This has been rolling round my head lately.

Now I'll freely admit I've bought a new car or two, but logically why do we do it?

I often see people that are not that well off with a new car on finance, PCP or tying up a large amount of cash, all of which are losing £3,000+ the second they drive off.

 

Reliability?

Can't see how a used car is that much worse.

 

Kudos?

We are talking about mainstream cars.  Does anyone care if you have a 14 plate Fabia on the drive instead of a 12/10 plate.

So you buy something decent, does your image in the eyes of others matter that much?

 

Savings on running costs?

Hard to swallow over thousands in depreciation.  My 13 year old Fabia is petrol and averaging 50mpg.

 

 

 

Any idea?

 

I'm having a eureka moment...

Even for the main car I don't purchase new- why would I when there are so many pre-registered or demos around? I'd consider a 62 or 13 reg if it met the requirements. Fortunate for manufacturers that there are still plenty in society who have to have latest reg, biggest television, latest gadget etc. 

 

 Sentiment about the Fabia mirrored in the Polo i've picked up for the lad. 20 years old, excellent condition, pennies to run, 50 mpg and i'll sell it for similar what i've payed. 

Edited 25 May, 201412 yr by sparks03

I think if I was ever going to buy new I would have to consider a Kia just because of the 7 year warranty. For me the depreciation loss for most new cars just doesn't make sense especially in today's financial climate, unless you keep the car for over 5 years.

For me around the 5/6 year mark is the best time to buy in my opinion.

I'll admit i was very short sighted when I bought the Citigo on a finance agreement.

 

At the time however I was spending £320 per month on insurance alone (first year of driving), I had a number of break downs, I was doing a fair amount of mileage and I didnt like paying out onto for Road tax and such a high petrol cost.

 

My Finance + Insurance was less than the £320 i was paying at the time, however if i had held out another 3 months my car insurance would have dropped to £170 per month meaning it would have been cheaper for me to keep the old Fabia instead of getting the new Citigo.

 

 

At the time I considered that £320 as written off/lost money, I could afford to live without that £320 so why not put it to a 'better' use and have a flash new car. I didnt think of depreciation, on a monthly basis i would be "better off" as although financially i would make a small saving monthly I wouldn't then have unreliability

 

However it has now come to bite me back, as i walk to work and dont drive as much as i used to (so Petrol isnt really an issue) the Citigo is burning a hole in my pocket in the shape of £200 per month and as my Hobby has now taken the form of fixing up cars which are close to scrap, Its actually slightly depressing to own a car i cannot tinker and fettle with!.

 

In hindsight IMO getting the Citigo was Finacial suicide. Yes my cars would have broken down in the same time, which i would have to fix, and the road tax was some awful amount around the £200 (good old 1.4 MPI 8V Fabia) but as a law of averages I would now be better off.

I think the dealers have a say on the out come of what people by, my sister went to look at a used Fabia on the forecourt of a dealer but ended up with a new car on a pcp only because the sales man made out it was the same money and having a new car dangled in front you most people would take the new car,

   

I was looking at a Fabia Greenline estate and was seriously tempted by a new or nearly new one and thought hangon there is a perfectly good 1.2 clio down the road 11 years old! Took it out for a test only a short run but averaged 48 mpg! £500 later and the deal was done! In all honesty I don't regret choosing the 53 plate over the 63 plate! I've now started saving in order to get myself a project!

I think the dealers have a say on the out come of what people by, my sister went to look at a used Fabia on the forecourt of a dealer but ended up with a new car on a pcp only because the sales man made out it was the same money and having a new car dangled in front you most people would take the new car,

 

+1

 

same cost on a montly basis, but long term I didnt consider the depreciation. Very naive of me!

If I buy a new car it will be partly because of the spec, so many different options out there and you're probably going to have the car for a few months and then want to do something else to it (like I'm now trying to get MDI installed) And I would have liked air con and maxidot. But how many cars will there be sitting in the forecourt with those specs? And how many of those would you want to buy? Say there's 4 on the forecourt with the right spec, one of them is 3 years old with 70K miles on it, one of them is scratched to hell but reasonable mileage at the same age, another is 6 years old, the same age/older than the car you already have, and the other is the brightest shade of pink you have ever seen.

Only ever bought one car brand new,never again.

 

Last 2 have both been 5 years old when purchased and knocking around 100k. Vectra GSi I had for 8 years and stuck another 50,000 on it. All that 'failed' in that time were an alternator and steering rack but neither left me stranded. In that time the EML never once came on. The Vrs is 2 years in my ownership now and to date it's been more or less faultless,only a 'limp mode' moment with an EGR fault that cleared itself by turning off the car and then back on. Never had the problem again.

It's a very thought provoking question BF.

I must admit that when I bought the Fabia VRS it was with the intent of keeping for some time, but then a change in job and a daily commute of 100 miles made moving to a diesel seem sensible. I wanted a late Mk2 FL Octy VRS but they were like hens teeth. Knowing that I was going to have to finance any new car the 0% PCP made sense. After all, once I started factoring in finance charges, there really wasn't much in it between buying new or used. I suppose one of the reasons for doing so was the thought of manufacturers warranty knowing that in the three years I am going to have the car I will probably cover at least 75,000 miles, so the thought of buying used did not really appeal

However, in hindsight, it was possibly a mistake and I should have bought an older car baed on what I am going to loose in depreciation working on the premise that if the secondhand vehicle developed an expensive fault I could afford to let it go and buy again. Most likely over the three years I could break even but maybe find myself in a more upmarket marque. That said, it is always a risk, which hopefully with a new car a lot should be set aside. But then who knows?

I did consider a nearly new 3 series touring, a C class estate and an A4 avant, but all wanted what I felt was silly money for a year old cars with relative high mileages (more than the Octy). My thought now is something about 4 to 6 years old and just throw it away when it is broke.

Again we have just bought an MX-5 for a bit of fun on the weekends. This car will be kept for some years but again we have another PCP. Basically we got the car at the drive the deal price and with 0% finance it worked out about the same price of a three year car again when you consider the finance charges.

These choices just seemed to make the best financial sense at the time, and certainly we have not over stretched ourselves to get where we are. Manufacturers want us to buy new cars and so have pit together some crazy deals. However, when it comes to replace the Octy, if such a deal is not available then I shall carefully reconsider what is best to do.

I've never bought a brand new car purely because I've never been able to afford to buy one outright. I wouldn't be comfortable driving round in something that is financed and therefore doesn't fully belong to me. Also, if the worst were to happen and I smashed the car up, I'd just just buy another one and tighten my belt for a couple of months.

 

When I win the lottery though...

I think we tend to buy new if we can because just about everything else we buy is new too- when was the last time you bought a second hand cooker, washing machine, tv etc if you could afford a new one instead? There's no real logic as far as cars are concerned though, but there has to be an element of keeping up with the neighbours etc to give the impression you're being successful. I think ascars get more complicated the comfort zone you get from buying a new car has its part to play too.

Me, I tend to buy new but keep the car long term. Each of my last 3 we're all discounted and cheaper than their rivals - SWMBO Seat replaced a 10 year old mondy estate with 96k on tne clock that was expensive to run (2.0l ghia). My 1.4 tsi Octy replaced a 11 year old 1.2 Clio that was costing more in repairs to keep on the road than it was worth and well the Blackline was just a bargain.... so I had to have it LOL.

Bikes make even less sense, but are so much more fun IIRC!

The only reason I can see is the freedom to spec it up as you want, but otherwise, no.

 

Personally, I'd be reluctant to buy a new car or something on finance (unless it's interest free) atm as I don't own a house, and until I do, and have no mortgage, there are much better ways to spend £*00 a month than on a depreciating lump of metal. Plus my current car still does all I ask of it and more (most of the time, breakdowns aside!) and is owned outright, so no real reason to change it.

 

Image does play a small part, but it wouldn't alter my buying choice (if anything, I feel pretentious when asked what I drive), but I'd rather buy a car I was happy with than making sure I had a new registration to impress the neighbours/friends.

I've never bought a new car in the UK; all my new cars have been tax free cars from overseas so have been significantly less expensive than UK cars. Until last Christmas I was a committed 'bangernomics' convert, but when it let me down on the M62 with family in the car and put at risk I changed my mind.  Both Mrs T and I have since changed our cars for approx 3 year old models; the best compromise IMHO.

It's a very thought provoking question BF.

 

Indeed.  Interesting to see opinions though.

When I think what I've spent on cars, just to chop them in a year (or less) later it seems like madness.

I am very familiar with the short term depreciation drop.

It's not a matter of affording it, it's just a matter of why as it seems a bit bonkers.

 

That 11 plate Fabia Elegance I had to find a home for being a case in point.

It went for under £6,700.  About half list price.

Nearly three years old with 10,000 miles on it.  1.2tsi 105.

How can any new car be a better buy than that?

 

Depreciation on that will be around £20-£30 per week tops.

For a low milage immaculate car.

Ex-demo is as close as I've come to a new car and I wouldn't want to get any closer than that. Judging from the number of threads around here about serious issues with new cars, you're certainly no better off reliability wise. Like a few here, I think the sweet spot is 2-3 years as they come out of leases and that is how I've bought my previous cars (outright, I don't do finance or credit) and they have all been good as new. I got around the whole options thing (infuriating with VAG when shopping used) with our last cars by buying brands that don't have them.

I guess there are a few reasons and motivations for buying new:

1- finance rates can be much lower on new car

2- ability to spec it how you want from the factory

3- that new car feel

4- 3 year manufacturer warranty

5- some models have a huge discount from new making them cheaper than a nearly new one

6- you just want one and can afford it

An older/used purchase invariably makes more financial sense/ is cheaper but if that was everybody's priority then we'd all be driving around in an old banger or 75bhp diesels lol.

The cheaper used car is also more likely to appeal to those who aren't comfortable using car finance and pay in cash.

PCP definitely has a useful place. As a means of "buying" a new car it's very expensive. As a means of "renting" one it's ideal!

You pays your money and make your choice.

The smell.

More seriously I think people like the security of a new car warranty and the kudos of having new metal.

Having just got a 4yr old motor and put 3yr manufacturers warranty on that for not a lot I think my previous agreement with the above has now gone.

If this works out it'll be used motors + warranty for the future.

Where my parents live the neighbours get the newest plated cars when they come out just for looks! However everyone in the village can tell it's all pcp etc!

Edited 25 May, 201412 yr by Toxicvrs

If I ever had enough money to buy a new car the only reason I would is so I could spec it as I like and choose the colour.

 

But would then have to drive it for 25 years to get my money back. 

 

I honestly don't see how people can afford to buy new cars without massive upfront and end of term payments, which is like throwing your money away.

I've never bought a new car and I doubt I ever would. All mine have been paid for outright from money saved up. Not once have I had finance nor would I ever.

I'm quite happy to let someone else take the hit of the initial depreciation.

 

Anything that goes wrong usually goes wrong within the first three years of ownership so will be covered under the initial buyers warranty anyway.

 

Sure I've had a couple of dogs but then that's part of the gamble but the more you get to know about cars, the more you know what to look out for when buying used.

We started buying new cars back in '79, (Chrysler Alpine.....approx £4k on the road.) )when inflation was high & new car price lists were being revised upwards every 3 months. Used cars didn't depreciate so much then, either our new Alpine replaced a '76 model, bought for £2.7k in '77 & traded in '79 for the same £2.7K.

 

We kept our '79 for 4 years, lost some cash (can't remember) & bought a new '83 Alpine at list without thinking that we were spending too much cash on

a car that we liked & had some real improvements over these previous models.

 

Not so long after this then my wife started working for Ford Motor Co & since in those days the employee Privilege discounts were very real (20% - 30% from list price), we would buy a new car every year with very little depreciation & often lower repayments too.

 

Her illness then got to the point that she was awarded a Motability Allowance so we used it to help fund a new Contract Hire car every three years, with almost all the costs covered in the hire agreement.  

 

Since her demise in '05 I've never purchased a brand new car, 'cos the Ford discounts now are much lower & my pockets aren't deep enough to pay new car prices!

I've been quite happy to buy young, low mileage cars rather than brand new vehicles ever since & although it's often hard to find the exact desired specification, I'm quite happy with my Mondeo & Superb.

 

My 1st Skoda was a 4 year old Octy vRS, with the Jumbo pack, so quite well equipped & a good introduction to the brand, but I wasn't prepared to pay top-dollar for a FL Octy.

When SWMBO decided that she wanted one we spent quite some time finding a used car with the specification that she required & we had to accept a higher mileage than we wanted, but she is now a very proud owner of a really clean & tidy Octy, having paid about 52% of the original list price.

 

Depreciation is always the biggest cost in a new car purchase & it's keeping me from buying a new Octy at this time. I can afford one, but I really want someone else to pay the fee for owning a brand new car!

 

Still, we can't all buy 2nd hand cars, someone has to purchase / least it before we can snatch up a bargain!

 

 

DC    

Where my parents live the neighbours get the newest plated cars when they come out just for looks! However everyone in the village can tell it's all pcp etc!

I'll never get that. Sometimes if you look around at all these people mortgaged up to the hilt, a spanking new Bimmer or Merc on the drive and a holiday away twice a year in the sun yet the tramp on the corner has less debt, less hassle with creditors and less stress

I'll never get that. Sometimes if you look around at all these people mortgaged up to the hilt, a spanking new Bimmer or Merc on the drive and a holiday away twice a year in the sun yet the tramp on the corner has less debt, less hassle with creditors and less stress

I don't agree with it hugely! I do my fair share of work and earn my wages if I was to do anything I'd use the money I've saved buying a cheaper car and get a classic project!

My dad has always bought brand new cars as far back as I can remember.
I bought my Skoda new and have had it ten years. Not bored with it yet
The wife's car was 9 years old with 248,000km on the clock when we bought it three years ago. Still going strong!