2 lots of insurance, 2 lots of tax...
2 lots of tyres...
2 lots of other consumables like brakes and exhausts (including the idle car's one rotting from lack of regular use)...
In my experience, when you really tot it all up, one driver running 2 cars doesn't tend to work out cheaper. Better to find a single car which will do all you need, but be cheaper to run.
The depreciation you'll only limit by running an older car, where you may be able to scrimp on servicing a bit too, but you'll still need oil and filters and occasional brake fluid and coolant changes.
Presumably you have a V70 because you need a roomy estate, so I reckon the best way to save is to run *one* older, roomy estate - and probably a diesel, seeing as your mileage is quite high.
The VAG tdi would probably maximise your fuel economy, so why not have a look at a
Passat
Skoda Octavia
possibly an Audi A6
but also consider the
Peugeot 406
Citroen Xantia
Toyota Avensis D4D
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I got the Volvo as a 7 seat estate with gadgets. Nice car. I wasn't expecting to do anything like this sort of mileage in it though. So I've now lost about 8k in depreciation in just over a year. If I keep the car it will lose a lot more and cost me more per month than I can afford.
So I can't keep the car and my job.
I'm looking to change jobs, but not the easiest thing to do.
So I need to slow the depreciation on the volvo. Reduce the mileage (if it did average mileage for 2 years it would be be on 70k after 3.5 years).
I only need the big car for the family. to and from work it's nice to drive and have the gadgets, but there is only me in it.
So it would depreciate, but a lot slower than it is, and it would get regular, but not daily use.
If I was to trade down, then a 406 Family estate would do the job, but I'd have to swallow the depreciation on the volvo to date, which is hard to do.
again, any comments/thoughts?
cheers
Durelli - son of a famous Italian tyre maker
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I was in the same situation 3 years ago. 35k annual commute that I didn't want to do in my VR6.
I bought a Diesel Montego for £600 and ran it into the ground. (It always got me home.) Then scrapped it and went for a 97 Passat Tdi 110Bhp that cost me £3500. It also cost me about £3500 in repairs due to 3 timing belt / tensioner failures. Had it for a year. (I used to be a VW fan!)
I have just replaced it with a 1 year old Toyota Avensis D4D.
Basically, if you are buying a car for around £2-3k, my advice would would be to buy as young a car as possible and get lots of advice so you don't buy a lemon.
I would not recommend a VW Passat.
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You could legally circumvent the issue of second insurance on your cheap car if your existing policy has Driving Other Cars (DOC) cover. It provides third party only cover on any vehicle not owned by yourself.
So if your mother/father/son/daughter/wife/girlfriend/mistress or whatever were to buy the car, and register it to themselves then you could legally drive it without having an insurance policy on the car.
The issue comes when you need to tax it - but you could always get a cover note for a days insurance on the day you want to tax it, which is all you need.
It seems quite illogical to the extent that most people automatically assume its illegal - its not, its a loophole that can be exploited to your advantage.
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>>It seems quite illogical to the extent that most people automatically assume its illegal - its not, its a loophole that can be exploited to your advantage
I really wouldn't recommend this.
The fact that you are regularily using another car is a fact material to the risk. Any and all material facts must be disclosed to your insurer. It is your duty to disclose material facts to your insurer, they have no responsibility to ask you. If you are unsure as to whether or not something is a material fact, then disclose it anyway and let them decide.
What could be the downside of what you're doing ? Worst case you have a nasty accident, kill a few people or injure them, maybe wreck a few cars. Your insurer will have to pay under the RTA even if there is a breach of conditions. However, given the breach of policy conditions mentioned above, they can then recover all their expenditure from you - and that could be an awful lot of money.
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Personally I would get rid of the Volvo and have only one car, but one which is more suitable for the purpose.
Although the Volvo is a nice car, it's not anything special like an Alfa Spider that needs preserving. Consequently, I'd look at taking the value of the V70 and putting it into something else that's maybe a class or two below (Mondeo/Avensis, etc. or even a Focus) that will be cheaper to fuel, service and insure, and hopefully a couple of years newer. The depreciation will still be there but the other costs will be reduced.
If, however, it's a diesel, it's hard to see how you can reduce the cost of your motoring beyond what it is already as anything you save by downsizing will be abosrbed by the dealer's profit margin - and the fuel savings won't make up for it either.
Depending on the age and spec of your car, I'm sure we can come up with a suitable alternative.
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I too suspect the economics of 2 cars doesn't really add up, unless by cheap you really do mean cheap. There are two ways of running a cheap car in my book. Buy a classic, and get free tax, cheap insurance, probably negative depreciation - but it may not be suitable for clocking up the high commuting mileage,
or buy anything with a long MOT for a couple of hundred pounds and scrap it when something goes wrong.
To me, it would make more sense to have a nice big extravagent classic for your fun motoring at weekends, on cheap limited mileage insurance, and then something like a big diesel, as someone suggested, for comfortable commuting.
Like most problem solving, the theory is to start from where you'd like to be, not where you happen to be now.
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30k miles a year just getting to work and back! Why not move nearer to work and keep the car you have?
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If depreciation is a driving factor, why change a perfectly serviceable car and not do instead what my father has done with his first two Volvos (1972 144S and 1979 244DL), and is currently doing with Mum's 1989 440GLi and his 1998 S80?
Buy new, which all have been, employ reasonable preventative maintenance, and run for however many years it takes to get to the scrap heap or cost of repair means Get Rid? The 144S lasted ten years until Dad was posted abroad and storage costs weren't worth it, and the 244DL ten years (including some time in storage) until PXed for the 440GLi.
Even though the 440 isn't an example of Volvo's finest hour, it has proven to be 100% reliable (bar a water hose that popped off when new), and now fully depreciated at fifteen years old, costs buttons to run.
I did exactly this with an MG Metro - also hardly a 'quality' car - that I ran for eight years or so until the cost of stopping the rust just wasn't worth it any more, and the cost per mile was also extremely low. (I know so because I kept every single bill, including for fuel)
As it happens, I purchased a brand new V70 2.4T SE last year which I intend to run until it reaches five years of age, at which point my employer is entitled to stop paying my monthly car allowance. When this happens, SWMBO will take it over - hopefully with some sprogs to sit in the back seat, but that's another story! - and we'll use it as family transport for as long as it is economical to do so, and I get my new Toyota powered Lotus Exige or whatever exists at the time!
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I guess it all depends on whether the extra depreciation on the Volvo outweighs the cost of running a 2nd car, incuding the depreciation for that.
In addition, are there any other advantages to having a 2nd car, spouse etc?
Personally I would look at any of the makes listed above (but most noteably the Xantia) and try to find an earlier low mileage one. Hence pay low money for low mileage and good service history. Looking at cars that are just not popular may also help.
Expect it to be worth zip in a couple of years, run it till it drops and then do the same again.
Also,
Could you take out a low mileage policy on your Volvo?
Would the 2nd car need to be insured fully comp?
Can you get a 2nd car discount equivilent to your NCD?
Can you save on repairs by shopping around for a new clutch etc, as you have both cars at your disposal?
H
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For steady-speed cruising on m/ways and dual carriageways why not a Nissan Almera Diesel? Reliable, economical, pretty good NCAP score and a/c etc. Good value used.
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