Cars!

[ashworth]

Just a quick rant on cars!

So I have been driving for about 8 years now, have never really been in a position to save and buy a half decent car, so have always bought old second hand cars, have had about 6 different cars! and i am finding it frustrating that I'm always spending out money just for a car that I'm going to need repair 6-8 months down the line.

My current car, Honda Civic, is the latest pain in my bum! whilst I admit is hasn't been a bad car for the past 6 months, and I knew the clutch didn't have a lot of life left in it I was kinda hoping it would last at least a year, but in the past week its started playing up and struggling to go into gear sometimes, so now I'm worrying every time I take it out.

So this time I'm putting my foot down, I have decided that I'm not going to spend the money on it to replace the clutch just so something else can go wrong in a few months time, I have also decided that I'm not going to fix the situation by going out and struggling to find the money to buy another old second hand car. This time I'm going for a brand new car! obviously I can't afford to buy a new car, but have been looking at dealership's finance deals and spoken to a few people that have done that sort of thing and it definitely seems worth it! especially now some dealers are throwing in insurance with the deal all for one monthly payment.

I was always planning looking into this but was going to be in a couple of months after my holiday, but now I'm being forced to take action now...

Sooooo people on this board that are in the UK; whats your opinion on car finance deals? is it something you have done before?

and I know there are a lot of people from the US on this board... how do the finance deals work over there for cars? do you think they are practical?

[DWx]

Ashworth, have you considered nearly new or ex-demo models? You're still buying from the dealer direct and most likely they will give you a warranty on the car. Brand new is nice but the depreciation in the first 6 months to a year can be significant. Also I don't know if you can hang on a few months but the 66 plates come out in September and you would be able to get an even better deal on a 65 plate.

Or depending what model you're looking at, look for when a new model comes out. E.g. I think the MK7 Golf is getting a facelift this summer, when that happens you'd get a good deal on any slightly older ones the dealer has.

I've been fortunate in that all my cars except my first have been company cars so I've not paid for them myself (though I have been involved in buying them). Through that I've had brand new straight off the factory and ex-demo cars (5000 miles on the clock). Funnily enough it was the brand new Ford Focus which was the one that needed a new clutch and gear box after two years. At that time I wasn't driving it anymore but a colleague so I will blame him!

IMHO if you want reliable, you want German. Any of the cars from the VW group should be built well (VW, Audi, Skoda and Seat) and with these its worth considering that several across the group are built on the same chassis and with the same engine so you can get a bit more for your money with a "cheaper" brand.

As to finance I can't say too much as never done it but friends have. As long as the monthly payments are within your budget there should be no problem. Might also want to consider whether you should take out gap insurance too.

[mazzybear]

I have a Seat Ibiza Connect and I love it. Seat usually have really good deals on, I got £3000 off through various deals. They have 2 or 3 different ways of financing a new car and depending which one you go for, there is no initial deposit. I'm currently paying £270 a month for a 16 plate but, if you don't mind not having the extras you can get a brand new Ibiza for around £190 and that's not bad as the Ibiza has been voted the best value super mini on the market for a good few years. And as DWx said it's basically a VW under the bonnet, so you know it's quality. But search around for the right deal for you.

Mo.

[ashworth]

thanks for your input guys.

Went around some of the local dealerships today, wasn't overly impressed by ford, vauxhaul were a bit of a left down, best offer they could offer was an ex demo at around £158 a month, and that only with a years warranty, but then I went to Kia after and could get a brand new Rio for less than that which also includes services for the first 3 years and 7 years warranty. Going into the Seat dealership tomorrow to see what they can offer, I did pop in today for a quick look and he thinks they can beat the offer I got with Kia. Will have to wait and see!

[Montana]

I can't speak for Europe or its financing options (USA here), but I've bought sonme 25+ cars, trucks and SUV's over the past 45 years and one thing I learned is..DON'T BUY A NEW CAR!

Why?

Well, you'll take a major hit in depreciation the first couple of years.

An example: My wife and I bought a very nice 2004 Saab 93 Arc (convertible) last summer. New, the car listed for $44,000! I paid $6,000 for it with less than 100,000 miles on it. It runs GREAT, gets good gas mileage (28-30 combined MPG), has a 2.0 engine with a TURBO that you'd swear was a V8 under the hood when you step on it. All the bells and whistles, etc.

Why pay $44,000 and watch your money fly out of the exhaust pipe!

BTW, we liked the car so much, we bought a 2006 Saab 93 Arc 6 months later.

Total car count in the garage is 6 now..down from 8 last spring..lol.

[DWx]

thanks for your input guys.

Went around some of the local dealerships today, wasn't overly impressed by ford, vauxhaul were a bit of a left down, best offer they could offer was an ex demo at around £158 a month, and that only with a years warranty, but then I went to Kia after and could get a brand new Rio for less than that which also includes services for the first 3 years and 7 years warranty. Going into the Seat dealership tomorrow to see what they can offer, I did pop in today for a quick look and he thinks they can beat the offer I got with Kia. Will have to wait and see!

FWIW I've still got my Kia Picanto (was my first car). It is the slightly older version than they make now but I found it to be really well made and easy to do the maintenance myself. Kia also seems to offer the longest warranties out of all the manufacturers.

[JohnASE]

Another US guy here.

Finance options are generally a loan or a lease. New cars loans often have low interest rates, even 0%. With a lease, you usually turn in the vehicle at the end of the term, typically 3 years, and you basically pay for the estimated depreciation, plus interest and fees. Usually, you can get into a lease for lower up front costs and a lower monthly payment, but you come out of it with nothing. For people who want a new car every few years, a lease might make sense. If you're going to keep the car a long time, purchasing makes more sense.

Like Montana says, used is the best deal if you don't absolutely need a new car. In the US, you can get a good deal on a lease turn in. They're plentiful, only about 3 years old, with not too many miles, and had regular maintenance. Dealers will often include extended warranties on such cars that are two or three years beyond the original warranty.

I bought my car new, but I planned on keeping it a long time, so I didn't worry as much about depreciation. I've had it for almost 12 years so far with very few problems. Actually, one big reason I went new is that I bought a sports car, a Honda S2000, and many used ones had been driven pretty hard. I didn't want to buy someone else's problems.