The cost of small cars is no longer small!

motorguy

James2k wrote: »

very true man, very true.

Loving how you missed out another pertinent bit - "we can only change our own circumstances and let people be "

Not up to us to take what works from our own perspective and then judge others based on it.

For the record - i dont have a PCP deal, i dont have credit card debt and i dont have an overdraft, so i'm not defending PCP deals because its what i do - i am merely attempting to be objective and show that there are various options that work for various people at various times.

James2k

motorguy wrote: »

BUT - not for me to judge

no that's my job!

I just think that in the job situation, it would be made a whole lot more worrying with extra things like a car payment every month as well as the usual food and warmth stuff. I respect people who could do any sort of job if they lost theirs, i really do, because i'm not sure i could. I mean, id have to, if the savings ran out, but you get what i'm saying.

I'm still on an iphone 5s! I used to change my phone every year to have the latest and greatest, but the realisation that all i use it for is a bit of browsing, emails calls whatsapp etc. Negated the need to get anything newer. when it dies ill be going back to Android anyway. (my first and last iphone. It was ok, did the job, but too closed off for me)

James2k

motorguy wrote: »

Loving how you missed out another pertinent bit - "we can only change our own circumstances and let people be "

Nothing wrong with some selective quoting, works for politicians and newspapers!

Maybe i'm still on my journey, while ratrace and yourself have already reached enlightenment:beer:

motorguy

James2k wrote: »

no that's my job!

I just think that in the job situation, it would be made a whole lot more worrying with extra things like a car payment every month as well as the usual food and warmth stuff. I respect people who could do any sort of job if they lost theirs, i really do, because i'm not sure i could. I mean, id have to, if the savings ran out, but you get what i'm saying.

I'm still on an iphone 5s! I used to change my phone every year to have the latest and greatest, but the realisation that all i use it for is a bit of browsing, emails calls whatsapp etc. Negated the need to get anything newer. when it dies ill be going back to Android anyway. (my first and last iphone. It was ok, did the job, but too closed off for me)

Yup. I wouldnt like to be on the edge as it were with monthly outgoings, some people are, but the reality is, they get by...

I'm an IT contractor so very used to flexible working - fixed term contracts on one weeks notice and maybe some down time between contracts, so i guess i'm used to it. I've never had to fall back on a basic job role, but i'd do it if i had to. I've significant savings to cover down time and my wifes salary could cover our joint outgoings if needs be, but i suspect my wife might get bored with that after a month or two even though i probably wouldnt....

motorguy

James2k wrote: »

Nothing wrong with some selective quoting, works for politicians and newspapers!

Maybe i'm still on my journey, while ratrace and yourself have already reached enlightenment:beer:

lol. its a combination of trying to be objective about what other people do and on the other hand really not caring what they do....:p

reeac

motorguy wrote: »

Why?

People get paid monthly, and all their other bills come out monthly, so why not pay for your car monthly? Budget a certain amount that you can afford and shop around for the best deal. Hassle free motoring. Works for a lot of people...

In the good old days that was called "living hand to mouth".

NBLondon

reeac wrote: »

In the good old days that was called "living hand to mouth".

I thought that phrase meant that as soon as the money came in it had to go out again to pay for the next day's groceries i.e. there is no safety buffer, no savings or second income i.e. loss of one week's or month's pay had an immediate impact. Which is james2k's point - that there are people who do live like that; even when the income level is relatively high, so are the outgoings - particularly rent - for some people. Hence, a short-term drop in income has a bigger impact. motorguy knows this and plans for variable income (and I've done that in the past but decided I'd rather have the security of a full-time contract). Some don't and have always lived on credit of one form or another - whether it be from necessity or habit. Sometimes it started with credit at the ever-popular Bank of Mum and Dad...

Back to the original question... I wonder if it's tied up to the fact that small cars have continually got bigger and higher-spec over the last few decades until a new small model is added at the bottom. Compare, say a current Fiesta with a 70s or 80s version. Other brands slipped in underneath to be cheap and cheeerful options but they have moved up a bit as well - compare a current Kia or Hyundai with the 90s versions. Our OP thinks Dacia will go the same way. Will Chinese brands take that market slot next?

motorguy

reeac wrote: »

In the good old days that was called "living hand to mouth".

Only if you have a chip on your shoulder and view it like that.

Assigning a certain amount to a car payment based on knowing how much expendable income you have and still having a decent buffer is not "living hand to mouth".

motorguy

NBLondon wrote: »

I thought that phrase meant that as soon as the money came in it had to go out again to pay for the next day's groceries i.e. there is no safety buffer, no savings or second income i.e. loss of one week's or month's pay had an immediate impact. Which is james2k's point - that there are people who do live like that; even when the income level is relatively high, so are the outgoings - particularly rent - for some people. Hence, a short-term drop in income has a bigger impact. motorguy knows this and plans for variable income (and I've done that in the past but decided I'd rather have the security of a full-time contract). Some don't and have always lived on credit of one form or another - whether it be from necessity or habit. Sometimes it started with credit at the ever-popular Bank of Mum and Dad...

Agreed

NBLondon wrote: »

Back to the original question... I wonder if it's tied up to the fact that small cars have continually got bigger and higher-spec over the last few decades until a new small model is added at the bottom. Compare, say a current Fiesta with a 70s or 80s version. Other brands slipped in underneath to be cheap and cheeerful options but they have moved up a bit as well - compare a current Kia or Hyundai with the 90s versions. Our OP thinks Dacia will go the same way. Will Chinese brands take that market slot next?

The particular car in question is a relatively high spec diesel engined variant which can be had heavily discounted.

If you look at historic prices though they are not that far away from current prices, once you factor in inflation but modern cars are safer for the driver and other road users, much higher spec'd in general and have lower emissions.

giraffe69

The upsides of PCP are that it
1. makes cars more affordable for those who haven't got cash upfront
2. easy for those who wish to change every 3 years or so
3. some offers of deposit contribution to offset interest
4. Predictability of monthly amount
but downsides appear to be
1. Interest
2. Cost of early redemption
3. Extra costs e.g. Gap Insurance
4. Being tied into existing dealer/brand unless an effort is made
5. Worry about annual mileage
6. Worry about suggested damage at time of returning car

Happy if others added to either side of this list as I'm going to buy a new car in the next six months and guess I'm a bit prejudiced against it as a payment model probably not yet having done it.