How do people afford £30k-£60k cars with normal jobs?

qwert_yuiop

motorguy wrote: »

Quite possibly.

Yes, some people do over stretch themselves to drive a nice car when they dont need to, but likewise a lot of people are earning a decent living and chose to drive a nice car out of a small percentage of their net pay.

Clearly theres a balance to be had however thats up to each individual to find, its not up to any of us to set ourselves up as judge on other peoples lives.

I've ran older cars before - up to 6 months ago 2 of our 3 cars were 2004 however personally it was too much hassle for me so i chopped in two of them for something younger and less hassle. I work away from home a lot so wallying about after an old car holds no appeal and i value my free time far too highly.

Other people have different circumstances and different needs.

Each to their own. Its not up to me to judge if someone is "worthy" of that shiny new car at their door.

Someone has to spend money on cars, even if mse people don't - car makers depend on them.

By the way, 0.1% of people in the U.K. earn more than £350,000
Per year. I'm sure you agree that's a fair bit.

[Deleted User]

I'm propping up the manufacturing industry of Sunderland with my new purchase of a Nissan every 3 years!

I justify it by... well, I don't have to. I can afford my £340 monthly payments. We also run just one car but need it to be very reliable. I also like the new tech that new cars some with.

fred246

Part of my position is through planning and part is accidental. I earn good money so bought a nice house to bring a family up in. Property appreciates in value. I bought a nice car. I have had bad experiences with garages so I look after my own cars. Any service or repair is to a standard much higher than a garage would do. So my nice car stays nice and reliable. It is still the nice car I bought. So I keep it for years. One day I read Whatcar and realise how much people pay for a new car every 3 years. I have saved thousands. Enough to retire years early. I plan for early retirement. I then inherit some money and plan for very early retirement.

motorguy

fred246 wrote: »

Part of my position is through planning and part is accidental. I earn good money so bought a nice house to bring a family up in. Property appreciates in value. I bought a nice car. I have had bad experiences with garages so I look after my own cars. Any service or repair is to a standard much higher than a garage would do. So my nice car stays nice and reliable. It is still the nice car I bought. So I keep it for years. One day I read Whatcar and realise how much people pay for a new car every 3 years. I have saved thousands. Enough to retire years early. I plan for early retirement. I then inherit some money and plan for very early retirement.

And there we go - a good news story put in a way that is of use to people on MSE, without having to be condescending or smug about it. :beer:

Cornucopia

Frugality means different things to different people, and in that respect this topic always seems to stir up disagreement on these forums.

Personally, I sit somewhere in the middle - I do not think the buying new cars or using Finance/Leasing/PCPs to buy them is inherently wrong. However, I am keen on using the transparency of ownership costs presented by Leasing and PCPs to understand the exact financial impact of the agreement I am considering.

On the basis of my own, personal level of frugality, I am prepared to accept a cost of car ownership of around £2500 per year. In Lease/PCP terms that would equate to about £160pm with an initial payment of £1750. There are plenty of cars which can be obtained on those kind of figures.

I daresay I could afford something more expensive, but cannot face pushing the 3 year cost of ownership up past the £10k point, as it seems like a waste of money. Each to their own, and I think that if I had more of steady income stream, perhaps I would be more flexible with it.

Even now, it's probably only the clumsy sales approach of my local dealership that is standing in the way of an upsell to a bigger car in the same brand.

jimjames

FlameCloud wrote: »

I get a £400 car allowance a month (after tax) so in reality it costs me £145 a month.

It's one way of looking at it but it is still costing you £545 a month. I get a car allowance of £500, one month bought the car and every month afterwards is income for me to spend as I want.

Friend took out a similar deal to get car for their allowance. They were still tied in to it a few months later when they were made redundant.

Out of interest, how many people have emergency funds saved up? The figure often quoted is 70% of people have no savings or under £2000. Personally I prefer the security of knowing I can survive losing my job or boiler failure rather than having a brand new car.

zooks

motorguy wrote: »

Quite possibly.

Yes, some people do over stretch themselves to drive a nice car when they dont need to, but likewise a lot of people are earning a decent living and chose to drive a nice car out of a small percentage of their net pay.

Clearly theres a balance to be had however thats up to each individual to find, its not up to any of us to set ourselves up as judge on other peoples lives.

I've ran older cars before - up to 6 months ago 2 of our 3 cars were 2004 however personally it was too much hassle for me so i chopped in two of them for something younger and less hassle. I work away from home a lot so wallying about after an old car holds no appeal and i value my free time far too highly.

Other people have different circumstances and different needs.

Each to their own. Its not up to me to judge if someone is "worthy" of that shiny new car at their door.

Totally agree. I'm buying new on pcp because I can and I want to but is it moneysaving or the most efficient way to own a car?
No but its my choice just like the guys who want to lease or drive bangers etc
I am lucky enough to be able to pay it straight off but if someone wants to take a nice car on pcp/lease good luck to them and I hope they enjoy their choice.

As they say 'It would be boring if we were all the same'

seatbeltnoob

Great show: http://www.channel4.com/programmes/dispatches/on-demand/66549-001

basically, people are lured in by car salesman promising just £200 per month finance deals to drive brand new cars. The salesmen trick them into joining and lie to them about not paying a penny at the end of the contract when in fact they will have to pay for every single scratch on the car.

seatbeltnoob

motorguy wrote: »

I've ran older cars before - up to 6 months ago 2 of our 3 cars were 2004 however personally it was too much hassle for me so i chopped in two of them for something younger and less hassle. I work away from home a lot so wallying about after an old car holds no appeal and i value my free time far too highly.

I drive an old car, no turbo, dpf or dmf, just straight 4 pot car. It is old 2002 model and starting to really show age. Dont get me wrong, its reliable and will do 400 miles on a single run easily. But it's just not comfortable as newer cars on longer journeys, I want to get something a bit newer 2012 model but they are so unrelaible if the forums are to be believed.

I was looking into getting a new TDI and people say the modern diesels are money pits, turbos fail, DMF will go every 30K miles and if you're unlucky enoough the rattly DMF can take out the gearbox. There's too much to go wrong on newer cars. The fiel savings from newer diesels aren't worth the expensive wear and tear they are prone to.

RichardD1970

seatbeltnoob wrote: »

I drive an old car, no turbo, dpf or dmf, just straight 4 pot car. It is old 2002 model and starting to really show age. Dont get me wrong, its reliable and will do 400 miles on a single run easily. But it's just not comfortable as newer cars on longer journeys, I want to get something a bit newer 2012 model but they are so unrelaible if the forums are to be believed.

I was looking into getting a new TDI and people say the modern diesels are money pits, turbos fail, DMF will go every 30K miles and if you're unlucky enoough the rattly DMF can take out the gearbox. There's too much to go wrong on newer cars. The fiel savings from newer diesels aren't worth the expensive wear and tear they are prone to.

What people? I have ran diesels for years, latest a 64 reg Grand C-Max and never had a problem despite the driving pattern being the worst possible according to the "experts".