To wonder why people don't buy cheaper cars(162 Posts)
This has come up on a few threads recently about people saying they can't afford a car
Why not just buy something older smaller or cheaper?
The most I would consider spending would be £5000 and I would have to borrow or save that - if my current 14 year old car becomes unrepairable in the near future I would buy a put me on for around £1000
DD last car was £800 DS just bought first car for less than £500
They are all very reliable and cheap to run and repair
DD and my car both come into cheap insurance and tax brackets
Different strokes and all that. I wouldn't spend a lot on a car as I couldn't care less what I drive. But I do like expensive bags and make up. I do cheap holidays and go camping but I spend money on food and drink on days out which a lot of people find objectionable!
Your missing the point of the monthly running costs, repairs etc.
My Sister bought her car for £300, the fact that you could save £5'000, suggests that you aren't struggling like many are.
£5k round here is a house deposit.
There's good cars in my area, because a lot of people work for Jag and get them on a 'ticket', many others are just on finance.
Where I live a local weekly bus/train ticket is only £18, though.
Its not always the case, but cheaper,older cars tend to cost more in upkeep, newer,pricier cars cost less in maintenance during the first few years. They may be able to afford a cheap car but not the repairs, or can't afford funds for a newer car.
I think people like new or newish cars because you get a manufacture warranty and exemption from MOT test for three years. If you buy an older car, you take more of a gamble and may pay out a lot in repairs quite soon after buying it. More expensive makes of car have appealing gadgets and safety features. Once you know of their existence, you might not want a cheaper brand of car that does not have them.
It's not unreasonable but it's a tricky one and all depends around usage, and what you want to drive.
There are so many new cars registered in the UK, we're addicted it seems to getting new cars. The majority of these of course are bought on finance - nothing wrong with that if you can afford it! People like buying new because you can choose the spec, there's the safety aspect (perceptions that safety improves every year on new cars) and the image thing.
Depreciation is the scariest part, but then again if you're leasing a car for £150 a month, or you buy a used car at £800 but then get hit with a £900 bill, who's saving money?
A bit about me - I work in London and so I only drive at weekends. I have a 16 year old Jaguar which cost me £1400. It drinks petrol but I use it for an hour or two each weekend as my partner has the sensible Toyota for DD (£4400, £30 tax, £320 insurance). I keep my car on classic insurance which costs me £110 a year. I always wanted it, I'm mad I know.
The point is, I think there's many ways to skin this cat, and people will insist on new cars because they'll quote the maths and stats that shows they're cheaper and safer.
It would take me about 3 years to save £5000 if I was very frugal so would probably take out a loan or buy a £1000 car
I find running and repair costs very low but appreciate that could be just good luck and am willing to chance it
I have to travel for work (essential car user) and do at least 20,000 miles a year so wouldn't be able to lease without paying massive premiums
The other thing that puts me off buying new is there seems to be so much to go wrong and it costs friends and family a fortune who have newer cars when it does
Last time I took my car in for an mot (it passed with very little work) I mentioned to them I was thinking about changing for something newer and they advised me not too as the newer versions of mine were less reliable and v expensive to fix
I have had my car for 6 years, it was 10 years old when I bought it for £1200. Personally, I would love a new car but I cannot justify the cost when there are other things to spend the money on.
New cars are lovely though so it's a question of priorities. I wouldn't buy a car on finance as that seems mad as they depreciate so fast, it's not like you're buying an asset. So I'd have to save up and I'm just not that patient.
I never buy new I could never afford it. And I'm wary of anything on finance. Although I do save and upgrade my car every four years then spend about 5-6 thousand. For me I worry about breaking down on the motorway or in the middle of nowhere with two preschool children so I prioritise a reliable car over things like foreign holidays.
It's not just buying a car though, it's all the extras. Insurance (which if you are a young or new driver, or have a history of claims can easily be £100-ish a month), plus tax, MOTs, servicing, repairs and petrol, can easily become more than what people can afford.
Whilst I'm not overly bothered what other people
waste spend their money on, I'm kinda in agreement here.
Obviously a £300 banger is FAR more likely to need expensive repairs than a new one but a nice second hand motor in the £1,000 - £4,000 range is a good investment in my view.
DH bought his car with just 8 miles on the clock (thank you scrappage scheme) and mine is a much older second hand car bought for under £4K. We've probably spent the same amount of money on maintaining them over the years. In fact, including purchase price his has cost far more and his is actually needing more work than mine right now. Yes there was very little spent on his in the first couple of years (except the extortionate dealership service and MOT deal we had to pay each year to keep the warranty valid) but we're pretty neck and neck now on cost.
Because they have more money than sense
A new car depreciates so much in value in the first couple of years. I always opt for a 2-3 year old car with less than 50k miles on the clock. No more costly to run, but a lot cheaper to buy.
But if I had money to burn I'd buy a brand new Land Rover - there's something rather nice about having a brand new car....
Also, some cars have a much better track record than others when it comes to repairs etc. My current car is Japanese and over 10 years old. It has been an amazing car and nothing ever goes wrong with it (touches wood!). I've been put off Audis because several friends have owned them and had to spend a fortune on maintenance.
Often - especially for younger people - it's the cost of the insurance which is prohibitive. Not to mention the tax, petrol, repair bills for the MOT etc etc.
People can spend their money how they like - not really any of your business.
Newer cars come with guarantees and warranties - I think Kia gives 7 years on their cars so buying newer and spending more may mean you're not going to get hit with unexpected bills. Newer cars don't have to go through an MOT either. An older car will probably go wrong more often.
Also, people like to have new, expensive things and that's fine too.
Due to various unexpected financial impacts over the last three years, we've kept our car longer than we'd usually do. It's 11 years old and has just us £400 to get through the MOT plus new tyre £55.The MOT states there are points which need addressing. Spoke to the garage and they told me all should really be done within 2,000, so I guess we're looking at another £200 or so. The car probably isn't even worth this.
I think it depends how much money you feel you can spare or are willing to spare.
I never buy a new car. I usually spend around £10K on a car. Currently we have a 10 year old car that we've had since 2010, and bought a second car last year for £9k which is a 2014 registration. You save a lot of money by buying when a car is 2-3 years old. The older car (a Japanese brand) is still going strong and has been very reliable (touch wood). We also buy "normal" size cars so we can park them easily, rather than cars-pretending-to-be-tanks.
A lot of people have new cars on lease arrangements, so they don't really own them.
There are some fantastic lease deals around just now. If you want a brand new car then it seems the obvious option to me.
I just got a brand new skoda Yeti with leather interior, all the toys for £190 pcm, with no deposit.
If I bought that car then the depreciation alone would cost me more than that. And in 2 years I'll be able to get another brand new car.
I bought an almost new car (8 month old ex demonstrator) as it still had most of its 5 year warranty left but was cheaper than a brand new one. I also got a better finance deal as it was less than 12 months old - 0%. Running costs are minimal - it is a small car so tax is £20 per year. I will keep it for at least 5 years though. It costs me less to pay the finance, insurance, tax and petrol than to use public transport.
I recently got a 2013 Suzuki with 10,000 miles on the clock for around the five grand mark, after trading in my old VW for £800. It's the nicest car I have ever had, and people can't believe the deal I got - came with a warranty etc I'm feeling tremendously smug about this.
These days, I always buy nearly new cars (e.g preregistered or demos) as it saves quite a few thousand. The dealer takes the hit of the initial depreciation. I enjoy driving a comfortable, safe and modern car. I also and need to know that my car is not going to cost me anything in repairs or break down, which is more likely with an older, cheaper car. Like PP have said, there's some brilliant warranties around now and I like the reassurance of this.
I guess because people have different spending priorities?
Well, maybe you have been lucky OP. I had a £1000 car. I broke down six times. I had to get rid of it as I couldn't rely on it.
Also, I was quoted a repair bill (on a five year old car) for over £4000. Again, had to get rid of that one, the bill was more than the car was worth!!
i need a car i can rely on that will not cause me problems and will fit people/stuff in etc so i do intend to get a new/newer one under warranty.
the people i know with very nice cars expensive cars have them on lease agreements and swap them every 2-3 years, keeping on with a lease agreement.
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