Are the wheels about to fall of car finance?

[Dr Jekyll]

Globs said:

IMO the only second hand cars worth looking at are the bargain minters or classics, it usually makes sense these days to just buy new - so I'd probably so the same.

I bought a Mondeo 10 years ago with 70,000 on the clock for £4500. It's now just gone past 150,000 with no problems other than consumables.

[Globs]

Dr Jekyll said:

Globs said:

IMO the only second hand cars worth looking at are the bargain minters or classics, it usually makes sense these days to just buy new - so I'd probably so the same.

I bought a Mondeo 10 years ago with 70,000 on the clock for £4500. It's now just gone past 150,000 with no problems other than consumables.

I did the same with a 406 tdi about 15 years ago now, still goes like a train and is a very nice drive.

[VGTICE]

Interesting vid from across the pond.

https://youtu.be/071XkCQyotM

2:59

"People under 35 never ask what the interest/term/saving off RRP is only how low the payment will be". The systematic dumbification of yufff works people. YOLO innnnnnit.

[spanky3]

Something I've noticed round this way is that the poorer someone is the more likely they are to be driving around in a new car.

Low income? rent your house and your car. Higher salary means you can afford to drop 10-15k all in one go on something just off lease. Funny old world.

[berlintaxi]

spanky3 said:

Something I've noticed round this way is that the poorer someone is the more likely they are to be driving around in a new car.

Low income? rent your house and your car. Higher salary means you can afford to drop 10-15k all in one go on something just off lease. Funny old world.

That's got to be up there with some of the biggest load of nonsense posted on here.

[MDMA .]

^^^

All about the monthlies

[qska]

berlintaxi said:

That's got to be up there with some of the biggest load of nonsense posted on here.

No.

Let me explain.
Just getting by makes you NOT think about retirement, overpaying mortgage, investments, savings.

No point in saving £50 per month for many.

Screw that - spend that on a monthly payment for a nice car instead.

Once you have more money, the whole world of investment opens up, and suddenly you calculate much better what is and isn't a good one.

It's like saying junk food is council.

Might as well treat themselves, life doesn't do that for them.

Get it?

[berlintaxi]

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

[nickfrog]

qska said:

Once you have more money, the whole world of investment opens up, and suddenly you calculate much better what is and isn't a good one.

Indeed and while I consider a car as an expense, I will lease if I think it works out cheaper than own it. Buy I will buy if I think it's the opposite.

It's the preconceptions (either way!) that lead to bad decision making.

[nickfrog]

VGTICE said:

"People under 35 never ask what the interest/term/saving off RRP is only how low the payment will be".

Absolutely, they never do. Ever. But as soon as they turn 35 they ALL immediately look at the overall cost without neglecting any of the parameters.

[HedgeyGedgey]

spanky3 said:

Something I've noticed round this way is that the poorer someone is the more likely they are to be driving around in a new car.

Low income? rent your house and your car. Higher salary means you can afford to drop 10-15k all in one go on something just off lease. Funny old world.

I can second this, I'm a youngster and most on minimum wage my age drive "unlimited" edition Corsas on finance. If they didnt finance their car they wouldn't be able to afford a £10k car and would be driving a £500 corsa c

[VGTICE]

nickfrog said:

VGTICE said:

"People under 35 never ask what the interest/term/saving off RRP is only how low the payment will be".

Absolutely, they never do. Ever. But as soon as they turn 35 they ALL immediately look at the overall cost without neglecting any of the parameters.

Everybody with half a brain realises that it's not about age as in number but rather generation. And yes, it's a bit of an over exaggeration but obviously it was done to highlight certain trends that exist.

[shake n bake]

Globs said:

.... a problem that appears to be steadily building up, but that helps us as the makers get more desperate to shift stock - so people who can afford/qualify are now looking at some excellent deals.

Not sure where you've got that from?

[spanky3]

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 think you've missed my point. If you have no capital you can't afford to buy a car. 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. So you sign up again and keep paying. Back in the seventies the TV and washing machine business worked the same way.

Me? I do indeed drive a 7 year old car. I bought it at 2 years old and see no need to replace it. How shameful. I also have a second more interesting car in the garage. And three motorbikes. And two houses. And enough money to buy a new car outright, but then new car snobbery is a short lived thing.

Edited by spanky3 on Wednesday 21st June 00:33

[qska]

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?

Quite.

Actually 8 year old cars have a much flatter depreciation curve while still being very reliable, so next time round I'd chose that instead of losing £300 per month in depreciation.

Lesson learned.

Shoving that into mortgage overpayments instead can cut the term by almost a decade.

[Sa Calobra]

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?

[CharlesdeGaulle]

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.

[Sa Calobra]

Sorry? I don't know you.

[ReverseTriker]

Keiser Report: #Carmageddon (E1086)

https://www.youtube.com/watch?v=8X27nX2GoZU

Interesting explanations from Max Kaiser

http://www.irishtimes.com/life-and-style/motors/uk...

"According to the Society of the Irish Motor Industry (SIMI), imports of used cars into Ireland have risen by 44.4 per cent, to 38,702 cars so far this year, and of those, 30,724 were diesel-powered.

The influx of these cheaper UK imports is already having a depressing effect on residual values here, and falling values in the UK will exacerbate that issue. 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.

As car buyers opt for cleaner, ‘punishment-free’ fuel options, we believe there will be an increase in the share of petrol, hybrid and electric vehicle sales in the months ahead.”

[CharlesdeGaulle]

Sa Calobra said:

Sorry? I don't know you.

I don't know you either, but I was rather obviously referring to the chap you quoted.