426 posts

207 months

Monday 14th October 2013
quotequote all
Seems to be a few threads of this ilk popping up lately.

As it happens I've been considering an Octavia vRS on a lease. I was in the dealer on Saturday and the deal you speak of (give or take as it does vary from dealer to dealer). Is 3k down and 250 a month for 3 years with an option to buy of slighty over 12k-so pretty much what Skoda are predicting a 3 year old car to be worth. I don't think this is 'with all the toys' met paint is almost 500 quid and annoying in my case cruise control isn't standard but a low cost option. I'll probably go for met black and the cc as my only options.

I've ben looking at 2 year deals 1100 down and 191 per month works out at about 5.7k. Will one of these be worth 18k after 2 years if Skoda are predicting 12k after 3? I very much doubt it so to me seems like a good deal as you'd be paying les than the depreciation.

It seems to becoming a more popular method of car ownership/rental. I've always bought my cars out right but like with most thing there are positives and negatives. Just go in with your eyes open.


SV8Predator

2,102 posts

195 months

Monday 14th October 2013
quotequote all
Matt UK said:
Welshbeef said:
One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
OK. We should let all those people buying 7 year old cars know its actualky cheaper to buy a new car...

So why didn't you buy a new rs6 using this rationale?
Don't encourage him!

Willy Nilly

12,511 posts

197 months

Monday 14th October 2013
quotequote all
Welshbeef said:
That's irrelevant what's important it the total cost for you to have the car in your possession.

Unless you buy a car and run it for. 20 years then running a car for x years will be not too dissimilar. One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
I have had a quick squizz at lease deals in the past and I can buy, insure, tax, maintain and fuel my old Civic for what it would cost me to lease a new Jazz.

In the first few years leasing looks a good deal and if it is a business tool it is probably a better use of capital and more tax efficient. My car has probably only lost £300 in the last 5 years, maybe £500. There is a little more maintenance so sure but it is not costing in repairs what it has cost over the years in depreciation.

It won't last forever and when the time comes I'll look at my options, but late used looks the best value for me.

Blakewater

4,559 posts

187 months

Monday 14th October 2013
quotequote all
Dealers get commission from selling finance deals and that's where they make a lot of their money from. Franchised dealers have sales targets to meet and that's why they end up with rows of pre registered cars on their forecourts, although you can't take delivery of them until three months after buying them. Between the two, a brand new car on finance is often the best way to get a good deal. Don't think a finance deal is a means to get a car you can't really afford though.

Snowboy

8,028 posts

181 months

Monday 14th October 2013
quotequote all
Condi said:
You're not buying, you're renting.
This.

But, if you're happy renting a car for a couple of years it's fine.

anonymous-user

84 months

Monday 14th October 2013
quotequote all
So the 250 a month Skoda is actually 4k a year when deposit is taken into account.
I purchased an Octavia Vrs estate 4 years ago @ 1 year old. Paid 13k. Its easity worth 7k today. So it's cost me 1.5k a year. No maint costs...

Justin Case

2,195 posts

164 months

Monday 14th October 2013
quotequote all
Why buy/lease a brand new Skoda at £250 per month when you can buy a 1994 Fiesta outright for £240.

There you are, standard PH response, no need to continue the discussion wink

Snowboy

8,028 posts

181 months

Monday 14th October 2013
quotequote all
Including deposit, that's £8k over two years.
If your happy spending that much money to drive the car, then hand it back, that's fine.
Go for it.

But, some people might suggest you get a bank loan for £8k and buy an £8k used car.
Spend the same amount in repayments, and at the end own the car.