Brand new or 1-2 years old?

angeldaisy

I'm currently researching a new car. I currently have a 06 Octavia since new.
my max budget would be 25k ish.
what I'm wondering is what would be the best value for me, buying new or 2nd hand.
I intend to keep the car for at least 5 yrs and won't be using pcp.
what are the factors i need to keep in consideration.
I probably would be looking for another Octavia or something similar in size / boot space.

bazz26

If your keeping it for 5 years then factors I would consider would be reliability and warranty. Obviously the newer the car the longer warranty you may get with it. On a brand new Octavia the standard warranty is 3 years or 150k km, I think there is an option to extend that to 4 or 5 years for a small additional cost at the time of ordering.

Other things to consider though is really down to personal preference such as spec - 25k might get you a 1 year old top spec Octavia or a more basic brand new Octavia, that will really depend on how much value you put on creature comforts and toys.

The other real factor will be the age of the car - a brand new car will be 5 years old when you trade up next time whereas buying a 1 or 2 year old car now will obviously mean it will 6 or 7 years old when you go to trade it next time. It will cost less up front but you will get less for it in 5 years time and maintenance might be a bit higher during that time so swings and roundabouts.

angeldaisy

thanks for that advice. another question that has just cropped up is that most 2nd hand cars at the minute seem to be diesel. I'm not sure I do enough mileage on a weekly basis. I probably do 20km per day max. I do a few long trips per year and do travel to the UK once or twice a year.

could this cause a problem with diesel.

colm_mcm

Yes, you'd be better off looking at petrol or hybrid.

ShadowHearth

If you buying for cash, then you will get better deal for few years old car. If you going finance, then pcp will work out same money for brand new, as second hand few years old car.

With pcp you will get scrapage, contributions, low or zero apr, warranty and a new car.
Personal loans usually are around 9-10% apr. It adds up very fast. So second hand car, with less warranty or non.

colm_mcm

You can get scrappage without PCP though

angeldaisy

Could PCP be a good deal, if the rate is low enough?

I was thinking of getting a bank loan over 5 years, rather than hp through the dealers.

ShadowHearth

angeldaisy wrote: »

Could PCP be a good deal, if the rate is low enough?

I was thinking of getting a bank loan over 5 years, rather than hp through the dealers.

If you going loan way, then pcp is no brainer. Nobody said you need to trade in in 3 years. Just pay off balloon or refinance it with garage. Garage will give you better apr too.

Your bank will give you about 9.8% apr loan. Credit alone will cost you 3-5k eu, depending how much you will borrow and put down your own money.
You can get 0% apr, which saves you money already. Good scrapage deal or controbution.

If you are smart, you will pay pcp monthly payments and put a few extra quid in to separate account for 3 years. When 3 years term comes up, you will have majority or all money for that balloon.Even so, Taking loan on 3-5k eu for balloon payment then add a few of your own quid will be a lot cheaper then taking 25k eu at 9.8% apr.

angeldaisy

That makes a lot of sense - thanks very much for that:)

bazz26

Octavia is available with a 1.0 litre petrol engine since the beginning of 2017. It has a turbo so there is no fear of it being underpowered. Hybrids are worth considering too if you want a change from an Octavia.