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

Penelopa.Pitstop

Strider590 wrote: »

Lease/PCP is a mugs game, I knew a few guys who bought the new Civic TypeR back in 2008, 2 months into their "deal" the company made everyone redundant, so they lost the cars and they had no transport for job searching.

If your not the boss of the company, then your expendable and expendable people are taking huge risks going into debt.

The argument for keeping cash in the bank is a moot point, your £150 a month would soon add up, plus bank interest rates are a complete joke.

Which means they couldn't afford it in a first place. Not for the people who don't have financial backup.

rudekid48

Strider590 wrote: »

Lease/PCP is a mugs game, I knew a few guys who bought the new Civic TypeR back in 2008, 2 months into their "deal" the company made everyone redundant, so they lost the cars and they had no transport for job searching.

If your not the boss of the company, then your expendable and expendable people are taking huge risks going into debt.

The argument for keeping cash in the bank is a moot point, your £150 a month would soon add up, plus bank interest rates are a complete joke.

You really need to get those chips on your shoulders seen to :rotfl:

I always lease cars, have zero interest in owning one, can comfortably afford the payments and see it purely as a mobility expense. This wouldn't suit everyone I know, but I'm no "mug". Some people see owning a car as an asset - I don't, I see it purely as a means to get from A - B. What I lease every 2 years depends on what deals are around at the time and which models I like the look of.

Just because it's not for you does not make you in some way superior or give you the justification to sneer at people that use leasing or PCP. Each to their own.

Lizabeth21

We have a new car which we have saved for- priorities as commented above. It's ours and not leased.

wymondham

Horses for courses....

I always lease as I don't want to own a car, but i'd like use of one. Its one monthly payment and that includes use/tax/servicing/tyres/repairs etc.... plus I just hand it back after 3 years when its looking a bit tired, in need of an MOT and before all the flashy stuff starts to go out of date/fail..!

Cars lose so much money its seems odd to want to own one? With leasing someone else takes the loss.

Buy stuff that appreciates and lease stuff that depreciates.... i'm sure I heard this from some wise person (probably a millionaire!)

martinsurrey

ratrace wrote: »

There are some really good lease deals out there, a mate of mine has the golf r dsg which is about £30k+ rrp but he is only paying £250 a month via his bussiness, So driving around in a really nice top spec car for only £250 a month allows him to get the best of both worlds a nice car and the other cash he can keep in stock, instead of having a hugh lump sum all in a car from a cash flow point of view it makes sense

this lease will be a 24+12, on very low mileage (like 5k per year).

so he paid around £3k+vat up front and 6k+vat over the lease, meaning £9k+vat in total

You can pick up a NEW golf R 2.0 DSG for £22k,

meaning he is paying 41% of the cars value, for 2 years limited use.

http://www.buyanewcaronline.co.uk/volkswagen/golf/golf-diesel-hatchback/2.0-tdi-rline-5dr-dsg/

ratrace wrote: »

i have another mate who is a mechanic for vw he has a new golf gtd and is only paying £150 a month to lease it which is a great deal.

working for car companies you get great deals, one of my friend is an accountant for BMW and the string of cars is pretty tasty.

wgl2014

wymondham wrote: »

Cars lose so much money its seems odd to want to own one? With leasing someone else takes the loss.

Buy stuff that appreciates and lease stuff that depreciates.... i'm sure I heard this from some wise person (probably a millionaire!)

Effectively on a lease you are paying the depreciation along with a fee to the lease company. Doesn't mean it's a bad deal and if you want a new car every 3 years is likely to be a good option.

Bear in mind that cars depreciate heavily to start off with and then more slowly as they age. If you don't mind a slightly older car you could buy a 3 or 4 he old model outright for roughly the same cost as leading a new one.

buglawton

The routes to my relatives, superstores and work are all non-enjoyable to drive on. So my goal is to pay as little as possible to run a 'competent' motor. It needs to have 6 speaker audio and aircon is all. Were I to lease I'd be paying 3 times as much per month (don't do my own servicing apart from occasional 'quick fix').

motorguy

JamesFuller wrote: »

I see so many people on the road driving expensive SUV's or new even moderate cars that set you back £30k.

And most of them have normal jobs it seems. How can they afford such cars / lifestyle? Spending £30k to £60k on cars seems steep on such an average income.

I am just curious how they do it.

Maybe they earn more than you think?

Likewise getting a £30K for £200 odd a month isnt that difficult on a lease or PCP deal.

motorguy

Strider590 wrote: »

Lease/PCP is a mugs game, I knew a few guys who bought the new Civic TypeR back in 2008, 2 months into their "deal" the company made everyone redundant, so they lost the cars and they had no transport for job searching.

If your not the boss of the company, then your expendable and expendable people are taking huge risks going into debt.

The argument for keeping cash in the bank is a moot point, your £150 a month would soon add up, plus bank interest rates are a complete joke.

As has already been said, it would be very foolish to take on a PCP or lease deal with no money in the bank to make the payments if something unexpected happens.

I guess redundancy insurance if you dont have the confidence in your skillset to know you can get another job quite quicky.

rudekid48

martinsurrey wrote: »

this lease will be a 24+12, on very low mileage (like 5k per year).

so he paid around £3k+vat up front and 6k+vat over the lease, meaning £9k+vat in total

You can pick up a NEW golf R 2.0 DSG for £22k,

meaning he is paying 41% of the cars value, for 2 years limited use.

http://www.buyanewcaronline.co.uk/volkswagen/golf/golf-diesel-hatchback/2.0-tdi-rline-5dr-dsg/

working for car companies you get great deals, one of my friend is an accountant for BMW and the string of cars is pretty tasty.

This is true, but can work out different for higher OTR specs. My current car has an OTR price of £44k and over the first 2 years would probably cost another £1k in servicing / tyres. The equivalent at 2 years old with the mileage that I would do is around £29k - so a depreciation of circa £15k + £1k servicing etc.

Over the course of the lease I will pay just under £12.5k. So for me it works vs buying. Appreciate it doesn't always work though. As someone else posted - it's horses for courses...