The economics of new car sales
Discussion
ks or floats rent it" forzaminardi said:
I don't understand why people get so upset by what other people spend or don't spend their money on. Most people, rightly or wrongly, aren't especially interested or even have the option of wondering whether they're saving £2k here or there. Perhaps, in pure pounds and pence terms, they should care; perhaps, in terms of getting on with life, they shouldn't.
Ultimately if you look only at the costs of it, any car is a waste of money, isn't it? But most people would say that the price they pay isn't for the car itself, it's for the freedom to go where they want when they want. Some would overlay that with it being the cost also of having a 'nice' car, however and whoever it is that niceness is judged. PHers would overlay it with it being the cost of having a car they like.
I'd suggest that those getting off on the idea of other people throwing their money away on PCP deals or whatever consider carefully what they spend their money on - I very much doubt that in every single instance and activity through their life they make the most financially-sensible and logical choice. Obviously there is a scale of what's sensible and what's daft but where you sit on that scale is your own business.
I suppose the point is - buying a M&S sandwich is a waste of money. But it's convenient if you fancy a sandwich.
Yup. Nail on head.Ultimately if you look only at the costs of it, any car is a waste of money, isn't it? But most people would say that the price they pay isn't for the car itself, it's for the freedom to go where they want when they want. Some would overlay that with it being the cost also of having a 'nice' car, however and whoever it is that niceness is judged. PHers would overlay it with it being the cost of having a car they like.
I'd suggest that those getting off on the idea of other people throwing their money away on PCP deals or whatever consider carefully what they spend their money on - I very much doubt that in every single instance and activity through their life they make the most financially-sensible and logical choice. Obviously there is a scale of what's sensible and what's daft but where you sit on that scale is your own business.
I suppose the point is - buying a M&S sandwich is a waste of money. But it's convenient if you fancy a sandwich.
nickfrog said:
True. It may also explain the usual bitterness.
Its not bitterness. I truly find it banal that people like you and Grandfondo seem to have to justify your own choices by running down other peoples.If i challenge that perception, its certainly not because i am bitter. Of the four cars at this house, two are on PCP, two are owned outright.
We'll clear the PCP deal on the Golf next year which just leaves the Z4. Wifie is happy to PCP her main car because she gets a company car allowance. Personally, if i was her id be buying a used 350z / 370z or Boxster outright but she doesnt want to do that.
Edited by daemon on Saturday 22 November 12:26
Antony Moxey said:
I'm saying that it's an irrelevent statement. Who cares how people finance their purchases - most sensible people work out which is the best way for them and that's what they do. Some people finance a purchase one way, others do it differently. As I said, does it matter.
It matters to Grandfondo. Clearly he needs to be the "bigger man" on an internet forum.Grandfondo said:
I wonder who Nickfrog was talking about as the bitter Serial poster? 
Certainly not bitter.Why would i be?
Just bemused by some of the banal subjective views and challenging them with objective reasoning thats all.
I personally dont care who drives what or how. Seems very important to some people though.
daemon said:
Grandfondo said:
I wonder who Nickfrog was talking about as the bitter Serial poster?
Certainly not bitter.Why would i be?
Just bemused by some of the banal subjective views and challenging them with objective reasoning thats all.
I personally dont care who drives what or how. Seems very important to some people though.
Why do you get so bothered about a statement of fact and then advise your wife to buy outright?
Are you going to apologies for the miss quotes and be the "bigger" and "better" man and for name calling?
Anyhoo buy lease PCP HP bank loan or credit card do whatever suits your circumstances!
Antony Moxey said:
I'm saying that it's an irrelevent statement. Who cares how people finance their purchases - most sensible people work out which is the best way for them and that's what they do. Some people finance a purchase one way, others do it differently. As I said, does it matter.
Whats even more bemusing is this is a car enthusiasts forum. You would expect that looking at different ways to get to drive the car you really want would be a good thing.Grandfondo said:
Yea, you don't care but have posted 50 times on this thread!
I dont care how others finance / lease / pay for their cars. I am bemused how others seem to have quite banal views on it, so therefore i take pleasure in challenging those views. Which in reality is a bit like shooting fish in a barrel.Grandfondo said:
Why do you get so bothered about a statement of fact and then advise your wife to buy outright?
Because your view is not a statement of fact that can be extrapolated across the car buying public. It would be equally valid to say "some people buy cars for cash that they cant afford", because they've used all their savings to do so and / or cant afford the running costs. To say that would prove nothing, as does "some people PCP cars they cant afford".Grandfondo said:
Are you going to apologies for the miss quotes and be the "bigger" and "better" man and for name calling?
Right after you apologise for trolling Grandfondo said:
Anyhoo buy lease PCP HP bank loan or credit card do whatever suits your circumstances!
Indeed. Grandfondo said:
and then advise your wife to buy outright?
I didnt advise her to buy outright. I said if i was in her position i would buy something like a 350z outright, however she prefers a new car with no hassles, maintenance bills, MOTs, etc. So, bearing in mind those parameters, i certainly wouldnt advise her to buy a 350z.
daemon said:
We'll clear the PCP deal on the Golf next year which just leaves the Z4. Wifie is happy to PCP her main car because she gets a company car allowance. Personally, if i was her id be buying a used 350z / 370z or Boxster outright but she doesnt want to do that.
I thought PCP was for new cars , didnt you buy those used? Edited by daemon on Saturday 22 November 12:26
1. Not paying for something upfront with cash doesn't mean you can't afford it. If you can afford to pay £200 per month for a car (or anything) - then you can afford it, simple as that.
2. Not everyone wants to run around in a 5 year old second / third hand car.
3. Buying a new car for cash and selling 3 years later will leave you in broadly the same position as a lease deal in terms of out of pocket expenses. In some cases you might be better off, some cases worse but the difference will be minor and insignificant though when considering the total cost of ownership.
4. When reviewing point 3 please do not point out the cost comparison of buying / leasing a 5 year old car vs new. Refer to point 2.
2. Not everyone wants to run around in a 5 year old second / third hand car.
3. Buying a new car for cash and selling 3 years later will leave you in broadly the same position as a lease deal in terms of out of pocket expenses. In some cases you might be better off, some cases worse but the difference will be minor and insignificant though when considering the total cost of ownership.
4. When reviewing point 3 please do not point out the cost comparison of buying / leasing a 5 year old car vs new. Refer to point 2.
It's funny how many fail to understand the tax and other associated relevance of leasing.
High net worth individuals lease not for lack of funds but for ease of budgeting, low hassle and tax benefits.
Wealthy and or successful people have far more important things that matter than if their car purchase depreciates through purchase or leasing.
A family member is leasing a new slk for under £5k for two years inclusive of road tax and vat... and that's the total cost of using the car for the period. The road tax on the car it replaced would be £1000 for two years, the maintenance would be at least £2000 and the depreciation would be £4000
They work in the leasing industry and take their hat off to the manufacturer for losing money in order to gain sales.
People are different and there is no right or wrong answer.
High net worth individuals lease not for lack of funds but for ease of budgeting, low hassle and tax benefits.
Wealthy and or successful people have far more important things that matter than if their car purchase depreciates through purchase or leasing.
A family member is leasing a new slk for under £5k for two years inclusive of road tax and vat... and that's the total cost of using the car for the period. The road tax on the car it replaced would be £1000 for two years, the maintenance would be at least £2000 and the depreciation would be £4000
They work in the leasing industry and take their hat off to the manufacturer for losing money in order to gain sales.
People are different and there is no right or wrong answer.
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