Brand new vs 1.5 years old?

masterboy123

Usually I buy 18-24 months old cars, which saves me around 10k (brand new cost ~45k). I use them for 3 years usually and repeat the cycle.

However, lately I have noticed these cars are often giving issues before the end of their 4 years, and requiring big sum of money for repair. This made me think whether I should buy a brand new car next time.
Or maybe it's just the fact that car parts these days are not as durable as they used to be. Or I am being unlucky lately!

Any thoughts or views on this issue?

Philb76

masterboy123 wrote: »

Usually I buy 18-24 months old cars, which saves me around 10k (brand new cost ~45k). I use them for 3 years usually and repeat the cycle.

However, lately I have noticed these cars are often giving issues before the end of their 4 years, and requiring big sum of money for repair. This made me think whether I should buy a brand new car next time.
Or maybe it's just the fact that car parts these days are not as durable as they used to be. Or I am being unlucky lately!

Any thoughts or views on this issue?

Depends what mileage you are doing over those 3 or 4 years if it's high mileage say 30 000 a year over the duration things might need replacing

masterboy123

I am doing 18k-20k max a year.

Philb76 wrote: »

Depends what mileage you are doing over those 3 or 4 years if it's high mileage say 30 000 a year over the duration things might need replacing

Wildly Boaring

Miles or km?

Car will have say max 80k miles after the 4 years?

Seems very low for issues

Experience_day

You considered buying slightly older again to offset depreciation against any repairs? You might get lucky with no bills in which case even more money saved!

Philb76

Wildly Boaring wrote: »

Miles or km?

Car will have say max 80k miles after the 4 years?

Seems very low for issues

Agree wouldn't expect big bills with most cars at that mileage and age should still be in the consumable period

Car99

masterboy123 wrote: »

Usually I buy 18-24 months old cars, which saves me around 10k (brand new cost ~45k). I use them for 3 years usually and repeat the cycle.

However, lately I have noticed these cars are often giving issues before the end of their 4 years, and requiring big sum of money for repair. This made me think whether I should buy a brand new car next time.
Or maybe it's just the fact that car parts these days are not as durable as they used to be. Or I am being unlucky lately!

Any thoughts or views on this issue?

Buying 1.5 years old saves you 10k . If you're repairs are less than 10k in the last 1.5 years of your ownership why do you think it is better financially to think of buying new in future? Maybe switch to a brand with better warranty and extendable warranty surely wouldn't cost 10k.

masterboy123

It's km.

At present I have 90k km and it's 4.5 years old.

Repair cost in the range of 300-500 twice a year plus cost of annual service.

Wildly Boaring wrote: »

Miles or km?

Car will have say max 80k miles after the 4 years?

Seems very low for issues

masterboy123

It's the hassle and unexpected time off work, plus mental stress how long would it take to get it repaired and what would be the bill like.

But yes repair cost was definitely less than 10k.

Car99 wrote: »

Buying 1.5 years old saves you 10k . If you're repairs are less than 10k in the last 1.5 years of your ownership why do you think it is better financially to think of buying new in future? Maybe switch to a brand with better warranty and extendable warranty surely wouldn't cost 10k.

GustavoFring

masterboy123 wrote: »

mental stress how long would it take to get it repaired

Seriously? Things break on new cars too. 20k km a year isn't going to kill any car. What you're describing is part of keeping a machine running. You win some, you lose some. There's no guarantees.

bazz26

Brand new cars are not without problems either, granted you have the warranty to fall back on but other than removing the bill, the rest can potentially be the same.

If you want to reduce the risk of buying something unreliable new or second hand then look for something from the likes of Honda or Toyota but that limits your choice to something you may not actually fully like.

kirving

masterboy123 wrote: »

Repair cost in the range of 300-500 twice a year plus cost of annual service.

What kind of problems are they, for the most part?

Drivetrain parts like suspension and brakes, or more spurious problems?

masterboy123

So far right front suspension arm.
Oxygen sensor gone twice.
And now some issue with ECU sensor, which is expensive.
Mostly sensors problems.

Kevin Irving wrote: »

What kind of problems are they, for the most part?

Drivetrain parts like suspension and brakes, or more spurious problems?

Car99

masterboy123 wrote: »

So far right front suspension arm.
Oxygen sensor gone twice.
And now some issue with ECU sensor, which is expensive.
Mostly sensors problems.

What car?

masterboy123

Mercedes C class, 151 year

Car99 wrote: »

What car?

JoeA3

Best bet is extend the warranty into the 4th or 5th year. I know bmw offer this and I’m sure others do too. It’ll cost a few hundred per year but it’ll give you that peace of mind and it will be a lot cheaper than new car depreciation!

mickdw

New car depreciation might not be as bad as it appears.
You saved 10k buying this car versus new one.
You don't save 10k over a new one when you consider value of both options at end of 3 years ownership. Overall, you are saving somewhere between 5 and 7k I would think.
Add in repair cost of the used car, the risks in buying used car, the fact that it is more likely to be an old model when selling, and the new car starts to make sense.
I'd be tempted to buy new and keep it 5 to 6 years.

ShadowHearth

masterboy123 wrote: »

Mercedes C class, 151 year

There is a reason why Merc, Audi and BMW fight for last 3 spots in any reliability surveys. Those mercs are nice cars, but I would always expect something going wrong. If you want another one, you have to live with that.
As some pointed out, your savings made on buying older (10k) still are higher then what you spent on out of service costs. You still winning there. Specially with Merc, I bet you would have some of those costs even with brand new one. Unless you rely on 3 year warranty.
Buying demo or 1-2 year old car can be very sensible buy, if new version of that car does not have good apr and deals going around. In some cases and brands it makes more financial sense to go new one instead off a bit older/demo. Scrapage deals, deposit contributions and most importantly better apr % rates. There is a massive difference between 0% or 2.9% vs 9% when you going in to 30k++ value cars.

masterboy123

I did check with Mercedes and offered to pay extra to extend warranty but answer is no.
BMW got better warranty options.

JoeA3 wrote: »

Best bet is extend the warranty into the 4th or 5th year. I know bmw offer this and I’m sure others do too. It’ll cost a few hundred per year but it’ll give you that peace of mind and it will be a lot cheaper than new car depreciation!

masterboy123

Thanks for the in depth opinion.

I never took a loan to purchase the car, in my case would it sensible to get a brand new car and change every 4 years?

ShadowHearth wrote: »

There is a reason why Merc, Audi and BMW fight for last 3 spots in any reliability surveys. Those mercs are nice cars, but I would always expect something going wrong. If you want another one, you have to live with that.
As some pointed out, your savings made on buying older (10k) still are higher then what you spent on out of service costs. You still winning there. Specially with Merc, I bet you would have some of those costs even with brand new one. Unless you rely on 3 year warranty.
Buying demo or 1-2 year old car can be very sensible buy, if new version of that car does not have good apr and deals going around. In some cases and brands it makes more financial sense to go new one instead off a bit older/demo. Scrapage deals, deposit contributions and most importantly better apr % rates. There is a massive difference between 0% or 2.9% vs 9% when you going in to 30k++ value cars.

ShadowHearth

masterboy123 wrote: »

Thanks for the in depth opinion.

I never took a loan to purchase the car, in my case would it sensible to get a brand new car and change every 4 years?

If you able to buy outright, then it's down to your own financial decision and how new car you want. Things like apr won't effect you. This is to your own advantage. Buying almost new one with good discount might be better option. These type cars lose value at eye watering rate.
If you still want to go with demo or a bit older one, then changing the brand might be better option. Clearly you have love for up market stuff, so maybe BMW would be better? They actually do extended warranties on second hand cars and by the looks of it, it is actually worth it. Even if you go brand new, you can extend warranty after 3 years over. As you said yourself Merc don't offer that, maybe BMW has a bit more faith in their own product.

It's just an opinion and you take it for how much is it worth to you. People put different things as advantages. For some buying new car and being first owner is advantage enough, because you are the one who puts it's history. You don't need to worry on how car was treated before you bought it.
Others will find a good deal on used one with some mileage, but will save up good few quid, which can be used for fixing if needed.
You have to decide yourself what's more important.

masterboy123

It's just the interior of Mercedes that I really like, compared to other premium cars in the market. From outside BMW looks as good as Mercedes.
I suppose it's the time to give up on the looks and look for a more sturdy car.

Someone said Honda or Toyota are very low maintenance. Is this true?

mickdw

ShadowHearth wrote: »

masterboy123 wrote: »

Thanks for the in depth opinion.

I never took a loan to purchase the car, in my case would it sensible to get a brand new car and change every 4 years?

If you able to buy outright, then it's down to your own financial decision and how new car you want. Things like apr won't effect you. This is to your own advantage. Buying almost new one with good discount might be better option. These type cars lose value at eye watering rate.
If you still want to go with demo or a bit older one, then changing the brand might be better option. Clearly you have love for up market stuff, so maybe BMW would be better? They actually do extended warranties on second hand cars and by the looks of it, it is actually worth it. Even if you go brand new, you can extend warranty after 3 years over. As you said yourself Merc don't offer that, maybe BMW has a bit more faith in their own product.

It's just an opinion and you take it for how much is it worth to you. People put different things as advantages. For some buying new car and being first owner is advantage enough, because you are the one who puts it's history. You don't need to worry on how car was treated before you bought it.
Others will find a good deal on used one with some mileage, but will save up good few quid, which can be used for fixing if needed.
You have to decide yourself what's more important.

I don't think it's about bmw having faith in their product, I think the bmw extended warranty was introduced to help shift used cars. Certainly I would have a significant fear of bmw repair costs to the point of not wishing to own one in any circumstance without bmw warranty.
They offer 2 year warranty with used cars so that is a major selling point.
Mercedes and audi will I believe follow with similar. If an insurance company can make figures work for bmw, they can surely do similar for mercedes and audi.

masterboy123

Mercedes are providing 1 year warranty if car is older than 3 years. Or whatever is left from the original 3 years manufacturers warranty, which may overlap with this additional 1 years warranty on a used Mercedes.

mickdw wrote: »

I don't think it's about bmw having faith in their product, I think the bmw extended warranty was introduced to help shift used cars. Certainly I would have a significant fear of bmw repair costs to the point of not wishing to own one in any circumstance without bmw warranty.
They offer 2 year warranty with used cars so that is a major selling point.
Mercedes and audi will I believe follow with similar. If an insurance company can make figures work for bmw, they can surely do similar for mercedes and audi.

mickdw

2 year from bmw is a significant benefit though.

masterboy123

Sure, usually electric/sensor problem arise in this period.

mickdw wrote: »

2 year from bmw is a significant benefit though.

colm_mcm

Buy a Lexus.

ShadowHearth

masterboy123 wrote: »

It's just the interior of Mercedes that I really like, compared to other premium cars in the market. From outside BMW looks as good as Mercedes.
I suppose it's the time to give up on the looks and look for a more sturdy car.

Someone said Honda or Toyota are very low maintenance. Is this true?

I don't think you can compare Honda and Toyota to German premium saloons. They will be more reliable, but they won't give same premium feel.
I guess if you do feel like trying other options, then Toyota Camry or Lexus IS/GS 300h might be good options. Still great cars, but Ironically infotainment systems are behind compared to others. Still no Android auto, which is bizarre.