The misunderstanding of the cost of modern cars
Discussion
Nedzilla said:
Monkey Legend said:
Prof Prolapse said:
Out of interest, does anybody know how similar the trend mimics house prices?
In real terms cars have gone down and houses up.I paid £65k for a house in 1997 that is now worth £220k, and £24k for a car that now costs £28k ish. Do the maths
As much as i love cars and will keep spending my hard earned on them,they must be the biggest waste of money known to man.The fact that you can invest £40k on a car and a year or so later it only be worth around half that is just criminal IMO.
I was answering the question re the difference in trends between the initial cost of cars and houses.
Clearly buying a house has, with a few exceptions, been a better investment than buying a car over the years, due to the fact that mostly cars depreciate and house don't.
But then again you would have to have been living on another planet not to know that.
Chris71 said:
RenesisEvo said:
It's called inflation.
I'm sure that is a factor, but I get the impression they're rising quicker than that. I think some of it comes down to our expectations - wind up windows and rattly trim were acceptable in a basic hatchback 10 years ago, but now questions are being asked if your entry level car doesn't come with AC and Bluetooth.To take this example
iva cosworth said:
I paid £9K for my Fiesta 4 years ago.
The equivalent model now is about £13K
Gold has gone from $910 an Oz in Feb 2008 to over $1700 now. The equivalent model now is about £13K
Although oil peaked in 2008, it went as low as $35 a barrel towards the end of the year, compared to $94 now.
Cars are cheaper in gold or oil terms, it's just that money is worth less.
A lex said:
Compared to a lot of places in the world, new cars in the UK are very, very cheap. 2nd hand cars in the UK are almost unbelievably cheap.
For most things motoring the UK has got it very, very easy. Thats including fuel costs, tax, insurance and consumables pricing.
Take a look at prices in places like NL, BE and Denmark if you want an eye-opener.
Indeed, my S4 had a list price (including extras etc) in the uk of around £44,000. Had I bought it from my local Dutch dealer, it would have cost me €97,000. For most things motoring the UK has got it very, very easy. Thats including fuel costs, tax, insurance and consumables pricing.
Take a look at prices in places like NL, BE and Denmark if you want an eye-opener.
Guess why we don't see anything like the number of ferraris and exotica here that you get in the uk or Germany! Bloody 42% car tax
. Since cars became no longer primarily a form of transport but more a fashion statement, the manufacturers have simple cashed in on what people are prepared to pay!
These days the actual difference day to day between say a Kia and a VW is very small, but people prefer the VW because it makes a statement, and hence will pay more for one!
These days the actual difference day to day between say a Kia and a VW is very small, but people prefer the VW because it makes a statement, and hence will pay more for one!
I most cases the list prices do not reflect the actual sale price. I remember when looking for a Ford Mondeo in 2006 the list price was around £19200. My local dealer had a pre-reg car for £14,000. I ended up buying a 6 month old car with 5500 miles on it for £10,600.
IMO big family cars from non premium manufacturers such as Mondeo's, Insignias, Mazda6, etc represent great value for money nearly new if you intend to keep them for a reasonably long time.
IMO big family cars from non premium manufacturers such as Mondeo's, Insignias, Mazda6, etc represent great value for money nearly new if you intend to keep them for a reasonably long time.
Max_Torque said:
Since cars became no longer primarily a form of transport but more a fashion statement, the manufacturers have simple cashed in on what people are prepared to pay!
These days the actual difference day to day between say a Kia and a VW is very small, but people prefer the VW because it makes a statement, and hence will pay more for one!
if cars are now a fashion statement it just shows how many people have poor taste!These days the actual difference day to day between say a Kia and a VW is very small, but people prefer the VW because it makes a statement, and hence will pay more for one!
Regarding Kia pucantos I drove one as a hire car 2 years ago was the Worst car I've driven for a long time, although a scenic 10 years ago was pretty bad.
Comparing cars and houses also makes no sense whatsoever apart from the cost of finance.
Gaspode said:
Toaster Pilot said:
Depends on the car - I bought a brand new Picanto last year for £5500 -why would I want to buy a 3 year old one for £3500-£4000 ?
True, I can't think of a reason why someone should want to buy a 3 year old Picanto for 3.5k, but my point is more why would one want to buy a new Picanto for 5.5k when one could buy say a used VW Polo instead?I'm puzzled how you can buy a new Picanto for £5.5k though as they appear to start at £7.5k..
Jonty355 said:
£40k 
Or
And before anyone mentions running costs, consider the fact that the Ferrari has finished depreciating, where as the Golf in a few years will be worth about 20p!
Very true. You need to look at the total price of motoring. How many people get blinded by MPG figures of diesels, only to find that based on their mileage, purchase price, servicing etc, they save nowt. (Not always the case, but has to be considered)Or
And before anyone mentions running costs, consider the fact that the Ferrari has finished depreciating, where as the Golf in a few years will be worth about 20p!
redstu said:
Regarding Kia pucantos I drove one as a hire car 2 years ago was the Worst car I've driven for a long time, although a scenic 10 years ago was pretty bad.
Comparing cars and houses also makes no sense whatsoever apart from the cost of finance.
After 10k miles I'm yet to discover the horror a few people talk about. Nimble enough for what it is, great to drive in the city due to its size, light controls and gearing. Cheap as chips to run too. Comparing cars and houses also makes no sense whatsoever apart from the cost of finance.
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