Cost of New Car Vs Used Car. Am i missing anything?
Discussion
After_Shock said:
Still going to have to pay the insurance, petrol and misc on any other car so really its the £7383 on the lease for the benefit of the new car.
Up to a point. If you expect to get 20% better economy, £100 a year less tax and £50 a month on repairs on a newer vs. an older car, you're not going to be paying those on pretty much any car.Of course that doesn't offset the whole of the lease cost but then neither should it - even an older car might have some depreciating to do.
You probably won't save money on tyres (big wheels = expensive) or servicing (tends to be main dealer on newer cars) though, whatever the age. Insurance - who knows?
I've only skimmed read this, so I apologise if I've missed the point.
Are you comparing your current bora and saying that the new car will be a better proposition financially?
Worst mistake I ever made was spending £11.5k on a new car when I was 21. After three years I think I got £4k for it.
If you hand it back after 3 years you've spent all that cash for what? To drive an Ibiza? Such nicer cars for £11k even with the insurance constraints of age.
Are you comparing your current bora and saying that the new car will be a better proposition financially?
Worst mistake I ever made was spending £11.5k on a new car when I was 21. After three years I think I got £4k for it.
If you hand it back after 3 years you've spent all that cash for what? To drive an Ibiza? Such nicer cars for £11k even with the insurance constraints of age.
After_Shock said:
Still going to have to pay the insurance, petrol and misc on any other car so really its the £7383 on the lease for the benefit of the new car.
14k to drive an ibiza or 7k to drive a bora ? I know that the bora will need a max of 2k to keep it on the road but at least will be worth 1-2k in 3 years time . Of course the OP might fancy a new car but he did ask for people's opinion so here's mine . 14k to drive an Ibiza, I rather walk 5 miles to work everyday 
Hark said:
I've only skimmed read this, so I apologise if I've missed the point.
Are you comparing your current bora and saying that the new car will be a better proposition financially?
Worst mistake I ever made was spending £11.5k on a new car when I was 21. After three years I think I got £4k for it.
If you hand it back after 3 years you've spent all that cash for what? To drive an Ibiza? Such nicer cars for £11k even with the insurance constraints of age.
Also, my first car was a clio on finance, cheaper than most to insure but as new driver getting new experiences and learning all the time i strived for more! the clio bored me sAre you comparing your current bora and saying that the new car will be a better proposition financially?
Worst mistake I ever made was spending £11.5k on a new car when I was 21. After three years I think I got £4k for it.
If you hand it back after 3 years you've spent all that cash for what? To drive an Ibiza? Such nicer cars for £11k even with the insurance constraints of age.
tless but i had no choice to keep it, (luckily i managed to pass it back to its previous owner but very complicated story). So if your like that and you will get bored a new car is never a good idea. Unless your lucky enough to have 10k through away cash. Like everyone has already said, it seems alot of money to throw away to come out with nothing! id rather have the loan to pay for the car, and go off to uni declaring the car SORN and leaving it home with the folks. Or give it to them until i finish uni. At least you come out with something for your 7k
Just to put a different spin on things...
I've just finished paying off my student loan of £9k last month. I finished uni in 2003 and have been paying it since then. Maybe if you have £200 a month spare, you could find something you don't mind driving with half the cash and save some away to save you borrowing as much for uni.
It might seem boring, but then when you are in my position you won't be paying back £200 a month to student loans, which is extra car money. And the benefit is that by then you'll get insurance on anything you like.
I've just finished paying off my student loan of £9k last month. I finished uni in 2003 and have been paying it since then. Maybe if you have £200 a month spare, you could find something you don't mind driving with half the cash and save some away to save you borrowing as much for uni.
It might seem boring, but then when you are in my position you won't be paying back £200 a month to student loans, which is extra car money. And the benefit is that by then you'll get insurance on anything you like.
Hark said:
I've just finished paying off my student loan of £9k last month. I finished uni in 2003 and have been paying it since then.
Slightly confused by why you did that - all the advice I've ever seen is NOT to pay off your student loan (other than the min. contribution taken via PAYE) as the interest rate is very low - certainly if you graduated in '03 I would expect your loan to fall under the old rules. My understanding was that having the money in a savings account would earn more interest than the debt accumulates, so there is no value in paying it off. AFAIK.
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
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
frosted said:
After_Shock said:
Still going to have to pay the insurance, petrol and misc on any other car so really its the £7383 on the lease for the benefit of the new car.
14k to drive an ibiza or 7k to drive a bora ? I know that the bora will need a max of 2k to keep it on the road but at least will be worth 1-2k in 3 years time . Of course the OP might fancy a new car but he did ask for people's opinion so here's mine . 14k to drive an Ibiza, I rather walk 5 miles to work everyday OP, just to answer your question "are you missing something?"
The £199 pm is based on you keeping the car for 3 years. If you only keep the car for one year then the cancellation cost is to cover the finance company for depreciation which might be an extra £3K. The PCP deal would probably have been £400 pcm had they known from the outset that you wanted a one year deal. If you're thinking of covering the loss via gapinsurance then you are claiming fraudulently or insufficient means which will mar your credit rating for future. So there you go, that's the catch
The £199 pm is based on you keeping the car for 3 years. If you only keep the car for one year then the cancellation cost is to cover the finance company for depreciation which might be an extra £3K. The PCP deal would probably have been £400 pcm had they known from the outset that you wanted a one year deal. If you're thinking of covering the loss via gapinsurance then you are claiming fraudulently or insufficient means which will mar your credit rating for future. So there you go, that's the catch
leef44 said:
If you're thinking of covering the loss via gapinsurance then you are claiming fraudulently or insufficient means which will mar your credit rating for future. So there you go, that's the catch
Was never any mention of using Gap to cancel anything off, OP was simply asking what it was and if he had to take it.RenesisEvo said:
Slightly confused by why you did that - all the advice I've ever seen is NOT to pay off your student loan (other than the min. contribution taken via PAYE) as the interest rate is very low - certainly if you graduated in '03 I would expect your loan to fall under the old rules. My understanding was that having the money in a savings account would earn more interest than the debt accumulates, so there is no value in paying it off. AFAIK.
Interest rate low on student loans? Clearly I was on a different one to everyone else!When I rang to be told id only paid a few hundred quid off mine in a year after making some contributions of over £400 a month, they then tried to wiggle out of it by saying the rate I get charged fluctuates (so its revolving credit not a loan) I decided id had enough and paid mine off.
The 'Just Add Fuel' schemes normally have hefty deposits and are limited dependent on age. I know that the 107 is something like £2500 deposit and is the only one available if you are under 21. It will be similar with other schemes.
Also your commute is 5 miles, why are you driving it at all? Cycle or jog. keep you fit whilst saving you cash.
Also your commute is 5 miles, why are you driving it at all? Cycle or jog. keep you fit whilst saving you cash.
After_Shock said:
Interest rate low on student loans? Clearly I was on a different one to everyone else!
When I rang to be told id only paid a few hundred quid off mine in a year after making some contributions of over £400 a month, they then tried to wiggle out of it by saying the rate I get charged fluctuates (so its revolving credit not a loan) I decided id had enough and paid mine off.
Fair enough, that's some hefty contributions. I understand some people don't want any debts - it's my only one. I understood it that compared to a high-street bank loan the interest is low, but given the size of the balance the total interest amount will still a fair bit. Worth it though - I can't understand people who run up the same/larger debt for a 2:2 in Media Studies. But's that going O/T.When I rang to be told id only paid a few hundred quid off mine in a year after making some contributions of over £400 a month, they then tried to wiggle out of it by saying the rate I get charged fluctuates (so its revolving credit not a loan) I decided id had enough and paid mine off.
RenesisEvo said:
Fair enough, that's some hefty contributions. I understand some people don't want any debts - it's my only one. I understood it that compared to a high-street bank loan the interest is low, but given the size of the balance the total interest amount will still a fair bit. Worth it though - I can't understand people who run up the same/larger debt for a 2:2 in Media Studies. But's that going O/T.
Well this is my point, they couldnt actually tell me what the interest rate is/was. As say when I asked they came out with it alters and can go/up down which is revolving credit (same as a credit card) and the amounts I was paying didnt add up to the amount I was paying off and the interest rate they were charging. Decided enough was enough and that was it. Didnt mind having the debt as such if I knew what it was actually costing me!!
After_Shock said:
Was never any mention of using Gap to cancel anything off, OP was simply asking what it was and if he had to take it.
You're missing the point, which is that the answer to the OP's question id that there is another £2k to £3k to pay if he stops the agreement after the end of the first yearSensible 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
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
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