Math problem - see also running costs

[FastEdd11e]

Forgive the simplicity but I've had a head injury so mental math isn't as strong as it was.

We need a second car. Our main car is a Maserati Ghibli S - we're loving it so want it for another 2 years.
We've done the shed thing and got burned twice. Our previous 2nd car was a 2005 WRX Prodrive Wagon which I broke. We've not come close to replacing it. Very sad.

Need;
Three of us, youngest is 10.
Dog
Cricket bags
Bikes
Weekends away
40mpg overall. Prefer petrol as the difference is negligible but for an older car I guess diesel may be better.

Budget;
I can get an estate/SUV on the motability scheme - a 3 year contract, £3k deposit, lots of choice, costs me £350 pcm including insurance, breakdown, 15k miles pa, everything. I am a War Pensioner so get the highest amount.

or

Spend £10/£12k on a quality family estate - Octavia, Superb, A4, 3 Series. We would put £3k in as a deposit, rest on finance.

We're unsure on the cheapest route.
I've had loads of motability cars over the years and simply use them hard them and hand back the keys.

Q: Is the new car, fairly limited choice, a better option than buying a second hand car?

I think I know the answer but would appreciate some more experience.

[six wheels]

Hi OP,

I note you’re a war pensioner and have a head injury. Without sounding too American - and assuming you’re from the UK - thank you for your service.

What is your goal?

Either way you put £3k down. Assuming it’s then 3x years at £350 vs. 3 years on finance, I think the notability scheme is cheaper, accounting for the newness of the car.

If you go second hand:
- Running costs for insurance, tax etc. on a second hand car must be at least £50/month.
- Add a service and repair fund and that goes up to £100/month.
- For the same £350/month, you then have £250 for the car finance; 36 x £250 = £9,000. Call it £8,500 after interest but “plus” haggling.
- your £3k down plus £8.5k = £11.5k ish.


You’re now spending the same amount per month on a second hand car with the ownership headaches that brings.

Or you opt to pass less and get more headaches due to the age of the vehicle.


I hope this helps.


Cheers, Steve.

[paradigital]

I’d likely also go for the mobility car, however I think the 2nd hand £12-15k (£15,600 will be the total outlay for the mobility car) has the potential* to work out massively cheaper as the above calculation doesn’t take into account the residual value in your £15k car in 3 years time, which you’ll recoup when you sell or trade in.

• The problem with this potential is that it could be massively impacted by one or two large bills that a 2nd hand car could throw up.

[six wheels]

paradigital said:

…the above calculation doesn’t take into account the residual value in your £15k car in 3 years time…

I knew I was tired, I didn’t realise I was that tired.

Good catch. Thank you.

[FastEdd11e]

I am British, I was in the Army.

The motability car does seem the sensible option as our Maserati has a potential to throw up a bill.

Thanks for the thoughts. Much appreciated.