How the hell do people afford cars these days?
Discussion
OutInTheShed said:
How do you know people are 'struggling to afford' new cars?
Lots of people I know could easily afford a new car, but they don't actually want one.
There are plenty of other things to spend your money on.
Some people seem to have lost interest in having the latest model.
Some people have less need for a car, due to working from home. They may have a 3 year old car on the drive which is really low mileage but the trade-in they are offered is offensive compared to the cost of new.
If the major thing in the market was people decling to get new cars, then there would be a shortage of 3 year old cars. We're not seeing that.
What we are seeing is more fleet cars. Less private sales, slight growth overall.
That seems to suggest some people are choosing to have a company car when a few years ago they might have opted for the car allowance?
Ok, maybe not cannot afford but just don't see the value anymore. You would always have your serial PCP type who just change every three years because the nice guy at the dealership have told them it's due a change and they can get the next model up for the same monthlies or just a few bob more each month. A lot have not stopped and taken a step back, can see their 3 year old motor still runs fine, mileage not really an issue (especially if now home working part of the week) and the price to change is no longer attractive, and there will be those who just don't want to move to an EV for whatever reason and so holding onto what they currently have. Lots of people I know could easily afford a new car, but they don't actually want one.
There are plenty of other things to spend your money on.
Some people seem to have lost interest in having the latest model.
Some people have less need for a car, due to working from home. They may have a 3 year old car on the drive which is really low mileage but the trade-in they are offered is offensive compared to the cost of new.
If the major thing in the market was people decling to get new cars, then there would be a shortage of 3 year old cars. We're not seeing that.
What we are seeing is more fleet cars. Less private sales, slight growth overall.
That seems to suggest some people are choosing to have a company car when a few years ago they might have opted for the car allowance?
Fleet have filled the missing private sales for now, not sure if that is a switch to company cars,it could be hire companies and motability, it's interesting that business sales are also down.
My Brother in law has just got a new car, I assume its on PCP or similar, and i don't want to ask as it would scare me. His reason for changing was the car he had was 3 years old and will need MOT's now, (man maths at it's finest). He has done 11000 miles in his old car over 3 years, No idea what the monthlies will be on Mazda CX30 but he thinks the cost is worth it not to have to put it through an MOT. This is man who I assume earns just a bit more than minimum wage, as he works in a factory on the production line. He does own his own house though even if it's in a cheap part of the country and he has lived there for 30 odd years. It just goes to prove that buying cars for some is not a big issue. He never appears to be short of cash.
It’s people perhaps short of rational thinking that do keep second hand buyers in cars.
My old golf has had a total of 2 advisories in the last 4 MOT’s, imagine his car would sail through them for years to come without barely touching it with that use.
But it is indeed his money and at least he has a roof over his head.
My old golf has had a total of 2 advisories in the last 4 MOT’s, imagine his car would sail through them for years to come without barely touching it with that use.
But it is indeed his money and at least he has a roof over his head.
ARHarh said:
My Brother in law has just got a new car, I assume its on PCP or similar, and i don't want to ask as it would scare me. His reason for changing was the car he had was 3 years old and will need MOT's now, (man maths at it's finest). He has done 11000 miles in his old car over 3 years, No idea what the monthlies will be on Mazda CX30 but he thinks the cost is worth it not to have to put it through an MOT. This is man who I assume earns just a bit more than minimum wage, as he works in a factory on the production line. He does own his own house though even if it's in a cheap part of the country and he has lived there for 30 odd years. It just goes to prove that buying cars for some is not a big issue. He never appears to be short of cash.
I've got a (retired) aunt who buys a brand new Nissan Juke every 2-3 years, in cash, because she doesn't want to own a car of MOT age. I think the last one had 8k miles on it. I dread to think what that's costing her in depreciation. Completely against any sort of debt/finance even though she's the perfect candidate for leasing. Each to their own!Gassing Station | Car Buying | Top of Page | What's New | My Stuff