OT - Buying a new car

[PTWhatAGreatForum]

This is a bit off topic but I thought I would get some interesting responses here. After all, I'm sure many of you have bought a new car.

My car is getting on in age and higher in miles so I'm looking at replacing it within the next year. I have previously had only used cars (Most recently Japanese imports) which I have held for a good period of time. My present car I have owned for 11 years.

I would quite like a Subaru - most likely an Impreza (Basic model). Initial sums show a car like this ballpark (around $30k new) depreciates at $1,500 - $2,000 per year whether I buy new or used. I have also seen the entry level price of quality used cars increase over the last several years.

If I buy new, I expect to hold for 15 or more years.

Comments / feedback?

[Debs]

the Subaru impreza is one of the most sought after cars in the criminal underworld for stripping/reselling. Expect to pay mega insurance premiums and live with the constant worry of it being stolen or being otherwise targeted. In the top 3 of most stolen cars in nz.

[Bob Kane]

If you want to own it for 15+ years then buy new.

[PTWhatAGreatForum]

the Subaru impreza is one of the most sought after cars in the criminal underworld for stripping/reselling. Expect to pay mega insurance premiums and live with the constant worry of it being stolen or being otherwise targeted. In the top 3 of most stolen cars in nz.

It was my understanding this was a problem with older models (especially if owned by people who have not fitted alarms)...?

Every person I know who has had a car stolen - it was an older model with no alarm fitted. The thieving pricks almost certainly smashed the window, started it with a screwdriver and drove away.

The issue in NZ is insurance companies will readily insure cars without alarms. There is a lot of people out there who would much rather spend $500 on a stereo system than a professionally installed quality brand alarm system.

Just recently, there was an article (On Stuff I think) about a guy who left $20k of tools in his vehicle which was stolen from his driveway. How was it the thief was able to get into the vehicle and get it started before they were aware of it? (According to the details in the story). If he had spent $19.5k on tools and $500 on an alarm, he would have had a different outcome or likely the thief would have left his alone for easier pickings.

If you want to own it for 15+ years then buy new.

Thanks.

[Viking]

Alarms don't stop thieves anymore.
Plenty of car theft going on, just doesn't get reported anymore.

[Anthonyacat]

I'll never own a new car again. Was given one as an engagement present from a rich family member, but I'll never buy one.

I had found it hard to explain to myself exactly why, when occasionally the depreciation-numbers seem to work out pretty close to even (and I love the smell of the auto-glue that new cars have) but then I found an interesting post on a personal finance blog that explained Automotive Inventory. Take a look, and ignore all the rubbish about 0% financing on new cars; don't think we have that in NZ!

http://www.mrmoneymustache.com/2011/11/28/new-cars-and-auto-financing-stupid-or-sensible/

[PTWhatAGreatForum]

I had found it hard to explain to myself exactly why, when occasionally the depreciation-numbers seem to work out pretty close to even (and I love the smell of the auto-glue that new cars have) but then I found an interesting post on a personal finance blog that explained Automotive Inventory. Take a look, and ignore all the rubbish about 0% financing on new cars; don't think we have that in NZ!

Good article, thanks.

[Eugene]

I'll never own a new car again. Was given one as an engagement present from a rich family member, but I'll never buy one.

I had found it hard to explain to myself exactly why, when occasionally the depreciation-numbers seem to work out pretty close to even (and I love the smell of the auto-glue that new cars have) but then I found an interesting post on a personal finance blog that explained Automotive Inventory. Take a look, and ignore all the rubbish about 0% financing on new cars; don't think we have that in NZ!

http://www.mrmoneymustache.com/2011/...d-or-sensible/

Great article and site.
It doesn't address safety, I love having 5 star ANCAP safety rating

[Maccachic]

Safety rating bring down the ACC component of registration from July I think it is.

[PTWhatAGreatForum]

Safety rating bring down the ACC component of registration from July I think it is.

My 19 year old car gets 3/4, making it among the best of it's vintage.

[PTWhatAGreatForum]

Alarms don't stop thieves anymore.
Plenty of car theft going on, just doesn't get reported anymore.

Please elaborate on your claims.

When I had an alarm installed, the guy (who was a professional) spent 4 hours on the job in my drive way. Everything I had heard prior was along the lines of getting a standards approved alarm and having it competently installed makes a huge difference. I could imagine, if someone bought a cheap easy install 'no name' alarm and installed it themselves, this could be a lot easier to bypass.

My understanding is the only way someone can steal a car (without the keys) which has been properly alarmed is to tow it away or try and untangle the wiring which can be done without setting off the alarm first either through entry point sensors or a glass break sensor.

If there is something I have missed - please explain. But as I said above, everyone I know who had a car stolen had no protection whatsoever. The thief would have smashed the window or lock, broken the ignition and driven away.

"not reported" = car was repossessed and the person needed a cover story to their friends or stolen for a fraudulent claim, though it's my understanding insurance co's require theft to be reported.

[Maccachic]

Please elaborate on your claims.


"not reported" = car was repossessed and the person needed a cover story to their friends or stolen for a fraudulent claim, though it's my understanding insurance co's require theft to be reported.

Guessing they mean by the media - I am part of neighbourhood watch and as part of that get updates from the cops on crime in the area still plenty of break in / stealing reported.

[PTWhatAGreatForum]

Guessing they mean by the media - I am part of neighbourhood watch and as part of that get updates from the cops on crime in the area still plenty of break in / stealing reported.

An alarm may be a deterrent to breakin depending on the circumstances. Here, we live in a quiet rural village. Car alarms going off is not normal. Also, keep in mind the Police statistics apply to all thefts - cars with and without alarms.

The discussion in this thread prompted me to ring up my insurance company and enquire why I was not receiving a discount. This resulted in receiving a 5% discount on my comprehensive commercial car insurance. I had a chat wit the guy, who was helpful, and I learned that it's only 5% because the accident risk is a lot higher proportion of the premium and that the old 'star' rating system no longer exists and alarm installations is now a totally unregulated market in that there is no approvals to separate one alarm from another and a qualified installer from anyone else.

[Maccachic]

I moved from Dunedin to Taupo and my premium increased, when I then moved to Tauranga it increased again apparently those two town are more risky than Dunedin - insurance is a strange game. I do have the full no claims discount for all that's worth.

[PTWhatAGreatForum]

I moved from Dunedin to Taupo and my premium increased, when I then moved to Tauranga it increased again apparently those two town are more risky than Dunedin - insurance is a strange game. I do have the full no claims discount for all that's worth.

I'm around $391 per year in the rural Manuwatu. In Auckland it was over $500. This is commercial cover though.

Insurance is an interesting game. I recently got class 6L (and a blue "Learner" license). State commercial said they can't cover a motorbike at all - have to speak to personal - who said they will not cover anything over 100cc until I get class 6 full. However a V8 or turbo is no problem.... They referred me to NAC who accepted my full no claims discount, offering me a premium on par with anyone with a full license, but a higher excess until I get class 6 full.

In some ways it's like being 16 again.