Buying a brand new car?
Discussion
now it used to be silly (so most people said to me) as you lose money straight away. However, a lot of people i know are buying new. One reason was that its cheaper (if leased or on HP or whatever it is) than biuying a 1 or 2 yr old car.
example, a brand new skoda octavia with all the toys costs c£250 a month, 0% finance, servicing, low tax (i assume), 50+mpg and after 3yrs give it back...
Is it me or is new the way to go?
example, a brand new skoda octavia with all the toys costs c£250 a month, 0% finance, servicing, low tax (i assume), 50+mpg and after 3yrs give it back...
Is it me or is new the way to go?
Condi said:
You're not buying, you're renting.
That's irrelevant what's important it the total cost for you to have the car in your possession. Unless you buy a car and run it for. 20 years then running a car for x years will be not too dissimilar. One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
Condi said:
gaz1234 said:
example, a brand new skoda octavia with all the toys costs c£250 a month, 0% finance, servicing, low tax (i assume), 50+mpg and after 3yrs give it back...
You're not buying, you're renting. Welshbeef said:
One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
OK. We should let all those people buying 7 year old cars know its actualky cheaper to buy a new car...So why didn't you buy a new rs6 using this rationale?
I found that even when you take leasing off the table, it can be cheaper to buy new than nearly-new.
My current car had a retail price of 26.4K, with nearly-new (less than 1 year old) examples between 23K and 26K. I paid 22K for a brand new one with some extra stuff thrown in. This was cash plus trade-in, no finance, no options, my choice of colour. And I am a crap negotiator.
I guess that manufacturer incentives, dealership sales targets etc. end up distorting the pricing.
IMHO if you are looking at buying nearly-new it is well worth trying to do a better deal on a brand new example. I was quite surprised.
My current car had a retail price of 26.4K, with nearly-new (less than 1 year old) examples between 23K and 26K. I paid 22K for a brand new one with some extra stuff thrown in. This was cash plus trade-in, no finance, no options, my choice of colour. And I am a crap negotiator.
I guess that manufacturer incentives, dealership sales targets etc. end up distorting the pricing.
IMHO if you are looking at buying nearly-new it is well worth trying to do a better deal on a brand new example. I was quite surprised.
Matt UK said:
Welshbeef said:
One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
OK. We should let all those people buying 7 year old cars know its actualky cheaper to buy a new car...So why didn't you buy a new rs6 using this rationale?
I'd say that most are not cheaper but there will be some special offers or costly to run older 7 year old car.
Seems to be a few threads of this ilk popping up lately.
As it happens I've been considering an Octavia vRS on a lease. I was in the dealer on Saturday and the deal you speak of (give or take as it does vary from dealer to dealer). Is 3k down and 250 a month for 3 years with an option to buy of slighty over 12k-so pretty much what Skoda are predicting a 3 year old car to be worth. I don't think this is 'with all the toys' met paint is almost 500 quid and annoying in my case cruise control isn't standard but a low cost option. I'll probably go for met black and the cc as my only options.
I've ben looking at 2 year deals 1100 down and 191 per month works out at about 5.7k. Will one of these be worth 18k after 2 years if Skoda are predicting 12k after 3? I very much doubt it so to me seems like a good deal as you'd be paying les than the depreciation.
It seems to becoming a more popular method of car ownership/rental. I've always bought my cars out right but like with most thing there are positives and negatives. Just go in with your eyes open.
As it happens I've been considering an Octavia vRS on a lease. I was in the dealer on Saturday and the deal you speak of (give or take as it does vary from dealer to dealer). Is 3k down and 250 a month for 3 years with an option to buy of slighty over 12k-so pretty much what Skoda are predicting a 3 year old car to be worth. I don't think this is 'with all the toys' met paint is almost 500 quid and annoying in my case cruise control isn't standard but a low cost option. I'll probably go for met black and the cc as my only options.
I've ben looking at 2 year deals 1100 down and 191 per month works out at about 5.7k. Will one of these be worth 18k after 2 years if Skoda are predicting 12k after 3? I very much doubt it so to me seems like a good deal as you'd be paying les than the depreciation.
It seems to becoming a more popular method of car ownership/rental. I've always bought my cars out right but like with most thing there are positives and negatives. Just go in with your eyes open.
Matt UK said:
Welshbeef said:
One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
OK. We should let all those people buying 7 year old cars know its actualky cheaper to buy a new car...So why didn't you buy a new rs6 using this rationale?
Welshbeef said:
That's irrelevant what's important it the total cost for you to have the car in your possession.
Unless you buy a car and run it for. 20 years then running a car for x years will be not too dissimilar. One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
I have had a quick squizz at lease deals in the past and I can buy, insure, tax, maintain and fuel my old Civic for what it would cost me to lease a new Jazz. Unless you buy a car and run it for. 20 years then running a car for x years will be not too dissimilar. One area to consider is that say a 7 year old car c new car at that age its usually approaching lots of big costs and it could actually be cheaper having a brand new version of the older car.
In the first few years leasing looks a good deal and if it is a business tool it is probably a better use of capital and more tax efficient. My car has probably only lost £300 in the last 5 years, maybe £500. There is a little more maintenance so sure but it is not costing in repairs what it has cost over the years in depreciation.
It won't last forever and when the time comes I'll look at my options, but late used looks the best value for me.
Dealers get commission from selling finance deals and that's where they make a lot of their money from. Franchised dealers have sales targets to meet and that's why they end up with rows of pre registered cars on their forecourts, although you can't take delivery of them until three months after buying them. Between the two, a brand new car on finance is often the best way to get a good deal. Don't think a finance deal is a means to get a car you can't really afford though.
Including deposit, that's £8k over two years.
If your happy spending that much money to drive the car, then hand it back, that's fine.
Go for it.
But, some people might suggest you get a bank loan for £8k and buy an £8k used car.
Spend the same amount in repayments, and at the end own the car.
If your happy spending that much money to drive the car, then hand it back, that's fine.
Go for it.
But, some people might suggest you get a bank loan for £8k and buy an £8k used car.
Spend the same amount in repayments, and at the end own the car.
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