Is it any wonder people lease/PCP?

BOWFER

annabanana82 said:

There was a post the other day about someone with a car on PCP?? The turbo had gone and couldn't afford the repair and didn't really want to be paying for a car he could no longer use. 

If it's on PCP it should be under warranty.
I've seen PCP mentioned for older cars, especially ones that would be hard to shift otherwise, but it's still rare for anything other than new cars.

Herzlos

AdrianC said:

It is, but that simply isn't real-world likely...

Anyway... the difference there would be £540/year.

That's £45/month, which is 20% of the £230/month lease payment. Then there's likely a tax difference.
It's not a big deal in the grand scheme, but if you're working from a monthly budget.

AdrianC

Herzlos said:

AdrianC said:

It is, but that simply isn't real-world likely...

Anyway... the difference there would be £540/year.

That's £45/month, which is 20% of the £230/month lease payment. Then there's likely a tax difference.
It's not a big deal in the grand scheme, but if you're working from a monthly budget.

VED may very well work the other way - £150 for post-2017, £30 average for 2016 new cars.

Herzlos

AdrianC said:

Herzlos said:

AdrianC said:

It is, but that simply isn't real-world likely...

Anyway... the difference there would be £540/year.

That's £45/month, which is 20% of the £230/month lease payment. Then there's likely a tax difference.
It's not a big deal in the grand scheme, but if you're working from a monthly budget.

VED may very well work the other way - £150 for post-2017, £30 average for 2016 new cars.

But you're comparing a 15ish year old car, so 2006 which introduced the L/M bands (albeit they don't apply here, but if you're buying a banger you're buying largely on condition from a smaller market).
I haven't found figures but I assume most 2006-ish era cars will be in the £155-210 territory.

I mean, take the first car I found on autotrader, a 2002 Honda Civic 1.6, at £395 and ignore the fact it's a non runner:

https://www.autotrader.co.uk/car-details/202102068766977

Annual road tax is £250 and it gets a claimed 39mpg combined.

Grumpy_chap

Herzlos said:

a 2002 Honda Civic 1.6, at £395 and ignore the fact it's a non runner:

https://www.autotrader.co.uk/car-details/202102068766977

Annual road tax is £250 and it gets a claimed 39mpg combined.

So, what is the "real" difference in fuel economy between an old car and new?

I currently drive a 2007 Focus 1.6 petrol, actual economy achieved 42 mpg.
Previously, I was driving a 2014 Toyota Auris Hybrid, actual economy achieved 45 mpg.

Paying £250/month on a PCP to hope to make the saving back through fuel cost is not going to be realised.

Herzlos

Grumpy_chap said:

Herzlos said:

a 2002 Honda Civic 1.6, at £395 and ignore the fact it's a non runner:

https://www.autotrader.co.uk/car-details/202102068766977

Annual road tax is £250 and it gets a claimed 39mpg combined.

So, what is the "real" difference in fuel economy between an old car and new?

I currently drive a 2007 Focus 1.6 petrol, actual economy achieved 42 mpg.
Previously, I was driving a 2014 Toyota Auris Hybrid, actual economy achieved 45 mpg.

Paying £250/month on a PCP to hope to make the saving back through fuel cost is not going to be realised.

How long is a piece of string?
Generally, newer cars (after a suitable age gap, we're talking about 10-15 years) will be more fuel efficient, safer, more feature rich and nicer to drive. There's always going to be exceptions to that and it'll vary wildly based on driving style and what you want from a car.

I'm just pointing out that a newer car may not be much more expensive to run than an older one (and the difference may be small enough to justify the nicer car), but it's worth calculating a total cost of ownership. But then I went from old barges cost more to tax than they were worth and only did 20mpg, to hatchbacks 10 years younger.

dipsomaniac

BOWFER said:

dipsomaniac said:

Someone has to ask the question.  If Adrian's not going to ask I will.  Why get a car on credit when you can buy one for £200?

Someone has to say it, so I will.
Because it will look and drive like a piece of dung.

Not necessarily. I would much rather drive my 23 year old auto galaxy than my wife's brand new golf. & looks aren't everything unless you live in essex or staines😀

motorguy

annabanana82 said:

PCP/Lease may well be good until you lose your job or go on furlough. How many posts were there a year ago when people could no longer afford their repayments? Granted there were some holiday payments due to exceptional times but they aren't a given.

There was a post the other day about someone with a car on PCP?? The turbo had gone and couldn't afford the repair and didn't really want to be paying for a car he could no longer use. 

How many people are there on the DFW boards that have over committed themselves on lines of credit because they wanted the latest and best of everything?

PCP and leasing may have their place but they are no means the best thing to do.

There is no one size fits all "best thing to do".

For every individual who ends up with a problem on PCP theres at least as many having issues with some old banger they bought.

There will always be a small minority of people who over extend themselves - whether that be with credit cards, personal loans, a house, car purchase, etc, etc.  That doesnt mean any of them are wrong for people who use them correctly.

Credit in itself is not a problem - inappropriate use of credit is the problem.

fred246

Even I borrowed money once to buy a car. Paid off quickly though. Never again.

motorguy

fred246 said:

Even I borrowed money once to buy a car. Paid off quickly though. Never again.

Why?  What bad experience did you have that yielded that view?