Selling a car, to get a cheaper one
Discussion
A bit of a debate going on in the office right now.
A colleague has two cars. One is a weekend car, and the other a daily.
The debate in question is that, he is considering selling his daily car, and getting another daily car for a cheaper price.
The car in question is an is a diesel I30 1.6 2013 plate car with 73,000 and Full dealership history. Looking at auto trader he could get between 5,000 to 6000.
For arguments sake we will take the lowest price.
He plans to sell for 5000 and buy a skoda 1.9 or 1.4 tdi for 2000.
Thus giving his 3000 in cash which he will spend on his house/wife.
My view is that:- this is a very short term outlook. Buying are Skoda, which is around 11 years old could potentially be a money pit. I did have a skoda my self which I brought at 200k miles and got to 239k with no faults but I brought this car from a friend.
A colleague has two cars. One is a weekend car, and the other a daily.
The debate in question is that, he is considering selling his daily car, and getting another daily car for a cheaper price.
The car in question is an is a diesel I30 1.6 2013 plate car with 73,000 and Full dealership history. Looking at auto trader he could get between 5,000 to 6000.
For arguments sake we will take the lowest price.
He plans to sell for 5000 and buy a skoda 1.9 or 1.4 tdi for 2000.
Thus giving his 3000 in cash which he will spend on his house/wife.
My view is that:- this is a very short term outlook. Buying are Skoda, which is around 11 years old could potentially be a money pit. I did have a skoda my self which I brought at 200k miles and got to 239k with no faults but I brought this car from a friend.
Depends on how many years he is expecting the 2-grand Skoda to last.
The original Hyundai (?) would have lasted another 10yrs easily, but you might only get 5 more out of the older Skoda, so you'd have to spend some/all of the £3k savings on another car, let alone whatever extra costs the older car might bring.
The original Hyundai (?) would have lasted another 10yrs easily, but you might only get 5 more out of the older Skoda, so you'd have to spend some/all of the £3k savings on another car, let alone whatever extra costs the older car might bring.
Brandonflowers123 said:
SS2. said:
Why do you think the Skoda could be a money pit any more than the Beemer ?
Age related wear issues, The fact it was previously owned by a friend is irrelevant when it comes to 'age related' issues.
SS2. said:
But you've already said you bought a Skoda at 200k miles and put another 40k on without a hitch.
The fact it was previously owned by a friend is irrelevant when it comes to 'age related' issues.
Sorry bad writing by me.The fact it was previously owned by a friend is irrelevant when it comes to 'age related' issues.
I was just giving an example wear I brought a cheap skoda years ago as my first car. and it turned out to be a bargain for 1000.
Sold my 61 plate Abarth 500 (6k) and bought a Cat C 58 plate Vectra - 1k and used the remaining funds to go towards importing an Integra Type R.
2 years on and the Vectra has cost me about £600 - changed all calipers, disks and pads. Only done 5k mind you as I only drive it to and from the train station.
I think most modern cars will last a lot longer than people perceive.
2 years on and the Vectra has cost me about £600 - changed all calipers, disks and pads. Only done 5k mind you as I only drive it to and from the train station.
I think most modern cars will last a lot longer than people perceive.
Truckosaurus said:
The original Hyundai (?) would have lasted another 10yrs easily
It may well do, but you can't be sure of that, can you?Truckosaurus said:
you might only get 5 more out of the older Skoda
Or it MIGHT only last six months. Or it MIGHT last another 20 years. Who knows?The timing chain snapped last week on my mate's 9-year-old German car. I towed it back to his house in my 20-year-old French car with more than twice the mileage.
What I'm trying to say is that how a car has been driven/maintained is much more important than its age/mileage.
Truckosaurus said:
Depends on how many years he is expecting the 2-grand Skoda to last.
The original Hyundai (?) would have lasted another 10yrs easily, but you might only get 5 more out of the older Skoda, so you'd have to spend some/all of the £3k savings on another car, let alone whatever extra costs the older car might bring.
He plans to keep either car, and drive it until they are not worth fixing. The original Hyundai (?) would have lasted another 10yrs easily, but you might only get 5 more out of the older Skoda, so you'd have to spend some/all of the £3k savings on another car, let alone whatever extra costs the older car might bring.
and I agree with you view point. he will eventually will have to buy another car either way. So it would be much better to keep the Hyundai which has been well looked after.
It will work as long as he sells the Hyundai privately for what its worth and does his homework on whatever he buys and avoids buying rubbish, or just something that needs tyres, brakes and an MOT, can soon eat into the difference he hopes to recoup.
He has two cars so get rid of the Hyundai, prep it well and be prepared to wait for a buyer and have a price in mind that leave you in pocket, it may be the case that it ends up not worth doing if the market isnt interested, it isnt like its a 20k car vs a 2k one, it always costs to change cars unless you are lucky or very savvy/careful.
Go and look at the replacement armed with cash, but not quite enough and haggle like mad, be prepared to walk away even if you want the car, can always walk back five minutes later having had a think, dont feel the need to speak too much during a haggle, make an offer, low but not insulting and then wait for them to speak.
He has two cars so get rid of the Hyundai, prep it well and be prepared to wait for a buyer and have a price in mind that leave you in pocket, it may be the case that it ends up not worth doing if the market isnt interested, it isnt like its a 20k car vs a 2k one, it always costs to change cars unless you are lucky or very savvy/careful.
Go and look at the replacement armed with cash, but not quite enough and haggle like mad, be prepared to walk away even if you want the car, can always walk back five minutes later having had a think, dont feel the need to speak too much during a haggle, make an offer, low but not insulting and then wait for them to speak.
J4CKO said:
It will work as long as he sells the Hyundai privately for what its worth and does his homework on whatever he buys and avoids buying rubbish, or just something that needs tyres, brakes and an MOT, can soon eat into the difference he hopes to recoup.
He has two cars so get rid of the Hyundai, prep it well and be prepared to wait for a buyer and have a price in mind that leave you in pocket, it may be the case that it ends up not worth doing if the market isnt interested, it isnt like its a 20k car vs a 2k one, it always costs to change cars unless you are lucky or very savvy/careful.
Go and look at the replacement armed with cash, but not quite enough and haggle like mad, be prepared to walk away even if you want the car, can always walk back five minutes later having had a think, dont feel the need to speak too much during a haggle, make an offer, low but not insulting and then wait for them to speak.
I agree, if the numbers are done right, he could recoup the money. He has two cars so get rid of the Hyundai, prep it well and be prepared to wait for a buyer and have a price in mind that leave you in pocket, it may be the case that it ends up not worth doing if the market isnt interested, it isnt like its a 20k car vs a 2k one, it always costs to change cars unless you are lucky or very savvy/careful.
Go and look at the replacement armed with cash, but not quite enough and haggle like mad, be prepared to walk away even if you want the car, can always walk back five minutes later having had a think, dont feel the need to speak too much during a haggle, make an offer, low but not insulting and then wait for them to speak.
However it will be tight.
the 1.9tdi have an annual road tax of 155 to 190 a year from our research.
His Hyundai is free. So tax alone will eat into this profit between 775 and 950.
So it only leaves him with the 1.4 tdi option which the tax is 30 pound a year.
If he can walk away with a clean and honest £3K in his back pocket to spend usefully on X, Y, Z right now then great.
However theres risks....
=> Theres dealers selling the same for £5495 - they can offer trade in, finance, assurance, etc, so £4.5K+ might be what he ends up with.
=> He might spend more than £2K to get the "right" car
=> There may be initial costs with the new car - servicing, timing belt, unspotted faults, etc.
=> Incidental costs - road tax, insurance changes, etc.
So his £3K target might end up being £2.5K or less.
Unless i had a spec need for the money - ie, to do some specific activity - house improvements or similar, i probably wouldnt bother.
However theres risks....
=> Theres dealers selling the same for £5495 - they can offer trade in, finance, assurance, etc, so £4.5K+ might be what he ends up with.
=> He might spend more than £2K to get the "right" car
=> There may be initial costs with the new car - servicing, timing belt, unspotted faults, etc.
=> Incidental costs - road tax, insurance changes, etc.
So his £3K target might end up being £2.5K or less.
Unless i had a spec need for the money - ie, to do some specific activity - house improvements or similar, i probably wouldnt bother.
Deep Thought said:
Unless i had a spec need for the money - ie, to do some specific activity - house improvements or similar, I probably wouldnt bother.
Same here. If he really does need the £3k and selling the I30 is the only way of getting it (i.e. there's no chance of getting a credit card with 0% on purchases or something like that), then fair enough, but if not then it does seem like short-term thinking. As others have said nothing is certain when it comes to running cars but something like an I30 that you know to be well looked after and with well under 100k on the clock (and I think I'm right in saying will still be under warranty?) is going to be near enough as close as you can get to a sure thing. A 10 year old £2k oil burner of unknown provenance considerable less so. Generally speaking the cheapest car is the one you've already got, and I think in the long run that would prove to be the case here. Gassing Station | Car Buying | Top of Page | What's New | My Stuff