To not buy a second hand car.

[JacktomyDaniel]

Does anyone “know” cars or has been in this position before?
We’ve decided to get a second car. We have enough spare cash a month to fund finance of around £190/200 and so could afford a small new car on pcp. This would need no MOT and would have warranty.
Husband thinks we should buy an older car around £4000 and take a loan.
I’m also toying with buying a much older car around £1000 and running it into the ground. My question really is which is the sensible option. I know people who have had bangers and driven them for years with no issues and yet our other 5 year old car has already cost us 1k in repairs! We could have a bigger, older, higher spec car with the risk of repairs or buy a small, new, low spec with warranty.
Any advice?

I’ve had second hand car that have cost me a fortune to keep going. I bought my last two cars from relatives who’d had them from new a much better way in my experience. I’ve got my next car lined up from another relative, it’ll be low mileage and only 4 years old. I should be able to purchase it outright but if you’ve got money to spare for pcp every month could you get a cheap bank loan to buy a nearly new car.

I run my own car sales business.

How small is small?

You could get a Kia Picanto for £4k with full kia history and 3 years left of kia warranty. Or a hyundai i10.

Dont get a Toyota Aygo. They are poo.

Thanks reenon!
Small can be pretty small. 2 kids but we have a very large other car so it’s just really a commute/day out car.
Do you have a brand recommendation?

I keep my cars for a long time. I bought my hyundai excel new and had it for 15years. It had nearly 400,000 kms on the clock and did some big trips in it's life. Loved that little car and it cost very little to run and maintain.

Got a second hand ford wagon after that. Only time I've ever taken out loan insurance - that pays out your loan if vehicle is written off. I hadn't had it 12 months and an idiot wrote it off at a red light. Loan insurance paid out the loan so I wasn't left paying for something I didn't have.

Got a ford territory to replace. Also second hand. It cost money - had to replace steering of a three year old car. Not happy. Started making another noise that I didn't like so traded it on another territory. That one was second hand as well. 12 months old with only 3,000 km on the clock and $10k cheaper than new price. I love it and will keep it for another 15 years if it's up to it.

My point being buying new or near new isn't a waste of money due to depreciation if you plan to keep the car for a long time.

If you can afford £200 a month get a new one. Not worth the worry or hassle.

Not for everyone but have you considered a lease. I've just leased a Honda Civic, on a 3 yr lease and worked out at £230 a month and they pay the car tax. The car new to buy is £21K so great deal don't think that even covers the depreciation!

I would never get a car on pcp the inspection at the end of the term is so ridiculous that even reasonable wear and tear will leave you with penalties to pay

That's not my experience. Mine was bumped and scraped all over the place, inspected independently and the bill was £80.

I would lease. Well, I do lease so obviously that's what I would do! I have a brand new Nissan note just now, top spec, for £125 a month. No it's not a fancy car, but it's under warranty and will never need an MOT while I have it. I don't care about depreciation. We have leased for years with no problems and I would never buy a second hand car now.

Oh, also never been billed when returning a car. And that's been with two toddlers and bike racks etc on the cars.

Get offended if you want I don't care

Who said anything about being offended? I'm always highly amused by people that regard their opinions as being the only right opinion. Not offended at all!

Id have a look at the auctions. Most financed cars that are returned at 3 years old are then bunged in the auctions. They're warrented, have low mileage (due to the limits imposed on hire purchase) and have had regular services. Most second hand car dealers will be there buying them too, then they'll stick a couple of grand on them once they re sell them. You can get some real bargains on lovely cars.

(Ps my husband is a mechanic and detests French cars generally too!)

Why not do a personal lease rather than PCP? You can get some great deals if you aren't too particular about having a specific make/model. I pay 3+35, so a very small deposit of 2 months payments plus the first months lease payment, then 35 more monthly payments. Never been charged anything when returning the vehicle.

I get a brand new car every three years, and it works out cheaper than interest on a loan and depreciation of I bought new every three years.

Who said anything about being offended? I'm always highly amused by people that regard their opinions as being the only right opinion. Not offended at all!

And yet you're the one who thinks I was trying to say that your experiences are less relevant than mine... Not what I said at all, but you read between the lines and come out with that. Assuming too much.

I've handed back two PCP cars and not had an inspection on either. Just got another car today on PCP. It's great. Won't ever buy another car outright ever again.

I am about as far from an expert as you could get, but we paid £3k for our second Japanese car 6 years ago. It’s been absolutely perfect - just the usual stuff (brakes etc), is now 16 years old and the garage said it’s still in really good nick.

We’ll run it into the ground and get another second hand one in a few years.

I’d only ever buy (via loan or cash) as the asset is yours and never brand new as the immediate loss in value is ridiculous.

@Honeyroar

This is a great tip!

If I've read it right, you already hve a car, and this would be an additional one ? So if you need to do longer journeys, you would use your current one? This is the 'run around' for local trips ?
In which case I'd spend £500 - £800 on (preferably) an older Japanese car, and you'll be quids in. You sound like you've been unlucky with the one you've had.
My dd had a car that is 20 yrs old (not even Japanese). First year she had it, she didn't have to spend anything on any repairs all year, except replace a lightbulb - it went through the MOT and passed without anything needing doing. Next year she had something small for her MOT (cost her £40), but not needed to spend anything else on repairs. I have always had old cars costing a few hundred. Even if you spend £500 a year on repairs and replacing things (and I never have spent that much), you'd still be quids in over coughing up £190 - £200 hiring a car. It just doesn't make sense.

I had a year with hire cars. I had 3 in that time, roughly 4 months each - Hyundai i10, Peugeot 108 & a Kia Picasso.

The Kia was MILES better than the other two, so much nicer to drive. All were VERY handy for parking! All were crap for kids stuff & shopping.

However, what I hated most was the way they all felt very vulnerable. Mostly on the motorway, but also just in general. I hated having the kids in them and I was VERY glad to get back into another Ford Focus.

I test drove a lot of cars in that year too as I wanted ‘something different’ after having had a Ford Focus previously, but I couldn’t find anything I liked as much (at the same price point - I’m sure I could if I had wanted to spend a LOT more money, but I didn’t. I decided £15k was the max I wanted to spend at the moment and ended up spending £11k)

Personally wouldn’t touch pcp. If I’m paying that much for a car each month I want to own it, not hire it. Apparently that’s ‘old people thinking’🤷🏻‍♀️ but ‘whatever’. I think paying £250pm to essentially hire a car & not end up with it at the end is madness myself, but each to their own.

I thought about buying at auction but the process isn’t for me. I want to be able to test drive a car properly. Then get a full check done on it.

There ARE good deals to be had, but there ARE lemons too and I didn’t want to take the risk 🤷🏻‍♀️

I have a Nissan Micra for £1200 at 17, which was written off after an accident at 21 and I (somehow!) got £1000 for it as it has 12 months MOT when it happened.
I then put this towards buying a second hand Honda Jazz at £4000 which I had until 27 when I traded it in for my current second hand Mazda, which I had to add £3500 to to buy. In total, I’ve spent

Good point about auctions, yes. My returned lease cars go to auction within a day or two. They have to have a full service history, the mileage is low and the bodywork and wheels also have to be in good condition. Not knowing anything about cars, I don't know whether I'd be confident enough to buy at auction though without someone who knows what they're doing.

£6700 to own a car for 15 years, and still own my current car. If I’d paid £200 pm for a car on finance for 15 years, I’d have spent £36000. That’s a difference if of over £29000’n

I've had a few ex mobility cars, low mileage, full service history, all work evidenced and done by main dealer. Excellent second hand cars, often automatic which is fine for me but I know some people really want manual.

I wouldn't buy Renault again, that's for sure. I had a 2003 Renault scenic, I did run it into the ground with 160k on the clock, when the head gasket blew. I paid £400 for it in 2014 with 130k on it, and replaced loads - timing belt & wayer pump, plugs 5 times, brake lights kept blowing bulbs, service light constantly came on, took nowt to knock tracking out, alternator, starter motor, full exhaust & cat...... absolute nightmare.

I now have a 52 VW Passat, it's quiet as a mouse, 2.0l, easy to drive. Might not have all the modcons of a new car, but it's a nice car. Was my FILs car and has been well looked after, and I intend on looking after it myself

I'd rather buy a well maintained older car and get something nice than a new car and go basic. My current car has heated seats, parking sensors front and back, cruise control, auto lights/wipers and more and there's no way I could have afforded it new.

It's a Vauxhall, just in case that matters. I also have a Fabia hatch and it has been brilliant too.