The rise of the 40 year mortgage

ukcarper

Graham_Devon wrote: »

https://www.contracthireandleasing.com/car-leasing-companies/main-dealers/stoneacre-seat-peterborough/seat/mii/65141353/

£267 deposit. £89 a month. 8,000 miles a year - plenty for most contemplating such a vehicle.

Maybe you could point out where I was wrong?

Looks a good deal don't know if there are any catches.
Same car more expensive on stoneacres site I wonder what quote would come back as.

wotsthat

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.

Yeah. Makes you wonder how they make any money.

wotsthat

Graham_Devon wrote: »

https://www.contracthireandleasing.com/car-leasing-companies/main-dealers/stoneacre-seat-peterborough/seat/mii/65141353/

£267 deposit. £89 a month. 8,000 miles a year - plenty for most contemplating such a vehicle.

Maybe you could point out where I was wrong?

I know of two house savers with PCP deals. One has a Ford Focus ST, the other a top of the range Nissan Juke. A Seat Mii wouldn't cut it. Neither would ever get their hands on a new car without PCP.

They can be good deals but they tempt people into buying stuff they wouldn't be able to afford. The marketing means people compare the PCP cost against the cash cost of a new car instead of against what they could afford otherwise. It's about what they deserve rather than what they can afford.

An 8000 mile limit wouldn't cover the average commute by the way.

Graham_Devon

wotsthat wrote: »

I know of two house savers with PCP deals. One has a Ford Focus ST, the other a top of the range Nissan Juke. A Seat Mii wouldn't cut it. Neither would ever get their hands on a new car without PCP.

They can be good deals but they tempt people into buying stuff they wouldn't be able to afford. The marketing means people compare the PCP cost against the cash cost of a new car instead of against what they could afford otherwise. It's about what they deserve rather than what they can afford.

An 8000 mile limit wouldn't cover the average commute by the way.

Re the bold bit - that's just like various mortgage schemes we have going on. What do you think HTB is all about?

As for the 8,000 mile limit, I know it wouldn't cover the average commute, which is why I said "if it fits your requirements".

You wouldn't generally buy a super mini hatchback with a tiny 3 cylinder engine for long commutes. Brilliant for more general town and outskirts stuff though.

Is there anything you won't take issue with?

wotsthat

Graham_Devon wrote: »

Re the bold bit - that's just like various mortgage schemes we have going on. What do you think HTB is all about?

..and shared ownership.

I have less of an issue with PCP because people enter into these deals willingly without the use of my money.

Graham_Devon wrote: »

As for the 8,000 mile limit, I know it wouldn't cover the average commute, which is why I said "if it fits your requirements".

You wouldn't generally buy a super mini hatchback with a tiny 3 cylinder engine for long commutes. Brilliant for more general town and outskirts stuff though.

Is there anything you won't take issue with?

One issue with the car you posted is that it only 'fits requirements' for people at one end of the bell curve. Do you think it's the typical vehicle that a would be house buyer is going for? The other issue (the main one) is that people spend more because they can get a nicer car for seemingly incrementally less money.

The two people I know (renters both) have typically been buying cars 5 - 8 years old and could never afford a new car. They've now got new cars and no matter how good the deal might look they've both dramatically increased their motoring costs over the longer term.

I'm saying PCP is going to be the next big thing that helps to prevent people saving whilst their drivers simultaneously blame anything but their own spending as the primary reason for their low savings ratio.

PCP will become shorthand for poor prioritisation skills in the same way Iphones have. I very much doubt they'll become a metaphor for thrift.

Graham_Devon wrote: »

Is there anything you won't take issue with?

Well as I'm currently arguing about the exact definition of noon and moving GMT 0.14 degrees to become Buckingham Palace time take a wild guess.

Graham_Devon

wotsthat wrote: »

Well as I'm currently arguing about the exact definition of noon and moving GMT 0.14 degrees to become Buckingham Palace time take a wild guess.

Had to laugh

GunJack

Graham_Devon wrote: »

As for the 8,000 mile limit, I know it wouldn't cover the average commute, which is why I said "if it fits your requirements".

I think you'll find the "average commute" is less than 7500 miles a year, with the majority half or so of that... I do 7500 and consider that to be quite a bit...

..unless you are mainly referring to in & out of London (as most things seem to be biased to in this section of MSE)

wotsthat

GunJack wrote: »

I think you'll find the "average commute" is less than 7500 miles a year, with the majority half or so of that... I do 7500 and consider that to be quite a bit...

..unless you are mainly referring to in & out of London (as most things seem to be biased to in this section of MSE)

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.

Graham_Devon

GunJack wrote: »

I think you'll find the "average commute" is less than 7500 miles a year, with the majority half or so of that... I do 7500 and consider that to be quite a bit...

..unless you are mainly referring to in & out of London (as most things seem to be biased to in this section of MSE)

I just took it that wotsthat simply meant the average mileage you may expect someone to do in a year.

If I recall correctly, that's around 10-12,000 a year. Includes those days out, shopping trips, ferrying the kids to their clubs etc.

Like I say though, if you are sitting on the motorway for a couple of hours a day, you are probably unlikely to be looking at a 3 cylinder car the size of this, unless such conditions in such a small car suit you.

I couldn't hack one of these superminis every day. However, if I was just using for a few miles here and there would suit me down to the ground. I also wouldn't put kids in the back if I was doing out of twon above 30mph stuff regularly - seems to be very little room between their heads and a rear impact. Again, if merely bumbling at 20mph around town is all you do with your kids in the back it removes the likelihood of a high speed rear impact.

GunJack

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