Nothing wrong with either approach. I don’t hold with the ‘rent it if it depreciates’ argument as funders understand cost of capital and depreciation better than we do so finance only makes sense if your own return on investment is higher and/or you get better prices for taking finance as is often the case on new cars these days. Of course there is nothing to stop you paying off the finance once you have received the incentives (deposit contribution, free services etc).As you say each to their own. No it doesn't matter. I was just asking if people buy their cars anymore as there seems to be a lot that just pay monthly fees. I may be old fashioned but I like to own my car and not pay for it monthly.
Christ I'm in the wrong job......Buying a Maserati outright...You lot must be sh1tting money......Fare play to you if you can do that.....Note to self should have worked harder at school....
You'll need to wait for one of the easily upset younger generation lolOh, of course! - I'd forgotten that. Well, I'm sure someone will be along to be offended soon. Not Navcorr, though.
What brings it home to me is the sheer number of 17/18 plate cars on people's drives even here in Wakefield, some have four cars on there, all new or nearly new. OK they're Euro-boxes but when I think back to the shiiite my dad had to drive in 70's, 6 year old Maxi's and Princesses that were bolloxed at 50k miles but we were so poor back then we didn't have one penny to rub together.
In fact, I didn't have any clothes at all until I was nine, then my dad bought me a cap so I could look out of the window.....
It's a cultural as well as a financial shift. I don't own records or cassettes or CDs any more either. I use Spotify or the stuff that somehow seems to land on my phone etc etc, using a big magical cloud thing. I do, however, own my house. Well, most of it.
Snap. Only ever bought one new car ever & that was cash. Not likely to buy another new one again unless I become obseenly rich....unlikely!Haven't financed or leased a car in over 25 years, we buy what we can afford. I have only ever bought one new car and short of winning the lottery I can't see that happening again.
We do have a Motorbility car which is in fact a lease car funded from ours sons disability allowance.
This is all too popular even after the last financial crisis. It still seems too easy to borrow money or get things on "the never never".I look at some of the cars that people have where I live and you can walk past and say "financed, financed, financed, financed, financed, paid for, financed" etc etc etc.
One house near me they have a brand new Range Rover Sport, a 6 Series Convertible, a brand new Polo and a year old Golf.
So mum, dad and two kids all have cars with a value I would guess at somewhere (new) of circa £200k. The house is probably worth £250k.
So I'm guessing (maybe wrong) that they are all on finance. What happens next year (if expected) there is another recession?
I'm guessing those cars will be the first to go, and with no cash put by to buy something new, the car finance family will be left getting the bus.
Defaulting on your finance will leave you with a **** credit history, meaning that they won't be borrowing any time soon, a story which is likely to be repeated all over the country.
The end of the world is nigh! Financial world anyway.
Horses for courses.
Mum does c 2.5k miles pa in her car.
Next one is likly to be a £99.00 per month Citroën or similar with servic, tyres and insurance inc.
probably her last car so it makes sence rather than investing £10k in somthing she will hardly use.
Nothing wrong with either approach. I don’t hold with the ‘rent it if it depreciates’ argument as funders understand cost of capital and depreciation better than we do so finance only makes sense if your own return on investment is higher and/or you get better prices for taking finance as is often the case on new cars these days. Of course there is nothing to stop you paying off the finance once you have received the incentives (deposit contribution, free services etc).
The main reason people go PCP or leasing is that it gets them into a car that they may not be able to afford for cash or on HP. The manufacturers know this and, as it means people change their cars more often when acquired this way, do all they can to promote it - notice how many new car adverts these days don’t actually mention what the capital cost of the car is they purely mention the headline predatory price per month with a tiny * taking you to the hugely variable deposit you need to make. There is a lot of mis-leading advertising in this regard and this will be regulated much more strongly in the aftermath of the financial crisis which is gently brewing.
that’s on a used car. Talking new... do the maths on a new one and then see..I don't think I have ever had a car that would have been more cost effective if I had financed or leased it. If I take our worst depreciating asset as my wife's car. It is a 2011 Freelander 2 SD4 HSE. We bought it just under 3 years old with 60k miles with 1 month left on the manufacturer warranty. New price circa £45k with spec and options ballpark. Paid £17k for it May 2014. We have had it for just over 4 years and it is worth about £10k private with 89k miles 1 Previous owner and full history. So it has depreciated by about £7k over say 4 years for ease so £1750 per year. Divide that by 12 and we have £145 per month.
I can't see that we would have been able to lease a 1-3 year old Freelander 2 SD4 HSE for the same or less at the time. Most other cars I have had have depreciated less if at all. I think if you had bought a new Freelander @ £45k or even £40k less discount then I suspect leasing or renting would be more viable or cost neutral in comparison so might make sense. In our example I can't see how it would make more sense to have leased or rented.
Me and you then...
and me