Be honest please.

[Oliver6796]

That's the one. Think im going to need a season ticket there to smooth over buying the car with the wife. Ironic because Ill be skint lol.
Now picture my van above in the car park

 

[Contigo]

I should also say the reason why I don’t finance cars is that I don’t like losing or giving away free money!


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You are a tight ******* basically but happy to lose money on AIM!!!

 

[hoyin]

You are a tight ******* basically but happy to lose money on AIM!!!

Yeah but you put money in hopefully to try and make money.

Whereas with leasing a car I am giving money with no chance of a return (though you could say that about AIM).

And yes I am a tight ******. I hate wasting money when with a little effort you can make some savings.

Every penny counts. If I didn’t have that approach I would never have had a Maserati.


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[mjheathcote]

3 mile commute for me, along a country lane. Hence I needn’t worry about mpg or adding lots of miles to the odometer. Which is why I can do it a Maserati, Ferrari, Lambo, Venturi, etc without worrying. Even if something was to break, I could finish the trip on foot!

To be honest I would say that isn't good for them, no time to warm up properly in only 3 miles, time after time.

 

[Ewan]

There’s some great stuff on AIM. I have shares in a company who’s price has increased 17 fold over the last 7 years. Happy days. (And no, I won’t say which. Do your own research, I’ve given all the clues you need)

 

[rivarama]

Being a finance nerd, I never bought a car new and hence never was offered a low finance rate that comes with new cars. Refusing to borrow someone else’s money for 7-10% I have always bought my cars outright.
My last 5 cars (including MY94 993, MY08 GT 4.2, MY08 F430, MY10 E93 M3) were rather old and quite down the depreciation curve which helped reinforce my perception of “be smart, buy used, outright”.

However, 6 months ago,I almost fell for a new RR Velar (D180 SE w a few nice options) on lease as the financials weren’t as bad. £2k deposit, £305 a month over 3 years, including the annual car tax. Bizarrely, the total cost of ownership (inc insurance, fuel, depreciation, service and maintenance) was only averaging £2k more a year than my 2013 Touareg - bought from VW for £20k in late 2016.
I was amazed how high the assumed residuals were on the velar to justify crazy low monthly’s.
A £2k difference annually to be driving a new RR vs my old and basic VW, and have peace of mind at the end of the lease that I won’t have to worry about selling a diesel car (should be radioactive in 3years time) - I thought was absolutely worth it. I did put an order in for it, only to cancel it 4months later when the delivery date was pushed out by another 2 months for the 3rd time.

I now understand why people go for PCP or leases - as very few can saved 5-10k to buy a used car, when they can have a new one for £149 a month. Our next DD might be a lease - and it might still be that velar

 

[hoyin]

Being a finance nerd, I never bought a car new and hence never was offered a low finance rate that comes with new cars. Refusing to borrow someone else’s money for 7-10% I have always bought my cars outright.
My last 5 cars (including MY94 993, MY08 GT 4.2, MY08 F430, MY10 E93 M3) were rather old and quite down the depreciation curve which helped reinforce my perception of “be smart, buy used, outright”.

However, 6 months ago,I almost fell for a new RR Velar (D180 SE w a few nice options) on lease as the financials weren’t as bad. £2k deposit, £305 a month over 3 years, including the annual car tax. Bizarrely, the total cost of ownership (inc insurance, fuel, depreciation, service and maintenance) was only averaging £2k more a year than my 2013 Touareg - bought from VW for £20k in late 2016.
I was amazed how high the assumed residuals were on the velar to justify crazy low monthly’s.
A £2k difference annually to be driving a new RR vs my old and basic VW, and have peace of mind at the end of the lease that I won’t have to worry about selling a diesel car (should be radioactive in 3years time) - I thought was absolutely worth it. I did put an order in for it, only to cancel it 4months later when the delivery date was pushed out by another 2 months for the 3rd time.

I now understand why people go for PCP or leases - as very few can saved 5-10k to buy a used car, when they can have a new one for £149 a month. Our next DD might be a lease - and it might still be that velar

Excuse my ignorance. What happens after the 3 years?

After I have spent £13k?

Isn’t that about the depreciation cost?


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[alfatwo]

Excuse my ignorance. What happens after the 3 years?

After I have spent £13k?

Isn’t that about the depreciation cost?


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That's when you get stitched... I always buy my cars and most other things with cash up front and then your done... no loans, no interest payments

My dad always used to say to me never buy anything on HP!

Dave

 

[bigbob]

Excuse my ignorance. What happens after the 3 years?

After I have spent £13k?

Isn’t that about the depreciation cost?


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That's true. What worries me more mind is the idea that a Velar with the 180PS JLR diesel engine is a luxury car.

Slightly off topic but list prices of cars are getting silly and silly. I took a peek at the new X5 and for half a decent spec (just want sunroof, heated rear seats and a few small things) it was looking at £60k - hugely overvalued.

 

[rivarama]

Excuse my ignorance. What happens after the 3 years?

After I have spent £13k?

Isn’t that about the depreciation cost?


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If i understand your challenge you’re asking what do I get at the end of 3yrs after I plonked £13k on those velar payments.

Well nothing, but I will probably have lost abt £6-7k go further depreciation on the Touareg, likely some issues that would be covered by warranty on the velar or just more likely to occur on a 5-8y/o car - even a German one... probably £2-3k over the period, higher gas consumption (£500-1000 over 3yrs) and car tax (which was included on the velar £1000 over 3yrs)... so all in all not that big a difference financially- to be seating in a brand new and gorgeous car, higher tech, peace of mind due to warranty (even if it’s a Land Rover ;-) and not having to deal with the resale in 3yrs

It made sense me as I valued this at more than a 1.5-2k premium a yr

 

[Adhut]

The plus side to PCP Is the protection from depreciation. My current daily is a Volvo XC90 T8 (plug in hybrid) £74k new over three years the GRV is £40k. It is 23 months old and its current values at £43k. By the time it goes back it would have depreciated to about £33k leaving Volvo to take a 7k hit and not me. However, saying that I think this car has tort me a lesson and it will be the last time I buy new.

 

[rivarama]

That’s why I would not go new unless it’s to keep the car forever, and even then it’s probably not making much sense financially (oh and I never managed to keep a car more than 3yrs too).
I still prefer the lease (if the residual assumptions are unrealistically high like velar when it came out for eg) over a pcp

 

[MrMickS]

The plus side to PCP Is the protection from depreciation. My current daily is a Volvo XC90 T8 (plug in hybrid) £74k new over three years the GRV is £40k. It is 23 months old and its current values at £43k. By the time it goes back it would have depreciated to about £33k leaving Volvo to take a 7k hit and not me. However, saying that I think this car has tort me a lesson and it will be the last time I buy new.

Rare for them to mis-calculate that far in your favour. If they are giving a high GRV its usually on low mileage and they hit you with mileage charges to make up for it.

Buying new is always a risk, but if no one did then most on here wouldn't have their nice Maserati to drive around in

 

[lifes2short]

I bought my BMW M3 LE500 new in 2013 and only because BMW were doing zero percent for 3 years and I wanted one of the last normally aspirated M3's before they went turbo and my intention was to keep it long term, so paid the balloon payment at the end of the 3 years. This is the one and only time I've ever bought a brand new car and normally always buy the daily runners as low mileage second hand after they've already lost a big percentage of the value, I just cant stand the fact that there is this humongous depreciation of new cars as soon as you drive out of the show room, it's just throwing wads money down the drain, just my opinion

 

[MrMickS]

VAT accounts for a huge chunk of that initial depreciation. The more expensive the car, the bigger chunk you have to pay to HMRC for the privilege of buying it. On a £120k GT that's £20k lost in tax before the car itself loses value.

 

[Adhut]

Rare for them to mis-calculate that far in your favour. If they are giving a high GRV its usually on low mileage and they hit you with mileage charges to make up for it.

Buying new is always a risk, but if no one did then most on here wouldn't have their nice Maserati to drive around in

It was a surprise to me, but on the bright side, it makes buying a Maserati look almost sensible ;-)

 

[lifes2short]

VAT accounts for a huge chunk of that initial depreciation. The more expensive the car, the bigger chunk you have to pay to HMRC for the privilege of buying it. On a £120k GT that's £20k lost in tax before the car itself loses value.

exactly, regardless of how and why it's still a huge amount of Wonga to personally lose, fair enough if it's a company asset and offset on the books, but if it's your own money

 

[MrMickS]

It was a surprise to me, but on the bright side, it makes buying a Maserati look almost sensible ;-)

I think that buying mine was sensible given the return it has given for the cost.

Not sure everyone would agree though lol

 

[Rwc13]

Buying new is always a risk, but if no one did then most on here wouldn't have their nice Maserati to drive around in

WHS

 

[dgmx5]

That's when you get stitched... I always buy my cars and most other things with cash up front and then your done... no loans, no interest payments

My dad always used to say to me never buy anything on HP!

Dave

Well exactly. I have heard the "always rent anything that depreciates, only ever buy something that appreciates". But if that were truly the case, how come Radio Rentals went to the wall? Remember when people used to rent their TV, even their washing machine? Now we all buy these items knowing (at least with white white goods) that they have redundancy engineered in. Fair enough if there is a 0% finance or buy now, pay in 12 months option factored in. And I cannot remember buying an extended warranty on an electrical item. Put the money aside to pay on those occasions when you are unlucky.