The cost of small cars is no longer small!

motorguy

jaybeetoo wrote: »

So getting a car on PCP is stupid?

My current car is on PCP. I got it at a lower price than if I’d paid cash plus I got a £2000 deposit contribution plus 1 year free insurance plus a ridiculously low interest rate. I did the maths and I couldn’t have got a 1 year old car for less.

Exactly. The trick is to look at the entire picture, not just broad brush "oh a new car on PCP will be more expensive than a used car".

Might turn out not to be, but always worth checking

James2k

motorguy wrote: »

Massive final payments and low monthlies = result. :beer:

95% of people on a PCP deal hand the car back anyway.

A lot of people dont want to be bothered with running an older car so a PCP deal and a fixed monthly sum they can budget for makes sense.

I'm not saying you're wrong for your circumstances by the way, just that you're looking at it subjectively. Objectively, it can make a lot of sense for a lot of people (and clearly does).

clearly it does. have to keep up with the Joneses somehow. The reliability issue can make sense if you were talking really old cars, but if your car is 5 ish years old these days and serviced properly, its going to be fine.

And yes they hand back the car and take more finance, constantly paying interest. And we all see how good the 'budgeting' is when they subsequently lose their jobs etc and come on this forum to find out what to do after being left with no car and a debt.

If i was to get a brand new car, to be honest id lease it, some good deals out there.

I like tinkering with mine too much though hence the need to own it, i suppose its the difference between car people and people view them as merely tools.

All that said, do what makes you happy :A

James2k

motorguy wrote: »

Whilst you've saved on the interest payments, it wont stop your S5 depreciating at what can be roughly defined as a monthly amount anyway.

Maybe, depending on circumstances. However in my own specific case i'm keeping it for a long time, hence owning outright to be the best way for me.

I suppose however you cut it, if you want a new car every year or two you are going to pay for it, a lot.

motorguy

James2k wrote: »

clearly it does. have to keep up with the Joneses somehow. The reliability issue can make sense if you were talking really old cars, but if your car is 5 ish years old these days and serviced properly, its going to be fine.

I can never understand where that mentality comes from? Its usually reverse snobbery expressed of someone else - "oh he only got that to keep up with the Jones". Maybe people drive new cars because (a) it suits them to and (b) they want to? Maybe - like me - not one !!!! do they give about other people?

My nearest neighbour is 1/2 mile away and i couldnt even tell you what they drive let alone what their names are.

New cars can and do throw up big bills. My last Passat - bought at a year old from a main VW dealer - had a £2,250 DPF bill at 17 months old. Covered under warranty, but it wasnt a car i'd have any confidence in running outside warranty (nor any diesel cars IMHO)

Likewise A45's are reknowned for taking gearboxes and turbos, so once it hits its three year marker i think we'll move it on.

I think cars are white goods to the bulk of people - monthly payment and dont have to worry about it during that time. There is merit in that.

James2k wrote: »

And yes they hand back the car and take more finance, constantly paying interest. And we all see how good the 'budgeting' is when they subsequently lose their jobs etc and come on this forum to find out what to do after being left with no car and a debt.

No one "has" to take out another finance deal. They can if they want to, but no one has to.

And likewise the percentage of people who foolishly dont protect themselves with savings and / or insurance against redundancy are minimal. Certainly not representative of the vast bulk of car buyers out there.

James2k wrote: »

If i was to get a brand new car, to be honest id lease it, some good deals out there.

I like tinkering with mine too much though hence the need to own it, i suppose its the difference between car people and people view them as merely tools.

All that said, do what makes you happy :A

Funnily, its the one thing i havent done. I think i'd find it too constrained. But yes there are many good deals about.

Yes, i will. And i'll look at the best option to fund the purchase of any new car at the time without being blinkered against any one, as i have always done.

motorguy

James2k wrote: »

Maybe, depending on circumstances. However in my own specific case i'm keeping it for a long time, hence owning outright to be the best way for me.

I suppose however you cut it, if you want a new car every year or two you are going to pay for it, a lot.

Agreed

Whilst i dont think our A45 will be a long termer, i could see our Cooper S being kept indefinitely. I spec'd it exactly how i wanted it and love it to bits.

I think the A45 might be replaced by a Approved Used Boxster or Cayman, and again that might be a better long termer. Our last Boxster was an old thing but we'd a real hoot with it. There would be merit in buying a newish one and running it indefinitely.

James2k

motorguy wrote: »

I can never understand where that mentality comes from? )

if you are saying that people don't do that, then well don't know what to tell you! i don't think that it helps that the registration plate system discloses the age of the car, unlike pretty much everywhere else.

any new car at the time without being blinkered against any one, as i have always done. ;

yeah ill keep owning my car, and the world keeps turning

one irrefutable fact though, is that finance allows people who could never afford the car outright to 'borrow' it, whether they should or not, up to them.

James2k

one thing that i like about buying outright, which isn't really anything but a psychological thing which may or may not apply to you. is that the money i spent on the cars is gone now and forgotten, despite the fact that they were very expensive, the money isn't coming out every month constantly reminding me. ignorance is bliss? maybe

motorguy

James2k wrote: »

if you are saying that people don't do that, then well don't know what to tell you! i don't think that it helps that the registration plate system discloses the age of the car, unlike pretty much everywhere else.

Well maybe where you live its a thing but the vast majority of people i work with and live near dont give a jot about cars or how new they are.

James2k wrote: »

yeah ill keep owning my car, and the world keeps turning

No doubt, as it would if you financed it. Just saying i look at all the options for my projected needs. If you dont then fine

James2k wrote: »

one irrefutable fact though, is that finance allows people who could never afford the car outright to 'borrow' it, whether they should or not, up to them.

Agreed. Likewise mortgages allow people to get homes they couldnt otherwise afford.

Cars cost money and cars depreciate. If some people prefer to do that periodically as a lump sum compared to others who want to do so monthly then thats each persons prerogative.

motorguy

James2k wrote: »

one thing that i like about buying outright, which isn't really anything but a psychological thing which may or may not apply to you. is that the money i spent on the cars is gone now and forgotten, despite the fact that they were very expensive, the money isn't coming out every month constantly reminding me. ignorance is bliss? maybe

Yes, agreed. I take your point.

It does kick the can down the road though and maybe (or maybe not) theres a big shock at the end? Depend on what you bought it for and how long you keep it for i guess.

Theres a guy over on Pistonheads who has a 2012 BMW M5 that he had bought new, 70K miles, full BMWSH, went to trade it in for a new one @ £90,000 after discount - they offered him £12K for it!!! I'd have wrecked the place. :eek:

James2k

Well at least it was possible to have a civilised discussion about it