When you are looking to run a car, pick a budget and stick to it. For Stuart.Cameron’s case it looks like he’s really pushing on what he wants to pay. He can have his car either by chasing a huge discount (go and chase it, no one is going to chase you to give you £3500 off, least of all your local dealer), or cutting back on the options (maybe a bit of both), or get something cheaper.
The smart money for me is chasing that discount – more car for less money.
There are advantages and disadvantages for buying used or new. VW (and BMW/Audi) are good at creating high residuals which allow you to effectively finance the depreciation on an expensive car relatively cheaply, at a “reasonable” APR (Go see what the Germans are paying on their finance though – 1.9% APR). You have the peace of mind that all the car should cost you is fuel, tyres and servicing.
Buy a used car for less, lose less money on it and you’ll be quids in if nothing untoward happens to it, although out of warranty repairs seem to be getting more and more expensive as cars get ever more complex and running to tighter tolerances. Fuel economy is unlikely to be as good (fuel economy and power output get better with every incarnation of a model), equipment may not be as good, and it may have some wear on it (it is a good feeling to be in a car that is new) If you’re not paying cash then you’ll probably be paying more APR if you finance through a dealer. If I was buying a second hand car I’d be looking for a personal loan at 5-6% APR rather than car dealer used finance at anywhere between 10% and 20%.
There aren’t many people here buying a new GTI or GTD outright, most will be financing one way or the other. Are we not allowed to live before we pay our mortgage off? Got to have a decent life balance, and if having a new car is what makes you happy then, why not. It might not be a smart “investment”, but if you can afford to do what makes you happy then go for it
