New cars more popular?

Dave77

Dave77

Dave77

Associate
Joined
18 Oct 2002
Posts
679
Location
Nr. Glasgow
Hello,

Is their a trend now for people buying new/nearly new cars and ignoring the used market? I have noticed when talking to some people they seem to think cars older than 5 years are money pits? When I got my first car it was about 8 years old and cost me around £150 in repairs in that time frame which I dont think is bad. Could the new car trent be due to the fact finance is easier to get?


Dave.
 
Don't forget that older cars now are a lot more expensive (edit: to repair and maintain) than their equivalent 10 or even 5 years ago. Lots more stuff to go wrong.
 
Partly the newer the car, the harder it is to work on, which means less DIY, and less useful independants.

If you're stuck mainly in the main dealer network, any car that needs a lot of work can rapidly become a moneypit.

New cars are also getting cheaper and cheaper, both in nominal and real terms.
 
Gilly said:
Don't forget that older cars now are a lot more expensive (edit: to repair and maintain) than their equivalent 10 or even 5 years ago. Lots more stuff to go wrong.
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Cars today and more reliable than they have ever been. They are more complex, but go wrong a lot less.
 
I believe it's quite simple...

1) In recent years the availability of cheap finance.

2) The rise in house prices has made a lot of people think they are wealthier than they really are.

Expect that trend to reverse in the next few years.

I'm not convinced what Dolph says has that great an effect. There's no reason for anyone to be stuck in the dealer network once warrantys expire and whilst cars have become more complex they are fundamentally more reliable than ever before. My Dad often comments that the number of older cars, say 10 years old, which look in decent condition is higher than ever before.
 
[TW]Fox;10972011 said:
Cars today and more reliable than they have ever been. They are more complex, but go wrong a lot less.
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Whilst that is true, I believe there is a common misconception that reinforces the belief that a 5 or 6 year old car will be a money pit because of the amount of costly things that can go wrong.

The percentage chance of this happening usually takes a back seat at this point.
 
[TW]Fox;10972011 said:
Cars today and more reliable than they have ever been. They are more complex, but go wrong a lot less.
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Tell that to Vauxhall owners.

Most people I talk to buy new cars because they cant be bothered with MOT's and paying for servicing. IMO that doesn't counter the depreciation rate.
 
2Thumbs said:
Most people I talk to buy new cars because they cant be bothered with MOT's and paying for servicing
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Errr new cars need servicing as well. At the main dealer. At £££.

And MOT's? Why can't people be bothered with them? I know lots of people seem to hate them but I really dont get why.

Took my Dads car for its MOT today. I arrived, left it there, came back 45 minutes, paid them £25 and drove it away again. Just like I did with mine in October.
 
Gilly said:
The percentage chance of this happening usually takes a back seat at this point.
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Exactly, on this forum for example how often have we seen someone say they have a problem on a car which is 6+ years old which makes it uneconomical to repair? Again, if you look at servicing costs or costs to keep a car on the road, other than consumables when was the last time you heard of something expensive on someone's car failing?

There has never been a better time to buy a used or aging car.
 
Muncher said:
There has never been a better time to buy a used or aging car.
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I thought this the other day. I pulled up at the lights behind a T reg Peugeot 306.

This is an 8 year old, cheap, nasty French hatchback. But.. it was immaculate. It didnt look like a banger. Whilst I'm sure it rattled inside, it looked tidy, modern and uptogether.

Then someone drove past in an S reg Volvo S80. Near 10 years old. Looked nothing like. Again, just looked like some generic, big, bargey modern car.

The quality of used cars has never been anything like this. In the past if you had to buy an 8-10 year old car it'd look like a relic and drive like a shed.
 
I'd also wager that in real terms, the amount of money required over 5 years worth of MOTs to make it pass is lower than it has ever been.

It's just a case of the "must have" society. For people who aren't especially interested in cars there is no reason why a £3,000 hatchback won't cater for their needs, but many people don't because...

1. They want to keep up with their neighbours, snob value
2. It is cheap to finance
3. They live in a £250k house that they paid £100k for so they think they are now prety well off.
 
[TW]Fox;10972071 said:
*Errr new cars need servicing as well. At the main dealer. At £££.

*And MOT's? Why can't people be bothered with them? I know lots of people seem to hate them but I really dont get why.
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*From what I've heard (Renault Dealers) they're free under set mileage's. It's under the warranty. Obviously I'm not sure if they're all like that, I've never bought a new car.

*I'm not defending the people who use that statement, I dont get it either. My car's 10 years old and it's passed the last 3 MOT's that I've owned it first time.
 
Muncher said:
I'd also wager that in real terms, the amount of money required over 5 years worth of MOTs to make it pass is lower than it has ever been.

It's just a case of the "must have" society. For people who aren't especially interested in cars there is no reason why a £3,000 hatchback won't cater for their needs
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Exactly. Take the guy earlier today who threw a huge hissy fit becuase we gave him the 'wrong' advice. He was 19, just wanted a regular car but.... insisted on spending £10k and went crazy if someone suggested a £5k Focus. Why? I dont get it.

If cars are your passion and a big hobby then sure, blow some cash. Your VX220 Muncher. It gives you pleasure. It's your hobby. It's more than a car, so the fact it cost more than £5k is easily justifiable. But were it simply an 06 plate Focus..
 
Dave77 said:
Is their a trend now for people buying new/nearly new cars and ignoring the used market?
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I don't think so because if that is the case then the used values of cars would be falling but they haven't.

We were looking for a Ford Fiesta last year for my girlfriend...there were some used fiesta around at Ford Dealer...one particular car we were looking at is around 3 years old with a price tag of £4800.

Whereas a brand-new Fiesta Zetec 1.25 in show room is for a discount of £7500 with 3 years warranty. No brainer I guess!
 
Muncher said:
I'd also wager that in real terms, the amount of money required over 5 years worth of MOTs to make it pass is lower than it has ever been.

It's just a case of the "must have" society. For people who aren't especially interested in cars there is no reason why a £3,000 hatchback won't cater for their needs, but many people don't because...

1. They want to keep up with their neighbours, snob value
2. It is cheap to finance
3. They live in a £250k house that they paid £100k for so they think they are now prety well off.
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It is cheap to finance if your wise with it. Far too many people take out these 5 year no deposit deals thinking its good value, but you end up in negative equity quickly, keep the car and pay a good bit of interest or trade it in and add the extra onto your next finance package. This is probably in the minority but in this situation I think people would be better getting a loan for considerably less and going the used route.
 
barnettgs said:
I don't think so because if that is the case then the used values of cars would be falling but they haven't.
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Wrong - used car values have been falling on a like for like basis for many years. They are predicted to fall even further.

The price of an average three-year-old car could soon be around £400 less than in 2007 according to Glass’s Guide.
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I'd also say that in real terms the actual driving experience, comfort and performance gap between a 5 year old car and a new car is smaller than ever.

Take a 5 year old VW Golf 1.9TDI and compare it to a brand new Golf and see what the extra £10,000 actually buys you, what more do you get for your money?

The 5 year old car will have decent economy, sufficient performance and will stop well. It will have air conditioning to stop you getting sweaty in the summer, you can listen to your favourite music or drive in relative silence. You don't have to open your own windows and the car will have an alarm.

What more could you want? The new one will look newer and more expensive, that's it.
 
[TW]Fox;10972175 said:
Wrong - used car values have been falling on a like for like basis for many years. They are predicted to fall even further.
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Surprised to hear that but that isn't a case with £4800 fiesta! :p
 
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