Eternally in the red.

smokingsxr1000

enthusiastic saver:

It's actually doing something sat as a very expensive paperweight up against the garage door adding additional security for there has been a spate of burglaries in our area recently and all my bikes are stored in there.

Ilona

Cross posted, I will never understand the figures on lease cars, having always saved up and paid cash for my cars.
Ilona

smokingsxr1000

Iiona

My logic is watertight. It would cost vastly more to run the lease car over the cheap runabout than to have it sat on my drive not doing anything, fixed costs have and will be met from income and not additional borrowings. The new car was bought in the last quarter as pricing was inevitably going to rise post Brexit which it did by £400 plus the savings were much narrower (sourced via an online broker with big savings no longer offered).

My leasing costs had come down anyway from £800 a month five years ago to £650 then £380 so I'm playing the long game.

Ilona

smokingsxr1000 wrote: »

Iiona

My logic is watertight. It would cost vastly more to run the lease car over the cheap runabout than to have it sat on my drive not doing anything, fixed costs have and will be met from income and not additional borrowings. The new car was bought in the last quarter as pricing was inevitably going to rise post Brexit which it did by £400 plus the savings were much narrower (sourced via an online broker with big savings no longer offered).

My leasing costs had come down anyway from £800 a month five years ago to £650 then £380 so I'm playing the long game.

If you are happy with that, perhaps you could look to other areas where you might cut down on your spending. Posting up a Statement of Affairs is a good start, then the good people on here could offer you some pointers of where you could tweak your budget.
http://www.stoozing.com/calculator/soa.php

Ilona

MrsTinks

Ilona wrote: »

Cross posted, I will never understand the figures on lease cars, having always saved up and paid cash for my cars.
Ilona

And that's definitely one way of doing it - but not one that works for everyone

I don't.

I view my cars as an expense and budget line. I know the monthly payment I am working with, I know they have warranties and included services and I know any depreciation will not be my problem as I usually hand my cars back. I need to have very reliable cars for my job, I do long journeys and I have no intention of trying to do my job with a car that I don't know will start every single morning.

I'm not saying saving for a car is wrong, what I'm trying to say is that everyone has different reasons for the way they finance some things in life.

I used to save up for cars, found that I lost way more on them that way when they depreciated than letting the finance company carry the depreciation risk. So for me this is the sensible financial option

Drawingaline

Sounds like our have a plan in place, however keeping the momentum going in the long run can be an issue.

For me turning 40 in debt still, and a loss of a wage has been my wake up call. My soa is tight but overpaying the debt is making me happy.

Keep on top of it, definitely post up your soa if you feel able to, the more experienced people here will cast an eye and give you some pointers on areas you may be able to save money on.

Good luck

dieselv2

The car that's £118 how long is that for til it's paid?

Ashingtonian

dieselv2 wrote: »

The car that's £118 how long is that for til it's paid?

If its on a PCP I think it will be over 36 or 42 months with a final balloon payment at the end. This is the way most new cars are financed nowadays.

EssexHebridean

smokingsxr1000 wrote: »

I've bought myself a cheap car (£118/month)

Car PCP £8,750 @ 0% £118 x 42 plus balloon <£4k

OK - I think we've found your problem. You have NOT bought yourself a cheap car. My OH's car is a "moderately cheap" car - we paid £2,000 for it. So far it has given us over 2 years, and about 40k miles of relatively untroubled motoring.

What you have done is financed yourself a quite pricey car for someone who is in debt already - and at the moment, in a few years time, when the payments are up on it, you stand little chance of having the balloon payment needed to actually turn the car which is currently, in real terms, simply loaned to you, into YOUR car.

Your reasons for doing what you've done, I sort of understand, but if you're fooling yourself that an £8.5k car is "cheap" then right there you have a reason why you owe money, I suspect.

"All your bikes" that are stored in the garage - are any of those saleable to help with your debt situation?

I agree with others who are saying get your SOA done so you can see where things REALLY are at. Remember when you assess your income for the purposes of a budget you need to really consider your figures, don't trip into basing it on a good-income month. Easy done, that!

dieselv2

cheap cars.... I paid £950 for a 2005 C-Max with 115,000 miles on the clock and not a damn thing wrong with it.

Are all your bike road/mountain bikes or motorbikes?