Car Parts Direct: "A new car is the worst investment most people will ever make"

Choosing an older vehicle could be a home-saver for the UK¡¯s cash-strapped mortgage holders, and buying a new car could make the difference between ¡°home ownership¡± or ¡°repossession¡± claims Car Parts Direct.
 
The firm, which sells aftermarket parts via mail order to DIY motorists, notes that a £15,000 car will lose around half its value in three years. ¡°If you borrow the money to buy the car at 7.7% interest it will cost you an extra £1,847. That¡¯s a total of £9,347 ¨C all out of taxed income. Personal Contract Purchase (PCP) can cost even more, and there are limits on mileage and expensive penalties should you want to change the vehicle early,¡± remarks owner Mark Cornwall.
 
He goes on to note that a £9,347 loss on a new vehicle would be enough to pay the interest on a £100,000 mortgage for nearly two years. Cash-strapped home owners could use this cash to avoid losing their home when their low cost fixed rate mortgage deal ends.
 
Mark Cornwall said, ¡°Cars are reliable for at least 10 years providing they are serviced. Items such as brakes cost very little. Even the more expensive parts that could fail such as shock absorbers, drive shafts or a steering rack rarely cost more than a couple of hundred pounds ¨C this is peanuts compared to financing a new vehicle.¡±
£¨www.carparts-direct.co.uk£©
From: autonindustry.uk/news

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