tomscaper (26th June 2008)
Yes as already said don't buy new, I should know we got our family wagon new and the depreciation has been massive (last time I let the missus make decisions on anything worth over £10!).
2 or 3 year old motor should be fine I'm sure you could get somehting like a focus, not sure about interest free finance (unless your gonna put it on a cc and transfer the balance every year), maybe you should look at getting a loan I think it would be about 6-7%.
have you thought about leasing ? You'd get a new car without being tied into a loan.
Loan from your bank? Cheaper than a garage arranged HP agreement.
Have a look at the cars that are part exchanged when the next new registration comes out, some people still change their cars every 3 years.
Also car supermarkets that sell cars from 6 months to 5 years old, sometimes an ex lease car can be a good deal, they're serviced regulary with no expense spared.
YMMV of course, and I am not offering financial advice, nor advocating or criticising either institution. So there.
I agree - if you want the warranty, go for something at least a year old. But NOT new. Get a cheap loan from somewhere (check the price comparison websites) and remember that, due to the credit crunch, second hand car sales are down - so go in there with guns blazing!!
I'll also agree with the don't buy new advice.
I bought a brand new Clio a year ago. Got a new job with much better salary a week or so back, and decided to find out about getting a Megane CC. Went to the dealers yesterday to find that at 1 yr old, with 6k on the clock, it's worth half the new price, and £750 less than the finance balance. And that was with a £2.5k deposit from px on my old car! Rip-off.
I'd say buy at upto about a year old. My Dad bought a six month old ex-demonstrator Laguna for less than half the new price a while back! Just anything but brand new, as you lose loads.
My parents have just bought an 07 plate astra 1.9 diesel, it's an ex GM fleet car so they know it's been looked after, and their price to change with their old 02 focus 1600 was about 9-10k. I would go against a manufacturer finance deal unless it is SERIOUSLY good value, it's hard to find finance anywhere these days.
Those that say "I buy new because I need a reliable/warrantied car..." are forgetting that a 1-2 year old car still has a portion of the manufacturer's warranty to run, and firms like the RAC allow you to buy aftermarket warranties. Also, if you want a reliable car the only thing you have to do is LOOK AFTER IT. Service it when the book says with good quality components and if somthing's not working, get it fixed. The number of engines i've heard of "blown up" due to cooling failures is amazing, especially when the owners say "I'd noticed that the heater stopped working a week ago..."
I think i will either try to go down the line of save up some money and pay right out, or get a loan from a bank and pay the car off, any garage seems to try to rip you off when it comes to finance.
The APR on one car was 11.9% where barclays was something like 7.3% sure i will still have to pay so much extra but there is a big difference.
Another option is pay so much off and get a small loan to cover the rest so pay £3000 and get a loan of £5000, rather than a £8000 loan.
We've bought ex fleet cars they are usually good. I've got an AA warrenty with my current car (3 year old car) you don't have to stick to the manufacturer's dealerships for servicing etc any garage that's VAT registered is ok.
Try to find a car that was coming to the end of it's run, the manufacturer's stick a few extras on and make special editions to make the last of the current cars sell, if you buy a special edition secondhand you get the nice bits without the huge depreciation. My son's just bought a fiat punto, last model before it became the punto grande, it's got a sunroof, co ordinated bumpers mirrors etc. looks abit different to the standard blue puntos that you see.
You could always buy a pre-72 classic... Tax exempt then...
or by an old diesel 1600 golf... you can pretty much run them on veg oil...
plus insurance of over 14 year old cars is cheap as some companies offer 'classic' insurance policies...
Also if you are looking for a finance deal, then i would stay away from dealers offerings. Go to your bank and i am sure they will offer you a better deal, also shop around for a loan.
My Astra (OK, it's not new, it's a '97) was an ex-motability fleet car...find an auction or dealer that deals with those, you're laughing. 3 year old motors, regular service, histories, all maintained by Motability.
Mine had 1 owner post motability before me..I have a stack of papers, service recalls, receipts for work done, Vx dealer papers, motability docs and all that with it.
For an 11 year old car with 130k on the clocks, it's been incredibly well behaved. Tyres, new brake disks and pads...the only real failure I had was a blown headgasket, and that was me taking it windscreen deep through a ford..
Bodywork and so on is spot on.
We just financed our latest car and the one before with a loan from Tesco cheaper than the bank and easier to arrange.
If you have a new car or one with manfacturers warranty you don't have to have it serviced at the dealer but whoever does the service has to do all the same things your dealer would and use the same quality parts and lubricants.
- Taken from Frequently Asked Questions: Car servicing, warranty support, accident repairs, tyres, exhausts and MOT testing in Greater Manchester: Welcome to AYCEN.Servicing restrictions were lifted in May 2004 by the Office of Fair Trading. By law, any repair carried out by trained personnel, using equipment fit for the task and following the manufacturer’s recommended repair procedures, cannot affect the warranty of the vehicle.
In a nutshell, you are free to take your car to an independent garage for its servicing and repairs provided these are carried out in line with the manufacturer’s guidelines.
Slight dissent here - everyone "knows" that you lose a lot on a new car, but this includes the dealers - you can *hammer* them for discounts on new which you won't get on an older car, and remember, no MOT for 1st 3 years, so if you do buy nearly new, don't go over 18 months old.
We just bought a Civic, brand new - but catch the dealer at the end of a quarter, desperate to make their figures, could probably sell the car now with 2000 miles on the clock and lose ~1000 quid (on 16000). Get something with good residual value, and you won't lose too much, especially if your second car is a "hard bargain"
Most important bit of advice is "only buy half of what you can afford" - in todays climate it is too easy to get overcome by payments. Selling a car as a distressed seller WILL hit you hard.
I'm going to echo the statements about buying 'nearly new'. I bought a colt last year, and whereas the brand new model would go for £11K, I got my 18 month old for £7K with 18 months left on the warranty.
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