The rise of the 40 year mortgage

Graham_Devon

GunJack wrote: »

I just don't get people spending thousands of £ on leasing a car, complete waste of dosh. My current car's net cost to buy outright was less than a month's PCP on pretty much every new car out there

Depends what you are after really.

A years tax alone on my car costs just shy of 3 months payments on that Seat Mii I linked to.

That's without factoring in depreciation, MOTs, repairs, Breakdown cover etc.

GunJack

Graham_Devon wrote: »

Depends what you are after really.

A years tax alone on my car costs just shy of 3 months payments on that Seat Mii I linked to.

That's without factoring in depreciation, MOTs, repairs, Breakdown cover etc.

Tax, insurance and an MoT are essential whatever you get, doesn't take much to keep the costs of these down, just be a bit careful on what cars you buy....and as for depreciation, I always buy cars where depreciation doesn't come into it - my last 3 cars have cost(nett) £200, £250 and this one £100 after scrapping each of the previous ones, and just entering into the fifth year of motoring across them

Graham_Devon

GunJack wrote: »

Tax, insurance and an MoT are essential whatever you get, doesn't take much to keep the costs of these down, just be a bit careful on what cars you buy....and as for depreciation, I always buy cars where depreciation doesn't come into it - my last 3 cars have cost(nett) £200, £250 and this one £100 after scrapping each of the previous ones, and just entering into the fifth year of motoring across them

Tax is included on the PCP deals. As for the MOT, they won't need one for 3 years and most leases are taken for a maximum of 3 years.

You are clearing talking about bangernomics here, which, although very interesting, unless you are handy with a spanner etc and have enough time on your hands, can prove very costly for many people.

It's in no way a fair comparison. You may aswell compare a tent to a house.

Personally, although I find bangernomics interesting and would be keen to give it a go, I don't like the idea and could nto be arrised with scrapping the car and buying another every time I need a pair of brake pads.

GunJack

Graham_Devon wrote: »

Tax is included on the PCP deals. As for the MOT, they won't need one for 3 years and most leases are taken for a maximum of 3 years.

You are clearing talking about bangernomics here, which, although very interesting, unless you are handy with a spanner etc and have enough time on your hands, can prove very costly for many people.

It's in no way a fair comparison. You may aswell compare a tent to a house.

Personally, although I find bangernomics interesting and would be keen to give it a go, I don't like the idea and could nto be arrised with scrapping the car and buying another every time I need a pair of brake pads.

:rotfl: you're taking it to extremes there for a set of pads!!!! Brake pads/tyres/exhausts I would class as minor, both in terms of cost and "faults not worth not doing" and normal waer'n'tear, IYSWIM... if you're careful about what you buy you don't need to do much at all and it's still cheaper than any PCP

tara747

Graham_Devon wrote: »

Some leasing deals are stonkingly good value dependant upon your requirements though

Especially at the supermini end. With tax included and the warranty taking away the headaches you may have with your £500 second hand car, if the cars fit your requirements it can work out extremely good value.

Under £100 a month and no big bills to worry about? I'd be all over it if it fitted my requirements and I needed to buy another car. Just the saving on my tax would reduce it to £83 a month. Throw in the lack of an MOT (not even considering any repairs) and you are down to £78 a month.

Leasing an Audi A6 on the other hand is a completely different beast.

Do you have any links to these deals? Genuine question.

bugslet

wotsthat wrote: »

It's less than that actually. I said miles and meant km - it's about 8000km according to the 2011 census.

At 30km per day I don't know why the roads aren't full of bikes instead of cars - it's no distance at all.

I remain not average then:). 60 mile round trip, don't take much in the way of holidays, so round about 15,000 miles commute every year.

Personally I always buy, lease just would not work for me and at the end, I've got an asset to sell.

silverwhistle

I'll just take a few seconds (or degrees? cough..) to take over wotsthat's mantle in pointing out that iphones or PCP are a metaphor for attitude of mind. I'm now semi-retired early and I continue to have something called a budget, so that for example if one of my wealthier friends says 'let's do lunch' I say 'let's have a lunchtime pint'.

Some people would say 'it's only ££', but say that about many, many things (coffee out, clothes, expensive nights out, city breaks or whatever) and neither have a budget let alone have any thought of keeping to one. I don't need to tell you the old adage about pence and pounds. As it is I drink reasonable wine at home, take a 2/3 week skiing holiday every year (but no summer sun holiday); have a season ticket to a Premiership footie team and a place on the bench of another team on Sundays (my priorities).

Before I bought my first (and only house) at the age of 28 I lived in shared digs and didn't even own a car and bought one for £100 at the same time to cart DIY supplies around.

So you can argue about iphone and PCP, but it's not them per se you need to look at.

TickersPlaysPop

I was stressing the point of long term mortgage ages ago and glad there is data to back me up now!

Residential property inflation above wage inflation leads to low housing standards, I.e. more people per residence, less sq foot per person, etc.... and longer mortgages.

Allowing our residential property to be traded just like any other commodity on the global investment market is criminal.... We have limited resource, they are our homes... let people living here buy them to live in them.... stop global investors adding to the already high demand.