Keeping up with the Jones - old shed or new PCP?
Discussion
Seeking a little expertise from the man-mathsmagicians prior to the relatives descending and mocking my car purchasing decision making processes yet again.
My take: do your homework and research reliability and efficiency and aim to spend say £3k on a 7 year old, 70k mileage car outright. Probably Japanese but otherwise could be any family car, think Jazz, Focus etc.
The Jones: decide what colour you want, walk into dealer, nice shiny sign on saying "£100 per month PCP - preorder your new 70 plate care now. Generally Focus/Astra/Golf etc.Not sure what PCPs cost these days mind but sure the Jones will be bragging about how cheap their new car is......
The question - which makes more economic sense assuming you will be aiming to run the car without changing it for the next three years, then looking to sell or otherwise put its remaining value towards another car at that point? I appreciate there could be any number of factors that affect price and running costs such as engine size but on the assumption that you are looking for two comparable cars and minimising all costs (including servicing, repairs and insurance) over the period of ownership.
My take: do your homework and research reliability and efficiency and aim to spend say £3k on a 7 year old, 70k mileage car outright. Probably Japanese but otherwise could be any family car, think Jazz, Focus etc.
The Jones: decide what colour you want, walk into dealer, nice shiny sign on saying "£100 per month PCP - preorder your new 70 plate care now. Generally Focus/Astra/Golf etc.Not sure what PCPs cost these days mind but sure the Jones will be bragging about how cheap their new car is......
The question - which makes more economic sense assuming you will be aiming to run the car without changing it for the next three years, then looking to sell or otherwise put its remaining value towards another car at that point? I appreciate there could be any number of factors that affect price and running costs such as engine size but on the assumption that you are looking for two comparable cars and minimising all costs (including servicing, repairs and insurance) over the period of ownership.
For me, I just wouldn't want to saddle myself with debt when I can afford to buy a car I like outright and have that asset instead.
I can find cars I like from alittle as £600 so I'd never need to finance a car.
My old Volvo is worth about £3K. I paid £5K for it over 3 years ago now. I have an asset sat outside worth £3K so if the poop hit the fan tomorrow, I'd have quick access to that money. If I had a car financed, I'd have a big headache.
I can find cars I like from alittle as £600 so I'd never need to finance a car.
My old Volvo is worth about £3K. I paid £5K for it over 3 years ago now. I have an asset sat outside worth £3K so if the poop hit the fan tomorrow, I'd have quick access to that money. If I had a car financed, I'd have a big headache.
If the Jones' didn't walk into a showroom and pay a few hundred quid a month you'd start running short of decent second hand car options so be thankful that they do. It's possible to be just as judgemental about that as it is about someone with a new car judging you buying a 3 grand cheap runner
OP said:
My take: do your homework and research reliability and efficiency and aim to spend say £3k on a 7 year old, 70k mileage car outright. Probably Japanese but otherwise could be any family car, think Jazz, Focus etc.
Before you make too many plans I'd have a look and see how easy it is to find a 7 years / 70k family car (never mind a Jazz or Focus) for £3000Do what's right for you and don't worry about the Jones or Dave or whoever.
Im in a similar boat..driving a 16 yr old car which I paid for in cash about 10 yrs back. I do get ridiculed at times by family and friends about my old banger but just don't care. I will change it when circumstances dictate. I have no car debt (not against it per say) and from a value perspective I am v pleased with it as it's just done everything I needed when I needed it.
On the other hand if you can comfortably afford the shinier newer car and it suits your needs then why not. Nothing wrong with a nice car and the reliability factor might warrant something fresher. So my advice is useless as no view here as such, but a few points to consider.
I also have a dislike of debt but... willing to take a small loan (fairly low interest) and then buy something for around £5/6k to last a few years. I've done that twice now, rinsed and repeat!
Im in a similar boat..driving a 16 yr old car which I paid for in cash about 10 yrs back. I do get ridiculed at times by family and friends about my old banger but just don't care. I will change it when circumstances dictate. I have no car debt (not against it per say) and from a value perspective I am v pleased with it as it's just done everything I needed when I needed it.
On the other hand if you can comfortably afford the shinier newer car and it suits your needs then why not. Nothing wrong with a nice car and the reliability factor might warrant something fresher. So my advice is useless as no view here as such, but a few points to consider.
I also have a dislike of debt but... willing to take a small loan (fairly low interest) and then buy something for around £5/6k to last a few years. I've done that twice now, rinsed and repeat!
Edited by VR99 on Monday 23 December 19:37
I have just gone through the same thoughts, I’m a serial sheddist. gone through a couple of sheds in the last 2 years and thought it was becoming an expensive way to drive a old car. span it through the man maths calculator and this time gone for the bargain basement lease, it arrived today. 1.0 whatever the chuff car. It’s ok.
What’s the right answer? No idea. Atleast this car is locked in at a fixed cost for the next 2 years minimum and I hand it back without having to sell it on. And I Have maintenance included so should have no bills.
Advice I was given was bite the bullet on whatever decision you make.
What’s the right answer? No idea. Atleast this car is locked in at a fixed cost for the next 2 years minimum and I hand it back without having to sell it on. And I Have maintenance included so should have no bills.
Advice I was given was bite the bullet on whatever decision you make.
I'm currently experimenting with a shed having had PCP cars for 4 years prior.
And I'll be going back to PCP or lease in the new year.
The shed is 100% the better financial choice assuming you buy right, I bought an old Toyota Corolla outright for what was 5 payments on my pcp'd jeep. Mine has cost nothing other than an MOT in 8 months of ownership and is still worth what I paid for it.
An 8 month old PCP would be super negative equity at this stage
However, "shedding" isn't for me
A few learnings from me:
1) unless the older car has had work done the new one will drive better as everything is new with no wear. I did know this but not sure I was ready for how backwards a step I was taking. Fine in summer but shows its age come winter when everything takes ages to warm up.
2) things have moved on alot, my 55 plate corolla feels old to drive
3) things perish, especially the rubber things so need replacing or you'll have to accept the odd annoying noise
4) there will be faults or belmishes, no old car will be "as new" dispite what the adverts say. I thought I could live with it but little things start to annoy me
5) there are 2 types of "Jones'" my shed is a late model corolla t sport, those in the know appreciate it and ask questions. To them it's a cool choice, to most I'm the guy with the old Toyota on his drive.
Purely financially a well bought shed is a massive win. However sometimes you just want a new car with no problems
And I'll be going back to PCP or lease in the new year.
The shed is 100% the better financial choice assuming you buy right, I bought an old Toyota Corolla outright for what was 5 payments on my pcp'd jeep. Mine has cost nothing other than an MOT in 8 months of ownership and is still worth what I paid for it.
An 8 month old PCP would be super negative equity at this stage
However, "shedding" isn't for me
A few learnings from me:
1) unless the older car has had work done the new one will drive better as everything is new with no wear. I did know this but not sure I was ready for how backwards a step I was taking. Fine in summer but shows its age come winter when everything takes ages to warm up.
2) things have moved on alot, my 55 plate corolla feels old to drive
3) things perish, especially the rubber things so need replacing or you'll have to accept the odd annoying noise
4) there will be faults or belmishes, no old car will be "as new" dispite what the adverts say. I thought I could live with it but little things start to annoy me
5) there are 2 types of "Jones'" my shed is a late model corolla t sport, those in the know appreciate it and ask questions. To them it's a cool choice, to most I'm the guy with the old Toyota on his drive.
Purely financially a well bought shed is a massive win. However sometimes you just want a new car with no problems
Hub said:
Barring a catastrophic repair bill such as a new engine, buying a £3k car will always be cheaper - the deposit on a PCP won't be far off that, then the monthly payments on top. The used car will depreciate quite slowly and still have some value after the 3 years.
On a PCP perhaps. I went PCH, so was a 9+23 @ £134 per month. This includes Road tax, maintenance, servicing and it’s a new car so everything is new and warrantied. It includes breakdown cover - another monthly cost to consider. On my 2006 avensis that has just thrown a £1000 bill I was paying £20 per month road tax. I think the new lease is going to be slightly more expensive overall, but not much and remember for the true difference in costs which I suspect over the 2 years might be an additional £500 per year in reality. I get a much better car with way more toys. Lane assist, heated mirrors, autonomous braking, cruise control, Bluetooth phone connectivity, Apple CarPlay, DAB, stop start, auto headlights etc etc etc. VR99 said:
Do what's right for you and don't worry about the Jones or Dave or whoever.
^^^^This
Do whatever suits you best. Some people are happy with buying something older for cash / loan, other people are happy budgeting for a monthly payment on a new or close to new car.
In pure monetary terms the old car will almost certainly work out somewhere between a bit and a fair bit cheaper but there are other perceived benefits to going for new via a monthly payment, which have been over many times before.
Edited by Deep Thought on Tuesday 24th December 10:30
Currently in the same boat.
heading to pick up my S8 (Ronin vintage) from the garage again today - 4th time it's been in for electrical faults in as many months...
I think that, even though I take great care with it, it's now beginning to edge off the cliff.
It's still great when it works though.....but I can't help think a cheap PCP car would easily do my daily 50 mile commute and probably cost less and give less hassle...
heading to pick up my S8 (Ronin vintage) from the garage again today - 4th time it's been in for electrical faults in as many months...
I think that, even though I take great care with it, it's now beginning to edge off the cliff.
It's still great when it works though.....but I can't help think a cheap PCP car would easily do my daily 50 mile commute and probably cost less and give less hassle...
dodsi2000 said:
I went PCH, so was a 9+23 @ £134 per month. This includes Road tax, maintenance, servicing and it’s a new car so everything is new and warrantied. It includes breakdown cover - another monthly cost to consider.
I am in the same boat. The right lease deals are so cheap it makes no sense to own a family car. I jumped on the £228 no deposit 3008 GT deal this month so probably less than depreciation on discounted new. I'll need to service it once at £200 but no other costs or time wasted. Only long ownership can beat this but I don't like old cars or cars outside of original warranty so that's perfect for me. nickfrog said:
dodsi2000 said:
I went PCH, so was a 9+23 @ £134 per month. This includes Road tax, maintenance, servicing and it’s a new car so everything is new and warrantied. It includes breakdown cover - another monthly cost to consider.
I am in the same boat. The right lease deals are so cheap it makes no sense to own a family car. I jumped on the £228 no deposit 3008 GT deal this month so probably less than depreciation on discounted new. I'll need to service it once at £200 but no other costs or time wasted. Only long ownership can beat this but I don't like old cars or cars outside of original warranty so that's perfect for me. 
Bloody hell, thats cheap!
Deep Thought said:
Bloody hell, thats cheap!
It was through UK carline, it wasn't advertised anywhere
but someone mentionned it on the lease thread . I don't get it as those are normally £100 more at least. 18 month only though.
I actually didn't think it was going to turn up at this price but it did. Merry Christmas.
We just sold my wife's C-max which was definitely in the shed category.
Bought for £2600 in May 2016. It had about 36000 miles if I remember correctly and was 10 years old.
Has been a gem - only needed a couple of suspension bushes in the 3.5 years we had it (I'm excluding routine servicing a d consumables like tyres).
Traded for £840 against another older car so excluding the day to day expenses like insurance, tax, servicing etc has only cost us about £40 ish per month.
Was tempted to hang on to it but don't have to for any more cars.
Was on track for a similarly positive experience with my e61 .... Right up until I crashed it. Replaced that with a £3600 E90 and so far so good. Has cost very little but with enough small niggles I wouldn't recommend to someone who couldn't deal with little jobs (ignition coil, vanos solenoid etc) themselves rather than paying someone else.
Bought for £2600 in May 2016. It had about 36000 miles if I remember correctly and was 10 years old.
Has been a gem - only needed a couple of suspension bushes in the 3.5 years we had it (I'm excluding routine servicing a d consumables like tyres).
Traded for £840 against another older car so excluding the day to day expenses like insurance, tax, servicing etc has only cost us about £40 ish per month.
Was tempted to hang on to it but don't have to for any more cars.
Was on track for a similarly positive experience with my e61 .... Right up until I crashed it. Replaced that with a £3600 E90 and so far so good. Has cost very little but with enough small niggles I wouldn't recommend to someone who couldn't deal with little jobs (ignition coil, vanos solenoid etc) themselves rather than paying someone else.
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