Why do people buy new cars?

[Volvo2002]

One benefit is you get a car that has never been driven in, never abused, etc, etc.

Although I share your thoughts Alex and wouldn't buy new myself. I spent a little over a grand on my S40 and it drives fantastic with it's FSH and has been a reliable car apart from the infamous VVT issue.

I think after a car is three years old it's a good time to buy because as you said the cars depreciation won't be anywhere near as bad at that age.

[Rustee]

I have had a new car and it was nice to choose the spec and have comfort of a warranty and all that, and I needed it because it was a Saxo VTS, depends on how much cash you have at the time. If you keep the car and run it till it drops you have the knowledge of the car from day one and that's reassuring. But I get bored and couldn't keep it that long.

The joy of second hand buying is when you can get a well built car like a traditional Volvo or Merc a few years old, the first owner may be a person who changes car after three years but the benefit in a well engineered car shows when it gets much older.

When I get a lot older sure it would be nice to have a new white goods car that gives me no hassle but till then my passion will be for older cars.

[James_N]

I confess I don't really get it either, but then i'm not in a financial position to be able to afford a new car. If i won the Euromillions, i wouldn't care about depreciation.

All of my friends own newer cars than me, yet they all seem to break a dam site more than mine. I'm not saying the volvo never breaks, because it does, but its always very cheap to fix, cheap on tyres, cheap on servicing. Sure I might look better in a nice Ford Focus ST3 but i'm happy with my <£1,000 purchase.

For me, the novelty of a new car would wear off very quickly. As soon as you drive it away, its second hand. Some people like the newest number on the number plate though

[volvorocks]

Originally Posted by Alex121

This has always baffled me....

Why do people buy brand new cars? Surely with the depreciation, the amount of money lost just makes the whole thing a bit pointless and wasteful? Or is simply a status/look at me thing?

A relative of mine does it every 2 years or so - Goes out a buys a brand new poxy Hyundai i10 or something similar, small and basic, just for the new plates and apparently 'better reliability' even when his current car only has 20k or so on the clock. I don't understand the logic in buying something like a £20k C30 then losing literally half it's value over the course of a year?

Not meaning to cause offence to anyone who may have purchased a new car - Just hoping someone can enlighten me to why people do it? I personally see no benefits other than it being really shiny

I think when buying a new car one has to take all things into consideration. New works for some, yet not for others.Sometimes new can be more cost effective when taking the cost of borrowing,mpg,mileage and reliabilty into the equation. Some manufacturers offer a new car for £179 all in just add fuel - works for some but not all.Also bear in mind it may be easier to obtain car finance for a new car than a bank loan for a secondhand car.

A high mileage driver may get tax breaks,or he/she may feel reassured by the seeming reliability. Many new buyers prefer the fact of less maintenance. Many like the 'first ownership no (or rather few) farts on the seat' experience!!

If one spends say 13k cash on a new 15k list Skoda then p/x's after 3 years the cost to change may only be say 6k.Yes 6k is a lot although only about £40 a week, and if one had have bought secondhand they may receive a 1k bill in their first week.Then again they may not.

It really all depends on usage and the luck of the draw.

There are great deals on new cars, with low finance, 'free' insurance, free servicing, low low road tax rates etc.

And lets not forget - people buy new cars because they can and because they want to...!! Given the choice who really prefers secondhand if new is obtainable?

Good post OP.

Regards

[mollusk]

An easy question to ask but not always so easy to answer. I usually find that the "asker" does so with a sense of superiority, dismissing the purchaser of a new car as always being "stupid" or "wasteful" or with a "must have the latest reg no." desire.

I will try to rationalise the decision of Debs and I to buy a new XC70.

Located in rural area with parlours public transport, reliant upon car ownership for family and lifestyle reasons, uncertain health on my part whereby I cannot guarantee "at a moments notice" to repair a car "with character" all led to us seek peace of mind.

After Much consideration we opted to buy that p.o.m. via a new XC including a 5 year warranty and service deal (we have taken an up to 10 year cost of ownership into account). We were very fortunate not to need financeing (with the additional costs thereof) and ended up with a superb deal. We had/have, I must say, absolutely no interest in "the latest reg. number".

For many years I would not contemplate the purchase of a new car but age, health, and the ability to do it do tend to colour opinions - I hope in our case for the right reasons.

Mollusk.

[Andy Northface]

If I could afford to buy a new car,I would so so tomorrow. ONLY if, as someone else has said,I was gonna keep it for a long,long time. It would be nice to have a car that no-one has wiped snots all over the headlining.......... ( Not my "new" to me S80 I hasten to add,its looooovely! )

[subaqua]

even if you buy a new car that is a lemon, then it can be returned quite simply .

[Volvo2002]

Originally Posted by Andy Northface

If I could afford to buy a new car,I would so so tomorrow. ONLY if, as someone else has said,I was gonna keep it for a long,long time. It would be nice to have a car that no-one has wiped snots all over the headlining.......... ( Not my "new" to me S80 I hasten to add,its looooovely! )

Yep.

My Aunt and Uncle only buy new cars and keep them for a long time. They currently own a Mercedes C230K sport 1996 which is immaculate and has done I believe 75k.

The other is a 2007 Subaru Impreza GB270 that has done 6k.

[Alex121]

Originally Posted by mollusk

An easy question to ask but not always so easy to answer. I usually find that the "asker" does so with a sense of superiority, dismissing the purchaser of a new car as always being "stupid" or "wasteful" or with a "must have the latest reg no." desire.

Be assured that this thread was in no way started to mock or point fingers at people who have got new cars I have nothing against people doing it, it's their money, which they have earned, not mine - They can do what pleases them with it

I was simply interested in what makes people buy new and why, given the lose of money that comes with it

[Bernard333]

In 2003 when my company stopped leasing company cars and went down the pcp route which was apparently more tax effective and less bother for them . My V70 D5 cost me £27000 in payments and is now worth £1500 with a mileage of 162000. The depreciation on mine was quite high , I paid the finance company £6250 at four years old and 110000 miles to take full ownership , with hindsight I should have handed the car back to the finance company and risked the car auction where I could have got a similar car for approx £4800 but even at this price I would not have avoided losing a lot on depreciation , a car is a money pit no matter which way you look at it . The question I ask myself is have I had £27000 worth of trouble free motoring for my money , in my case I think not , but worse than that loss what could I have done by investing £27000 sensibly in some boring but safe power utilities it would now be worth £60000 , thats the real cost of buying a new car .