Cost of New Car Vs Used Car. Am i missing anything?

[okie592]

firstly sorry for all the questions

Its insurance time, and im looking at quotes

to insure my 110bhp vw bora for a year is £1800
to insure a 105bhp seat ibza / polo / fabia is £1500

so £300 saving there

tax for the bora £220
tax for ibiza £30

saving £190

mot - bora £50 plus what ever repairs cost, so £100 - £200 based on the last 2
ibza - none

I would be buying the ibiza on finance, 1 year old cars are around £11,000, on pcp so hand back at the end and walk away ( if i go to uni)

i no longer need a derv, as my commute has dropped to 5 miles a day, but my bora does 500 miles to a tank costing £79

a ibiza would cost £58 and both claim 55mpg so more like 40mpg on my town and dual carrageway commute, people say they get around 400 miles to a tank

i service my bora every 10k and it costs £70 a time, the ibza will costs about £130 from a main dealer

the new car is covered by warrantee, and although my bora has been reliable it is showing its age, cambelt has been done but its on 120k now.

the finance rate at the moment is £199 down and £199 a month. Which i can afford easily


so for me it seems like a good idea, but what am i missing?
i know you need gap insurance but how much is that?
any other costs i need to worry about? obviously a newer car depreciates, but if its pcp the value doesnt matter at the end if your handing it back?

Is there anything else i should be looking at? I wanted a smaller engine car but with a good amount of power which i think the tsi engines account for

having a diesel just seems like a waste now, covering less than 10k a year apposed to the 18k i covered in my previous job

Edited by okie592 on Sunday 15th April 02:40

[okie592]

not260 said:

In your opinion is the Fabia worth 2.4k-running costs of the bora a year? While you may be in a position to easily afford the car now are there other things to consider such as emergencies, property purchases, family and job security that could influence the affordability?

I had my scooby on finance and I will never forget the £200, plus road tax, cambelt service, mot, fuel month. That I experienced cost me 2k in 1 month.

New fabia sounds a lot more sensible than that though.

only 19, so not planning on buying a house anytime soon. job is secure, unlikely too be made redundant or loose it in the next 18 months - 3 years.

Thats why i was thinking smaller engine, £30 road tax a year is easily afforrdable.

what the scoob new, i assume a car wouldnt need a cambelt in its first 30k i am likely to cover.


oh finance would be via dealer on a dealer car

[okie592]

Emubiker said:

I do not see the value in GAP at all. Depends who you deal with, but a VRI (vehicle replacement insurance) is much better. Most GAP insuarnce costs about £350, and will only cover the gap between your settlement and your cars value. A VRI will give you the difference between the current value, and what you actually paid. So effectively, if you pay £11,000 for the car, write the car off in year 3, lets say you get £4500 back from insurance, then the VRI would give you a check for £6500 too. This normally only costs £199.

Yes thats a bit of a sales pitch, but its much better thn GAP in my opinion.

if its only £200 thats not a problem i was expecting it to be like £100 a month or something, Bonus!

went to look at a ibiza today really nice, is there still anything im forgeting?

[okie592]

Fox- said:

£200 a month on a base model Ibiza? This is something you'll look back on and think 'Why did I do that?' I would imagine.

its a sport or a copa so mid range. being 19 the FR and cupra are off limits for at least another year.

not sure if depreciation matters with finance, i dont plan to buy the car outright, just return it at the end of the term and either get another one, or return to private owned cars, something i can do putting money aside each months for saving as ive been doing the last couple of years, when insurance has been more

[okie592]

AlpineWhite said:

Yep. I view PCP as a deal whereby you get to pay for someone else's depreciation in return for getting to use the car for a couple of years (assuming, of course, that you don't keep the car afterwards).

But then I am a bit tight about that kind of thing

I understand that and its something im prepared for, its basic like renting the car, il never own it, but thats fine, ive owned old cars and now want a new one.

the plan is to keep it until in 21, which is a year away, then either get out of the agreement and buy a cheap car again or upgrade to something else. world of cars and free insurance opens up at 21.


For those doubting i can afford it, im 19 live at home, pay no rent, work full time and after bills have a disposable income of about £800 a month, till now i have been saving a large portion of that a month but why should i waste my life saving for a rainy day that might never come.

[okie592]

Fox- said:

Plus a rainy day isn't neccesarily a negative event.

Fast forward 4 years. You get made redundant. Your mate says 'Sod it, lets go travelling for 6 months and sort the job thing out when we get back'

'Can't, I leased an Ibiza'

'Where is it?'

'Went back last year'

etc. Ok it's not quite as simple as that but it explains why its useful to have a stash for a rainy day.

fair point, although im still going to be putting away a certain amount every month, so still going to have a fair wack saved up at any point in time. thats what im getting at, although a car is going to cost me £200 a month plus fuel etc, the new car isnt going to need a mot, possable a new clutch and radiatior the bora is going to need, is it worth thowing around £500 at a car worth less than £2k now?

re the leon cupra, was looking at those and other incarnations of the 1.8t and all are around £4k to insure, hense the want to reduce the cost of insurance tax etc

Edited by okie592 on Sunday 15th April 20:06

Edited by okie592 on Sunday 15th April 20:15

[okie592]

daemon said:

Does your car really need a clutch and a radiator, or is that a handy £500 bill to stack up against keeping it?

Also, you'll need to get those fixed to get the best price possible for your car?

it is leaking coolent, probs could get away with a can of radweld. clutch im not so sure about its getting higher and higer and makes some wierd sounds.

Im worried about being bored pretty quickly, but nearly ever car i look at is alot to insure, i wouldnt mind £2k for something like a 1.8t but its at least 4 grand, plus the extra tax.

in reality i want a warm or hot hatch, but its not going to happen this year, hense why i thought this ibiza.

unless anyone can suggest something better?

[okie592]

After_Shock said:

If you get the Gap get return to invoice not finance gap, make sure it is return to invoice as has been suggested.

People saying they cant see any sense in it have clearly been ripped off on finance gap and have never used or had experience of return to invoice gap that does pay out well.

However you 'dont' have to take it by any means.

Regardless which way you look at it the Bora is the cheaper option, providing nothing blows up on it.

If you want a new car for a couple of years, look at some of the PCH deals about, if your miles arent high some stupidly cheap offers kicking about.

sorry to sound dense but what is PCH? how does it work?

thanks for the adivce on gap

[okie592]

£14k blimey.

im going for some test drives and see whats the best option around, ideally i want more power but im willing to compromise for now.

might even clean the bora today if the rain holds off

[okie592]

Dapster said:

If you're not doing many miles, spend your £200 / month on a loan and get something tasty and classic that won't depreciate. I'd polish up the Bora and get shot of it in exchange for something like this. Plus a bit left over in the kitty in case it gives you any trouble....

http://www.pistonheads.com/sales/3708513.htm

ide never have a porsche, im all for selling up and getting something fun, but as i said insurance over £2k is not something im prepared to pay:

clio 172 is something i really want, but £4500 to just be able to drive it for a year fook that! it be less next year but not by much

[okie592]

so general consensous is that its a bad idea, fair enough. Il have to think its not till after june.

As for coming out with nothing, if i spend the extra £500 a year on insurance and £200 on mots, £360 on tax my bora is not going to be worth hardly anything in 2 years with 130k on the clock, its 12 years old.

I notice a few companies are doing a scheme simular too peugeot just add fuel, with the added bonus of not having a peugeot


the problem with buying another fun shead is everything people suggest are expensive to insure and i dont like, ie MX5 MR2, etc. i know a small ibiza isnt gonna be fun but at least its nice and covered.
prehaps a fiesta zetec s is a better deal

[okie592]

Froomee said:

Sensible answer: Keep your current car.
Save £200 a month for as long as your car holds up, only repair what is necessary in 12-18 months time use the value of your car plus the money saved to put a significant deposit on something nice that will be cheaper to insure then.

What i have done: I have had 6 new cars in 7/8 years and have probably thrown thousands down the drain in the process. I had a Zetec S fiesta at 18 and was going to buy a Focus ST at 19 but insurance was over £3k a year so i brought a Fiesta ST and purchased a bike aswell got the Focus ST at 24 in the end with my house.

As long as your saving money every month spend a % of your income on a car isn't too bad if it makes you happy and is far better than drinking,etc although i did that too. I ended up saving around £300-£500 a month minimum from when i was 19 as i earned decent money and used that money to joint purchase a house two years ago.

I now own three bikes (all paid off) and am carless as i sold my Focus ST and am waiting to save up for something better with minimal finance so i can save again to buy house number two or pay down my side of the mortgage.

What i would say is the car suggested isn't that great and i would personally go for something better i.e something more PH rather than an ibiza. Realistically if you get a few pay rises soon and you save enough at 21 you could have something like an E46 M3 or any of the current crop of hot hatches with minimal finance and just the runing cost to bare..............something to think about

very very good advice, always thought about saving up for a couple of years and getting a focus st as it happens, just wanted something cheaper to run now but i guess with the finance it isnt that cheap.

update: Been put off uni,and been accepted into my companies management training scheme.