How the hell do people afford cars these days?
Discussion
LeighW said:
Some people are just like that though. I'm an accountant, I see the whole spectrum. From people past retirement age, still running a business, sitting on a pile of money they are unwilling to spend, to people who would have no money regardless of whether they made 30k or 300k. Money is like sand through the fingers for some. One juggles five or more credit cards to live, has no savings, no pension, always on expensive holidays etc. To look at them you'd think they were loaded. I don't know how some people sleep at night!
As I write this whilst in a meeting, a sales director next to me on £300k a year is buying lottery tickets and just checked his outstanding balance on klarna on his laptop. Sand through fingers is a great metaphor.pb8g09 said:
LeighW said:
Some people are just like that though. I'm an accountant, I see the whole spectrum. From people past retirement age, still running a business, sitting on a pile of money they are unwilling to spend, to people who would have no money regardless of whether they made 30k or 300k. Money is like sand through the fingers for some. One juggles five or more credit cards to live, has no savings, no pension, always on expensive holidays etc. To look at them you'd think they were loaded. I don't know how some people sleep at night!
As I write this whilst in a meeting, a sales director next to me on 300k a year is buying lottery tickets and just checked his outstanding balance on klarna on his laptop. Sand through fingers is a great metaphor.I have had cars on some form of finance for the past 10 years, either PCP or bank loan.
What did it for me was a PCP on a Mini F54 Cooper S, 2k down and 300pm. Cost me about 16k over 4 years and I gave it back with 26k miles on the clock. Sixteen grand for 26k miles.
That was several years ago, the same car is probably more now.
At the moment we have 2x five year old Fxx BMW's on bank loans, one was bought before the price rises so is actually worth almost what we paid 2 years ago and the other hasn't lost much in a year. Will be paying the remainder of them off once the house sells and keeping them for as long as we can. I tend to just pay the £500 per year to have BMW warranty on both to cover us just in case but touch wood, I have never had to claim.
When I look at our outgoings each month for two cars, its more than our mortgage if you include fuel and maintenance.
What did it for me was a PCP on a Mini F54 Cooper S, 2k down and 300pm. Cost me about 16k over 4 years and I gave it back with 26k miles on the clock. Sixteen grand for 26k miles.
That was several years ago, the same car is probably more now.
At the moment we have 2x five year old Fxx BMW's on bank loans, one was bought before the price rises so is actually worth almost what we paid 2 years ago and the other hasn't lost much in a year. Will be paying the remainder of them off once the house sells and keeping them for as long as we can. I tend to just pay the £500 per year to have BMW warranty on both to cover us just in case but touch wood, I have never had to claim.
When I look at our outgoings each month for two cars, its more than our mortgage if you include fuel and maintenance.
Edited by Wagonwheel555 on Thursday 26th May 12:27
pb8g09 said:
But people aren't changing their behaviours against these increasing living costs.
The roads in Bournemouth for example are full of people in their cars on every weekend for the last 3 months - traffic everywhere (I'm sad enough to make a mental note to monitor it week in week out) and the bars are still full when the sun is out. That's not behaviour of people that are concerned about their cost of living regardless of the individual anecdotes you're all giving
The Brits are very good at non acceptance of change. Had it too good for too long. It will catch up with them when other pressures kick in when we get the oncoming recession and houses will need heating from OctoberThe roads in Bournemouth for example are full of people in their cars on every weekend for the last 3 months - traffic everywhere (I'm sad enough to make a mental note to monitor it week in week out) and the bars are still full when the sun is out. That's not behaviour of people that are concerned about their cost of living regardless of the individual anecdotes you're all giving
pb8g09 said:
As I write this whilst in a meeting, a sales director next to me on 300k a year is buying lottery tickets and just checked his outstanding balance on klarna on his laptop. Sand through fingers is a great metaphor.
£300K is a take home of £13,881.01 a month. The fact that someone who takes home that much money requires credit to buy anything other than a house blows my mind.pb8g09 said:
LeighW said:
Some people are just like that though. I'm an accountant, I see the whole spectrum. From people past retirement age, still running a business, sitting on a pile of money they are unwilling to spend, to people who would have no money regardless of whether they made 30k or 300k. Money is like sand through the fingers for some. One juggles five or more credit cards to live, has no savings, no pension, always on expensive holidays etc. To look at them you'd think they were loaded. I don't know how some people sleep at night!
As I write this whilst in a meeting, a sales director next to me on 300k a year is buying lottery tickets and just checked his outstanding balance on klarna on his laptop. Sand through fingers is a great metaphor.
LeighW said:
That's just mental isn't it? As said, our economy does need people like that. What is it? People buying stuff they don't need, with money they don't have, to impress people they don't like. Something like that.
I am assuming it is1)Massive mortgage
2)2 children in private school
3)2 expensive leased SUVs on the drive
4)Couple of expensive holidays a year
5)Some recent building work on the house
Rather than just buying "stuff" although I expect buying anything they want and eating out all the time without giving a thought to how much it costs isn't going to help.
Joey Deacon said:
I am assuming it is
1)Massive mortgage
2)2 children in private school
3)2 expensive leased SUVs on the drive
4)Couple of expensive holidays a year
5)Some recent building work on the house
Rather than just buying "stuff" although I expect buying anything they want and eating out all the time without giving a thought to how much it costs isn't going to help.
1 and 2 easily could be over 7k-8k a month combined even for 2 kids in a nursery 4-5 days a week.1)Massive mortgage
2)2 children in private school
3)2 expensive leased SUVs on the drive
4)Couple of expensive holidays a year
5)Some recent building work on the house
Rather than just buying "stuff" although I expect buying anything they want and eating out all the time without giving a thought to how much it costs isn't going to help.
Add in food and savings and even normal holidays and cars and you’re there. Also if he’s like me he will have a basic salary and get bonuses qtrly so you have to manage that cash flow as otherwise one missed target throws the whole thing (in his case it would seem).
If the Salesman is on 300K/yr he is likely on either 150/150 or 180/120. The second number being his "incentive" or "compensation" or "bonus" if you will.
What does buying a lottery ticket mean or consuming Klarna - IIRC Klarna is a short term, interest free, spread a purchase over 3-4 months type thing. That sounds like a wise idea.
What does buying a lottery ticket mean or consuming Klarna - IIRC Klarna is a short term, interest free, spread a purchase over 3-4 months type thing. That sounds like a wise idea.
pb8g09 said:
But people aren't changing their behaviours against these increasing living costs.
The roads in Bournemouth for example are full of people in their cars on every weekend for the last 3 months - traffic everywhere (I'm sad enough to make a mental note to monitor it week in week out) and the bars are still full when the sun is out. That's not behaviour of people that are concerned about their cost of living regardless of the individual anecdotes you're all giving
At the risk of being accused of being an out of touch Powerfully built director, I agree with this point of view.The roads in Bournemouth for example are full of people in their cars on every weekend for the last 3 months - traffic everywhere (I'm sad enough to make a mental note to monitor it week in week out) and the bars are still full when the sun is out. That's not behaviour of people that are concerned about their cost of living regardless of the individual anecdotes you're all giving
Try getting a reservation in a nice London restaurant, seems to me they have never been busier.
My office sometimes organises social events after work, I guess my colleagues earn similar to me so I was shocked to hear the office manager arranging the event date to be shortly after pay day for an event that costs £13. They all buy their lunch every day from Pret or wherever. I take my lunch to work.
LeighW said:
pb8g09 said:
LeighW said:
Some people are just like that though. I'm an accountant, I see the whole spectrum. From people past retirement age, still running a business, sitting on a pile of money they are unwilling to spend, to people who would have no money regardless of whether they made 30k or 300k. Money is like sand through the fingers for some. One juggles five or more credit cards to live, has no savings, no pension, always on expensive holidays etc. To look at them you'd think they were loaded. I don't know how some people sleep at night!
As I write this whilst in a meeting, a sales director next to me on 300k a year is buying lottery tickets and just checked his outstanding balance on klarna on his laptop. Sand through fingers is a great metaphor.They have clearly come by their money too easily. If they worked down the pit they might have a different attitude to the money they earned.
pb8g09 said:
jimPH said:
Maybe he's filled his wife's and his ISA's
For context, he’s 49, divorced, kids are all grown up and spends all his time in central London out eating and drinking. I think the latter might be the reason for the credit...I have no idea what my colleagues earn.
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