To Trade or not to Trade

[robski90]

I'm in a conundrum!

 

I have an 11 Elegance 170 DSG Estate with 84k on the clock.

 

I've finished paying off the loan I took out to buy it brand new and now I'm not sure whether to trade in for a 'nearly new' replacement.

 

As I use it for work and do roughly 30k per year it needs to be reliable but as mine has never had anything wrong, flew through it's MOT and has just had the 80k major service, cam belt, dsg oil change service and nothing was raised as an issue, it's not reliability which I'm worried about.

 

Financially am I better running it for another 2-3 years putting money aside towards a replacement (I'd still need a loan) or better off trading in for a nearly new for around the 20k mark and paying back a loan for 2-3 years?

 

Most advice on the internet is based around keeping cars that do 'pottering' mileage, not rep mileage so it doesn't really count when there'll be another 60-90k on the clock. I imagine that depreciation takes a turn for the worst around the magical 100k mark?

 

Any other people out there will high mileage personally owned cars?

[misterbee13]

Id keep it for a couple more years. You have just had a major service which would not have cheap. The miles you do PA would not justify changing just yet. In my opinion

Better the devil you know.....

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Edited 21 April, 2014 by misterbee13

[TerryJP]

I have recently changed my 170 DSG hatch, for a newish 170 K & K Estate [1600 miles on the clock], However the hatch had done 115K without a single problem and just like you I thought seriously about the change.

 

One question is about the cam belt and water pump, both are due for a change at 4 years or 100K and will cost about £400, still probably less than changing the car. I still think I could have held off the change for at least another 30K miles, but the L & K is fab, and I have done 10K since January.

 

You pays your money and takes a chance, either way you will enjoy the cars.

[Kevlock]

 

As I use it for work and do roughly 30k per year it needs to be reliable but as mine has never had anything wrong, flew through it's MOT and has just had the 80k major service, cam belt, dsg oil change service and nothing was raised as an issue

I'm not looking to open up a cam belt discussion but just after some info - Did the dealer recommend the cam belt change @ 80,000 or did you make the decision. I only ask as the dealer who just serviced my 61 plate 170 has said 120,000 or 4 years? The handbook says 130,000 miles (210,000 km) for my engine code with no time specification. I am not worried by the 4 year issue. I am currently, for what it is worth, writing to Skoda Uk for clarification and the variations will be questioned as every dealer should be using the same service schedule.

The same dealer informed me that my warranty won't expire @ 60,000 as the warranty is two years unlimited mileage and 60,000 in the third year! If only this were true.

I do 25,000 miles a year so will be thinking the same thing around Christmas with regard to changing but again have had no issues rather than the hatch struts failing being replaced under warranty.

Regards,

Kevin.

[robski90]

I've just have the cam belt and dsg oil change so major servicing is done for a while. My bigger concern was that my depreciation would increase beyond the amount I can save per month due to the mileage going up. For example, it's 84k on the clock now, say I save £300 per month towards my next car in a years time I would have £3600 in the bank but approx 114k on the clock. Would the car have depreciated more than £3600 on those figures. 

 

I know there's never money to be made on a car but it's hard to work out how to minimise the loss!

[robski90]

I made the choice on 80k. Got it done at Autohaus Dolby in Sheffield so it cost less than it would have done, I wanted to know that it is in tip top condition given the miles I do.

[Superb170]

I had 125k kms (not too far off yours) on my last 170 hatch and my average annual mileage is similar to yours. Use it mostly for work but own it myself. I've gone through the same debate each time I change and have traded the last few Skodas at between 120 and 130k kms at the end of year three. I've gone through the numbers lots of times and for me the 'optimal time' to replace would be sometime between year four and five but that's barring no issues at all except for services. Given the amount of electrical spec on the car and having seen what I would have I had to pay for any problems that were covered under warranty I decided to bite the bullet after three years and always have a car in warranty. I'm probably paying around 500 per year at least for the privilege of changing after three years but I look on that as a sort of insurance policy if that makes any sense?

I did buy brand new however so you might save a bit there. Impossible to get an L&k in Ireland used so I had to buy new.

Any options available for any extended warranties etc? Is your annual mileage going to remain high? What about tyres, are you close to replacing them?

You'll never win with a car so not an easy decision.

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[stevehg]

For example, it's 84k on the clock now, say I save £300 per month towards my next car in a years time I would have £3600 in the bank but approx 114k on the clock. Would the car have depreciated more than £3600 on those figures. 

 

I know there's never money to be made on a car but it's hard to work out how to minimise the loss!

If you trade it in, I'd say yes, you'd be close to your £3,600, less. Find a suitable buyer selling privately who can see past the mileage and your impeccable servicing and you may be £1000 up.

The biggest doubt with all these if's and maybe's is probably, that just one major issue in the next year and you will be not only hassled, but probably be out of pocket too. Choose new, and it doesn't remove this risk or the hassle if an issue occurs, but it removes out of pocket risk.

So buying new/nearly new, you remove the variables and can pretty much plan your costs over next three years.

As you are going to use finance, also check out the APR offers of new cars as there are currently low APR's some as low as 0% on new superbs and this can negate any saving on buying a nearly new, giving you the extra mileage buffer and time of the manufacturer warranty.

Cheers

Steve

[robski90]

Thanks for all of the replies! 

 

I think the best thing to do is to take it to a couple of dealers and work out the numbers. I've checked the skoda website for finance but as usual its vague and has no calculator to work out what might be best route to take. I guess they want you in the showroom to work it out next to all those lovely shiny new cars with all the extras that increase the payment by 'only' £20 per month so you may as well have it :-) That's maybe a little cynical..

 

Because I've had all the servicing done, plus my tyres are nearly new, although the fronts are stepped due to alignment which is now sorted, and I do have an extended warranty it feels that I should keep it. But I keep coming back to the thought that depreciation will go faster than I can save. My major fear is I get it wrong and find myself in a position that I can't afford another one and end up in something like (shudder) an insignia..........

[Robbo Cop]

I'm not looking to open up a cam belt discussion but just after some info - Did the dealer recommend the cam belt change @ 80,000 or did you make the decision. I only ask as the dealer who just serviced my 61 plate 170 has said 120,000 or 4 years? The handbook says 130,000 miles (210,000 km) for my engine code with no time specification. I am not worried by the 4 year issue. I am currently, for what it is worth, writing to Skoda Uk for clarification and the variations will be questioned as every dealer should be using the same service schedule.

The same dealer informed me that my warranty won't expire @ 60,000 as the warranty is two years unlimited mileage and 60,000 in the third year! If only this were true.

I do 25,000 miles a year so will be thinking the same thing around Christmas with regard to changing but again have had no issues rather than the hatch struts failing being replaced under warranty.

Regards,

Kevin.

Pretty much the same story here regarding the cam belt / water pump. Skoda Ireland say 180,000KM's with no time limit ...

 

 

 

(oh god the can is open, here come the worms  :peek:

[robski90]

And the answer.....

 

Not to trade!

 

Got offer of 10k trade in for my Superb. 0% offers are out of touch due to my mileage so an instant 'no' for that option. Plus I don't like those balloon payment deals, far too restrictive.

 

Nearly new isn't worth it with a 10K deposit and the level of monthly payments I'd be happy with, which is around 300-350 pm.

 

Dealer reckons I'll lose around 50% current value over next 3 years at similar mileage rate. So that's 5k depreciation over next three years, much better than the 15k I've just lost over the last 3 years!

 

Save £350 per month towards the next car and that's £4200 racked up in the 1st year.. No brainer really. For what I'd be paying out on a new/newer car I'll be better off getting regular services at Autohaus Dolby in Sheffield (£149 for major) and looking for another two years with warranty direct for peace of mind when current deal expires next year. So, if I wait 3 years from now, I'll have 5k of car and 13.5k in the bank. So, as long as nothing horrible happens it seems like the obvious choice to me. Car will still only have 160k on the clock, or less if I can keep my miles down, so will be a long way from being tired!

[Superb170]

That all makes good sense. Good idea to think it through like that and weight up all your options properly. You should be able to trade up to a nice model a few years without putting yourself under any huge financial pressure. Chances are you won't encounter any major issues anyway judging by how well the Superbs have proven themselves to date

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[stevehg]

For warranty direct, take this out before your current warranty runs out as they push up cost otherwise. Also call get a quote, and let them know you need to think about it, then leave them stewing for a few weeks as this makes quite a difference to the price they finally gone back with.