Any point for getting a new car instead of used?
Discussion
Hi,
after recommendations I got here I am after Honda CRV. My budget is 10-15k which, according to offers I see on autotrader, seems reasonable.
I wonder if getting new car in PCP or so makes any sense financially? It seems, for basic Mondeo or Mazda 6 estate I would pay at least double what I would spend or used CRV. Are there any reasonable arguments besides the relatively low risk of getting a bodged car that would require some repairs?
after recommendations I got here I am after Honda CRV. My budget is 10-15k which, according to offers I see on autotrader, seems reasonable.
I wonder if getting new car in PCP or so makes any sense financially? It seems, for basic Mondeo or Mazda 6 estate I would pay at least double what I would spend or used CRV. Are there any reasonable arguments besides the relatively low risk of getting a bodged car that would require some repairs?
Some people on here believe PCP is the devil's work and refuse to accept that it works for anyone.
However, like anything, it depends on your circumstances.
If you have a chunk of spare cash that you don't mind spending on a car - dropping cash is always cheaper than financing, unless you get a 0% finance deal.
A new car will give you a long warranty, less chance of failure, lower costs on consumable for a period. These things are valuable to some, but you obviously pay more.
A new car may suit you, for example, if you are doing a high mileage and/or using it for work and need reliability.
It also depends on the PCP deal you're offered. Some manufacturers subsidise these and offer 0% or similar. This is free money and is therefore hard to turn down, as long as you're fully aware of your responsibilities.
For some however, they do low mileage and don't care about having the latest and greatest. Modern cars are reliable, especially Hondas that you are looking at, the chance of failure is relatively low. There's no reason why a car that's a few years old will not serve you perfectly reasonably and as well as a new car for some years to come.
Look at what you want from your car, what you use it for and how often, then take your choice.
However, like anything, it depends on your circumstances.
If you have a chunk of spare cash that you don't mind spending on a car - dropping cash is always cheaper than financing, unless you get a 0% finance deal.
A new car will give you a long warranty, less chance of failure, lower costs on consumable for a period. These things are valuable to some, but you obviously pay more.
A new car may suit you, for example, if you are doing a high mileage and/or using it for work and need reliability.
It also depends on the PCP deal you're offered. Some manufacturers subsidise these and offer 0% or similar. This is free money and is therefore hard to turn down, as long as you're fully aware of your responsibilities.
For some however, they do low mileage and don't care about having the latest and greatest. Modern cars are reliable, especially Hondas that you are looking at, the chance of failure is relatively low. There's no reason why a car that's a few years old will not serve you perfectly reasonably and as well as a new car for some years to come.
Look at what you want from your car, what you use it for and how often, then take your choice.
Only you can know really. Do you want hassle-free and fixed-cost motoring for 2-4 years where you effectively just rent? Or do you want to own but for an older car which may or may not have gremlins lurking?
In the last 8 years I've had a £900 E36 328i to a brand new 840i GC. The E36 was a bargain in every sense, cheap to run and maintain but I knew it would need both preventative and remedial work done from time to time. Other than the usual running costs you'd have with any car (tyres, brakes etc) it cost me about £400 in unexpected repairs over 4 years. Made a small profit when I sold it too; loved that car.
The 840i is a cheap lease. No thought given to needing to repair or MOT etc. I'll drive it for 2 years, handing over £5.5k/year for the privilege and then hand it back. It's a lovely place to be and all the mod cons (not something the E36 could be accused of!).
In contrast I had an E46 330Ci for just over a year which I paid £5.2k for and which promptly devoured another £2.5k in repairs and £1.7k in depreciation when I bailed out of it after 14 months of hellish ownership. I'd always wanted one but I spent more time worrying about whether it would get me where I needed to go than enjoying driving it and if it DID strand me (which it did, several times) it was a pain in the arse followed by a wallet-raping.
If you want to drive something shiny and new and don't mind a monthly cost then look at cheap leases (there aren't many around at the moment unfortunately) or PCP deals. They're hassle-free and you get nice toys and whatnot. If you aren't fussed about having that 'new-car-smell' moment then roll the dice on something used. With a loan you might even get a decent enough interest rate that you could keep your capital in the bank and spread the payments like you would on PCP.
There's pros and cons of each but as I opened with, only you can really know what'll work for you.
In the last 8 years I've had a £900 E36 328i to a brand new 840i GC. The E36 was a bargain in every sense, cheap to run and maintain but I knew it would need both preventative and remedial work done from time to time. Other than the usual running costs you'd have with any car (tyres, brakes etc) it cost me about £400 in unexpected repairs over 4 years. Made a small profit when I sold it too; loved that car.
The 840i is a cheap lease. No thought given to needing to repair or MOT etc. I'll drive it for 2 years, handing over £5.5k/year for the privilege and then hand it back. It's a lovely place to be and all the mod cons (not something the E36 could be accused of!).
In contrast I had an E46 330Ci for just over a year which I paid £5.2k for and which promptly devoured another £2.5k in repairs and £1.7k in depreciation when I bailed out of it after 14 months of hellish ownership. I'd always wanted one but I spent more time worrying about whether it would get me where I needed to go than enjoying driving it and if it DID strand me (which it did, several times) it was a pain in the arse followed by a wallet-raping.
If you want to drive something shiny and new and don't mind a monthly cost then look at cheap leases (there aren't many around at the moment unfortunately) or PCP deals. They're hassle-free and you get nice toys and whatnot. If you aren't fussed about having that 'new-car-smell' moment then roll the dice on something used. With a loan you might even get a decent enough interest rate that you could keep your capital in the bank and spread the payments like you would on PCP.
There's pros and cons of each but as I opened with, only you can really know what'll work for you.
Wow, thanks for fast and great answer. I will use car just for family trips - sometimes up to 800 miles a day (London - Central/Southern France). Up to now I seen PCP as you phrased 'devil work'. Depending on next year and situation on job market (I am a contractor) I might have some extra money, and despite I don't care about cars - I am just a man and if I would get a good deal, I would be tempted.
Any advice on how to negotiate or try to get a good deal, when I would have 15k-20k cash I am ready to spend on a used car?
Any advice on how to negotiate or try to get a good deal, when I would have 15k-20k cash I am ready to spend on a used car?
If you have 15-20k cash to buy a car then thebest thing to do is take their finance on a lightly used or new car (depending on the where the best discount lies at the time) you'll be able to negotiate a better (dealers don't like cash) deal with some added extra's like: A longer warranty/Free Servicing etc then once the deals agreed (I normally advise clients to pay two months worth) you clear the finance with the cash you have & you keep the sweeteners.
Pre-reg can be a good way of getting anew car and save thousands:
https://www.autotrader.co.uk/car-details/202009163...
https://www.autotrader.co.uk/car-details/202009163...
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