Are the wheels about to fall of car finance?

[berlintaxi]

CharlesdeGaulle said:

Sa Calobra said:

berlintaxi said:

Wow, you mean I could be like you and driving a 7 year old second hand car, Where did my life go wrong?

I drive a 7yr old car and come the next recession I won't be in negative equity. I also have savings. Should I shout I want it all and live for the moment and go out and rent a Range Rover Evoque instead?

Don't feed the troll. He rarely has anything positive or useful to post.

So a differing opinion makes someone a troll, classic.
Nice to know you take such an interest in my posts, how about you get a life instead?

[Sa Calobra]

Ah my apologies. It's been a long sleepless night.

[nickfrog]

spanky3 said:

But no problem, you can rent one for just 8000 over three years after which you have to give it back with nothing to show for your eight grand.

That's the problem with depreciation - you have nothing to show for it apart from the use of a car - same with lease.

But if you insist on a new car (I do but I have no axe to grind if someone prefers a 8-year old car), why would I choose to pay more by owning it if I come across a lease deal that happens to (comfortably) beats depreciation ? (I have asked before and didn't get a reply).

The new vs second hand is an entirely different debate from the finance one - although it carries its own preconceptions too.

[liner33]

nickfrog said:

But if you insist on a new car (I do but I have no axe to grind if someone prefers a 8-year old car), why would I choose to pay more by owning it if I come across a lease deal that happens to (comfortably) beats depreciation ? (I have asked before and didn't get a reply).

Lots of people are convinced that it costs less to buy outright but for those that like to change their cars every 3 or 4 years pcp or leasing often makes the most financial sense, there is little reason to tie up your own capital and its often cheaper. Cars depreciate the same whether they are bought outright or financed

[Sheepshanks]

ReverseTriker said:

Alex Buttle, Director of car sales website Motorway.co.uk said that “falling demand for ‘dirty diesels’ means a price drop is inevitable. This has already happened in Germany, where stringent diesel regulations led to a 19 per cent drop in the average price of diesel cars this year.”

I blame VW for most of this and I'm outraged that they're not paying compensation in Europe.

[daemon]

liner33 said:

nickfrog said:

But if you insist on a new car (I do but I have no axe to grind if someone prefers a 8-year old car), why would I choose to pay more by owning it if I come across a lease deal that happens to (comfortably) beats depreciation ? (I have asked before and didn't get a reply).

Lots of people are convinced that it costs less to buy outright but for those that like to change their cars every 3 or 4 years pcp or leasing often makes the most financial sense, there is little reason to tie up your own capital and its often cheaper. Cars depreciate the same whether they are bought outright or financed

+1 on both of those quotes.

[daemon]

ReverseTriker said:

Director of car sales website Motorway.co.uk said that “falling demand for ‘dirty diesels’ means a price drop is inevitable. This has already happened in Germany, where stringent diesel regulations led to a 19 per cent drop in the average price of diesel cars this year.

I think thats a misquote thats being used.

German diesel sales of new cars has dropped 19% this year, NOT a 19% drop in value

https://cleantechnica.com/2017/05/07/kba-german-di...

http://uk.reuters.com/article/germany-autos-idUKL8...

http://www.climateactionprogramme.org/news/german-...

http://europe.autonews.com/article/20170503/ANE/17...

I would be very very surprised if there had been a sudden 19% drop in value of diesels in Germany.

[daemon]

Sheepshanks said:

ReverseTriker said:

Alex Buttle, Director of car sales website Motorway.co.uk said that “falling demand for ‘dirty diesels’ means a price drop is inevitable. This has already happened in Germany, where stringent diesel regulations led to a 19 per cent drop in the average price of diesel cars this year.”

I blame VW for most of this and I'm outraged that they're not paying compensation in Europe.

I dont think it has happened. German sales of diesels are down by 19% (and they are down here), but there hasnt been a value drop of 19%.

I've no issue with a drop in sales for diesels - too many people bought them as the "default choice". If there is a market correction away from diesels then so be it.

[Sa Calobra]

I drive a diesel. It's my first. I'm happy with it and I only went with a diesel as my car choice really only comes as a diesel plus I do 15-20,000miles annually. I didn't and don't think about 'town centre tax'.

We already have that here in my town; parking charges 7days a week, 8am-8pm so I avoid shopping in the centre and cycle into the office.

[Prizam]

Sa Calobra said:

berlintaxi said:

Wow, you mean I could be like you and driving a 7 year old second hand car, Where did my life go wrong?

I drive a 7yr old car and come the next recession I won't be in negative equity. I also have savings. Should I shout I want it all and live for the moment and go out and rent a Range Rover Evoque instead?

Yes, this. It's incredibly frustrating. I could go out today and get the latest Lambo / Bently etc... but I want to be mortgage free instead. Then what do I do? I will look a tt with a Bentley parked outside an average 3-bed semi. Time to buy another house.

I love cars, but I run around in an old £500 Focus, and you know what.... its fine. Super cold AC, and everything is cheap. If someone scratches it, I don't care. If it blows up... im what, down the equivalent of 3x monthly payments?

But this isn't about cheap motoring, its about cheap finance. Historically the only people to use finance for things were those who could not afford the item. Can I afford that new Bently? Nope... but I can afford to finance it.

The fact we are on page 40 something discussing if financing a car can be a good idea or not suggests that its value is divided by people's priorities in life. Car now and pay later, or pay now and car later.

- More and more people are financing cars. But we are all getting poorer after all.

- Finance is a product, you do have to pay for it.

- Interest rates WILL rise.

- What real world advantage is that new car offering you? If it's just because you like it, sure. Go ahead. Marginally better MPG, Road Tax, Warranty and reliability are all cost factors built into the price of the new car anyway.

[gizlaroc]

This thread still running on?!


I have one rule with cars....

Use whichever way is cheapest to be in the car I want to be in.



It really is that simple.

[nickfrog]

gizlaroc said:

Use whichever way is cheapest to be in the car I want to be in. It really is that simple.

I apply the same rule - but that's probably too simple for some...

[VGTICE]

nickfrog said:

gizlaroc said:

Use whichever way is cheapest to be in the car I want to be in. It really is that simple.

I apply the same rule - but that's probably too simple for some...

Some are too simple to realise that the problem here is not with those who are prudent and have basic understanding of maths and finance which enables them to select the best option. The problem is the majority who think that low monthlies equal good deal ignoring other important aspects like the price, length of term, interest rate, first rental/deposit. And they are encouraged to do so by car salesmen and finance providers. I remember the days when "regular" people used to take the piss out of those who were buying sofas/TV's/phones/white goods on credit using weekly installments because it's "cheaper" to pay 7 quid per month (over 84/96/108 months) than to pay the full amount upfront. Now those who were taking the piss do the same but with cars.

[Granfondo]

VGTICE said:

nickfrog said:

gizlaroc said:

Use whichever way is cheapest to be in the car I want to be in. It really is that simple.

I apply the same rule - but that's probably too simple for some...

Some are too simple to realise that the problem here is not with those who are prudent and have basic understanding of maths and finance which enables them to select the best option. The problem is the majority who think that low monthlies equal good deal ignoring other important aspects like the price, length of term, interest rate, first rental/deposit. And they are encouraged to do so by car salesmen and finance providers. I remember the days when "regular" people used to take the piss out of those who were buying sofas/TV's/phones/white goods on credit using weekly installments because it's "cheaper" to pay 7 quid per month (over 84/96/108 months) than to pay the full amount upfront. Now those who were taking the piss do the same but with cars.

[Globs]

I only use one even simpler rule: There are no rules.

I'm still not sure if that's 0 rules or 1 rules, or a fluctuating state like quantum space.

[Justin Case]

I was looking at some figures for a new car price !14500, PCP over four years. Playing with the figures and rounding off slightly off they come to approximately: deposit £1700, interest payments £!400, depreciation £9000. I don't think that finance is the problem

[liner33]

VGTICE said:

The problem is the majority who think that low monthlies equal good deal ignoring other important aspects like the price, length of term, interest rate, first rental/deposit. And they are encouraged to do so by car salesmen and finance providers.

You would say majority , I would say minority.

[daemon]

liner33 said:

VGTICE said:

The problem is the majority who think that low monthlies equal good deal ignoring other important aspects like the price, length of term, interest rate, first rental/deposit. And they are encouraged to do so by car salesmen and finance providers.

You would say majority , I would say minority.

[HedgeyGedgey]

Justin Case said:

I was looking at some figures for a new car price !14500, PCP over four years. Playing with the figures and rounding off slightly off they come to approximately: deposit £1700, interest payments £!400, depreciation £9000. I don't think that finance is the problem

Jesus fking Christ, that has to be the worst PCP deal ever!!!!!!

[daemon]

HedgeyGedgey said:

Justin Case said:

I was looking at some figures for a new car price !14500, PCP over four years. Playing with the figures and rounding off slightly off they come to approximately: deposit £1700, interest payments £!400, depreciation £9000. I don't think that finance is the problem

Jesus fking Christ, that has to be the worst PCP deal ever!!!!!!

Four years depreciation of £2,250 sounds about right, leading to a trade value at the end of £5,500? Does sound that far away...?

I can find you a worse one than that, on a used car though....