Many New Luxury Cars on the Road - How?
Discussion
I know this is is Pistonheads and cars are everything but anyway...
An observation on my part whilst driving around is seeing many more new high end cars on the road especially the luxury SUV type of things (Landrover Discos, Range Rovers, Evoques, Audi Q5/7, BMW X3/X5 etc.). Now I'd love a brand new Disco for dragging my caravan around but there's no way I could justify the cost of one, even on a lease you'd be looking at well over £500 a month + finding 9 months upfront payment and that's for the entry level version. I'm not exactly poor either as our household income is supposedly within the top 5% of the UK. I suppose I live in a fairly affluent part of the UK so maybe there may be more nice cars around.
So how do people "afford" these vehicles? Is having a new prestigious car a priority for them above all else and will actually compromise in other areas of life to afford it? Are they all leased / on PCP? Company cars, though last time I looked that doesn't exactly come cheap either? Am I missing something?
An observation on my part whilst driving around is seeing many more new high end cars on the road especially the luxury SUV type of things (Landrover Discos, Range Rovers, Evoques, Audi Q5/7, BMW X3/X5 etc.). Now I'd love a brand new Disco for dragging my caravan around but there's no way I could justify the cost of one, even on a lease you'd be looking at well over £500 a month + finding 9 months upfront payment and that's for the entry level version. I'm not exactly poor either as our household income is supposedly within the top 5% of the UK. I suppose I live in a fairly affluent part of the UK so maybe there may be more nice cars around.
So how do people "afford" these vehicles? Is having a new prestigious car a priority for them above all else and will actually compromise in other areas of life to afford it? Are they all leased / on PCP? Company cars, though last time I looked that doesn't exactly come cheap either? Am I missing something?
There's a few reasons..
Yes, to a lot of people, image is everything and they are financed up to the hilt to get the newest
But also..
They might be cheaper to lease than you think they are? See the many threads we've had on here about people getting told "You earn too much!" when they've turned up to work in something that only cost a few quid but looks like it might be really expensive
Also - X3s are not "luxury" cars... are they?
Yes, to a lot of people, image is everything and they are financed up to the hilt to get the newest
But also..
They might be cheaper to lease than you think they are? See the many threads we've had on here about people getting told "You earn too much!" when they've turned up to work in something that only cost a few quid but looks like it might be really expensive
Also - X3s are not "luxury" cars... are they?
Some cars are cheaper to lease than you’d imagine. My wife’s just taken delivery of a brand new 5.0 Mustang GT. it only costs her £400 / month on a 0% finance deal. It’s £130 / month less than the s
tty Jag XE 2.0d she’s giving back next month.
It was a no brainer as it’s only about 70% of her monthly car allowance
tty Jag XE 2.0d she’s giving back next month. It was a no brainer as it’s only about 70% of her monthly car allowance
Coffin Dodger I too am abosoluty baffled how people on the same income as me or less can drive around in these things .
The Land Rover Magazine has a quote in its buying guide that I will always remember
" These car were expensive when new and their running costs reflect that "
So expect to see some decent looking cars cheap on ebay because the owners cannot afford the repairs that they did not budget for
My question is why would you buy a car you cant afford ?
The Land Rover Magazine has a quote in its buying guide that I will always remember
" These car were expensive when new and their running costs reflect that "
So expect to see some decent looking cars cheap on ebay because the owners cannot afford the repairs that they did not budget for
My question is why would you buy a car you cant afford ?
Shakermaker said:
There's a few reasons..
Yes, to a lot of people, image is everything and they are financed up to the hilt to get the newest
But also..
They might be cheaper to lease than you think they are? See the many threads we've had on here about people getting told "You earn too much!" when they've turned up to work in something that only cost a few quid but looks like it might be really expensive
Also - X3s are not "luxury" cars... are they?
I understand your point and you are right . I dont understand how it does not catch up with them . Yes, to a lot of people, image is everything and they are financed up to the hilt to get the newest
But also..
They might be cheaper to lease than you think they are? See the many threads we've had on here about people getting told "You earn too much!" when they've turned up to work in something that only cost a few quid but looks like it might be really expensive
Also - X3s are not "luxury" cars... are they?
Eventually your borrowing repayments are going to be more than your income !
jeremyh1 said:
Coffin Dodger I too am abosoluty baffled how people on the same income as me or less can drive around in these things .
The Land Rover Magazine has a quote in its buying guide that I will always remember
" These car were expensive when new and their running costs reflect that "
So expect to see some decent looking cars cheap on ebay because the owners cannot afford the repairs that they did not budget for
My question is why would you buy a car you cant afford ?
If people think they can afford the monthly payment, that’s all they care about. They don’t give a stuff about post warranty maintenance costs as they won’t be renting it for that long, they’ll have a shiny new one in 2 or 3 years time to show everyone how successful they are. As I said, it’s all down to cheap money and hitting registration targets. I’m sure it will all end well...The Land Rover Magazine has a quote in its buying guide that I will always remember
" These car were expensive when new and their running costs reflect that "
So expect to see some decent looking cars cheap on ebay because the owners cannot afford the repairs that they did not budget for
My question is why would you buy a car you cant afford ?
I think most just lease now, PCP does not even enter the equation as some don't even want anything to do with ownership.
I think the mentality is like an extreme form of everything else, it is not an overall cost, but seen as a monthly outgoing cost and that is that. Problem as said is what happens when it comes to tyres etc. But even saying that 3yr/5yr servicing package, possibly tyres put on once during ownership jobs a good un and dump it after 2 years.
I think the mentality is like an extreme form of everything else, it is not an overall cost, but seen as a monthly outgoing cost and that is that. Problem as said is what happens when it comes to tyres etc. But even saying that 3yr/5yr servicing package, possibly tyres put on once during ownership jobs a good un and dump it after 2 years.
jeremyh1 said:
I understand your point and you are right . I dont understand how it does not catch up with them .
Eventually your borrowing repayments are going to be more than your income !
That's fine. Credits easy to get right and you can always declare bankruptcy. Eventually your borrowing repayments are going to be more than your income !
People who credit themselves up to the eyeballs rarely think that the economy is going to turn bad... and the first ones to cry foul when it does.
Recently, a lot of dealers are doing silly deals just to keep stock moving because making new sales at least lets you pretend you're profitable.
We've been here so many times before but:
People care about image and will stretch themselves to get the latest shiny thing
There are some great offers on lease cars
People get them on 5K to 8K a year drive them for two years and then give them back, theyll never get the massive running bills.
Im in charge of a team and I drive the crappiest cars out of my immediate colleagues. I know what they get paid but why one would decide to spend £400 on a 2.0TDI A6 is beyond me when hes putting the smallest amount in his pension and moaning about his wife having to work to help with his mortgage and kid care. . Ive met some of his friends on a night out and as usual when blokes meet up we started talking about cars and who had the best job title on Linked in, that usual posturing bull$hit. They all assumed A6 man was the boss because this was the impression he had given them with his fancy car.
He just see's this outgoing the same as a mobile phone contract. Hes looked at what he gets paid, looks at what he would like to spend his money and pays the monthlies on it. Its not a debt as far as hes concerned because hes not actually borrowed any money, just borrowing the car.
However I do hear him phoning around asking about an oil change, if it can be serviced outside an Audi dealership to save him a few quid, moaning about 19 inch tyres and if it has to be returned with Hankook Audi AO tyres, so clearly being arSe
For the records, I lease a car and own 2 so Im not taking a moral high ground. In addition perhaps people do earn more than you think, maybe 20 years into a mortgage in which the recent years have been really low interest payments, in their 40s, good salary, possible hardly any mortgage, kids in their 20s, money burning a hole in their pocket.
People care about image and will stretch themselves to get the latest shiny thing
There are some great offers on lease cars
People get them on 5K to 8K a year drive them for two years and then give them back, theyll never get the massive running bills.
Im in charge of a team and I drive the crappiest cars out of my immediate colleagues. I know what they get paid but why one would decide to spend £400 on a 2.0TDI A6 is beyond me when hes putting the smallest amount in his pension and moaning about his wife having to work to help with his mortgage and kid care. . Ive met some of his friends on a night out and as usual when blokes meet up we started talking about cars and who had the best job title on Linked in, that usual posturing bull$hit. They all assumed A6 man was the boss because this was the impression he had given them with his fancy car.
He just see's this outgoing the same as a mobile phone contract. Hes looked at what he gets paid, looks at what he would like to spend his money and pays the monthlies on it. Its not a debt as far as hes concerned because hes not actually borrowed any money, just borrowing the car.
However I do hear him phoning around asking about an oil change, if it can be serviced outside an Audi dealership to save him a few quid, moaning about 19 inch tyres and if it has to be returned with Hankook Audi AO tyres, so clearly being arSe
For the records, I lease a car and own 2 so Im not taking a moral high ground. In addition perhaps people do earn more than you think, maybe 20 years into a mortgage in which the recent years have been really low interest payments, in their 40s, good salary, possible hardly any mortgage, kids in their 20s, money burning a hole in their pocket.
Edited by oldaudi on Tuesday 17th July 15:52
captain_cynic said:
That's fine. Credits easy to get right and you can always declare bankruptcy.
People who credit themselves up to the eyeballs rarely think that the economy is going to turn bad... and the first ones to cry foul when it does.
Recently, a lot of dealers are doing silly deals just to keep stock moving because making new sales at least lets you pretend you're profitable.
I see your point I have been in business all my life never worked for anybody . I have been through the ressessions and prepare for the worst as well as the good times.People who credit themselves up to the eyeballs rarely think that the economy is going to turn bad... and the first ones to cry foul when it does.
Recently, a lot of dealers are doing silly deals just to keep stock moving because making new sales at least lets you pretend you're profitable.
I know if everybody lived like me the economy would fail anyway as nobody would be borrowing and nobody would be buying
Edited by jeremyh1 on Tuesday 17th July 15:51
Ninja59 said:
I think most just lease now, PCP does not even enter the equation as some don't even want anything to do with ownership.
I think the mentality is like an extreme form of everything else, it is not an overall cost, but seen as a monthly outgoing cost and that is that. Problem as said is what happens when it comes to tyres etc. But even saying that 3yr/5yr servicing package, possibly tyres put on once during ownership jobs a good un and dump it after 2 years.
I’ve seen threads on here where people are asking how to best get out of servicing their lease car before it goes back etc. I mean, FFS, you have to be either pretty sad or pretty skint to spend time working out how to save a few quid on an oil change for your ‘luxury’ car. I think the mentality is like an extreme form of everything else, it is not an overall cost, but seen as a monthly outgoing cost and that is that. Problem as said is what happens when it comes to tyres etc. But even saying that 3yr/5yr servicing package, possibly tyres put on once during ownership jobs a good un and dump it after 2 years.
Shakermaker said:
They might be cheaper to lease than you think they are? See the many threads we've had on here about people getting told "You earn too much!" when they've turned up to work in something that only cost a few quid but looks like it might be really expensive
I got a shockingly good deal on a pre-facelift E Class Estate back when the previous model was facelifted. Huge discounts, cheap finance from Mercedes and a better than average residual meant my "flash" car was cheaper to lease than an Insignia, Mondeo, Passat, Avensis or Superb at that time.
There are a lot of middle aged people who bought their house in the 80's & 90's that now don't have a mortgage and are earning decent money, so I guess are choosing to spend some of that on a fancy car.
Most young people seen in new 'status' brand vehicles will typically have them on a cheap lease etc, I've got a few friends that drive new Audi's etc yet can't afford to go out for a pint. I personally couldn't ever justify spending more than 10% of my Net income (after pension etc) on paying for a car as I have other things I'd rather spend the money on and with how good cars are these days the laws of diminishing returns means you don't need to spend a lot to get behind the wheel of something very good at meeting whatever your requirements are. However I can totally understand why some people do and if i'm honest i'm often envious of people that are willing to forgo other things to buy their dream car
Most young people seen in new 'status' brand vehicles will typically have them on a cheap lease etc, I've got a few friends that drive new Audi's etc yet can't afford to go out for a pint. I personally couldn't ever justify spending more than 10% of my Net income (after pension etc) on paying for a car as I have other things I'd rather spend the money on and with how good cars are these days the laws of diminishing returns means you don't need to spend a lot to get behind the wheel of something very good at meeting whatever your requirements are. However I can totally understand why some people do and if i'm honest i'm often envious of people that are willing to forgo other things to buy their dream car
BRR said:
There are a lot of middle aged people who bought their house in the 80's & 90's that now don't have a mortgage and are earning decent money, so I guess are choosing to spend some of that on a fancy car.
Most young people seen in new 'status' brand vehicles will typically have them on a cheap lease etc, I've got a few friends that drive new Audi's etc yet can't afford to go out for a pint. I personally couldn't ever justify spending more than 10% of my Net income (after pension etc) on paying for a car as I have other things I'd rather spend the money on and with how good cars are these days the laws of diminishing returns means you don't need to spend a lot to get behind the wheel of something very good at meeting whatever your requirements are. However I can totally understand why some people do and if i'm honest i'm often envious of people that are willing to forgo other things to buy their dream car
I am very similar to you Easy to get the money but I like to sleep at night Most young people seen in new 'status' brand vehicles will typically have them on a cheap lease etc, I've got a few friends that drive new Audi's etc yet can't afford to go out for a pint. I personally couldn't ever justify spending more than 10% of my Net income (after pension etc) on paying for a car as I have other things I'd rather spend the money on and with how good cars are these days the laws of diminishing returns means you don't need to spend a lot to get behind the wheel of something very good at meeting whatever your requirements are. However I can totally understand why some people do and if i'm honest i'm often envious of people that are willing to forgo other things to buy their dream car
My dream car is a 20 year old big engined Merc for 1K ( thats cash) I think I will realize my dream this summer
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