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

bigadaj

thescouselander wrote: »

Why does spending have to be an investment anyway? Over the last year we must have spent nearly £8,000 on the weekly shop with b***er all to show for it (except for the family and I haven't starved to death). Not really an investment though and everyone does it.

Kind of puts the cost of a new car in context too.

Well don't spend the money then, you could no doubt have saved a considerable amount by being more selective, some of the relative over spend may be considered worthwhile, much won't have. Not everyone so ends £160 a week on their weekly shop, much as many people don't buy new cars, it's much the same issue.

Seems to add little to the debate, thing the debate is itself a little pointless. Spend money on what you want, just don't moan about it after the event.

motorguy

scd3scd4 wrote: »

The way I saw it you thought you were being funny at my dads expense but made a bit of a mug of yourself in the process. Sorry if my old mans finances make you a little insecure.

As you were quoting your dear old dad back from a time when people did buy on "the never never" - washing machines, TVs, clothes for that matter i was merely following that up with the vast likelihood at the time that people were in fact renting their own homes too. Drawing comparisons between buying on the "never never" back then compared to PCPing or leasing now was a feeble attempt by you to be derogatory so i thought i would turn that around and see how you liked it. Clearly you can dish it out, but cant take it.

Whilst you may hold your dads moderate success in high regard, all you've done is made them sound a bit like this...



And why would i feel insecure about what the elderly parent of a complete stranger on the internet? :rotfl: Just bemused by your attitude.

scd3scd4 wrote: »

Now if you don't mind I am trying to find a bit of bread and jam for dinner as I spunked all me money or a nearly new Passat. ;-]

Are you really trying to have a crack at me for NOT buying a car "on the never never"? Classic! You just like arguing on the internet, dont you? :rotfl:

For the record, the Passat is just my means to get me up and down to the airport or to client site - the mileage of which i charge back against my limited company. Our main car is our Mercedes A45 AMG. The Passat is just the grunt that lies at the airport and does dump runs, shopping runs, etc.

motorguy

Stoke wrote: »

Here's the thing.... There is a right answer. That answer is that if you buy a car, you should be able to sustain owning it.

Uh huh. And someone who leases or PCPs a new car can do that for the term to which they have agreed and committed to. Whats the issue? For the avoidance of doubt i have neither a PCP or a lease on a car BTW - however i can see why it may work for some people. I think they call it "being objective"?

Stoke wrote: »

When I talk about work colleagues being financed up to their eyeballs, these are people who if they lost their job, would be on the brink of meltdown. They are a redundancy away from being the next victims of "can't pay we'll take it away".

Well its sad that you have to scrutinise and judge your colleagues in such a way, just to justify your own life choices.

Stoke wrote: »

I am not saying that everyone on less than 30 grand should drive a 15 year old Mazda. They shouldn't however be exposing themselves to financial ruin though.

It seems these risks are not being properly explained.

Again, you seem to have intimate knowledge of all your colleagues finances, but i'd suggest if they truly are on a lowly wage, then they'd just get another dead end job in a week or two and continue. Not how i'd chose to lead my life, but redundancy does not equal financial ruin for anyone with even a tiny amount of get up and go and half a brain.

motorguy

scd3scd4 wrote: »

I work with one person who never seems to go on holiday and drives an average mid range PC. However the house is beautiful with all the latest fittings. Each person decides what's important in their lives and what you may see from the outside could well not be all that it seems or the full story.

Why do you even remotely care? What does it really matter what your colleagues do with their money? Why this "suspicion" about everyone else they "cant really afford it"?

motorguy

Stoke wrote: »

So they're investing in an appreciating asset?

Very smart.

Buying a MacBook Air from Brighthouse?

Dumb.

https://youtu.be/XI7FoCHJ01k

Yup. And noone is saying otherwise. Not sure how or why you seem to want to extrapolate dumb behaviours like that on to those who chose to PCP or lease a new car though?

qwert_yuiop

BeenThroughItAll wrote: »

Drives a PC?

That's a hard drive.

motorguy

Stoke wrote: »

Yup, invest in an asset that appreciates in value. Spending money to make money. What's more, they'll feel good going home every night. You might be able to sleep in a car, but you can't sit on a comfortable couch and watch TV.....

Theres a balance to be had though. We invest, have beautiful home which we had built 7 years ago and with a 35% LTV and dropping. We enjoy the nice things in life too. Whilst we dont finance them, i dont begrudge myself something new and nice because i can buy an old version on gumtree instead.

Stoke wrote: »

Buying a new car is rarely a good investment.

Agreed. However pretty much all cars depreciate and / or cost money. Some people chose to wrap that up in a monthly payment some dont.

Stoke wrote: »

Buying a new car when you can't really afford is just stupidity.

Agreed. And noone is saying otherwise.

motorguy

Mr.Generous wrote: »

Is there a tax benefit for the self employed to lease? I know we have a big increase in self employment or contract work - so called gig economy, I'm just wondering if some of the cost of transport can be offset as a business expense against tax?

My accountant tells me no, its better just to claim the mileage, which is what i do. 45p a mile for all business travel from my "office" (which happens to be home!)

Mr.Generous wrote: »

I have bought outright last couple of cars, I always bought used when I had a mortgage. I don't think its been good mse behaviour to buy new because of the depreciation.

MSE is not about eking out a life as cheaply as possible, its about getting what you want at the best price and setting that against a backdrop of affordability. You only have to look at the holiday threads / boards / offers, etc.

motorguy

bigadaj wrote: »

Spend money on what you want, just don't moan about it after the event.

Agreed, and dont judge others for how they chose to spend theirs

motorguy

scd3scd4 wrote: »

I purchased a new car because I wanted the colour, trim and spec I wanted. Ohh and a friend got me the family discount. ;-] I knew it was no investment.

So you bought the new car in the most cost effective way for you?

Yet you seem to have an issue when others do that for themselves, based on the options they have at the time?