Originally Posted by SteveC
With respect, I can't agree at all. In the age of 640Ds for £4xx, SLKs for £2xx, C63s for £4xx and M3s for £4xx per month with 3-6 month deposits, many used cars have become very expensive by comparison.
Of course there are also some real bargains amongst selected used cars, the BMW M5 and Z4M being 2 examples of a lot of car for the money.
These days, finance is the only way to buy a new car. Look for the following:
- Special offers through brokers and lease companies (main dealers getting rid of excess inventory)
- Low percentage financing (lots of VERY cheap money around these days)
- Manufacturer's discounts
- Dealer contributions
- Pre-registered models (Dealers meeting year-end sales targets)
Follow this with a combination of either low mileage lease agreement plus trade-in, hand back or voluntary termination and its unlikely you'll find a cheaper way to run a car. Even running an older car for cash isn't that economical when you consider the worse consumption and higher tax, extended warranty or repair costs, required maintenance, tyres, often (perversely) higher insurance and higher financing interest.
Hiring a car is very different to buying a new car.
I am a huge fan of hiring a car, as I said above with my examples.
There is however a big difference between buying (whether using cash or finance) and hiring (where the manufacturer gives residuals that are over valued by 100% sometimes).
I will stand by my comment that 'buying' a new car is not the smartest move for the private buyer.
520d sport is a perfect example, a few essential otpions and it is £40,000.
A year later and it is £25000. Two years later and you are getting £17000 back, a loss of £23000.
Try and get a balloon of say £15k after 3 years, it is not happening, at the moment the finance houses have a 520d m-sport auto listed as £9000 at 3 years and 36k miles.
Now, it will be worth £15k or there abouts, so you will get some money back.
But if you buy that £40k car for say £37k and put down £6000 deposit you will have 36 payment of £731 and a balloon of £9000.
So, as long as the car is worth £15k you will get your deposit back and it will have cost you £731x36, so £26000 over 3 years.
If it isn't worth £15k and you have to hand the keys back it will have cost you £32000.
Go and buy that year old one for £25000 and you can put in only £4k and pay £473 a month.
Or, go and hire a new one with media for £399 a month including vat and a much smaller £2000 deposit.
Same with the 6 series, guys were hiring them for under £350 a month!!!
A 640d for £350 a month with just £2000 down compared to £500 a month and £8000 down if you buy it is a no brainer.
As I said, the way car sales and the finance is structured these days means 'buying' new is not the sensible option.
There is the odd exception, buying a Q5 new 3 years ago was wiser than hiring, and........can't think of another one but sure there are others, but it is a rarity.