How much value is behind Low KM's on a used car?

[PostmanPot]

It's all about your per km cost at the end of the day really.

This, and how much you're inputting and outputting in terms of cost.

Also, the benefit is that you're driving something newer with lower mileage. I am in no way scared of 200,000km. Only scared about it affecting the money I get out of my car used to put into something better.

 

[SauRoNZA]

This, and how much you're inputting and outputting in terms of cost.

Also, the benefit is that you're driving something newer with lower mileage. I am in no way scared of 200,000km. Only scared about it affecting the money I get out of my car used to put into something better.

Ja sorry I edited my post above to add more stuff to it.

It's a fine line and the benefits are about a lot more than just money. As you say comfort and other things.

You know if you had to trade up from a car without heated seats to one with heated seats for instance and it was also slightly lighter on fuel then the comfort + economy benefit would negate the minor difference in cost.

If and only if you started second hand in the first place and cut the depreciation out.

If you had to cover that from brand new you would be pissing money away.

 

[PostmanPot]

Obviously extreme examples and there are a LOT more variables to it than this but you get the idea.

Indeed, that's where I would argue maintenance comes into it and balances things out to a point it's not as significant as some may think.

 

[Deago999]

what is the average cost of a service on a 2010 1.6 petrol polo? I know they dont have cambelts but timing chains which is a lot nicer because they never have to be changed - but how much would I look at paying for a major and a standard service on the car?

 

[Rouxenator]

I really do understand, and I cannot fault this if you are happy with it. The bottom line though is that you are losing out on a lot of money. All one needs to do is consider your input cost vs output cost. This is the way in which it is the same as buying new (regarding depreciation/money lost). My approach is far more savvy, and it's worth the extra effort.

Wrong. Buying a R200k car for R100k an then driving it until it is worth R30k and getting 200,000+km from it is the least you can loose.

 

[Rouxenator]

what is the average cost of a service on a 2010 1.6 petrol polo? I know they dont have cambelts but timing chains which is a lot nicer because they never have to be changed - but how much would I look at paying for a major and a standard service on the car?

That is a crap car to begin with. Get a 2010 Corsa Essentia 1.4 instead, same power but much beter deal and car.

 

[PostmanPot]

Wrong. Buying a R200k car for R100k an then driving it until it is worth R30k and getting 200,000+km from it is the least you can loose.

Where does the R70,000 come from in order to buy another at least R200,000 better or equivalent car for R100,000?

 

[PostmanPot]

That is a crap car to begin with. Get a 2010 Corsa Essentia 1.4 instead, same power but much beter deal and car.

Most people would take a Polo over a Corsa any day.

 

[Rouxenator]

Where does the R70,000 come from in order to buy another at least R200,000 better or equivalent car for R100,000?

Finance or in my case hard work paid off.

Most people would take a Polo over a Corsa any day.

Most people are wrong and drive sheeple's cars. Just look at the top monthly sellers to see that.

 

[PostmanPot]

Finance or in my case hard work paid off.

Your oversimplified example doesn't account for the cost of finance, just saying.

Most people are wrong and drive sheeple's cars. Just look at the top monthly sellers to see that.

Most people do things for a reason, believe it or not. Perhaps they're rightly concerned about resale value, which the Opel does not have. Particularly due to people having low demand for Opel. For a reason.

Being concerned about resale means they can drive better cars more regularly, instead of keeping the same car for 200,000km until they're worth nothing, and then having little to put towards something equal or better.

 

[Rouxenator]

Your oversimplified example doesn't account for the cost of finance, just saying.

OK, so lets say I did not settle the loan early like I planned to do and then did. I was given R30k for my old car so I only had to finance R75k which even at the ridiculous rate (+2%) and term (60 months) I was offered worked out to about R105k total cost. That means the interest would be R30k and after 5 years the car would probably be worth R70k so that means interest and depreciation adds to a loss of R60k.

Effectively I would only have lost R1k per month over the 5 years then. If you do the maths for other cars you end up with much bigger figures per month.

 

[PostmanPot]

OK, so lets say I did not settle the loan early like I planned to do and then did. I was given R30k for my old car so I only had to finance R75k which even at the ridiculous rate (+2%) and term (60 months) I was offered worked out to about R105k total cost. That means the interest would be R30k and after 5 years the car would probably be worth R70k so that means interest and depreciation adds to a loss of R60k.

Effectively I would only have lost R1k per month over the 5 years then. If you do the maths for other cars you end up with much bigger figures per month.

So you've lost R60,000 over 5 years. I'm upgrading every 1.5 - 2 years, and only losing around R10,000 a time. That's a maximum of three cars in the 5 year period (more like two), R20,000 - R30,000.

Finance always means you pay more. Doing some homework and being savvy with your money makes for big savings, even if it's just financing the right car and selling at the right time.

 

[adinfinitum]

Finance does = paying more - but it is unfortunately necessary for most people.

My previous car - which I loved and hated departing with - was basically a write off and I only got R25k off her sale with luck. With the little savings I had I essentially had R35k cash to play with. What reliable car can one buy for R35k - even 2nd hand? I'm sorry but my safety is important and I can't trust a car that (a) doesn't have a good safety rating, or (b) is not mechanically reliable enough to minimise the chances of me ending up stranded on the side of the road waiting for assistance.

 

[Rouxenator]

I would have lost R60k over 5 years, but after only 4 installments I settled the outstanding amount so over the next 10 years the only loss will be depreciation. I guess that would be around R55k which is not bad over a decade.

Not everyone is as fortunate as you and me who can afford to buy cars without (or very little) finance. For most people it is a given and adding up interest paid with depreciation paints a grim picture. However if you get value for your money it's not bad at all.

 

[PostmanPot]

I would have lost R60k over 5 years, but after only 4 installments I settled the outstanding amount so over the next 10 years the only loss will be depreciation. I guess that would be around R55k which is not bad over a decade.

So we're in agreement then.

Not everyone is as fortunate as you and me who can afford to buy cars without (or very little) finance. For most people it is a given and adding up interest paid with depreciation paints a grim picture. However if you get value for your money it's not bad at all.

Absolutely, and that's why they should be financing cheaper second hand cars with reasonable mileage, instead of insisting on low mileage and warranty which ends up costing even more, much more.

 

[Deago999]

That is a crap car to begin with. Get a 2010 Corsa Essentia 1.4 instead, same power but much beter deal and car.

this answer would have been more helpful if I was looking for an opinion - and the cars great when upgrading from a citi golf so thanks.

Being concerned about resale means they can drive better cars more regularly, instead of keeping the same car for 200,000km until they're worth nothing, and then having little to put towards something equal or better.

^^This