How much do you pay per month for your car?
Discussion
Hol said:
Look it it from his viewpoint:
£290 amonth into a 4 year loan would provide him a used £6k car, that he would need to sell on for more than £4k in two years to pay off the remainder of the loan and also cover that two years worth of MOT's and servicing.
£290x48= £13,920£290 amonth into a 4 year loan would provide him a used £6k car, that he would need to sell on for more than £4k in two years to pay off the remainder of the loan and also cover that two years worth of MOT's and servicing.
Let's say £3-4k of that is interest which is way overstating it
So £10-11k
Reality is he could therefore buy a car worth near on twice as much as you state above. or that to get a £6k car over 4 years and to own it he'd pay in just above half of what he has done to borrow the M135i.
What would that be worth after 4 years? >£0 presumably. He may have higher servicing to consider but to think a used £6k car will cost as much as a leased £30k car is way off the mark.
Hol said:
Hence, preowned one year old cars with nearly two years warrantly remaining are such good value compared to brand new.
Its not as cut and dried as that these days though, sometimes with manufacturers discounts for taking their finance packages (this is what car dealers are really selling these days!) it can be cheaper to get a new one rather than a relatively new preowned car. Especially if you are getting it on finance.Welshbeef said:
£290x48= £13,920
Let's say £3-4k of that is interest which is way overstating it
So £10-11k
Reality is he could therefore buy a car worth near on twice as much as you state above. or that to get a £6k car over 4 years and to own it he'd pay in just above half of what he has done to borrow the M135i.
What would that be worth after 4 years? >£0 presumably. He may have higher servicing to consider but to think a used £6k car will cost as much as a leased £30k car is way off the mark.
I'd never do a lease over 4 years it makes no sense as you have pointed out, if your going over 4 years straight finance or PCP are far better optionsLet's say £3-4k of that is interest which is way overstating it
So £10-11k
Reality is he could therefore buy a car worth near on twice as much as you state above. or that to get a £6k car over 4 years and to own it he'd pay in just above half of what he has done to borrow the M135i.
What would that be worth after 4 years? >£0 presumably. He may have higher servicing to consider but to think a used £6k car will cost as much as a leased £30k car is way off the mark.
Hol said:
Actually, that should read, the problem with buying any new car.. is depreciation.
One third of the cars purchase cost in the first year of ownership, is a rough rule of thumb.
Hence, preowned one year old cars with nearly two years warrantly remaining are such good value compared to brand new.
No one is disputing that new cars depreciate, the point is that finance deals enable people to buy cars that are newer than they can afford hence they are paying more depreciation than they would if they didnt finance. That applies to nearly new as well.One third of the cars purchase cost in the first year of ownership, is a rough rule of thumb.
Hence, preowned one year old cars with nearly two years warrantly remaining are such good value compared to brand new.
DWS said:
I don't. Never have. If we can't afford it cash, we won't buy until the existing car is only worth it's weight in scrap. Or we get a decent ish trade in. I am 50 ish so it helps that we have saved up over the years. I love cars but wouldn't pay for one on a loan.
Not easy for younger members I know.
DWS
This ^.Not easy for younger members I know.
DWS
(Which is why I've not had a new car, although I earn a decent amount on average, it goes up and down and I don't want to be in a down period and have a few hundred a month to find for a car.)
Welshbeef said:
One key thing for those who paid cash - unless you are totally debt (incl mortgage) free then you are financing the car just simply ignoring this minor fact.
I was thinking the same thing, smugly thinking I pay nothing a month for the car, then realising if I sold it I could pay the mortgage off, so I guess it cost me just under £600 a month.
NerveAgent said:
No one is disputing that new cars depreciate, the point is that finance deals enable people to buy cars that are newer than they can afford hence they are paying more depreciation than they would if they didnt finance. That applies to nearly new as well.
I would suspect the majority of new car buyers that buy on PCP or finance care about depreciation, rightly or wrongly a lot of people look at a cost per month to buy a car, its an outgoing, so they will look at it that their car costs £200 per month, not £20,000, and then they will ship it in for a new model in 3 years hopefully with a bit of equity in it.It's just the modern world, I'm nt sure why it seems to upset so many people on here.
Hol said:
NerveAgent said:
jdw1234 said:
The problem with leasing, is that it enables people to expose themselves to levels of depreciation they wouldn't normally suffer. People therefore need to consider if this is impacting their ability to save for the future.
I think this is the bit that hits the nail on the head.One third of the cars purchase cost in the first year of ownership, is a rough rule of thumb.
Hence, preowned one year old cars with nearly two years warrantly remaining are such good value compared to brand new.
The point I was making is that if finance didn't exist, Mr. Average wouldn't be buying a £40k Audi and hence wouldn't be exposed to the associated depreciation.
andye30m3 said:
I was thinking the same thing,
smugly thinking I pay nothing a month for the car, then realising if I sold it I could pay the mortgage off, so I guess it cost me just under £600 a month.
Quite, I'm not sure why people who think car finance is a bad thing are so smug especially if they have a mortgage, just check your mortgage statements each year and see how much you've paid off V the actually amount you've given the mortgage company.smugly thinking I pay nothing a month for the car, then realising if I sold it I could pay the mortgage off, so I guess it cost me just under £600 a month.
GreatGranny said:
SuperPav said:
Not sure how convoluted an answer you're expecting, but the lease was part of the social trials for. My Electric Avenue:
http://myelectricavenue.info/social-trials
Means I need to fill out a 5 minute online survey every quarter, but gives me a 10,000 miles p.a. lease with little deposit and for only 18 months for little more than it saves me in petrol (I charge at work).
Not sure you can sign up for it still, but might be worth emailing Vicky Reed at fleet drive as she organised the lease.
http://www.fleetdrive.co.uk/reduce-emissions/vicky...
HTH
Cheers :-)http://myelectricavenue.info/social-trials
Means I need to fill out a 5 minute online survey every quarter, but gives me a 10,000 miles p.a. lease with little deposit and for only 18 months for little more than it saves me in petrol (I charge at work).
Not sure you can sign up for it still, but might be worth emailing Vicky Reed at fleet drive as she organised the lease.
http://www.fleetdrive.co.uk/reduce-emissions/vicky...
HTH
I will have a look at that.
Had one on 7 day test drive last December and was really impressed.
Waiting for dealer to email me some figures so be interseting to compare.
chrispmartha said:
Quite, I'm not sure why people who think car finance is a bad thing are so smug especially if they have a mortgage, just check your mortgage statements each year and see how much you've paid off V the actually amount you've given the mortgage company.
The monthly interest on my mortgage is less than every lease deal posted in here :-) Should be paid off by the time I'm 33, it great how much you can over pay when you don't have massive monthly commitments.simoid said:
You have a loan, HP or lease for £0 per month? Where do I sign?
chrispmartha said:
I would say unless someone has bought you the car and pain the VED thats impossible.
I work for Mercedes-Benz, the car is provided as part of my work - no charge other than the fuel I put in it.NerveAgent said:
The monthly interest on my mortgage is less than every lease deal posted in here :-) Should be paid off by the time I'm 33, it great how much you can over pay when you don't have massive monthly commitments.
Being pedantic Lease cars don't have interest on them ;-)You're not the average person, most people have a mortgage over 25 years and the interest on that is astronomical.
FWIW I don't need to overpay as I don't have a mortgage ;-)
Hol said:
Look it it from his viewpoint:
£290 amonth into a 4 year loan would provide him a used £6k car, that he would need to sell on for more than £4k in two years to pay off the remainder of the loan and also cover that two years worth of MOT's and servicing.
I'm looking at it from my point of view. You suggested that for £60/month extra I could be in a new M135i instead of a 7 year old 130i. Simply not the case.£290 amonth into a 4 year loan would provide him a used £6k car, that he would need to sell on for more than £4k in two years to pay off the remainder of the loan and also cover that two years worth of MOT's and servicing.
How your work colleague decides to buy cars is entirely up to him and none of my business, but I do hope he's enjoying the M135i.
£290/month for 4 years would get a £13k loan through Sainsburys bank by the way......
I probably spend too much per month on the 2 cars and a van we have, I have also probably spent a rediculous amount of money on cars over the years because i really like and enjoy having them in my life.
I am also now thinking of spending even more per month on a new car very soon...
But I really like cars, they are expensive, thats just how it is.
If i could have every penny I had ever spent on cars in my hand right now, i would simply go out and spend it all on cars in a heartbeat.
I am also now thinking of spending even more per month on a new car very soon...
But I really like cars, they are expensive, thats just how it is.
If i could have every penny I had ever spent on cars in my hand right now, i would simply go out and spend it all on cars in a heartbeat.
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