Anyone into cars but not credit?
Discussion
So I just had a friend give me stick because I don't have a 2016 car. Firstly I told him I didn't much care, which I don't. Secondly he revealed he "only pays £600 a month" for it. And then I realised...am I the only person who drives a crappy audi a3 that I actually own?
On top of that, the only monthly charge I have is rent, utilities, phone (airtime, not paying off a phone) and then insurance and various forms of tax.
It seems like I am the only person doing this yet I used to (just moved house) get a lot of sneers from people driving around in Golf R's etc....
On top of that, the only monthly charge I have is rent, utilities, phone (airtime, not paying off a phone) and then insurance and various forms of tax.
It seems like I am the only person doing this yet I used to (just moved house) get a lot of sneers from people driving around in Golf R's etc....
olly-robinson said:
My real world figures are as below:
Net Earnings - £3750
Car - £560
fuel - Covered by company fuel card £0
Insurance - £50
Phone - £40
Food / day to day expenses - £600
Mortgage and bills - £1100
Pension/share scheme - taken at source before Net - £0
This leaves me with approximately £1400 which goes into a savings account which i then draw down as needed for servicing, tyres, holidays and big ticket clothes/consumables purchases. I also receive on average a 15% bonus this again goes straight into the savings account.
How in any way is this not affordable or can anybody think is reckless spending!!
I have no family to provide for but I do have a girlfriend with a taste for Mulberry.
"In business, net income (total comprehensive income, net earnings, net profit, informally, bottom line) is an entity's income minus cost of goods sold, expenses and taxes for an accounting period."Net Earnings - £3750
Car - £560
fuel - Covered by company fuel card £0
Insurance - £50
Phone - £40
Food / day to day expenses - £600
Mortgage and bills - £1100
Pension/share scheme - taken at source before Net - £0
This leaves me with approximately £1400 which goes into a savings account which i then draw down as needed for servicing, tyres, holidays and big ticket clothes/consumables purchases. I also receive on average a 15% bonus this again goes straight into the savings account.
How in any way is this not affordable or can anybody think is reckless spending!!
I have no family to provide for but I do have a girlfriend with a taste for Mulberry.
Edited by olly-robinson on Wednesday 19th October 15:49
So according to your calculation, you earn £3750 a month and you pay 0% tax on it ????
swerni said:
bit like a drugs deal who tells you it's going to get you hooked, but sells it anyway?
Shades of grey.
And yet we live in a world where said drug dealers are looked down upon, but we spend £8bn a year as a society a year on another poison (caffeine), either via coffee bean dealers or coffee shops.Shades of grey.
My main issue is that people like this friend say to me "You can't be doing very well in life owning that" points to 57 plate A3 tdi, which costs me very little to run, insure and tax, and is paid off in full... and then saying to me "If you did better you can get yourself one of these" - points to brand new S5 sportback...and proceeds to tell me all the virtues of personal leasing, that after the lease ends he just "hands it back" and its "cheaper than buying new".... and yeah a bit of me dies inside because if that is true then, great, but I was brought up that if you don't have it in the bank then you don't buy it that simple... and if I have £50k in my bank it is better to invest it than spend it on a depreciating asset anyway.
The point is you get judged on what car you drive by people who "own" a car that doesn't actually belong to them, it belongs to the finance company, its pretty ridiculous.
The point is you get judged on what car you drive by people who "own" a car that doesn't actually belong to them, it belongs to the finance company, its pretty ridiculous.
NickCQ said:
I'm really not trying to refer to any specific posters here, but I get the sense that there are some people out there who feel that the vehicle pecking order is being upset by leasing. Time was where you could feel a little superior about having a £50k car because it indicated some level of financial success. Now anyone can get their hands on one, that feeling has gone away and the signalling value of the status symbol has declined.
That accurately sums up my situation, yes.Though more on the flipside that people who own "sheds" are being sneered at by people who think they are big because they can "own" a status symbol that they can't afford to go out and buy.
paranoid airbag said:
Don't the bolded sentences contradict each other?
I could have a decent chunk more in the bank if I'd PCP'd a car (the model I wanted being offered at 0% APR) rather than buying a second-hand model outright. Tbh I don't really care about depreciation - the only time I'm going to sell it is if I have enough money to make it a non-issue, or become desperate for cash. In the latter case I suspect I'd be far better off handing a leased car back.
Regardless, it just sounds like you friends are t
ts and would be whatever deals are offered. My comiserations, I mean that genuinely. One of my friends earns a lot more than me, and drives an IMO rather stty Insignia, but he's happy. Another earns the same and leases a DS3, and seems happy at the idea of handing it back.
Contradict how? What I mean by that is, I would only buy a £50k car if I had £50k in the bank to buy it with, but I won't because I would just invest it instead. I could have a decent chunk more in the bank if I'd PCP'd a car (the model I wanted being offered at 0% APR) rather than buying a second-hand model outright. Tbh I don't really care about depreciation - the only time I'm going to sell it is if I have enough money to make it a non-issue, or become desperate for cash. In the latter case I suspect I'd be far better off handing a leased car back.
Regardless, it just sounds like you friends are t
ts and would be whatever deals are offered. My comiserations, I mean that genuinely. One of my friends earns a lot more than me, and drives an IMO rather stty Insignia, but he's happy. Another earns the same and leases a DS3, and seems happy at the idea of handing it back.Fox- said:
The only people who would ever say this are morons with whom I'd question the value of having as friends.
What a bizarre outlook some people have.
Yup, I got rid of him when I moved, and just declined to send on my new address for correspondance. Along with all my other "friends".What a bizarre outlook some people have.
Devil2575 said:
Because those who don't like credit want to paint everyone who uses it to buy a car as being wrong/driving a car they can't really afford.
In the same way that you accuse everyone who doesn't like credit as painting everyone who uses it in a good way, aren't you basically tarring all those that do use credit to buy something as very sensible people?Because that is clearly wrong as well given by all the repossesions.
daemon said:
No probs.
Genuinely - do people sneer at you because youve an 07 audi or is it your impression that maybe they do behind your back?
I've never come across that and I've owned some seriously crap cars over the years.
I think it was because I was cleaning it, which for me involves washing, drying, polishing (sometimes) and waxing. I can see he obviously thought my 07 a3 SE was my pride and joy and is obviously all I can afford compared to his 2016 S5 sportback.Genuinely - do people sneer at you because youve an 07 audi or is it your impression that maybe they do behind your back?
I've never come across that and I've owned some seriously crap cars over the years.
SWoll said:
As an example lets take a popular lease car at the moment, the M240i. This example assumes new cars so comparing apples with apples.
£32k purchase price new (includes £3k discount over RRP)
Lease deal @ 24 payments of £419 = £10k over 2 years.
2 year depreciation of £9K based on prices of 14 plate 235i models.
So, I can either save the £419 a month for 6+ years (whilst also running another car for that period), buy outright for £32K and lose £9K in the first 2 years of ownership or lease it now for 2 years and pay £10k.
Not a lot in it for the sake of 6+ years saving , and you also don't have to tie up £32k and have the arduous task of selling it when you want a change.
Where can you lease a car for £0 upfront deposit?£32k purchase price new (includes £3k discount over RRP)
Lease deal @ 24 payments of £419 = £10k over 2 years.
2 year depreciation of £9K based on prices of 14 plate 235i models.
So, I can either save the £419 a month for 6+ years (whilst also running another car for that period), buy outright for £32K and lose £9K in the first 2 years of ownership or lease it now for 2 years and pay £10k.
Not a lot in it for the sake of 6+ years saving , and you also don't have to tie up £32k and have the arduous task of selling it when you want a change.
I will add, leasing a car would work out brilliantly for me where cashflow is king. I can make more off the £6k I need to lease a car in year 2 whilst paying for year one than I lose in depreciation for year 1 and 2, way more.
But I just can't do it because I think...what if my business stopped working for some reason in 6 months time, and I have 1.5 years of lease payments to pay and cannot afford them?
The only way I would ever lease a £30k car is with £30k in the bank to completely cover it, just in case, which defeats the point in the first place.
Surely I am not the only person who thinks like this?
But I just can't do it because I think...what if my business stopped working for some reason in 6 months time, and I have 1.5 years of lease payments to pay and cannot afford them?
The only way I would ever lease a £30k car is with £30k in the bank to completely cover it, just in case, which defeats the point in the first place.
Surely I am not the only person who thinks like this?
Correct me if I am wrong here but...when you add £11k of options to a car, you end up paying way more than just buying the car by leasing it? Not only that but if you lease it you are stuck on mileage limitations.
If I leased that I would pay £29k in total (plus admin fees).
If I bought it I would pay £38k, but it would be worth at least £10k after 3 years. And that's if I paid the price it shows on the configurator.
Also the lease is for an 8V, the Config is for an 8V2, I couldn't even tick "Matrix LED headlights" on the lease calc so it will be even more expensive.
If I leased that I would pay £29k in total (plus admin fees).
If I bought it I would pay £38k, but it would be worth at least £10k after 3 years. And that's if I paid the price it shows on the configurator.
Also the lease is for an 8V, the Config is for an 8V2, I couldn't even tick "Matrix LED headlights" on the lease calc so it will be even more expensive.
Edited by twoblacklines on Monday 24th October 21:00
RSK21 said:
so you would scrap the welfare state ?
If you are not disabled and have paid £0.00 in taxes (vat, road license etc doesn't count) then why should you be able to spend your whole life TAKING from those that do?
Then a severe clampdown on both people who are claiming disability benefit when they aren't disabled, and more importantly, a severe restructure of disability benefit for those who are disabled and get nothing. Getting rid of privatisation in that sector would work well, because as it stands companies like ATOS were giving quadrapligiecs (people with no arms or legs) 0 points saying they could reach and hold items when they have no arms, because presumably any money they save not giving goes into the executive bonus pool.
This would save us a lot of money, money that could be spent where it needs spending.
gizlaroc said:
How is your insular and narrow minded way of thinking any less sheep like that the people you are accusing of being sheep?
You are simply following the crowd who refuse point blank to see that leasing can be better than buying.
Financially PCP I agree is never going to be cheaper than buying (or it is very rare) but leasing can often be far cheaper.
But unless you know every single in and out of someones finances and life you can not possibly give such sweeping statements. It just makes you sound a bit silly.
Ironic because you don't know the intimate details of the people you are defending, instead you are sweeping them all into one big group of clever, well informed, responsible individuals, which they clearly aren't because as I said before, there are a multitude of car repo agencies, which would not exist if everyone who "owned" a car on finance were clever, well informed and responsible.You are simply following the crowd who refuse point blank to see that leasing can be better than buying.
Financially PCP I agree is never going to be cheaper than buying (or it is very rare) but leasing can often be far cheaper.
But unless you know every single in and out of someones finances and life you can not possibly give such sweeping statements. It just makes you sound a bit silly.
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