Archive for June, 2010
Stable and reliable second-hand cars
Posted on17. Jun, 2010 by admin.
Manufacturers are now beginning to build more stable and reliable vehicles. So, why on earth would you want to purchase a second hand car, when a brand new one has been untouched? Well, actually, purchasing a used car has a myriad of benefits and advantages, and in some cases, it can be more pragmatic to actually choose a second-hand vehicle, over a new one. A line you’ll probably hear time and time again, and a line you’ve probably used before during doing a deal for a car is, “it’s only worth that much? I paid…so much…for it a couple of years ago”, and the reason you’ll hear this is because brand new cars tend to depreciate their most in the first three years.
Therefore, unless you want the ‘new car smell’, and see yourself keeping the vehicle for years and years, then maybe buying the same car second hand, such as from www.motors.co.uk/buy-a-car is the way forward. In fact, the price of a car drops dramatically as soon as it’s driven out of the showroom, and we’re talking thousands here. Many people just subscribe to the notion (and fallacy) that buying a used car is a huge risk, and many have concerns about how it will run once bought. However, as long as you check these things out before you buy (as you would do when buying a new car), then why should this matter? A good running vehicle is a good running vehicle, and even when buying second hand, individuals should always test-drive first. Quite often, the value of a motor levels out, and it stops losing such a high percentage of its value every year, therefore, putting your money behind a used vehicle and ensuring it’s well maintained could well be an excellent value for money decision, and one you’re sure not to regret!
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Car Leasing Deals
Posted on06. Jun, 2010 by admin.
In this article we will look at the costs of leasing a car and compare it with the costs of purchasing one. These costs are approximations, and car leasing deals are agreed in detail between the dealer and the customer, however the figures that we present here should at least provide you with a guideline on the relative costs.
Here we will consider a top of the range Ford Kuga car, the 2.5T 5 door automatic which costs £27,250 including all the extras that we have chosen. It is usually possible to get a good deal when buying a new car, so we will assume that we can negotiate a real price, the price that we would normally pay, of £26,000.
Next we need to look at how many miles we expect to do and that time that we wish to keep the car. Once we have these, then the next step is to determine how much the car will have depreciated in value during the course of the lease.
Car depreciation is not linear. Firstly it is very steep during the first year of registration; it then flattens off considerably for successive years. If we assume that we will do 12,000 miles a year and that we will keep the car for three years, then by the end of your three the car will be worth about £8,000.
With a Ford leasing deal, we are compensating the dealer for the value depreciation of the car. After the leasing period we return the car and the dealer sells it on in order to recoup the value that is still retained in the car.
Leasing this car for a three year period would cost approximately £660 a month including VAT.
If we took out a car loan to finance the purchase of a new Ford Kuga it would cost us approximately £860 a month assuming that we own a home. Thus our monthly outgoings are reduced by £200 a month. Over a year the is £2,400 and over the three years of the contract is £6,200, which is a massive saving.