P/X for life would it work?
Discussion
Ok
If i bought a £100k car drove it for 3 months then P/X for something of similar value.
Then drove the P/X car for 3 months then P/x that for something of similar value.
Then drove the new P/X car for 3 months then.... (you get the point)
Would it work and when would i end up driving shed?
Surely if it would last 20 years it would be a economically viable than buying a new car every 3 years taking in deprieciation.
e.g £20k brand new 3 years later worth maybe £8k.
£12k loss every 3 years.
20years/3= about 7
£12k*7= £84000
Not sure about you but i would be happy to be spending £16k over 20 years to be driving some pretty tasty cars with lots of variation.
Obviously there will be higher running costs over a £20k car but if changing every 3 months maybe not??
Opinions??
ETA: Sorry i meant used cars. Something that takes your fancy whether it is modern or a classic
If i bought a £100k car drove it for 3 months then P/X for something of similar value.
Then drove the P/X car for 3 months then P/x that for something of similar value.
Then drove the new P/X car for 3 months then.... (you get the point)
Would it work and when would i end up driving shed?
Surely if it would last 20 years it would be a economically viable than buying a new car every 3 years taking in deprieciation.
e.g £20k brand new 3 years later worth maybe £8k.
£12k loss every 3 years.
20years/3= about 7
£12k*7= £84000
Not sure about you but i would be happy to be spending £16k over 20 years to be driving some pretty tasty cars with lots of variation.
Obviously there will be higher running costs over a £20k car but if changing every 3 months maybe not??
Opinions??
ETA: Sorry i meant used cars. Something that takes your fancy whether it is modern or a classic
Edited by CyprusCraig on Friday 28th May 08:47
this doesnt work.
You are talking about changing every 3 months, which means you will do 80 car changes in 20 years. I would bet you would be on a skateboard in 10!
Especially if you are always doing new cars. Lets say you are doing used cars, and they are losing on average only 5% in 3 months (the supercars at the start will do more), then you will be at £81k after a year, then £66k after 2 years........
You are talking about changing every 3 months, which means you will do 80 car changes in 20 years. I would bet you would be on a skateboard in 10!
Especially if you are always doing new cars. Lets say you are doing used cars, and they are losing on average only 5% in 3 months (the supercars at the start will do more), then you will be at £81k after a year, then £66k after 2 years........
I doubt it'll be that easy, considering a "new" car will devalue around 20% of the cost an actual new car (depending on what you get) as a dealer will never P/X at the.actual selling price of the car as they want to make a profit.
So I reckon it would be less viable than just keeping a new car for 3 years as in that time you might have most of your 100k.
So I reckon it would be less viable than just keeping a new car for 3 years as in that time you might have most of your 100k.
When trading in you get trade price for your car, and pay retail for the car your buying.
On a £100k car this is probably around £7k difference. So without even taking into account depreciation you would only get £93k for the car in 3 months time. End up with a car with retail of £93K, trade in at £87k in 3 months etc.
Please let me know if you would like me to supply your cars for you!
On a £100k car this is probably around £7k difference. So without even taking into account depreciation you would only get £93k for the car in 3 months time. End up with a car with retail of £93K, trade in at £87k in 3 months etc.
Please let me know if you would like me to supply your cars for you!
Wouldn't work, unless you are Mystic Meg and can predict the future.
Forget brand new cars for a start- you lose the VAT and dealer costs. Let's say that even with a desirable model that doesn't depreciate much (and assuming you're one of the first on the waiting list), and you only lose 5k on the car, you would have to find an additional 20k each year just to P/X 4 cars at 100k a pop.
So the 3 month period is way too short. better to run around for 1 year. But you'd still lose money.
If you knew what you were doing, it might work on used cars, but I think you'd be looking at classics that are only likely to appreciate- and then you would have a limited market. And you probably wouldn't weant to be driving them round much so they don't lose any value.
From the concept the OP describes, and you're willing to accept some depreciation, you could manage say a 30K budget on a used car, expect to lose 5-10K over 2-3 years, then trade in for another 30K car, having saved up the additional cash. This is what I intend to do. Selecting the right car is critical here- something like a 6-10 year old Porsche 911 (low depreciation, high desirability and reasonable running costs compared to other cars), drive for 2-3 years, trade in for 22K. This for me is a better methoid than spending 30K on a much newer car as you'd lose a lot more on depreciation. There are many factors at work here and you won't always get it right!
Forget brand new cars for a start- you lose the VAT and dealer costs. Let's say that even with a desirable model that doesn't depreciate much (and assuming you're one of the first on the waiting list), and you only lose 5k on the car, you would have to find an additional 20k each year just to P/X 4 cars at 100k a pop.
So the 3 month period is way too short. better to run around for 1 year. But you'd still lose money.
If you knew what you were doing, it might work on used cars, but I think you'd be looking at classics that are only likely to appreciate- and then you would have a limited market. And you probably wouldn't weant to be driving them round much so they don't lose any value.
From the concept the OP describes, and you're willing to accept some depreciation, you could manage say a 30K budget on a used car, expect to lose 5-10K over 2-3 years, then trade in for another 30K car, having saved up the additional cash. This is what I intend to do. Selecting the right car is critical here- something like a 6-10 year old Porsche 911 (low depreciation, high desirability and reasonable running costs compared to other cars), drive for 2-3 years, trade in for 22K. This for me is a better methoid than spending 30K on a much newer car as you'd lose a lot more on depreciation. There are many factors at work here and you won't always get it right!
Well as cars lose more in the first 3 months of there lives than pretty much any other time I figure this is a pretty stupid idea. But yes you could move from your 100k car to an shead in a matter of years at 3month swaps.
In theory you could buy one special but good value car, wait for it to appreciate then sell it for more than you bought it, and again and again and again until you have on paper moved from an Escort to a Lambo. Would have to be bloody lucky and very smart and have to use other cars to keep mileage and costs down.
In theory you could buy one special but good value car, wait for it to appreciate then sell it for more than you bought it, and again and again and again until you have on paper moved from an Escort to a Lambo. Would have to be bloody lucky and very smart and have to use other cars to keep mileage and costs down.
Jgtv said:
Well as cars lose more in the first 3 months of there lives than pretty much any other time I figure this is a pretty stupid idea. But yes you could move from your 100k car to an shead in a matter of years at 3month swaps.
In theory you could buy one special but good value car, wait for it to appreciate then sell it for more than you bought it, and again and again and again until you have on paper moved from an Escort to a Lambo. Would have to be bloody lucky and very smart and have to use other cars to keep mileage and costs down.
Didn't Mike Brewer do something like this....started with a little metro or something and ended up with a brand new ZR or something? But yeah, a lot of work.In theory you could buy one special but good value car, wait for it to appreciate then sell it for more than you bought it, and again and again and again until you have on paper moved from an Escort to a Lambo. Would have to be bloody lucky and very smart and have to use other cars to keep mileage and costs down.
Soovy said:
I know someone who has an Enzo.
In the time he's had it he's done 10k miles in it. It's INCREASED in value, and he worked out that even including fuel, tyres and running costs it's actually PAID HIM TO DRIVE IT.
As true as that may be, it bears little relevance to this conversation... That costs many times the 100k stated and was only produced in limited numbers. I could see you potentially being able to do this with classic cars, if you got very lucky with the market, and choosing the right carsIn the time he's had it he's done 10k miles in it. It's INCREASED in value, and he worked out that even including fuel, tyres and running costs it's actually PAID HIM TO DRIVE IT.
It wouldn't work, espeshially with brand new cars. You are getting bottom price for your PX and paying top for the new car. The only way I could see it working would be with used cars, buy a good 4 year old+ car which has had the worst of the depreciation hit then privatly sell and privatly buy each time, its a lot of work though.
DanGPR said:
Soovy said:
I know someone who has an Enzo.
In the time he's had it he's done 10k miles in it. It's INCREASED in value, and he worked out that even including fuel, tyres and running costs it's actually PAID HIM TO DRIVE IT.
As true as that may be, it bears little relevance to this conversation... That costs many times the 100k stated and was only produced in limited numbers. I could see you potentially being able to do this with classic cars, if you got very lucky with the market, and choosing the right carsIn the time he's had it he's done 10k miles in it. It's INCREASED in value, and he worked out that even including fuel, tyres and running costs it's actually PAID HIM TO DRIVE IT.
Don't consider an Enzo ( or a 250 GTO for that matter) as cars, they are tradeable, physical investments.
Think the Tax man may get involved at some point? I'thought' you could only buy/sell 4/5 cars a year ? then there would be the loss of insurance each time you made a switch along with a few days tax and the loss of fuel in the car each and every time.......UNLESS you only buy cars with a FULL tank and never purchase fuel ever again WIN !
Edited by Rotor on Saturday 29th May 14:07
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