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Cars And The Economy


AskFrank

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HOLA441

Been reading today, about the sales of new cars shooting up and what with the news from Mr King about interest rates shooting up by the end of the year, I've been wondering if now is a good time to buy a new car or not?

We're in a catch 22 situation atm. Baby on the way, desperately want to buy a house and new car. If we buy a car (which we will have to purchase on finance in the short term, because all our savings are for our future house) we won't be able to get such a big mortgage, but if interest rates are going to shoot up, perhaps the time to get a new car is now?

What are your views on buying new cars at this stage and where the economy is heading?

Thanks

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HOLA442

If you agree with the idea of "Peek oil" then you might want to think long & hard over MPG.

Not long ago it was 80P a litre, now £1.25..........with falling production & higher taxes i fully expect £1.50 this year & £2.00 in 2011

Mike

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HOLA443
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HOLA444

Been reading today, about the sales of new cars shooting up and what with the news from Mr King about interest rates shooting up by the end of the year, I've been wondering if now is a good time to buy a new car or not?

We're in a catch 22 situation atm. Baby on the way, desperately want to buy a house and new car. If we buy a car (which we will have to purchase on finance in the short term, because all our savings are for our future house) we won't be able to get such a big mortgage, but if interest rates are going to shoot up, perhaps the time to get a new car is now?

What are your views on buying new cars at this stage and where the economy is heading?

Thanks

No offence mate, but why the hell buy a brand new car when it will depreciate a massive amount in the first three years, and why pay interest on it? Why not buy a used car - they're all pretty reliable these days. You can get a decent, reliable family car for £3k, £5k-£7k will get you something very nice. You could even get a good BMW for that if "prestige" means something to you or your missus :rolleyes: Don't fall into that "we've got a new baby so must buy a brand new German battleship because otherwise they will die if we reverse into a lamp-post" trap!

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HOLA445

Have sales of new cars shot up?

I thought I read today that, with the end of scrappage schemes across Europe, sales of new cars have slumped again, but I may be confusing that with the fall in the US housing starts inevitably resulting from the end of the US stimulus.

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HOLA446

Been reading today, about the sales of new cars shooting up and what with the news from Mr King about interest rates shooting up by the end of the year, I've been wondering if now is a good time to buy a new car or not?

We're in a catch 22 situation atm. Baby on the way, desperately want to buy a house and new car. If we buy a car (which we will have to purchase on finance in the short term, because all our savings are for our future house) we won't be able to get such a big mortgage, but if interest rates are going to shoot up, perhaps the time to get a new car is now?

What are your views on buying new cars at this stage and where the economy is heading?

Thanks

Crikey , rather than buying a new car I am looking at what options I have for reducing my running costs. I am looking at cars with a relatively small petrol engine with room for LPG conversion ( there are garages with it around me).... hopefully I'll end up slashing my fuel costs by 75% vs the car I currently drive. I am on a mission to give the govt as little in tax as I possibly can.

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HOLA447

Been reading today, about the sales of new cars shooting up and what with the news from Mr King about interest rates shooting up by the end of the year, I've been wondering if now is a good time to buy a new car or not?

We're in a catch 22 situation atm. Baby on the way, desperately want to buy a house and new car. If we buy a car (which we will have to purchase on finance in the short term, because all our savings are for our future house) we won't be able to get such a big mortgage, but if interest rates are going to shoot up, perhaps the time to get a new car is now?

What are your views on buying new cars at this stage and where the economy is heading?

Thanks

Now is not the time to be using finance to buy anything. Stay out of debt.

If you need a 'new' car buy a second hand one with 2-3 years on it.

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HOLA448

Crikey , rather than buying a new car I am looking at what options I have for reducing my running costs. I am looking at cars with a relatively small petrol engine with room for LPG conversion ( there are garages with it around me).... hopefully I'll end up slashing my fuel costs by 75% vs the car I currently drive. I am on a mission to give the govt as little in tax as I possibly can.

As someone who has previously owned an LPG-converted car, it's not a panacea. IMO the sums only add up if you're doing between around 12-17k miles a year: below 12k and you're unlikely to recoup the cost of the conversion during your ownership of the vehicle, and over 17k and a diesel probably makes more economic sense. Also the real terms price differential between petrol and LPG has been reducing by a penny a year since 2006. I reckon you achieve about a 30% overall saving in fuel costs.

The other thing to bear in mind is that once you've invested the £1-2k (depending on the model of car and type of LPG system, tank capacity etc. you install), you're stuck with that car for at least 2-3 years if you don't want to make a loss on the conversion. That potentially puts you in a difficult position if a big, unrelated repair bill crops up during that time. The gas cylinder will reduce your boot space a lot, and there are certain restrictions involved with LPG: you can't take a converted car through the Channel or Tyne tunnels, for example. Not all petrol stations sell LPG and if you don't live or work close to one, that can prove to be a headache.

I would advise very careful research and number crunching before going down the LPG route.

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HOLA449
Guest sillybear2

If you agree with the idea of "Peek oil" then you might want to think long & hard over MPG.

Not long ago it was 80P a litre, now £1.25..........with falling production & higher taxes i fully expect £1.50 this year & £2.00 in 2011

Mike

It's still less than 50p a litre in the US, and they think the big nasty oil companies are ripping them off, the sense of entitlement is vast, as is their cognitive dissonance. They're less than 5% of the world's population yet consume a quarter of global crude production, peak oil will be the start of some pretty nasty resource wars, without a doubt.

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HOLA4410
Guest Noodle

Been reading today, about the sales of new cars shooting up and what with the news from Mr King about interest rates shooting up by the end of the year, I've been wondering if now is a good time to buy a new car or not?

We're in a catch 22 situation atm. Baby on the way, desperately want to buy a house and new car. If we buy a car (which we will have to purchase on finance in the short term, because all our savings are for our future house) we won't be able to get such a big mortgage, but if interest rates are going to shoot up, perhaps the time to get a new car is now?

What are your views on buying new cars at this stage and where the economy is heading?

Thanks

Frank,

Why buy a new car? Just found the one I want in the UK for £695, 50,000 miles on it, diesel, 55mpg. Like the last one I had and got 6 years out of.

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HOLA4411
<br />Now is not the time to be using finance to buy anything. Stay out of debt.<br /><br />If you need a 'new' car buy a second hand one with 2-3 years on it.<br />
<br /><br /><br />

Go to car auctions and get ex-fleet/lease/repos 1-2yr olds for peanuts.

Zillions of exec cars etc have been returned due to company closures!

They can't really thrash the engines anymore coz 99.9% have limiters.

Just don't buy the stolen/recovered

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HOLA4412
<br />It's still less than 50p a litre in the US, and they think the big nasty oil companies are ripping them off, the sense of entitlement is vast, as is their cognitive dissonance. They're less than 5% of the world's population yet consume a quarter of global crude production, peak oil will be the start of some pretty nasty resource wars, without a doubt.<br />
<br /><br /><br />

It is still 50p in this country.

The Elites have decided to whack us with taxes, which directly affect the poorest trying to do/get to their jobs!

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HOLA4413
Guest sillybear2

It is still 50p in this country.

The Elites have decided to whack us with taxes, which directly affect the poorest trying to do/get to their jobs!

What jobs?

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HOLA4414
As someone who has previously owned an LPG-converted car, it's not a panacea. IMO the sums only add up if you're doing between around 12-17k miles a year: below 12k and you're unlikely to recoup the cost of the conversion during your ownership of the vehicle, and over 17k and a diesel probably makes more economic sense.

Good comment, but there is an exception (unless they've changed the rules) if you regularly drive into the congestion charging zone, where LPG vehicles are/were exempt, even it you still ran them solely on petrol anyway.

peak oil will be the start of some pretty nasty resource wars, without a doubt.

I'm pretty sure it already is. The US isn't in Iraq for the scenery.

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HOLA4415
Guest sillybear2

I'm pretty sure it already is. The US isn't in Iraq for the scenery.

They were graciously invited into Iraq in order to set their people free and bring about a new era of peace loving plural democracy.

Err, yeah, you're right.

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HOLA4416

Frank,

Why buy a new car? Just found the one I want in the UK for £695, 50,000 miles on it, diesel, 55mpg. Like the last one I had and got 6 years out of.

£695 is stupid. What do you get for emptying your wallet? Something that goes forever - with a bit of luck like it was brand new (thank you, Japanese engineers) - for the price of about 3 months repayments on a new car (including all credit charges ... and PPI!). Or 4 months worth of petrol, now that I think about it.

Stupid. Juuust stupid!

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HOLA4417

If you agree with the idea of "Peek oil" then you might want to think long & hard over MPG.

Not long ago it was 80P a litre, now £1.25..........with falling production & higher taxes i fully expect £1.50 this year & £2.00 in 2011

Mike

it's £1.17 for unleaded round where I am...still a joke but the price has fallen.

As for the price and where it's going, I thought that was more to do with a crap currency to US Dollar? And Fuel Duties has a lot to do with the price shift upwards.

Still, it's cheaper than public transport!

As for the OP original post, don't buy new and don't get anything on finance as it's a proper rip off! Plenty of 4 to 5 year old vehicles out there with lots of life left in them!

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HOLA4418
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HOLA4419
Guest Noodle

£695 is just silly. For emptying your wallet you get something that goes forever - with a bit of luck like it was brand new (thank you Japanese engineers) - for the price of about 3 months repayments on a new car (including all credit charges ... and PPI!).

Well, I paid £825 (1 owner, FSH, 61k) for the last one and got 6 years trouble free, cheap motoring out of it.

I've done many silly things in my life, but paying through the nose for a car isn't one of them.

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HOLA4420

Been reading today, about the sales of new cars shooting up and what with the news from Mr King about interest rates shooting up by the end of the year, I've been wondering if now is a good time to buy a new car or not?

We're in a catch 22 situation atm. Baby on the way, desperately want to buy a house and new car. If we buy a car (which we will have to purchase on finance in the short term, because all our savings are for our future house) we won't be able to get such a big mortgage, but if interest rates are going to shoot up, perhaps the time to get a new car is now?

What are your views on buying new cars at this stage and where the economy is heading?

Thanks

Buy different but not new. A waste of money. Can you find a new car which has not depreciated by 50% or more after 3 years? Hardly any there, even german ones. Best thing is private seller, 3 yr old low mileage diesel. Cannot go wrong if you keep that for 3 years and sell on.

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HOLA4421

Well, I paid £825 (1 owner, FSH, 61k) for the last one and got 6 years trouble free, cheap motoring out of it.

I've done many silly things in my life, but paying through the nose for a car isn't one of them.

I agree with you. Didn't express the sarcasm with enough SUBTLETY.

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HOLA4422

Good comment, but there is an exception (unless they've changed the rules) if you regularly drive into the congestion charging zone, where LPG vehicles are/were exempt, even it you still ran them solely on petrol anyway.

I'm pretty sure it already is. The US isn't in Iraq for the scenery.

Yes but it depends on the conversion .. The conversion I had on my Landrover didn't qualify .. a friend had his Jeep converted and the "certified "(Ie congestion charge exempt ) conversion was about £1500 more expensive .. . All cars supplied by the manufacturer as LPG will be congestion charge free .. (or were when I looked at the rules when the cc was introduced) .. A buisness I know who bought two LPG converted transits changed them soon after as as it was more economical to pay the CC and use diesel (None of the drivers could ever "Find" LPG , in truth they could not be bothered to wait while it filled ..) I went to Diesel last time I changed my car ..

There are things to consider ..

50% of the time garages advertising LPG either do not have any for sale or the pump is broken ..(I once pulled into a BP confidently advertising the price of LPG .. and they didn't have and never had had a pump) You have to fill up much more regularly with LPG and it takes much longer .. so I didn;t have to fill up so often I had 150litre tank .. it was nearly 1/2 an hour to fill from empty .. and the pump will not let you have more than 100 litres at one go .. and some fillings stations will not let you fill up a second time without paying for the first 100 litres .. and some credit cards will not let you perform two transactions in the same filling station ..

On the other hand hand I did 250,000 in that car .. and it must have saved 25% over burning petrol .. But diesel would have been cheaper and easier ..

A small diesel car such as a Peugeot 106 is the cheapest you can get (in my humble opinion ..) just as an experiment I poured 4 litres of sunflower oil into the tank of ours before I left for Birmingham .. No problem at all ..

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HOLA4423
Guest Noodle

I agree with you. Didn't express the sarcasm with enough SUBTLETY.

I know! But we need to drive it home to the others!

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HOLA4424

Crikey , rather than buying a new car I am looking at what options I have for reducing my running costs. I am looking at cars with a relatively small petrol engine with room for LPG conversion ( there are garages with it around me).... hopefully I'll end up slashing my fuel costs by 75% vs the car I currently drive. I am on a mission to give the govt as little in tax as I possibly can.

http://en.wikipedia.org/wiki/Electric_bicycle

they're going to be huge!

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HOLA4425

50% of the time garages advertising LPG either do not have any for sale or the pump is broken...

And you can be guaranteed that the cheapest one in the vicinity is always either sold out or that you'll end up joining the back of a queue of about ten vehicles waiting to use the single pump. There will be a further delay caused by at least one of those ten being an LPG newbie who doesn't know how to attach the nozzle to the filler, and only finds out through prolonged trial and error.

I was never conscious of the actual filling time being a problem: the queue to get to the pump was the real cause of delays. The actual filling took a little longer than filling up with petrol, but not massively so. Can't remember the tank capacity now - I got rid of the LPG car in August 2007. It was a cylinder that occupied about half the boot space in the Mondeo. 50 litres sounds about right, but I couldn't swear to it.

The reason I got rid of the LPG Mondeo was because some hefty repair bills were about to come down the pipe, and I'd just changed jobs and reduced my annual mileage by about two thirds in the process. At 10-12k miles a year I just don't drive enough for it to be worth paying more in initial purchase price and/or maintenance for a more fuel-efficient arrangement than a bogstandard petrol engine; but if I did I don't think I'd go for LPG again unless I was offered a serious bargain on an already converted vehicle.

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