What % of disposable income to spend on car?

iwb100

mrsmortgage said:

My pension is kind of laughable at this point, but given I'll move back one day to sunny MX, that money will be more than enough.

Currently our joint income is of £100k, 75% of that being my income.

Thanks to COVID I don't have to worry about working remotely, so I think I'm ok for my line of work.

I've got about 500k tied in overseas property.  And I'll be getting £75k in the upcoming months (thus thinking about the car). 

The good thing about committing now to the car is that you can cancel at any given moment in the next 6-9months. Basically as long as the cas hasn't been shipped. 

Your income isn’t that relevant and doesn’t seem that high to me to be considering a lease contract of around £600-£1000 per month plus a sizeable up front deposit (9 months) depending upon which car you go for. You will also no doubt wait in excess of a year for any of these cars on lease if not longer.

How old are your kids? I assume you have a few if looking at large SUVs. I only ask to see what the term you would lease over might be. 

mrsmortgage

I have two kids and a dog. We're sometimes a family of 6. But this car is for me, so a 2yo and the dog and myself are the primary users of this car. 

mrsmortgage

I've been able to get deals with a deposit of £4k and monthly payments of around £500. It includes maintenance and gap insurance. 

Yes I'm aware of the waiting times, I actually see it as a bonus!

iwb100

mrsmortgage said:

I've been able to get deals with a deposit of £4k and monthly payments of around £500. It includes maintenance and gap insurance. 

Yes I'm aware of the waiting times, I actually see it as a bonus!

I mean sure. The reality is you might never actually get a car though. But if you are going in knowing that possibility then it’s fine. Given the backup for these cars and having spoken to a few dealers in the VAG then many lease orders will likely never be fulfilled. 

mrsmortgage

Yes, I'm fine with that. We don't have gym memberships and I don't spend on things like nails/hair. Which does help with affordability

iwb100

mrsmortgage said:

Yes, I'm fine with that. We don't have gym memberships and I don't spend on things like nails/hair. Which does help with affordability

Have you looked into what charges you face for cancelling the lease order should there be a significant delay in production or should you just want to change your mind?

mrsmortgage

iwb100 said:

mrsmortgage said:

Yes, I'm fine with that. We don't have gym memberships and I don't spend on things like nails/hair. Which does help with affordability

Have you looked into what charges you face for cancelling the lease order should there be a significant delay in production or should you just want to change your mind?

I've asked about that zero penalty  up to moment of shipping. 

iwb100

mrsmortgage said:

iwb100 said:

mrsmortgage said:

Yes, I'm fine with that. We don't have gym memberships and I don't spend on things like nails/hair. Which does help with affordability

Have you looked into what charges you face for cancelling the lease order should there be a significant delay in production or should you just want to change your mind?

I've asked about that zero penalty  up to moment of shipping. 

That’s very unusual. I’d check the T&Cs reflect that and make sure it’s clear and in writing that they will return all deposits and fees up until that point. 

Normally once a lease company sends a factory order to the manufacturer there are penalties for cancelling or at least it used to be that way.

Id be very sure on that. Perhaps in this environment they don’t care because they can lease it to someone else anyway but I’d definitely check that’s either in a written contract or sent to you written down. 

mrsmortgage

iwb100 said

That’s very unusual. I’d check the T&Cs reflect that and make sure it’s clear and in writing that they will return all deposits and fees up until that point. 

Normally once a lease company sends a factory order to the manufacturer there are penalties for cancelling or at least it used to be that way.

Id be very sure on that. Perhaps in this environment they don’t care because they can lease it to someone else anyway but I’d definitely check that’s either in a written contract or sent to you written down. 

I've asked at every single dealership (Volvo, Land Rover, Audi, etc) and they all have the same policy. 

iwb100

mrsmortgage said:

iwb100 said

That’s very unusual. I’d check the T&Cs reflect that and make sure it’s clear and in writing that they will return all deposits and fees up until that point. 

Normally once a lease company sends a factory order to the manufacturer there are penalties for cancelling or at least it used to be that way.

Id be very sure on that. Perhaps in this environment they don’t care because they can lease it to someone else anyway but I’d definitely check that’s either in a written contract or sent to you written down. 

I've asked at every single dealership (Volvo, Land Rover, Audi, etc) and they all have the same policy. 

I’ve never had anything from a main dealer that suggests you can cancel and get your deposit back. The reality is in many cases they will do this as they know they can sell the car to someone else. But I’m willing to bet the documents you sign will state that the deposit won’t be returned for a cancelled order.