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Calculating cost of changing cars to save money each each?

Discussion in 'Motors' started by ShiWarrior, Jun 5, 2019.

  1. ShiWarrior

    Capodecina

    Joined: Oct 20, 2002

    Posts: 17,853

    Location: Oxon

    Need to know if it is worth me changing car or keep the current car longer

    Background,

    Saving money monthly towards a house, so i want to keep monthly costs down

    Current car is costing me approx 1K in fuel a year and tax is £235 a year

    Current car -
    Ford Focus 1.8 2009


    would changing to a newer car for example :

    Leon 1.2 TSI
    Focus 1.0 Ecoboost


    be a lot better on fuel economy ?
    Tax is £30 i think, so £200 saving in tax along each year

    approx 6K miles a year im doing


    ---- Keeping like for like with reliability --

    Any advice / help much appreciated
    thanks all
     
  2. OpenToSuggestions

    Capodecina

    Joined: Aug 5, 2006

    Posts: 10,407

    Location: Derby

    There is no way that a newer car will make you better off overall since the depreciation of it overshadows the reduction in running costs several times over.

    The MK2 focus is a brilliant car and the 1.8 litre engine is simple (petrol, no turbo).

    For 6k miles per year you'd be mad to swap your Focus unless it really is on death's door.

    Save for your house in other ways. Shop at Primark for clothes, have a sim only contract, cancel Sky etc. :).
     
  3. Cleisthenes

    Soldato

    Joined: Jul 29, 2013

    Posts: 7,162

    Location: TN1

    You'd have to fork out what, like 6k to get into a Focus Ecoboost? I may be way off the mark on that as haven't looked but if you're dropping thousands on something to save you money it's going to take a lonnnng time for you to start being back in the black
     
  4. Scrutinize

    Soldato

    Joined: Apr 4, 2003

    Posts: 7,284

    If you are waiting to buy a house and require a mortgage, suggest keeping monthly payments at £0.

    People are often surprised at how much even a small finance payment can effect borrowing with some lenders.

    Cost of changing factoring in purchase price / deposit / PM payments is rarely anything other than adverse to a baseline, where you own the current car outright.
     
  5. ShiWarrior

    Capodecina

    Joined: Oct 20, 2002

    Posts: 17,853

    Location: Oxon


    im thinking 3K for mine, 5K for an ecoboost

    so 2K difference to claw back
     
  6. paradigm

    Caporegime

    Joined: Aug 26, 2003

    Posts: 34,695

    Location: Staffordshire

    I think the key here is "some" lenders. Affordability is key, so spending monthly on a car won't necessarily impact any affordability calculations depending on how much the payments are vs income, plus how much you are borrowing on your mortgage vs annual income.

    No issues here getting the best deals out there for my mortgage deals whilst also having relatively large monthly payments on the car.
     
  7. Scrutinize

    Soldato

    Joined: Apr 4, 2003

    Posts: 7,284

    Depends on a whole load of factors of which we have little info.

    £250pm when your annual income is £60k plus barely registers, but if annual income is £25k-30k then it's usually a notable reduction on at least that applicant.

    But if the OP is feeling the running costs of an 09 1.8 focus I presume 'in the round' money isn't in abundance.
     
  8. Havana_UK

    Mobster

    Joined: Oct 14, 2004

    Posts: 4,605

    Location: location, location

    Well, there's your answer.

    You'll still be spending money on fuel. Maybe you'll save £200 a year on fuel, and the £200 a year on tax too. In 5 years you'll be just breaking even.
     
  9. ShiWarrior

    Capodecina

    Joined: Oct 20, 2002

    Posts: 17,853

    Location: Oxon

    thats the sort of answer i needed

    if thats the case, i may as well keep my current a few more years then

    thanks
     
  10. robinbanks

    Gangster

    Joined: Feb 18, 2012

    Posts: 231

    Location: witney

    6k a year? What are you doing in it? Driving to work? Seems rather low mileage.

    For that mileage get a moped or motor bike :p
     
  11. BUDFORCE

    Hitman

    Joined: May 3, 2012

    Posts: 982

    The other thing you have to factor in is reliability.

    If you current car is proving reliable, chances are it'll probably stay that way in general.

    If you have a new car, you don't know that.
     
  12. Joe T

    Capodecina

    Joined: Apr 1, 2003

    Posts: 11,320

    Location: Northampton

    Sounds like a spreadsheet is in order.
     
  13. ShiWarrior

    Capodecina

    Joined: Oct 20, 2002

    Posts: 17,853

    Location: Oxon

    All I wanted to know if I'd save money if I changed car to a slightly newer one which is more economical , I already know how much I spend each month on fuel as I keep the receipt and put it into my budget planner
     
  14. Joe T

    Capodecina

    Joined: Apr 1, 2003

    Posts: 11,320

    Location: Northampton

    Sounds perfect for a quick calculation in a spreadsheet. :)
     
  15. Mr_Sukebe

    Man of Honour

    Joined: Dec 23, 2002

    Posts: 8,836

    Location: London

    Most people just can't be bothered to really think through the total cost of ownership, which includes fuel, road tax, insurance, servicing, repairs and depreciation. Typically, depreciation and fuel are the most expensive elements, but buying a complex car that then suffers from turbo failure can more than make up for fuel savings.

    As an example. Our primary family car is a 330i. That initially sounds it'll cost a fortune to run, particularly as we average 25mpg over mixed driving and more like 20mpg whilst in town.
    However, whilst fuel consumption is pretty crap, making up for it:
    - It's depreciated just £5k in 7 years, so is averaging around £700/year
    - It was first registered on the 1st Jan 2006, i.e. before the road tax date of March 2006, post which cars of similar emissions have to pay £200/year more in road tax
    - It's a fairly big, unstressed N52 engine, which are noted for being more reliable than the newer, and slightly more powerful BMW engines. In reality, the only items that have failed in 7 years are a couple of bulbs, the alternator and starter motor. So around £1k, or £150/year in repairs.
    - It's now pretty old, so pointless taking it to BMW for servicing. We have a decent indy, who at the last service charged us £100
    - We only do 5k/year mileage
    - Tyres are not cheap, but the cars not really driven hard. On our 2nd full set now, at circa £500 for a full set of 4 Continental Sport contacts

    Put the above together, add insurance and our average total cost of ownership/year has averaged under £3k/annum all in.
    How many people do you see signing up for £300/month PCP deals on some pretty mundane cars and that's before fuel and insurance.
    Sure, they have less potential risk, but whilst our BMW is now ancient, still has Sat Nav, loads of toys, very comfortable sports seats and a lovely smooth petrol 6, not some London taxi diesel.
     
  16. bimbleuk

    Wise Guy

    Joined: Sep 10, 2009

    Posts: 1,477

    Location: Gloucestershire

    I did a quick calc using the ZapMap journey costs and an EV could potentially save ~£64 per month compared to the 2009 1.6 Duratec I selected from the list. It is £45 per month compared to a 1.0 Ecoboost.

    That was 3.9p (home charging) per mile for my i3 compared to 16.5p per mile for the ICE car using a national average £ 1.30 for petrol. Zero VED (tax) cost too.

    This was just to indicate one extreme way to save on monthly fuel costs though not recommended for everyone of course.

    Anyway you could use the tool for comparing costs between ICE models you just have to compare to an EV each time. Cars all assumed owned outright and in my case no battery rental which affects the cheaper cars such as the Zoe and fewer Leafs.

    https://www.zap-map.com/tools/journey-cost-calculator/
     
  17. Haggisman

    Capodecina

    Joined: Oct 6, 2004

    Posts: 12,662

    Location: Birmingham

    Damn, 3.9p/mile? Either the i3 is really inefficient or your electricity is expensive!

    My Zoe is ~1.4p/mile, works out at about £200/year doing ~14k (well, probably more like £250 taking into account the odd public charge)

    Was going to suggest electric, but obviously depends on charger availability (assuming no home charger since your renting) and whether you can find one without a lease (which would wipe out any savings!)
     
  18. billysielu

    Capodecina

    Joined: Aug 9, 2009

    Posts: 11,138

    Location: Oxfordshire

    Your 34mpg is good for that car in the real world, so I don't think there's much scope for lowering the running costs of that car.
    Depreciation is the main cost of car ownership, continuing to run your older car is the way to go as long as there are no pricey repairs.
    If you get a house with a driveway, consider going electric.
    Always remember the best way to save is to earn more, move jobs for more money if you can.
     
  19. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 29,959

    buying a newer car is never cheaper unless your current car is extremely unreliable and falling apart everywhere and expensive to fix.

    spending £10K to save £200 a year on road tax would be like me spending £5K on a tv to save £50 a year in electricity over a plasma.

    cars are depreciating assets.
     
  20. ShiWarrior

    Capodecina

    Joined: Oct 20, 2002

    Posts: 17,853

    Location: Oxon

    i never said 10K, max spend is around 5K