Percentage of cars with finance/pcp etc
Discussion
After having read about the latest RRS (seems to be a winner so well done and good luck JLR) I was quite taken back the list price of it (was the Autobiography SDV8 admittedly) and it got me thinking about affordability. It was read in conjunction with another article about the current record car sales figures, and with a Golf easily able to come in at 30k.
So, how many cars are financed or leased/PCP? Are we heading back to the pre 2008 days?
Peoples memories seem to be short these days that's all that worries me.
However, would suit me, as in late 08 I bought a 10 month old Disco HSE with 4k miles for 23k form a LR dealer.............
So, how many cars are financed or leased/PCP? Are we heading back to the pre 2008 days?
Peoples memories seem to be short these days that's all that worries me.
However, would suit me, as in late 08 I bought a 10 month old Disco HSE with 4k miles for 23k form a LR dealer.............
I don't really see the whole worry about finance deals providing they're dished out to people responsibly. If you can afford the repayments then whats the worry? For many people finance is the only option for example when I changed my car last I had the choice between a 2k car or a 6.5k one, the 6.5k one coming with repayments that were less than 15% of my monthly salary.
It seems to me that a lot of people see "finance" as a dirty word when in actual fact if you take it out responsibly what is the problem. Also with the amount of 0% deals going around even if I did have the cash money to buy a new car I'd still take it on 0% because then my money is sat in the bank earning interest rather than depreciating with the car.
It seems to me that a lot of people see "finance" as a dirty word when in actual fact if you take it out responsibly what is the problem. Also with the amount of 0% deals going around even if I did have the cash money to buy a new car I'd still take it on 0% because then my money is sat in the bank earning interest rather than depreciating with the car.
Sometimes, to get a cheaper purchase price you have to opt for finance. Many manufacturers offer deposit contributions which are not available to cash buyers and with low interest rates still work out cheaper than paying in readies.
Example of when I bought a Focus, there was a £1500 contribution on top of any other discount and total interest for the term equalled about £900 so you'd have been be an idiot not to - even if you paid the finance off the very next week.
Plus the fact that leasing is now more available and acceptable to the general public which wasn't the case even 10 years ago.
Example of when I bought a Focus, there was a £1500 contribution on top of any other discount and total interest for the term equalled about £900 so you'd have been be an idiot not to - even if you paid the finance off the very next week.
Plus the fact that leasing is now more available and acceptable to the general public which wasn't the case even 10 years ago.
Apart from Mercedes, those finance only discounts ARE available to cash buyers through brokers.
With such low interest rates and relatively high inflation I really don't want cash hanging around once I have maxed out my yearly ISA allowance so I don't see the point of the deceptively unaffordable PCPs, what with 6% APR and obviously the "deposit" when I'd need 14% gross yield to match that when tax and eroding inflation is taken account of.
There is a bubble growing IMO. The gvt are not helping with their 5% deposit mortgage partially secured by my tax money. Why can't people buy something a little cheaper for their deposit to be a higher % ? Would it be because now prices are going up BECAUSE of the scheme ?
With such low interest rates and relatively high inflation I really don't want cash hanging around once I have maxed out my yearly ISA allowance so I don't see the point of the deceptively unaffordable PCPs, what with 6% APR and obviously the "deposit" when I'd need 14% gross yield to match that when tax and eroding inflation is taken account of.
There is a bubble growing IMO. The gvt are not helping with their 5% deposit mortgage partially secured by my tax money. Why can't people buy something a little cheaper for their deposit to be a higher % ? Would it be because now prices are going up BECAUSE of the scheme ?
nickfrog said:
There is a bubble growing IMO. The gvt are not helping with their 5% deposit mortgage partially secured by my tax money. Why can't people buy something a little cheaper for their deposit to be a higher % ? Would it be because now prices are going up BECAUSE of the scheme ?
There is an election coming. The tax payer is now directly funding their re-election. If prices were lower, the requirement for such high deposits would go away along with it. However that's not a vote winner.This is the way people pay for stuff nowadays.
I had a think and realised that perhaps my object was based on the fact that I am not in a position to need to lease a car and am basically too tight anyway, so what if people get to smoke about in a brand new premium segment car that they ordinarily couldnt afford, it is a symbiotic realtionship between them and the manufacturer who couldnt flog loads of cars if people couldnt lease them.
Its is the same with mobile phones and we have always done it with houses.
I dont see any point in moaning about it as it makes no odds to me, it must be compelling if those percentages are correct. As long as my own finances are in order not a lot I can do, I just hope people can really affor stuff and dont go bankrupt which does cost the rest of us indirectly.
It kind of allowed people to continue owning nice cars once the house prices rises and equity thing dried up and they couldnt stick 40 grand on the mortgage for an X5.
I had a think and realised that perhaps my object was based on the fact that I am not in a position to need to lease a car and am basically too tight anyway, so what if people get to smoke about in a brand new premium segment car that they ordinarily couldnt afford, it is a symbiotic realtionship between them and the manufacturer who couldnt flog loads of cars if people couldnt lease them.
Its is the same with mobile phones and we have always done it with houses.
I dont see any point in moaning about it as it makes no odds to me, it must be compelling if those percentages are correct. As long as my own finances are in order not a lot I can do, I just hope people can really affor stuff and dont go bankrupt which does cost the rest of us indirectly.
It kind of allowed people to continue owning nice cars once the house prices rises and equity thing dried up and they couldnt stick 40 grand on the mortgage for an X5.
nickfrog said:
There is a bubble growing IMO. The gvt are not helping with their 5% deposit mortgage partially secured by my tax money. Why can't people buy something a little cheaper for their deposit to be a higher % ? Would it be because now prices are going up BECAUSE of the scheme ?
I agree.People buying cars on finance is a mere blip on the radar compared to the current mortgage market with the government effectively trying to fix the housing market buy helping people to buy massively over priced houses that they can't really afford.
I don't want people to think I'm moaning, pessimistic or in any way disparaging of finance/leasing etc. As mentioned, providing its taken on board responsibly its a great tool. Its just as I mentioned in my 1st post, people seem to me to be taking their eye off the ball a bit that's all. And as 2008 onwards showed, the 1st thing to go when the roof over your head is threatened is excess cost, ie cars, foreign property etc.
Devil2575 said:
I agree.
People buying cars on finance is a mere blip on the radar compared to the current mortgage market with the government effectively trying to fix the housing market buy helping people to buy massively over priced houses that they can't really afford.
People buying cars on finance is a mere blip on the radar compared to the current mortgage market with the government effectively trying to fix the housing market buy helping people to buy massively over priced houses that they can't really afford.
I actually think it's morally wrong doing what they're doing.
If/when the bubble bursts (properly this time, not the blip that we had in 2008), those people will be utterly ruined.
But hey, everyone seems to think it's a good idea.
dapearson said:
Devil2575 said:
I agree.
People buying cars on finance is a mere blip on the radar compared to the current mortgage market with the government effectively trying to fix the housing market buy helping people to buy massively over priced houses that they can't really afford.
People buying cars on finance is a mere blip on the radar compared to the current mortgage market with the government effectively trying to fix the housing market buy helping people to buy massively over priced houses that they can't really afford.
I actually think it's morally wrong doing what they're doing.
If/when the bubble bursts (properly this time, not the blip that we had in 2008), those people will be utterly ruined.
But hey, everyone seems to think it's a good idea.
There is now no bubble to burst. House prices in most of the UK are down below 2007 levels, inflation is 2.2%, interest rates are virtually zero, and incomes are flat. There is no bubble to burst. The only negative looking ahead is a sharp rise in interest rates, which would be passed on immediately to those with mortgages. Given inflation at 2.2% and no sign of it going up, what we should be more worried about is deflation.
Just like Japan, where houses have inter-generational mortgages - the sons and daughters pay for the parents houses. Thats where we might be heading. If you don't own a house, then FFS buy one now.
Just like Japan, where houses have inter-generational mortgages - the sons and daughters pay for the parents houses. Thats where we might be heading. If you don't own a house, then FFS buy one now.
bqf said:
There is now no bubble to burst. House prices in most of the UK are down below 2007 levels, inflation is 2.2%, interest rates are virtually zero, and incomes are flat. There is no bubble to burst.
There certainly is a bubble. House prices as a multiple of salaries are too high and are being kept high by things like the help to buy scheme. All it will take is a rise in interest rates to make the whole deck of cards collapse. http://www.thisismoney.co.uk/money/mortgageshome/a...
http://www.yorkshirepost.co.uk/news/main-topics/po...
http://www.telegraph.co.uk/finance/personalfinance...
0llie said:
Really?
Well, to be truthful it was 23500 after I had towball and electrics added. Beadles of Sidcup. I also bought the next week an 8 month old Mini Cooper S Cab with 2k for 13k, from Mini Park Lane. Pretty much 50% off both cars invoice prices.Roll on another 2008 I say, I need to change my cars!
Edited by fezman on Wednesday 13th November 09:35
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