Cheaper to buy new than used!!

Z

Zeld4

Senior member
 Oxford
I know the world has gone mad but surely this is the maddest thing ever!!
If you need to finance a car it's cheaper to by some cars new as apposed to used.
Like a lot cheaper!!
What's going on?
A friend of mine got a Cooper S yesterday for 90 pounds a month less than an Identically priced second hand one!
 
It's finance related. All big brands provide the dealers with cheap finance on new cars to boost sales. Dealers have to get finance on used cars on the open market.
 
danmiddle2 said:
Surely that is just due to different terms in the finance deal - i.e. lower interest, or longer period?
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Yes absolutely but the difference is quite substantial. Throw in to the equation a grand off list price for a car that is being built to order
and only a grand down and the option to hand back after four years with no penalty on both cars the difference is massive!! Like 4 grand difference!
 
So there's a balloon payment at the end then ?
Put some figures up as it seems too good to be true..but may be worth a look for the Mrsof it is genuine.
 
Yes there is a balloon payment on both cars and obviously it's higher on the new car.
Figures on the new car are 22.500 new with a grand down and a grand off from the dealer so basically 21.500.
Then 48 monthly payments of 307 quid. Interest rate 3.9 percent.
The balloon would be about 8 grand.
Sorry i don't have the exact figures but it's near enough.

If you paid off the balloon payment it would only cost 1.500 pounds more than the list price. And you've spread that over four years!
 
Still my new 35i msport is coming in at 34k cash and theres a 12plater on AUC for £33,995 not a new spec :? work that one out seems barmy to me. :D and thats with a service pack and my reg transfer inc .
 
Paul c said:
Still my new 35i msport is coming in at 34k cash and theres a 12plater on AUC for £33,995 not a new spec :? work that one out seems barmy to me. :D and thats with a service pack and my reg transfer inc .
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Cash is king! :evil:
 
My wife bought a Corsa back in 2002. New one was only £700 more than a used one, but can with a years free insurance and 2 years 0% finance. Was a no brainer.
 
srhutch said:
My wife bought a Corsa back in 2002. New one was only £700 more than a used one, but can with a years free insurance and 2 years 0% finance. Was a no brainer.
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Exactly! With a new Mini you get free European wide road assistance for three years, it comes with 2 services included too and
of course the three year warranty and no MOT for three years. Add all those up and include an extended warranty
you might have for an older car and you are saving another grand!
 
Makes it seem mad to buy 2nd hand. Is it manufacturers pushing low rate finance to register more new cars? I have never worked in sales so its all a mystery to me.
I once bought a new Forester for £2k less than an 18 mth old 30k miles identical one was on for at a dealer 30 miles away. I only lost £1000 in 2 yrs. 8)
 
Yes it is the manufacturers trying to sell more new cars. What that will do for used prices in the future who knows!
I'd imagine there will be a huge over supply of second hand Mini's in a year or two. That won't be good if you shelled out
for the full amount from new :?
 
You WILL lose a shed load of money what ever way you slice it but having a new motor is a special feeling and as the man said no need to worry about mots and all that biz but you lose on new and if your unlucky shell out on old its horses for courses have had both its what you can afford at the time at the end of the day its still only a car all be it a nice one. :driving: 8)
 
I paid cash for my 28i @ £37.5k for a £46k list car. Looking at 2nd hand 0 to 6 month old they are around £35 mark. However they are all lacking £2k to £3k of extras that mine has. Not an issue for me but factor on top of this cost of finance which at the time I brought mine was 6% (now 2.9) on new against the 8 to 10% you'll (or more) you'll pay on used and it's a no brainer.

What you should be doing is looking at total cost over three years including final payments if you plan to keep the car and penalties if you don't. New can often work out cheaper and not just on BMWs autocar i think did a piece on this a few months ago. Even if you decide not to wait for new one, you should use this information to beat up dealer on used price.
 
Same thing when I bought my 125d. One dealer tried to sell me a pre reg'd car (so basically used) and it was going to cost £100 more a month without any of the options I wanted over a new order. When I pointed this out to the dealer it seemed like news to them. I think so many people just go buy a car and look at the sticker price so assume that because A says £30k and B says £28k then B must be cheaper.

Big discount and a decent low rate of finance on new. The penalty if I hand it back after 3 years are nil. Even if it's in negative equity then that's BMWs responsibility for not working out the GFV properly. If it's in positive equity then happy days. Looking at prices on the AUC site, a 6 month old one would cost slightly more than what I bought mine for 6 months ago.
 
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