Motors How did you purchase (or rent) your car?

Just as you still have the car if you're paying finance or buy off a PCP.

You're buying the car, a depreciating asset, ergo you're paying for the depreciation.

 

Not to mention servicing and repair costs. This is the hidden expense in buying used cars outright. By the time you pay for MOT-related and wear-and-tear repairs and maintenance you are out of pocket just as much --for an ever depreciating asset. After 10 years the big bills start coming for clutch, cam belt, alternator, gaskets, suspension... On a good car the engine and body work will last for ages, but certain components are subject to inevitable wear.

 

Buy 'em cheap (sub £2000) run them into the ground, budget £200 pa for maintenance* = profit

*only works if you're willing and able to do all work yourself

I tend to work on the fast and loose principle that a car shouldn't 'cost' me more than £500 a year + maintenance (excluding tax & insurance) so after 4 years a £2000 car is either disposable or costing me nothing depending on its condition at that time.

 

I had done the 1500 quid banger every few years but it gets to be a grind when you use the car daily when the inevitable work needs doing, which is ALWAYS in November-February! Removing a 206 rear axle on my own was the last straw and I bought a new car.

Great thing about the Dacia was I only put a smallish figure down, very reasonable monthly payments for 5 years and then its mine, no nasty final payment.

 

Being of limited means I have always preferred the lower end of the market. If it gets scratched or dented etc. I don't have to act like a prima donna or get stressed about insurance claims.

My latest purchase was about 12 years old but with FSH and only 80,000 miles clocked. Does the job and will hopefully keep going a while yet.

I've worked on the ballpark figure that you can't expect to motor 12 months for less than £1,000 all-in. So if you can find a good one in the £1-2k range then it's worth a punt. Helps keep the insurance down and doesn't attract attention.

 

My view is that if you cannot buy your car cash, you cannot afford it. Finance should really only be used for the flexibility and for the saving of hassle (like in a PCP, where you don't have to sell it at the end).

I always bought my cars used and in cash. New cars make no sense in my view. Maybe it made sense a while ago when cars were less reliable and more delicate, but today a three-year old model is as good as new in my experience. And you get so much more car.

For example the new Ford Fiesta mentioned earlier on this thread (17K) costs more that an 3-yr fully loaded Jaguar XJ! I know what I would rather drive.

I am really glad people buy new cars, otherwise where would I get my used cars from. I suspect the reason many people go ahead and by that new Fiesta, is because of the no deposit/low repayment/10yera+ special finance deals that are only available on new cars.

 

Finding an affordable used 4x4 Skoda Yeti or Octavia Scout turned out to be remarkably difficult --they were either very high mileage, well-worn vehicles or expensive low-mileage cars. Buying a new Yeti on PCP turned out to be actually cheaper in monthly repayments --with the added bonus that I could bail out of the arrangement at any time if need be.

 

cash, every time

 

Just bought a used car and paid with cash.

My Wife and I had been looking for months and were almost ready to give up buying out right and go for some finance deal as we couldn't find what we wanted (miles/age/features) but then finally came across one that had everything we wanted (plus a little bit more) bang on budget, at the weekend.

Pick it up Friday, can't wait

 

Cash, then

First few bought (1st cash, then 1st+student loan, then 2nd+bank loan)

Since then, company cars changing every 2 years. Just ordered a Merc C350e for ~ £310 a month all in inc insurance etc (bar fuel of course).

Next car will be a private lease as the company car tax rates are going mental over the next few years. Shame as our cars were looked after and provided a nice 2nd hand motor for the 2nd owner. On the upside I just checked and can insure a new Cayman for ~500 a year. One advantage of age I suppose...

 

Bought out right, always have always will.

 

I've always bought by cash, but so far none have exceeded £6000. Current commute runner is a a diesel C class coupe bought for £5000 1.5 year ago when I moved, my wife's learner car is a £2000 Fiat Panda and my parent's car is a £6000 very low mileage, very new looking Volvo S40.


Buying on PCP is great option. But one question I always wanted to know is how does the mileage work? I commute around 16k miles a year, PCP deals I've seen seems to favor low mileage drivers. For 15k-20k drivers, which is better? PCP, PCL or buying outright?

If there's particular technologies/options that you really want, you have to buy new. Queue-assist (or ACC stop and go) are a must for my next car. Plug-in hybrid is also high on my wanted list, I'm sick of watching my MPG drop and creeping forward manually. Those options usually don't get configured as most people are still not comfortable with technology.




I'd love a new 4 door car (BMW 330e, Merc C350e or VW Passat GTE). Unfortunately I just cannot get past the fact the car will worth less than half of what I paid after 3 years. I have the savings to buy an entry level 3 series or Passat, but that just feels like money down the drain. Currently I'm considering investing the money somewhere else. Suffer 2 more years of manually shifting forward in traffic and wasting fuel, then search very hard for a second hand one that fits my list of features with cash to spare.

*sigh* But buying car is like buying computer components nowadays. There's always new features I want..........

 

They're pretty mental now, I couldn't imagine them being even worse! I did the maths a couple years ago when my business mileage went up a bit, worked out that between the tax on the car, the fuel card and losing a cash allowance, my pocket would be hit to the tune of ~£900/month for something as innocuous as a 320d

 

PCP only really works if you wish to own a brand new car, it usually works out just a little cheaper or on par with the cost of buying a new car and taking the depreciation hit over a 3 years period.

If having a new delivery mileage car is important to you then sure go for PCP, but if you are willing to buy a newish car (around 1 to 2 year(s) old) then cash is the best way to go, the bulk of depreciation is in the first year.

 

For me personally, the draw of going for a new car isn't about the mileage or age, it's the options, trim, colours etc. Otherwise I just kind of feel like I'm driving someone else's car.

 

The two most succinct and accurate posts in the thread!
PCP for me, for exactly the reason outlined above - It means i'm getting exactly what I want in terms of features, and I know delivery miles aside, that the car hasn't been ragged or has any hidden history.

That said, a few posts on this forum have opened my eyes to how good value the used market can be (would still probably not do it except in cases of cars with ridiculous depreciation)

 

Some interesting thoughts on PCP here. Our last car was HP and we had it for a further two years after paying the balance, which was nice; our current car was purchased outright and we're repaying the money lenders (bank of mum and dad) monthly.

When I get properly settled into a job, probably not for another 3-4 years, my intention is to get something nice like an S4 Avant, and I'd be inclined to buy used. There are good points for and against PCP, but it's still more expensive than buying an older car. The caveat, of course, is that you need to know your cheese when buying used cars because there are always risks when buying used (or "ragged" to use TSB's word of choice!), particularly if you're buying privately.

Mister_Tad, I'd be inclined to think that most people, like you, are drawn to go for new cars, however most people just don't have the facility to make that happen, which is why they look for other options. I'm particularly drawn to a new Huracan, or at least a GT-R, but that's a long way off for me, even on PCP. I wonder what I'd do if I found myself in a position to go for PCP... being a bit of a bargain hunter, I'd probably still be inclined to buy used.

 

A new car generally loses 15% minimum driving off the forecourt !

I would never buy a brand new car and have always paid cash, albeit for old cars. If you look properly for an older car you wont get massive re[air bills either. I just stick to RWD cars as FWD sucks and so really limited to BMWs and Mercs.

Had BMWs for most recently as I there are not a lot of others to choose from, not just being a fanboy. I know my way around them backwards now and can spot a shed a mile off, even if its only a few years old and looks 'shiney'.

 

Everyone in this thread is so conventional. I acquired my car after firing a grenade launcher into the centre of a busy road, and in the ensuing carnage I ran over to a car full of Hispanic gangbangers and yanked the driver out on to the asphalt, hitting him on the head with the butt of my launcher as he fell.

The other occupants were screaming as I floored it, loud Spanish music blaring out of the radio - the rear seat passengers just managed to scrabble out as the tyres lit up. The front seat passenger kept shouting cheesy expletives at me until I hit a low brick wall head on at around 80mph. Somehow both the car, my passenger and myself survived almost unscathed and he made a break for it - only to be crushed against my rear bumper by an 'interested' police car.

Then I drove away and hid in a storm drain for half a minute, and nobody was any the wiser.

That's how I got my car. I actually made money from the corpses of its former occupants.

 

No more GTA for you.