New or Used - Just curious

[breamster]

Hi,

We're not quite ready yet but will soon need to replace Mrs Breamster's daily.

Looking at the usual Fiesta or Focus. 1.6-1.8 petrol. Not expected to do more than 5-6k a year. Probably edging towards a Focus.

What is the best option?

Option A - Buy new with a fair proportion on finance.
Option B - Buy used at ~3/4 years old with no finance.

What is the most cost effective option when we sell the car after perhaps 3-5 years? I'm not a number plate snob and I've always in the past gone for option B so I've not idea what sort of price can be agreed under list.

What is the view of the PH Masses? Real world examples would be good.

Thanks.

[kambites]

I'd imagine the used car will be much cheaper in all. It will lose less money in absolute terms, as it's cheaper to start with and obviously you wont be paying interest. Running costs may be slightly higher but with such a low expected mileage, I doubt that'll come anywhere near making up the difference.

I guess when the current Focus cars replaced, which must be soon, you might be able to get a serious discount on the old model, but the residuals will probably reflect that when you come to sell it.

Edited by kambites on Sunday 21st November 19:51

[FreeLitres]

[NotHelpful]
I almost bought a new pov-spec diesel Clio but I decided to go for a used 5-litre TVR instead.
[/NotHelpful]

On a brand new car you will have to pay much more depreciation and would you want to take on a load of optional finance in the current economic climate?

[shalmaneser]

Buy second hand - much cheaper. And TBH it's not like a 3 year old ford is really going to go wrong is it?

[touchwood]

[eldar]

Buy a year old. Still get the guarantee, and save 50% of new price on an appliance like a Focus.

[aitch2]

The cost of Option B will probably be less than the depreciation cost of Option A in the first year.

[MondeoMan1981]

Buy new and buy on finance = whack of interest and whack of depreciation

Buy older with cash = less depreciation and no interest

Better still, if you are not doing much mileage, buy something older with history, decent mileage and fire the rest in a savings account for your next purchase

[aitch2]

The cost of Option B will probably be less than the depreciation cost of Option A in the first year.

[Animala]

Never buy new, unless you've got plenty of money to play with.

[breamster]

This has always been my argument - seems like everyone on PH is in agreement for a change! I wasn't sure if I was missing a trick somewhere.

This discussion came about when discussing cars with a friend. He always buys new cars every 1-2 years and swears blind that it is the cheapest form of motoring.

Thanks.

[E21_Ross]

breamster said:

This has always been my argument - seems like everyone on PH is in agreement for a change! I wasn't sure if I was missing a trick somewhere.

This discussion came about when discussing cars with a friend. He always buys new cars every 1-2 years and swears blind that it is the cheapest form of motoring.

Thanks.

no it isn't. buying 2nd hand is most often far, far cheaper.

3 year old focus will unlikely go wrong in the near future, plus, you can take it to a local garage instead of a dealer, so general running costs will likely be cheaper too.

say for instance:

A - buy new car for 15k, run it for 3 years and sell for £8k for example. servicing costs £600 lets say. total cost 7600.

B - buy 3 years old for 8k. servicing costs 1500. sell at 6 years old for 5k total cost 4500.

those are total ball park figures but not too far off, if anything, i've been overly cautious on servicing for B.

Edited by E21_Ross on Sunday 21st November 20:49

[breamster]

I usually do buy at 3/4 and keep the care for a few years.

I'm very tempted the try an old 5 series for my next car though....hmmm...

[pad58]

Funny seening this thread i am in the same position,so after a bit of searching.( she wants a astra in black
1.6 petrol 4-5year old )and looking on the web ,there was one not 3 miles away so we'll see tomorrow.

Sorry to hijack your thread.

[tim2100]

breamster said:

This has always been my argument - seems like everyone on PH is in agreement for a change! I wasn't sure if I was missing a trick somewhere.

This discussion came about when discussing cars with a friend. He always buys new cars every 1-2 years and swears blind that it is the cheapest form of motoring.

Thanks.

It may be for him.

Everybody is different and have different requirements. If they are buying on lease / PCP it could well be cheaper than buying outright.

Whenever I have a used car, it costs me more than a new car.

[havoc]

Depends on your attitude to repairs & maintenance.

If you're happy to fix the car when it goes wrong (either yourself or taking it to a trusted garage), and happy to deal with such problems, buy used - it will cost you less. If you're the sort who wants zero-hassle, then buy new - if it DOES go wrong you should get a courtesy car no object while it's in warranty.

[Neil MG]

Similar real life example?

I paid £4,800 for a five year old 50k miles Focus three years ago. Cost me a set of brakes and six tyres plus annual services (oh yes, a new coil, two headlamp bulbs and three or four wiper blades) sold it recently with 75k miles for £2,600.

If it were a new car I would have saved a couple of tyres and the coil and stuff together with maybe one or two services and two MOTs, say £500. I think I might have paid more tax or...?

Anyway, total "depreciation" cost (comparable to a new car) is £2,700 or £900 per year.

[grenpayne]

My vote goes to Option B, especially if you're only doing 5-6k miles per year. I got my 3 year old Fiesta ST for £6k cash with 19k miles, FSH and in immaculate condition, so it can be well worthwhile going that route.

The only reason I bought new a few weeks back was because I got a 24% discount (military sales)

You could spend the extra cash you would have paid on a nice holiday each year!

Edited by grenpayne on Sunday 21st November 21:22