How the hell do people afford cars these days?

[Pixelpeep 135]

Theoldguard said:

Pixelpeep 135 said:

for the usual "i like a shiny new car every 2-3 years" crew (and yes... i am a part of that crew) i predict:

Keeping their existing car a bit longer
extending lease deals if possible
waiting out the storm

in turn this hopefully will:

fix the supply vs demand issue
let the chip shortages catch up
stop the greedy dealers ramping up prices
make it a buyers market once again.

time scale? - 18-24 months.

I think many will struggle to extend their current leases on favourable rates, not sure how PCP works in terms of extensions.
Buying will be an option as likely the price will be alot lower than current second hand values, this may lead to a supply of used hitting the market as some just get out of PCP, make a bit on their vehicle and drop down from 2 to 1 car or give up the cars altogether and wait for things to settle in general.

There are plenty who live just on the edge, so rising prices on energy, fuel, food and revised PCP deals with higher monthlies will just not stack up.

Luckily(?) we have replaced both our daily drives within the last year, and oddly for the first time, gone for 4 year deals so in an ideal situation to let all this crazy pass over before we need to think about changing again.

[pb8g09]

I don't buy this energy 'crisis' stopping PCP. An extra £900 a year is £75 a month.

If you have to have the bailiffs over for your PCP car because you don't have £75 disposable income to spend on the gas then you need to give your head a wobble.

[Fusion777]

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

The cap has substantially increased twice- from around £1200/year to £2000, then to £2800, so the increase is more like £133/month. A lot more people than you think will find that a problem. Don't forget food and fuel prices have shot up dramatically, too.

[Shnozz]

Fusion777 said:

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

The cap has substantially increased twice- from around 1200/year to 2000, then to 2800, so the increase is more like 133/month. A lot more people than you think will find that a problem. Don't forget food and fuel prices have shot up dramatically, too.

Indeed. There have been many real world examples in the cost of living thread on here where a combination of energy prices, petrol prices and inflation on food prices give rise to a £300 - £500 month increase. Then there is the increase in NI. The BBC had an article in the last few days showing for Mr and Mrs Average it was £400 a month more so that would fit nicely in the middle.

For those with PCP/leases, this seems a figure again close to the average spend. Seems an easy fix to the 'crisis' in one easy move.

[Pablo16v]

Our gas and electricity has gone up by around £100/m (combined) and petrol and diesel is another £60-ish per month so as a family that lives well within our means it’s completely manageable. Food shops haven’t gone up as much as I thought it might but I’m sure there’s more to come. Oh, and the mortgage will go up by £44/m in August when the new 5 year deal starts.

As far as car purchases are concerned my leased Leon Cupra ST is due to be returned in March next year so if a reasonable extension price isn’t offered I’ll be looking to replace it, and my wife would like to replace her 12 year old A6 Avant with a newer 7 seater so looking at a Skoda Kodiaq VRS for her. A 2-3 year old one probably. As much as I like the Cupra I’m kind of hoping VWFS give me a rubbish extension offer as for the first time in 15 years I no longer have a car allowance with various stipulations like min 4 doors, max 3.0 engine, max 5 years old, so I’m free to look at more interesting options just as long as there’s usable rear seats.

[Fusion777]

Shnozz said:

Indeed. There have been many real world examples in the cost of living thread on here where a combination of energy prices, petrol prices and inflation on food prices give rise to a 300 - 500 month increase. Then there is the increase in NI. The BBC had an article in the last few days showing for Mr and Mrs Average it was 400 a month more so that would fit nicely in the middle.

For those with PCP/leases, this seems a figure again close to the average spend. Seems an easy fix to the 'crisis' in one easy move.

Yup. Savings levels were at an all-time low before the cost of living rises, so many people will be in negative territory now. Going from 2 cars to 1 if workable (which it will be for some households) is a no brainer. There's nothing else of the same magnitude in monthly expenditure that can be cut.

[Deep Thought]

Shnozz said:

Indeed. There have been many real world examples in the cost of living thread on here where a combination of energy prices, petrol prices and inflation on food prices give rise to a 300 - 500 month increase. Then there is the increase in NI. The BBC had an article in the last few days showing for Mr and Mrs Average it was 400 a month more so that would fit nicely in the middle.

For those with PCP/leases, this seems a figure again close to the average spend. Seems an easy fix to the 'crisis' in one easy move.

Yup. For those people they can mitigate a big part of the cost of living increase with cutting back on the non essentials. Holidays, nights out, meals out cut Will offset the cost too. But then that has a knock on effect on the economy...

[okgo]

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

Along with mortgage rate probably being much higher, all everyday items up hugely etc. It'll be hundreds per month for most people, and whether or not that hurts is down to circumstance, but I think it'll hurt a lot of people. For higher earners it could be into 4 figures per month difference especially when you take into account the national insurance rise.

[ARHarh]

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

Some people really don't understand how a lot of people live month to month. Over the years I have known loads of people who either run up overdrafts every month or just plain run out of money in the last week of the month, especially in those 5 week months.

One guy I worked with many years ago would nearly always end up walking to work in the final week of the month as he did not have the money for petrol to cover his 2 mile drive to work. On the first week of every month he would be eating out and spending the weekend getting very drunk. He was in his 40's with 2 children.

[Frimley111R]

ARHarh said:

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

Some people really don't understand how a lot of people live month to month. Over the years I have known loads of people who either run up overdrafts every month or just plain run out of money in the last week of the month, especially in those 5 week months.

One guy I worked with many years ago would nearly always end up walking to work in the final week of the month as he did not have the money for petrol to cover his 2 mile drive to work. On the first week of every month he would be eating out and spending the weekend getting very drunk. He was in his 40's with 2 children.

Not to thread drift too much but a young guy I worked with got his card declined when buying a coffee!

[jimPH]

Frimley111R said:

ARHarh said:

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

Some people really don't understand how a lot of people live month to month. Over the years I have known loads of people who either run up overdrafts every month or just plain run out of money in the last week of the month, especially in those 5 week months.

One guy I worked with many years ago would nearly always end up walking to work in the final week of the month as he did not have the money for petrol to cover his 2 mile drive to work. On the first week of every month he would be eating out and spending the weekend getting very drunk. He was in his 40's with 2 children.

Not to thread drift too much but a young guy I worked with got his card declined when buying a coffee!

That happened to me last week, costa wouldn't take Amex.

[Frimley111R]

jimPH said:

That happened to me last week, costa wouldn't take Amex.

get yourself over to the 'Pistonheaders and their first world problems' thread.

[757]

Frimley111R said:

jimPH said:

That happened to me last week, costa wouldn't take Amex.

get yourself over to the 'Pistonheaders and their first world problems' thread.

Costa!! Maccies black coffee is far superior and cheaper

[Wills2]

Fusion777 said:

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

The cap has substantially increased twice- from around 1200/year to 2000, then to 2800, so the increase is more like 133/month. A lot more people than you think will find that a problem. Don't forget food and fuel prices have shot up dramatically, too.

And NI has gone up, by the end of the year for me it'll be another £400 a month in outgoings if the cap goes where they expect it to coupled with interest rates rises and NI increases.

[Shnozz]

Wills2 said:

And NI has gone up, by the end of the year for me it'll be another 400 a month in outgoings if the cap goes where they expect it to coupled with interest rates rises and NI increases.

See my post slightly earlier - it seems you align right in the middle of these increases.

[Fusion777]

Frimley111R said:

Not to thread drift too much but a young guy I worked with got his card declined when buying a coffee!

Last time I went out, a mate of mine decided to treat us all to drinks in the first bar- until his card got declined! Luckily his other half bailed him out. Pretty funny, especially as he likes to talk about how much he supposedly earns. Incidentally, he also has a 3-Series on tick.

[Theoldguard]

pb8g09 said:

I don't buy this energy 'crisis' stopping PCP. An extra 900 a year is 75 a month.

If you have to have the bailiffs over for your PCP car because you don't have 75 disposable income to spend on the gas then you need to give your head a wobble.

As already mentioned its not just energy prices,these increase along with fuel prices it tends to filter through into other items and everyday essentials, I think we will see clothes and holidays increasing in prices alongside hospitality. All these somewhere along the chain are impacted by higher energy and fuel costs. It just takes time to have an effect, this winter I feel may just be that time when it all comes together, restaurants and pubs having to increase prices when people simply cannot afford it and staff asking for higher wages.

Childcare costs are another big one, the local nursery our neighbours use for their kids has twice increased prices in the last 12mths and have already told parents to expect another before the end of the year or they will need to close, it's now £68 a day, up from £57, 12 mths ago. It coming to the point where she was telling me she may have to consider giving up work to look after the kids and that would allow them to drop down to 1 car and no longer need a dog walker. This is a family with 2kids, both parents in decent jobs, who holiday maybe twice a year and have 2 cars.

Our kids go to different clubs and they are all looking to increase prices by around 12% to cover staff, heating and lighting costs for the year ahead.

These increases hit people in different ways, my extra outgoings would easily cover a decent lease a year ago.

[Throttlebody]

Fusion777 said:

Frimley111R said:

Not to thread drift too much but a young guy I worked with got his card declined when buying a coffee!

Last time I went out, a mate of mine decided to treat us all to drinks in the first bar- until his card got declined! Luckily his other half bailed him out. Pretty funny, especially as he likes to talk about how much he supposedly earns. Incidentally, he also has a 3-Series on tick.

Latest Credit Car data shows large increases in use and payments to cover non discretionary cost of living increases. Ticking time bomb.

[Inky81]

Throttlebody said:

Latest Credit Car data shows large increases in use and payments to cover non discretionary cost of living increases. Ticking time bomb.

Correct to assume you're referring to credit card data?

[Throttlebody]

Inky81 said:

Throttlebody said:

Latest Credit Car data shows large increases in use and payments to cover non discretionary cost of living increases. Ticking time bomb.

Correct to assume you're referring to credit card data?

Thanks, yes.