Regularly changing cars, Without loosing a fortune?
Discussion
Evening all,
It’s been a while since my last post on here so long in fact I’ve had to create a new account, you know how it is young children and wife = no time for me 😂
However my question to you wise ones, how do people change their cars on a regular basis without losing a fortune? The amount of people who actually buy cars outright is becoming few and far between. I myself for the past 8-7 years have financed my vehicles via all of the different methods such as HP, PCP and I have even leased for a short period. For both HP and PCP I have let the policies run the course as to end them early would have cost me.
So back to my question how is it that I am regularly seeing people have the latest cars and then swap them within 6 months or so? Are they just loosing money and it’s not an issue or is there actually a way in which I am not aware (with the exception of leasing)?
Also you see these ‘Youtube stars” such as TGE, Archie Hamilton, Seen through glass etc... who own multiple high value cars and seem to change them all the time? I understand they get given lease cars and have a substantial amount of cash but the ones in which they do seems to ‘own’ they must loose large amounts of cash how regular they change them.
Thanks in advance for your thoughts.
Harrison
It’s been a while since my last post on here so long in fact I’ve had to create a new account, you know how it is young children and wife = no time for me 😂
However my question to you wise ones, how do people change their cars on a regular basis without losing a fortune? The amount of people who actually buy cars outright is becoming few and far between. I myself for the past 8-7 years have financed my vehicles via all of the different methods such as HP, PCP and I have even leased for a short period. For both HP and PCP I have let the policies run the course as to end them early would have cost me.
So back to my question how is it that I am regularly seeing people have the latest cars and then swap them within 6 months or so? Are they just loosing money and it’s not an issue or is there actually a way in which I am not aware (with the exception of leasing)?
Also you see these ‘Youtube stars” such as TGE, Archie Hamilton, Seen through glass etc... who own multiple high value cars and seem to change them all the time? I understand they get given lease cars and have a substantial amount of cash but the ones in which they do seems to ‘own’ they must loose large amounts of cash how regular they change them.
Thanks in advance for your thoughts.
Harrison
Over my 9 years on the road I have had 29 vehicles. With only losing money on around 6 of those. The trick has been buy privately and sell privately. So long as you buy right etc you won't lose a penny in a few months. The ones where I have lost money have either been new vehicles or nightmare ones! Once a car is over 3-4 years old depreciation shouldn't be too horrific over the course of 6 months.
There's no real trick other than buying right/ choosing the right cars.
If you are getting finance involved then you will almost definitely lose money.
The newer the car the more depreciating it's got to do.
I buy cars that are around 10 years old and needing a bit of fettling and I have only lost money on 3 cars.
People are losing money but if they afford it / getting enjoyment from the outlay then they will continue to do so.
If you are getting finance involved then you will almost definitely lose money.
The newer the car the more depreciating it's got to do.
I buy cars that are around 10 years old and needing a bit of fettling and I have only lost money on 3 cars.
People are losing money but if they afford it / getting enjoyment from the outlay then they will continue to do so.
All about buying at the right price, that’s where you make your money or come out even when you sell.
Currently on car number 57, made money on a few, lost on a few,as said before new cars are the worst for losing money. Did a 2 yr lease which was fine, but like the hunt of buying cars so that became a bit boring. Had the current car for 7 months now and now plans to change, but bought this one with my heart rather than my head so unlikely to make money if and when I sell.
Unlikely to make mo ey buying from dealers, unless you are lucky with part exchanges or long standing stock
Currently on car number 57, made money on a few, lost on a few,as said before new cars are the worst for losing money. Did a 2 yr lease which was fine, but like the hunt of buying cars so that became a bit boring. Had the current car for 7 months now and now plans to change, but bought this one with my heart rather than my head so unlikely to make money if and when I sell.
Unlikely to make mo ey buying from dealers, unless you are lucky with part exchanges or long standing stock
From a lot of the posts you read on PH you could be forgiven for thinking that it's choc full of the greatest car salesman that never were, who have the Midas touch and for whom the normal rules of depreciation do not apply. I think that for the average Joe, though, changing cars often is very likely to cost a fair bit, especially if you place any sort of value on the time it takes to find an underpriced-diamond-in-a-dungheap, or to fix the problems that led to a car being priced cheaply. No that there's anything wrong with that of course - I spend more money than most people would think sane on single malt whisky when lots of people are happy with a bottle of Bells!
Up there with "just swap the engine over on the weekend"I've had 116 cars in 44 years. Obsession or hobby I am not sure. But it's one hell of a great way of losing money. Don't smoke. Don't drink. Don't gamble. So it's a vice I'm prepared to live with. Buy carefully. Haggle hard and learn to be told no way regularly and you can often get great cars cheaply. I've just bought a Ford Probe 2.5 V6 with full m o t for under a grand. Great sound, goes well, price of a service and four tyres in my Focus RS.
Grindle said:
Obsession or hobby I am not sure. But it's one hell of a great way of losing money.
This. In constant conflict of my spreadsheet head and petrol head heart! 
IME..
Quickest way to lose money is on a leased car but is the nicest/most hassle free ownership experience
Way to lose the least money is shedding, sub £2k and petrol
I bought a flat on a BTL mortgage, investing £31,000 cash and borrowing the rest on a 75% loan to value mortgage. Flat cost around £100,000
Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
J50 said:
I bought a flat on a BTL mortgage, investing £31,000 cash and borrowing the rest on a 75% loan to value mortgage. Flat cost around £100,000
Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
how you dodging the mortgage non-interest write off the govt stuck on btl'ers?Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
J50 said:
I bought a flat on a BTL mortgage, investing £31,000 cash and borrowing the rest on a 75% loan to value mortgage. Flat cost around £100,000
Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
That's some high level man maths right there.Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
What you're doing is very clever but stop trying to kid yourself you won't have spent over £40k renting cars over that period.
I don't have any of the money I'll earn from my job over the next ten years in my hand now. So if I spend every penny of my disposable income on cars over the next ten years, I still won't have any of that money so I'll be in the same position as I am now. Thus net spend on cars = 0.
nunpuncher said:
J50 said:
I bought a flat on a BTL mortgage, investing £31,000 cash and borrowing the rest on a 75% loan to value mortgage. Flat cost around £100,000
Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
That's some high level man maths right there.Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
What you're doing is very clever but stop trying to kid yourself you won't have spent over £40k renting cars over that period.
J50 said:
I bought a flat on a BTL mortgage, investing £31,000 cash and borrowing the rest on a 75% loan to value mortgage. Flat cost around £100,000
Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
Is that after tax and capital gains tax? Or is that undeclared?Roughly I get a 6.5% yield from it before costs, and after costs this reduces to around £340 per month.
I use that £340 to lease a car - well maybe a bit less... eg just awaiting a Volvo for £273 pm. I'll keep doing that.
In say 10 years time, what will I have and what will I have spent?
There's a risk of house depreciation but in the long term this is a low risk and average capital growth has been 3%pa which means the flat will be worth £134,000 - in theory at least.
So I'll have spent net nothing (approx) on cars for the 10 years and seen my initial capital of £33,000 double.
Simples innit.
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