Dear All,
I\'m toying with the idea of keeping my motoring costs down by buying a car from auction, running it for 3/4 months and then selling it on to break-even or make a slight profit. This way I am unlikely to be troubled by servicing or MOT costs (although I might be visting the post office for car tax frequently).
I\'m wondering what type of cars would be most suitable for this idea. I don\'t like small cars as I need space for a baby so would be looking at mondeo sized cars on the whole. Is the latest mondeo an easy car to find buyers for? Would it make more sense to go for ex-fleet 3 yr olds or maybe some older cars for which potential buyers might be less fussy about a short term owner?
Any thoughts or comments appreciated.
Cheers,
Mat.
|
You obviously have a lot of time on your hands! One day every 3 months for attending auctions; then changing insurance, tax etc. etc. And guarantee that you'll need new brakepads every time you change car etc. etc. Oh and though they'll have full service history, it will stop 6 months before the car is sold - they're not foolish - at which point it will need a major 60k service. Oh, and I'd argue that you'd become a motor trader too, with all the responsibilities that come with it.
Go downmarket (or at least older!) A ten year old car with 100k on the clock is to all intents and purposes worthless, yet can still look smart and easily have several more years in it. Budget £1000 and look hard in the private sales & find a fsh example that's just had a major service. Easy to do if you have that sort of time on your hands!
Think of the money you'll save on fully comp insurance too! No need to make a poxy profit every 3 months on your last car.
And you can drive something much much more glamorous & fun than you would get with your 3 year old Mondeo. Leather seats, fully loaded. 5 series; Audi A6; MB W123; Sierra 4x4?
I realise this might not be everybody's cup of tea!
|
It's true that if you deal in cars costing £5000 then it's quite possible to lose £500 on it - difficult to sell for whatever reason etc.
If you have a car costing £800 then it's quite difficult to lose £500 on it! Normal proviso about buying carefully applies of course.
Gareth
|
|
Just don't bother with all that faff, and stick to your super-banger. If it ain't broke, don't fix it...
|
Sounds like an ideal way to increase your motoring costs to me, lots of hassle, and no gaurantee you will sell at a profit.
Go with mapmakers plan to save money, there are plenty of servicable sub £1000 cars to choose from if you look carefully.
|
Although there are lots of respectable cheap cars out there it's not everyones idea of fun.
I think I'd go for the cleanest 3 or 4 yr old Mondeo but dont be too obsessed with changing it too often. You have precious cargo afterall and the benefits of reliability and safety features in newer cars might just be an importantant factor to you.
Having said that, after my last couple of visits to the auction I'd say finding a newish clean Mondeo with sensible miles is getting ever so slightly harder. Always a good selection of 3 series though!
|
In the past year or so i have spent very little money on cars. After the death of my jetta 16v i decided i did not want to spend anything on running cost, depreciation, and road tax. I have recently got through about 4 mondeo, and during that time have taken on and bought and sold numerous other vehicles.
In the past year i have achieved my goal of running a car for nowt and indeed have made a small "profit". Yet such activities have consumed a considerable amount of my time. I think i would of found it difficult to do so with a full time job.
Finding a cheap car for you depends on many things. Do you have a lot of time to spare? Or mechanical knowledge? Or value safety above other criterior etc. For people with little time who know nothing about cars a toyota yaris could be the cheapest option, whereas an old jag with a rusted through boot floor and a dead gearbox could be turned into a very profitable car by another. Decide more precisely what your requirements are and what sort of car you want first. I wanted a car good on motorways ( i travel 300 miles to uni from home), reasonable economy and something not liable to generate any large unexpected bills. So far i have been lucky.
Indeed an old 535 could be fun, but get a manual. If that old autobox chucks up the "trans prog" the word cheap wont be too apt.
Newish clean mondeo at many auction centres are much rarer than some would have you beleive. Great cars, i have not bought one with any real fault at all. It all depends on the risk you are prepared to take. If you have the time the classifieds can throw up the best bargains- a 535 like the one mentioned before went in the autotrader near me for 495. It sold within hours! Another 525 went in a 1500 and reappeared the next week with a different phone number and a t at the end of the ad for 3k. I was looking to buy from a friend. I now get up very early on thursdays!
|
|
Has it earned you as much as you would have earned putting all those hours in at Sainsbury's? (Every hour spent at auction, under the bonnet, reading Autotrader etc.) Probably not, but you've probably found it more fun. All very well for a student.
|
|
|
|
|
Oh and a lot of insurance companies do not like it if you change car more than once in a year.
|
|
All credit to direct line with whom I've had 6 cars in the last 12 months, one way or another.
|
|
|
|
I recently decided to go the cheap motoring route.
Prior to that it had been the usual upward spiral of newer cars or older prestige cars.
Everything changed when I had to be without my Merc E-class for a month so bought a cheap runaround I could sell on quickly.
I chose an immaculate 12-year old BMW E36 318i with 100k on the clock, bought privately so I could inspect it thoroughly - something you can't always do at auction. Cost 1500 quid and has worked flawlessly for over four months. Was even good in the snow which surprised me! Sold the Merc when it came back.
Put a cheap private plate I had on it to hide the age and I think I've found motoring Nirvana. I get to drive a lovely smart comfy car and have all that money left over to get a bit more out of life...
Can't understand why it took me so long!
|
Thanks for the comments so far - some interesting thoughts.
Several people have mentioned the older prestige car or 'bangernomics' route and I'm
aware that this is probably the best way to minimise motoring costs if one takes it
to the extreme. I've had a few bangernomics cars in the past and thet've served me
well but now that I am a father I am drawn towards more modern vehicles on saftey
grounds. After looking at some of the pictures on the euroncap site I'm not keen
on anything with a less than about 60% rating (front and side).
I suppose the reason this idea appeals is that I feel I have done well with my current
car which was sourced from auction. I got an fleetlease nissan primera 1.8s 00W 53k for
£4250 all in 12 months ago and in the year I've had it I've spend nothing on it except
just recently a new mot and a service. When I bought the car it had just been
serviced and so was good for the next 10k miles. I suppose I should stick with the
primera but I do find it quite dull (1.8) and it is poverty spec. I would also like
to get rid of it before it starts to depreciate even more.
I'm currently working near blackbushe so I'll proberly pop in every now and then and see
what the situation is.
Cheers,
Mat.
|
|
Best safety argument for your children is to stick to the bangernomics approach, and to put the money aside for school fees!
|
|
|
|
