Purchasing

[HebdenHedgehog]

Does it ever make financial sense to buy new, or should a private buyer always buy nearly new*?

Just curious as we've been thinking about buying a new car because that way you do at least get all that you'd like (assuming you want something you cannot find nearly new), or should we just put up with not having all the bits we'd like / want and buy nearly new as that is obviously the less expensive route?

We would be keeping the vehicle for a long time, running it into the ground, etc, which is also why we are even considering buying new (having been brought up to think that that is a mugs game for private buyers).






* - assuming one can afford to buy at all of course!

[lost in espace]

I suppose the cheaper the car the more sense it makes to buy new. The depreciation on driving out of the showroom is roughly the VAT iirc.

[HebdenHedgehog]

hmmm, let's say the car costs, err, £19k

Not a sexy car by any means, but a boringly practical car, with a few interesting bits to make my life a bit more fun

[B0bman]

I'm far from being entirely knowledgeable about such things, but I've always bought nearly new. Surely this will be the cheaper option in all but the most unusual situations.

Bob

[sawman]

I guess theres a lot of variables at play,

main dealers often get incentives to shift units and so may choose to use some of this to discount for you, if by making the sale to you they hit their quota. So they may have more margin to play with in a new car thats in stock versus something they have bought for used stock.

eg, i was looking at volvo xc90 earlier today - volvo are giving 5k back on these if you trade a car over 6 years in, before you even start talking to the dealer - I would imagine that makes a new one cheaper than the ex demo the dealer might be holding.

[swamp]

Some cars are probably good new buys. That is, they will depreciate at an acceptable rate for what they are. I'm thinking new X3, new 5 series touring, Yeti -- all popular family cars (with waiting lists.)

Some new small cars that are Congestion Charge exempt may also be 'investment grade', even if their eco credentials are a bit shakey

[Kudos]

I think the key is to buy smartly. I've kept an eye on the likes of broadspeed.com and can see new cars listed for less than what a local dealer is selling pre reg or second hand. If you can get it right from new, then hopefully the depreciation is lessened.

[Risotto]

I suppose there's the warranty aspect to consider but an awful lot would have to go wrong with, say, a 3 year old car before the cost of paying for repairs outweighed the depreciation that a brand new car would have suffered.

Edited by Risotto on Thursday 10th February 12:16

[va1o]

Plenty of cars make more sense to buy new than nearly new, particularly a lot of VAG/ German cars that have long waiting lists, as in these cases the nearly-new examples sell for more than you could get a new one for through a broker like drivethedeal.