Does anyone buy cars these days?
Discussion
Yes I know they do, but really, everyone seems to the lease route on here. While I can sort of see the point, in other ways I do not. I've always owned my cars, and the idea of spending a deposit, paying for a car monthly and then handing it back losing everything at the end just makes my teeth itch..
What am I missing?
What am I missing?
I think about 70-80% of new cars are not initially owned by their first registered keeper.
I've never leased a car and probably never will but I can see the appeal if you're going to buy new anyway. The actual total cost (if you're the type of person who replaces their car every three years with a brand new one) doesn't work out hugely different and it does free up capital that you either might not actually have, or might not want tied up in a physical asset.
I've never leased a car and probably never will but I can see the appeal if you're going to buy new anyway. The actual total cost (if you're the type of person who replaces their car every three years with a brand new one) doesn't work out hugely different and it does free up capital that you either might not actually have, or might not want tied up in a physical asset.
If you want to drive a nice new car but don't have the cash in the bank to buy it now, a leasing or PCP deal is about the only option you have... or settle with a cheaper, older car.
If the total sum of the payments are not unacceptably above the expected depreciation for the car over the lease duration, you're not really losing out, right? It's down to the individual to decide what amount is 'acceptable'.
If the total sum of the payments are not unacceptably above the expected depreciation for the car over the lease duration, you're not really losing out, right? It's down to the individual to decide what amount is 'acceptable'.
Well,
This was my man-maths on the subject:
Previous: Volvo V50 3yo 66K and £10K.
Costing £227 for the bank loan.
Servicing, Tax, Mot etc etc over 6years works out a approx. £70 a month.
After 6 years the car is basically work buger all maybe £1K.
So the lease
Volvo XC60 £30K car leased for £300 a month, so basically what I was paying per month for my second hand 3yo 66K V50. IMO a no brainer on the lease.
Well... that's how I explained it to the wife ;-)
This was my man-maths on the subject:
Previous: Volvo V50 3yo 66K and £10K.
Costing £227 for the bank loan.
Servicing, Tax, Mot etc etc over 6years works out a approx. £70 a month.
After 6 years the car is basically work buger all maybe £1K.
So the lease
Volvo XC60 £30K car leased for £300 a month, so basically what I was paying per month for my second hand 3yo 66K V50. IMO a no brainer on the lease.
Well... that's how I explained it to the wife ;-)
treetops said:
The UK is all about getting yourself into a "brand new white AUDI A4 S-Line with natty private plate" as quickly as possible for as little as possible.
Slightly harsh, but its all about showing off in the UK.
Totally agree, went to France recently and it was very refreshing to see hardly any new cars!!Slightly harsh, but its all about showing off in the UK.
Ill only own a new car if i won the lottery, as im a tight git and prefer getting more bang for my buck!
A lot of it is about keeping up with the Joneses. And it is certainly true that a lot of people kid themselves that they can afford a new Audi or whatever.
BUT there are some PCP/lease deals that are crazily cheap. Not most. But some. If you want a new car, it is sometimes the cheapest way to drive one.
BUT there are some PCP/lease deals that are crazily cheap. Not most. But some. If you want a new car, it is sometimes the cheapest way to drive one.
leasing and pcp allow people to 'own' a car that they want. swmbo is on her second pcp (doesn't like the idea of lease).
i dont know about everyones financial position but now days especially with younger people we dont have cash money, lower earnings and higher outgoings we cant afford to buy anything so leasing and renting is very much the way forward.
i dont know about everyones financial position but now days especially with younger people we dont have cash money, lower earnings and higher outgoings we cant afford to buy anything so leasing and renting is very much the way forward.
JamesD1 said:
lower earnings and higher outgoings we cant afford to buy anything so leasing and renting is very much the way forward.
I think the change has less to do with a drop in disposable income and more to do with the expectation of owning a new or even newish car. These days more than ever before, you can buy a perfectly good car for a pittance. 
I still buy the wife's cars on finance, but with a nice deposit, and the balance split over the 36mths with nil balloon at the end. This is due to how she won't have a car theta someone else has owned so it has to be brand new (dont ask and Ive given up trying to convince her otherwise)
My daily drivers are always me as the 2nd or 3rd owner normally from new and for a fraction of the price and bought outright normally as they are in the 3-10k bracket normally.
I really hate the idea of leasing but get why some people like it.
My daily drivers are always me as the 2nd or 3rd owner normally from new and for a fraction of the price and bought outright normally as they are in the 3-10k bracket normally.
I really hate the idea of leasing but get why some people like it.
whoami said:
Martin_Hx said:
Totally agree, went to France recently and it was very refreshing to see hardly any new cars!!
Well, nearly 1.8m sold last year is not really "hardly any".
I was in the north of France and i reckon i saw 10 old cars to every 1 new car, or at least it seemed like that to me.
A massive percentage of cars i see over here are under 3 years old
For me it is all about the total cost of ownership.
Some cars I have bought outright - some have been financed almost entirely.
It also depends on my personal liquidity at any one time too.
It is almost always cheaper to buy cars outright without finance but sometimes I just like that safety net of having a few £££ tucked by and paying for the car on the drip.
At least there is a choice and we are really spoilt in that regard as to what you can pick up in the used market - some corkers out there due to new models replacing old and not being current this or that...
Some cars I have bought outright - some have been financed almost entirely.
It also depends on my personal liquidity at any one time too.
It is almost always cheaper to buy cars outright without finance but sometimes I just like that safety net of having a few £££ tucked by and paying for the car on the drip.
At least there is a choice and we are really spoilt in that regard as to what you can pick up in the used market - some corkers out there due to new models replacing old and not being current this or that...
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