Negative equity - is this normal?
Discussion
nickfrog said:
RUSTILLDOWN said:
Are we really the cheapest?
New? Pre Tax? Post Tax?
Used?
Selection of specific vehicles? Average of all sales?
Yes by and large both used and new, and excluding local tax factors. New? Pre Tax? Post Tax?
Used?
Selection of specific vehicles? Average of all sales?
https://www.youtube.com/watch?v=mBS0OWGUidc
RUSTILLDOWN said:
Deep Thought said:
And yes affordability has changed. When i grew up, there was usually a primary earner and chances were the mother stayed at home or worked part time. It was also likely her job was a lesser job than the primary earner. Thats just how it was.
Now its likely a two income household and just as likely that the wifes job earns as much as the husbands, or greater. So there could be two quite reasonable incomes there.
Do you have any statistics about that?Now its likely a two income household and just as likely that the wifes job earns as much as the husbands, or greater. So there could be two quite reasonable incomes there.
I obviously don’t know the details but based on conversations over the years most couples have one person with a much higher salary than the other.
I only know of one couple that probably have similar salaries and that’s because they’re lucky to be IT contractors with one “employer” for many years.
Deep Thought said:
Is it not common knowledge that these days both parties in a couple are likely to be out there and working and that women are also more likely to want a career than previously?
Granted, if one person is an exceptionally high earner then the other person is less likely to be, but generally in the middle ground its two people earning a reasonable wage, compared to the man of the house being the bread winner and a stay at home mum maybe working part time.
I won’t copy / paste my previous post lolGranted, if one person is an exceptionally high earner then the other person is less likely to be, but generally in the middle ground its two people earning a reasonable wage, compared to the man of the house being the bread winner and a stay at home mum maybe working part time.
Genuinely keen to see statistics.
Agree that more families have both adults working and that more women work these days because of the cost of living etc, but, my guess would be that a large proportion of households have 1 main breadwinner (either the woman or man, or thing).
I’ll try and find out, I’m just guessing.
Found some interesting stats...
23% of families have the woman as the main breadwinner... probably more than I thought tbh
4% of families have similar incomes for both the man and woman... probably meets my expectations
https://www.royallondon.com/media/press-releases/p...
P.s. What’s ur latest WBAC stats?
23% of families have the woman as the main breadwinner... probably more than I thought tbh
4% of families have similar incomes for both the man and woman... probably meets my expectations
https://www.royallondon.com/media/press-releases/p...
P.s. What’s ur latest WBAC stats?
Edited by RUSTILLDOWN on Saturday 6th March 13:22
RUSTILLDOWN said:
nickfrog said:
RUSTILLDOWN said:
Are we really the cheapest?
New? Pre Tax? Post Tax?
Used?
Selection of specific vehicles? Average of all sales?
Yes by and large both used and new, and excluding local tax factors. New? Pre Tax? Post Tax?
Used?
Selection of specific vehicles? Average of all sales?
https://www.youtube.com/watch?v=mBS0OWGUidc
RUSTILLDOWN said:
Found some interesting stats...
23% of families have the woman as the main breadwinner... probably more than I thought tbh
4% of families have similar incomes for both the man and woman... probably meets my expectations
https://www.royallondon.com/media/press-releases/p...
P.s. What’s ur latest WBAC stats?
Interesting. Though that doesnt really show that mean earn massively more than women in a typical household. I guess theres always the 20% top and bottom, but the 60% in the middle i think theres two people working in reasonably well paid jobs, even if the man in the relationship is likely to be paid more - these two PCP'd Audis families living in a Barrett home cant be relying on one income, surely? 23% of families have the woman as the main breadwinner... probably more than I thought tbh
4% of families have similar incomes for both the man and woman... probably meets my expectations
https://www.royallondon.com/media/press-releases/p...
P.s. What’s ur latest WBAC stats?
My point was i think society has moved on from even just 30-40 years ago where the women in a household tended to be housewives or have a part time / menial job. There is more disposable incomes and people are spending it.
RE: WBAC, it has dropped backed below £20K for the first time since July 20.
Will update the other thread
Wagonwheel555 said:
The first couple of years are the worst for being in negative equity but on a PCP with no deposit and a ballon, don’t be surprised if you are in negative equity for most of the term.
This is the reason I won’t be going for another PCP/Lease, my mileage is now well under 5k a year with part working from home so it’s not a cost effective way of having a car.
Not thread jacking. So have you bought a run around for under 6k or something?This is the reason I won’t be going for another PCP/Lease, my mileage is now well under 5k a year with part working from home so it’s not a cost effective way of having a car.
Hugo Stiglitz said:
HocusPocus said:
I just bought a 2 1/2yo base Skoda Octavia 115bhp under 10k miles for my son. £21k new but just paid 9.5k for a main dealer approved car. That Skoda was never really worth 21k new, not in my eyes anyway.
Which model Octavia? I'm looking for one of similar age and circa price. Where from?HocusPocus said:
Hugo Stiglitz said:
HocusPocus said:
I just bought a 2 1/2yo base Skoda Octavia 115bhp under 10k miles for my son. £21k new but just paid 9.5k for a main dealer approved car. That Skoda was never really worth 21k new, not in my eyes anyway.
Which model Octavia? I'm looking for one of similar age and circa price. Where from?
In terms of day to day runabout transport something like that makes a world of sense.
My 3 Series was stolen after about 15 months. It was on a 4 year PCP. List was £67k and insurer paid out £43k. Negative equity was £9k at that point. Luckily my gap insurance covered return to invoice based on list price, so I ended up with the finance gap paid and £15k in my back pocket.
Deep Thought said:
HocusPocus said:
Hugo Stiglitz said:
HocusPocus said:
I just bought a 2 1/2yo base Skoda Octavia 115bhp under 10k miles for my son. £21k new but just paid 9.5k for a main dealer approved car. That Skoda was never really worth 21k new, not in my eyes anyway.
Which model Octavia? I'm looking for one of similar age and circa price. Where from?In terms of day to day runabout transport something like that makes a world of sense.
Deep Thought said:
They're making new cars more affordable - thats their purpose so its hard to fault them for that. As a car enthusiast i dont necessarily see that as a bad thing. If i'm buying / leasing / PCPing new then it means i've a better chance of getting the car i want at a palatable price / payment. If its used, then the price - as Nick has said - is relatively low here compared to other European markets because theres so many cars out there.
UK is broadly cheaper for cars than the EU, but it was not always so. Have done the personal import before saving thousands.The cheapest place I have bought a car is Canada where I had a new zero miles Dodge Grand Caravan for less than gbp14k https://www.dodge.ca/en/grandcaravan
For less dosh than a base Polo you get a massive auto MPV with 3.5l v6. That is damned good vfm.
IMO the difference between buying outright or PCP/PCH is that its a change of mindset; you dont pay to own the car, you pay to use the car for a period of time. With that change of thinking, suddenly a PCP or similar can seem attractive, you know you'll never own it, but you know for 3/4 years it will cost you £xxxx to run and use which suits a lot of people.
However, as others have pointed out the issue is wanting to get out of a deal early and being in neg equity.. Seeing the likes of TGE get into and out of high end PCPs gives people a false sense of security! Theres a difference between a lambo/porsche holding value/getting overs vs a boggo A Class which will lose money daily and people easily conflate the 2.
Moral of the story is, if you want a car to use for min hassle and know your expenditure in total over a period PCP makes sense. However, i can't bring myself to do it!
However, as others have pointed out the issue is wanting to get out of a deal early and being in neg equity.. Seeing the likes of TGE get into and out of high end PCPs gives people a false sense of security! Theres a difference between a lambo/porsche holding value/getting overs vs a boggo A Class which will lose money daily and people easily conflate the 2.
Moral of the story is, if you want a car to use for min hassle and know your expenditure in total over a period PCP makes sense. However, i can't bring myself to do it!
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