AIBU to buy a nearly new car outright?

[Aroaringfire]

I know this might seem silly but I can't tell if I'm being 'old fashioned' or if people are mansplaining to me. It's not meant to be a goady thread about having money, more getting cold feet about big purchases.

Essentially, I have a job where I use my own car for work and it's part of the contract I have one. When I first got into this work a few years back I and DH went halves on a budget car to get me started. Since then I've been putting money aside each month for a new car. I'd anticipated that for a deposit, but budget car has lasted a lot longer than I expected, plus I got a promotion two years ago and I've been using the extra money to add to the pot. I'm lucky that I've now got 9k in my car fund.

My work miles mean high mileage, and it's variable mileage which I can't control. For that reason leasing is out, and PCP doesn't seem a good fit. PCP deals are aimed at people doing less than 12k a year. Mine is usually 15-20k and while I know some will finance, they charge a premium for doing so - definitely not eligible for the tempting advertised deals. Hire purchase seems pointless if I've got the funds as the deals aren't comparable (they're usually just list price plus interest, and interest for HP is usually 12-14%)

So the way I see it I could buy a budget brand car that's less than three years old. I could then keep putting money aside each month and in 5yrs time buy another car the same way. A bit like what I'd be doing with hire purchase but without the interest.

I've mentioned this to some male members of my family and pretty much been told I'm an idiot. That noone buys cars outright these days, they'll see my coming etc. Either I should get the latest popular brand on PCP or I should buy an old saloon workhorse that's already done 70k for a couple of grand.

I totally get that most people buy cars on finance, and if I buy outright im never going to get a big fancy car, but surely for my individual circs this way makes sense? I don't need a big car, nor can I risk a gas guzzling liability. Im not bothered about newish for the sake of it, just something i can be confident will be reliable and last me a good few years, and is efficient/ cheap to run (particularly important when work mileage isn't generous!)

I was brought up not to use credit so I'm aware that that influences my spending compared to some peers, but i think I'm being logical - please tell me if I'm wrong.

user I asked several times if there was any reduction in price, they said no. I said I wasn't sure I could stretch to that much, could they knock off £500, they said no. I ummed and ahhed, they said no. I thought it over for well over a week and asked again, they said no. The car was a good £1K lower than others of same age with higher mileage due to it not having a FSH, so was well priced and I decided to buy it.

The forecourt price displayed on the windscreen and online was the price. As far as they were concerned I was a cash buyer. They were not prepared to drop the price even though I asked several times.

I did not mention the 0% finance until after I had test driven it and decided to buy it . I decided at that point that I might as well keep some of my savings and use the 0% as it would cost me nothing.

As stated, I would never buy a new car, my uncle used to own a new car dealership, so I know exactly how they work and how much money you lose the second you drive off the forecourt.

I would never, ever, buy a car on finance. It’s a complete waste of money. If I can’t afford it, I don’t buy it. You’re being sensible.

@user1471481356

I would never, ever, buy a car on finance. It’s a complete waste of money. If I can’t afford it, I don’t buy it. You’re being sensible.

You do you. It’s not the right thing for a lot of people who aren’t you. It’s definitely the sensible thing for OP though.

@user1471481356

I would never, ever, buy a car on finance. It’s a complete waste of money. If I can’t afford it, I don’t buy it. You’re being sensible.

Easy for you to say if you aren't dependent on a reliable vehicle to get to work every day. Many people have to take finance as their only affordable option, because they need a car to stay in employment. Not everyone lives in an area with reliable, frequent and accessible public transport.

Your male family members are morons. Ignore them. Buy the car outright, you're keeping it until it dies. It will last you a long time if you buy a good one.

Just bought my 6th car outright. Have next bought anything on finance.

@tappering

Plenty of used cars are perfectly reliable. You really don't need a brand new one to get to work! How do you think everyone else manages? In 37 working years, there's been only 1 day when I couldn't get to work due to a breakdown. A relatively modern second hand car, regularly serviced, will be just as reliable until, I'd say, it was about 10- years old, which is about the time they start to need new parts etc (other than tyres/brakes). The one time I broke down en route to work was in a car that had 190,000 miles on the clock - it owed me nothing!

I've often thought about this as I always buy cars that are 10-13 years old and often wonder if I should get a new one on finance. I'm scared of the monthly payments though

Only ever bought outright here too. I hate debt, particularly complicated debt. Do too many miles for leasing to ever make sense, and don’t give a shit about the look of a car, so no desire whatever to stretch myself for a trendy thing. Stick to your plan OP, I assume your relative has a Range Rover on the never-never?

Go buy a new car, because at least you know it’s history and able to get it fixed faster and cheaper as time goes on. An old car, you can’t tell used the wrong parts and did some damages or had an accident and where

I brought my van brand new and drove it over 17 years it was very cheap to maintain because I knew how to take care of it. The only reason I had to get rid of it because someone rear ended me and the van was so old they called it a total loss and they would only cover the cost of the car itself instead of the repair (which is way more) they refuse to cover the repair. So I drive a Honda now

The only think I recommend is buy a car that is a couple years old, they will double down the cost than the brand new ones

[quote user1497207191]@tappering

Plenty of used cars are perfectly reliable. You really don't need a brand new one to get to work! How do you think everyone else manages? In 37 working years, there's been only 1 day when I couldn't get to work due to a breakdown. A relatively modern second hand car, regularly serviced, will be just as reliable until, I'd say, it was about 10- years old, which is about the time they start to need new parts etc (other than tyres/brakes). The one time I broke down en route to work was in a car that had 190,000 miles on the clock - it owed me nothing![/quote]
Gosh thanks so much for telling me that. I genuinely had no idea that a new car was not a necessity.

You are missing the point, which is that not everyone has the cash upfront to be able to pay for a reliable car outright, whether that's new or used. How on earth do you think people manage without thousands sat in the bank going begging, looking for a good deal on a car?

I'm perfectly aware of used cars being a good buy, as I own a used car myself, bought third hand, which I'm running into the ground.