[Finance] Car Buying...

[Lincoln Imp]

There's no definitive answer to this question.

It depends on the car you buy and the driver you are.

I make no claims about my driving other than to say I am very kind to my cars. For the last 30 years or so it has therefore made sense for me to buy new and keep for a decade. My current car is a Skoda with 135,000 miles up. Well-serviced from the day it was made, the only non wear and tear replacements have been bulbs. It almost stopped depreciating three or four years ago and since then it has been the cheapest car it is possible to own.

Lease cars are convenient and cashflow-sensible but if you think about it all you are doing is buying the off-a-cliff depreciation that comes with a new car. If you can buy an ex-lease car with a great guarantee you're coming near to beating the system I suppose.

 

[zefarelly]

3-6 for me, have a few classics, . . . For work/every day it'll be at least 4 years old, mileage is more important with a clear history. If its a good one, keep it, most cars are pretty good these days and will last if maintained.

 

[Knocky's Nose]

There's no definitive answer to this question.

It depends on the car you buy and the driver you are.

The correct answer. We are all different, have different budgets, needs and wants from a car, and we all do different mileages.

When business was great, I leased cars. I got a brand new BMW 7-Series LWB for £399 + VAT per month (albeit in 2013) which had a list price of £70,000 with the extras. I had it for 2 years on a 6+23 so paid just under £13k with the VAT (you got half the VAT back) to own it for 2 years, trouble free. The car went to auction when I gave it back, and I spotted it in AutoTrader as it was an Individual colour and spec a month later. I called the seller and asked what he gave for it - and he paid £27k. It was up at £30k.

So, if I'd been daft enough to pay £70k for it, then sell it for £27k two years later - it would have cost me £43k. however, leasing it cost me less than a third of that. That made sense.

However, business is less of a champagne party at the moment - so I've just plumped for a two and a half year old E-Class Coupe with 24,000 miles up it. I bought it from a main dealer (Mercedes Ashford) for the same price they are selling lesser and higher mileage ones at car supermarkets. Mine is pretty much the maximum spec you can get, was a Mercedes lease car, and comes with a years Mercedes warranty. No questions when you have an issue, they just say yes. I've had a couple of niggles which were dealt with swiftly and properly and even got a Merc courtesy car whilst they were being attended to.

There's now lots to be said about buying from main dealers. They've had to really sharpen their pencils on price to compete with the car supermarkets, and prices can more often than not be like for like - except the official dealers have access to the best stock.

So, I'd say if you want to buy.. 2-3 years old, mileage up to 40,000, FSH, do your homework on spec and options, find out the colours and specs to avoid, then you should have a car you can enjoy for a few years and then find both very easy to sell and a decent amount of value retention come the time.

Tip : I was in the motor trade for quite a while when I was younger and still get involved, so still have finger on the pulse. I would advise not buying an expensive car in White (fine if it's a £1500 runabout, who cares). The big dealers are bailing out of Mercs, BMW's, Audis etc in this colour in their droves before they become virtually unsaleable.

White was a highly fashionable colour which is now on the cliff edge of becoming highly unfashionable... Just a heads up. Buy a big and expensive car in white now, and in 2-3 years it'll be like trying to sell a rowing boat with a hole in it.

 

[Icy Gull]

The correct answer. We are all different, have different budgets, needs and wants from a car, and we all do different mileages.

When business was great, I leased cars. I got a brand new BMW 7-Series LWB for £399 + VAT per month (albeit in 2013) which had a list price of £70,000 with the extras. I had it for 2 years on a 6+23 so paid just under £13k with the VAT (you got half the VAT back) to own it for 2 years, trouble free. The car went to auction when I gave it back, and I spotted it in AutoTrader as it was an Individual colour and spec a month later. I called the seller and asked what he gave for it - and he paid £27k. It was up at £30k.

So, if I'd been daft enough to pay £70k for it, then sell it for £27k two years later - it would have cost me £43k. however, leasing it cost me less than a third of that. That made sense.

However, business is less of a champagne party at the moment - so I've just plumped for a two and a half year old E-Class Coupe with 24,000 miles up it. I bought it from a main dealer (Mercedes Ashford) for the same price they are selling lesser and higher mileage ones at car supermarkets. Mine is pretty much the maximum spec you can get, was a Mercedes lease car, and comes with a years Mercedes warranty. No questions when you have an issue, they just say yes. I've had a couple of niggles which were dealt with swiftly and properly and even got a Merc courtesy car whilst they were being attended to.

There's now lots to be said about buying from main dealers. They've had to really sharpen their pencils on price to compete with the car supermarkets, and prices can more often than not be like for like - except the official dealers have access to the best stock.

So, I'd say if you want to buy.. 2-3 years old, mileage up to 40,000, FSH, do your homework on spec and options, find out the colours and specs to avoid, then you should have a car you can enjoy for a few years and then find both very easy to sell and a decent amount of value retention come the time.

Tip : I was in the motor trade for quite a while when I was younger and still get involved, so still have finger on the pulse. I would advise not buying an expensive car in White (fine if it's a £1500 runabout, who cares). The big dealers are bailing out of Mercs, BMW's, Audis etc in this colour in their droves before they become virtually unsaleable.

White was a highly fashionable colour which is now on the cliff edge of becoming highly unfashionable... Just a heads up. Buy a big and expensive car in white now, and in 2-3 years it'll be like trying to sell a rowing boat with a hole in it.

Dull grey seems to be the colour of choice in expensive cars these days

 

[albion534]

Depending on your budget there’s always deals, we took a loan out to get our car as it worked out cheaper than paying monthly at the dealership. Sandeo Dacia we got. Lovely car.


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[dazzer6666]

Current car is a PCP, just coming to the end of the 4 years. Probably going to pay the balloon payment and keep it.

 

[Nitram]

Bought my last two new but if I was buying now would get a lease 3/4 years. The technology is changing so much that in three to four years an electric car may be a much more viable proposition in terms of cost and technology.

 

[Elbow750]

As others have said, it depends on how my bank balance is and what I want. I've always taken a 'company car' when on offer at my work. Most times I've had to pay a £100 ish a month towards it. That's it, my outlay pays for all the servicing, tyres, car tax insurance, everything is covered for 4 years and a nice new shiny 'family car' is mine to use as I like. Of course there is company car tax, but the £100 a month comes off that.

There are times work has said no car and I've had to get my own. I used to go 6 - 10 years quality cars, Granda Saabs, etc. but 4 years ago the maintenance on my last Saab became a pain and I brought a new Fiat Panda.

My Saab needed 4 new tyres, new front discs and pads, a service, MOT and taxing. Big bill looming, so I popped into the dealer on a cold wet January morning and they gave me,:-
£3,000 off list price, £2,000 Fiat contribution if I took 0% finance, £1,000 dealer contribution, £500 part ex for the Saab, free first year tax, 3 years free servicing, 3 years free recovery, free roof bars. It felt like they were paying me to take it away!!!

Its a great car and 3 years with no service bills, no MOT, no tyre bills has been wonderful. Its also much cheaper to insure than the Saabs and I can insure my son and daughter as learner drivers. They wouldn't even quote insurance for them on the Saab. But I do miss it, a lot..

 

[Garage_Doors]

We go for top of the range ex demostator as they generally have all the extras. They are normally have 5-6k miles on them and just a few months old, Its generally the wife's car as I have a van and motorcycles and she only does on the region of 2k miles a year. Current one is now just 3 years old and still only done 11k miles. Generally change at 4-5 years old.

 

[Raleigh Chopper]

Current car is a PCP, just coming to the end of the 4 years. Probably going to pay the balloon payment and keep it.

With PCP i struggle to work out who the winner is of course I expect them to make money but I always feel that they win hands down.
Thing is, that when it is leased they own it you pay them to drive it but you have to insure it, service it and hand it back in perfect condition, they even tell you how many miles you can do and when you hand it back they flog it, with its low mileage, for a tidy sum.
Mainly the point of PCP is that you are constantly driving around in a new car, for a price, so are you paying the balloon because you are fed up with this and you now want your own car.
If they threw in a deal whereas they pay for everything except fuel and 10,000 miles i may be more interested.
If I am wrong about PCP i would like to know why.

 

[ozzygull]

I bought a new car last year, ordered in jan 2020 received it in August 2020 big delay because of COVID. To make it affordable I bought it on PCP over four years. I can then choose what do then, as I am not sure what the infrastructure and price of electric cars are going be like. I can swap to one of those easily if I want too when the term is up. If not I may just finance what is left to pay and own it outright and run it until it’s no longer economic to do so. My previous two cars were all over 13 years old when they were replaced.

 

[Hugo Rune]

I’d been buying 4/5 year old car and keeping for another 4/5 years but I got annoyed with my last motor and decided to do a 4 year lease for about £10,750 overall. The MOT and service costs were starting to get me down along with bits and pieces going wrong. I know this is a false economy but I absolutely love my current lease car and it does everything we need it too.

I can afford the payments without any problem whilst saving for the next deposit in 4 years time also. I’m about 1,000 miles ‘below par’ on my millage allowance which will give me a buffer for the odd holiday here and there.

Financially, the most prudent thing I could have done would have been to have stuck with my original 4 year sale/purchase plan but I just wanted a car that was right for us and the lease car fitted the bill. In addition, I really like cars.

 

[dazzer6666]

With PCP i struggle to work out who the winner is of course I expect them to make money but I always feel that they win hands down.
Thing is, that when it is leased they own it you pay them to drive it but you have to insure it, service it and hand it back in perfect condition, they even tell you how many miles you can do and when you hand it back they flog it, with its low mileage, for a tidy sum.
Mainly the point of PCP is that you are constantly driving around in a new car, for a price, so are you paying the balloon because you are fed up with this and you now want your own car.
If they threw in a deal whereas they pay for everything except fuel and 10,000 miles i may be more interested.
If I am wrong about PCP i would like to know why.

Yes and no. Not fed up at all.

In 4 years it’s had two service visits and had nothing more than an oil and filter change, costs were absolutely minimal. It’s in pretty mint condition but I’ve done excess mileage. They offer a trade-in value if you take another deal up but it was frankly crap - actually quite a bit less than the quote from webuyanycar.com - and the discount on a new PCP car was rubbish. It actually makes financial sense for me to keep the car (the balloon payment is less than the P/Ex they’d offer, and I won’t have to pay the excess mileage charge). I really like the car so I’m v happy to keep it for now and take my chances with a P/Ex a bit later on.

The other issue for the time being (as well as the salesman being the worst I’ve encountered at a car dealership) is that I haven’t been able to look at/test drive anything anyway, and I wouldn’t commit to a new deal without doing that (for some reason he thought I should).

PCP has worked pretty well for me....the only reason I did it in the first place is because it worked out much more financially beneficial than paying cash for the car at the time (various discounts were only applied if I took a PCP rather than paid up front).

The dealers hate you making the balloon payment - worst outcome for them as they get nothing out of it. They really want you to churn the car into a new deal. For me, I get a 4 year old car in great nick with one careful owner at a price I couldn’t get if I was buying the same second hand.

 

[scooter1]

The big dealers are bailing out of Mercs, BMW's, Audis etc in this colour in their droves before they become virtually unsaleable.

White was a highly fashionable colour which is now on the cliff edge of becoming highly unfashionable... Just a heads up. Buy a big and expensive car in white now, and in 2-3 years it'll be like trying to sell a rowing boat with a hole in it.

That’s me ****ed then..
Still got 2 wheels to fall back on

 

[dazzer6666]

Tip : I was in the motor trade for quite a while when I was younger and still get involved, so still have finger on the pulse. I would advise not buying an expensive car in White (fine if it's a £1500 runabout, who cares). The big dealers are bailing out of Mercs, BMW's, Audis etc in this colour in their droves before they become virtually unsaleable.

White was a highly fashionable colour which is now on the cliff edge of becoming highly unfashionable... Just a heads up. Buy a big and expensive car in white now, and in 2-3 years it'll be like trying to sell a rowing boat with a hole in it.

Black cars matter ?

 

[carlzeiss]

My last 2 cars have been new showroom stock , 4K of list , 0% for 42 months , zero deposit with no waiting for delivery . PCP works for me .

 

[Icy Gull]

An ex demo/loan car with a few thousand miles is worth considering. You’d probably get 25% off a nearly new car that would have been well maintained and will have any annoying glitches sorted. It will probably not have been sitting in a field for months as many allegedly brand new cars do due to overstock. Having been driven by a few different people there is a theory that the different driving styles is actually good for an engine when it’s new

 

[clockend1983]

That's not an issue for me, I nice spanking brand new car that is yours all day long thank you,the Mugs that get caught out on excess mileage charges do make me chuckle though
Each to their own though which ever option you choose
Regards
DF

My one and only lease deals excess mileage charge
was 3p plus VAT £36 per thousand miles so I didn’t think it was too bad
Cost me £300 extra over the 2 years
I’ve gone back to vans which I like much better and always buy 3-5 years old
Lease I reckon is worth considering it worked well for me

 

[Raleigh Chopper]

An ex demo/loan car with a few thousand miles is worth considering. You’d probably get 25% off a nearly new car that would have been well maintained and will have any annoying glitches sorted. It will probably not have been sitting in a field for months as many allegedly brand new cars do due to overstock. Having been driven by a few different people there is a theory that the different driving styles is actually good for an engine when it’s new

Seriously considering the new Ford Puma but too new and expensive but i know about ex demos and if i can get a decent deal i may go for it.
Also there are certain times of the year and month whereas you can get a better deal as they need the figures.
If you know a used car dealer or ex car dealer that works for a main dealership they can tell you stuff you would never otherwise know.

 

[Knocky's Nose]

Dull grey seems to be the colour of choice in expensive cars these days

That's down to the economy and general feeling.. Colours can often reflect the mood of the nation, and when times are hard it's all about being discrete - hence the general choice of muted colours on expensive cars.

The last big shift in colour choice was the 1980's, when the economy was booming and people loved brash and loud colours. Bright red was the colour of choice. I think the last wave of bright colours we had were the Yellows and Kermit Greens, but Red has never quite come back 'en masse'

https://www.economist.com/graphic-d...r-colours-reflect-britains-national-sentiment

White, as a car colour, became fashionable because of the Arab nations I'm told. They choose white to reflect the suns heat and keep the cars a little cooler, and most of these cars are Luxury models. We did a bit of copying, and White took off in the UK as a mark of more discrete luxury and affluence. All well and good until these cars get 5-6 years old and start parking up on council estates - then, the genuinely affluent stop buying that colour. (I was born and raised on a council estate, so I'm not judging here - just being factual)

The same happened with peoples names in the USA. Names like DeShawn were names of affluent white children in the Hamptons! Then, in a genuine attempt to give their children a leg-up, the African American communities starting calling their children DeShawn - and wallop, the rich people stopped.

All fascinating stuff.