So then, what car are you buying next?

[Obbzi]

I asked for a quote for the Mk7 R, doing 20k miles a year........


£400 per month 

Think I will stick to buying cars rather than leasing 

[Raffe]

You are probably right, but if you've bought the car, you don't have to sell it after 2 years, therefore won't realise any lose.

What I don't like about leasing or PCP's is at the end of the term you have to either pay a huge chunk of money to keep it, or have to start the ball rolling all over again and get dripped up on another new car that you otherwise might not have thought about doing.

Thing is there are a large number of car buyers which purchase cars like white goods, which is exactly who the PCP market is aimed at, lowest monthly figure for a disposable item.

If you can afford the monthly outgoing its a relatively cheap way of owning a new car, it's ultimately these types of deals which has strengthened the uk car market.

[dubber36]

Except to my way of thinking, "owning" isn't quite the right word.

[Raffe]

You have a more traditional approach to car ownership....be thankful for these schemes as without the secondhand car market would be much slimmer with higher secondhand prices 

[dubber36]

Probably, but on the other hand, I think it gives manufactures the opportunity to inflate the retail prices of cars. For many, many people, when buying a car, it all boils down to how much the monthly payments are, not what the overall cost is should they decide to keep it, or not be able to take on another deal when their current one comes to an end.

Around 20 years ago I worked in car sales for Fiat and one of the first things I was told to try and get out of the customer was how much could they afford each month. When the first Cinquecento Sporting first came out the press was raving about them. One young lad came in desperate to buy one and told me that he could pay £150 a month. When I worked out the figures, with his deposit and our standard finance rate, he could have the car for £152 a month over 3 years. With an opportunity to earn some extra finance commission, I altered the figures so that he paid £140 a month, but over 4 years. He never even flinched, just signed the forms and off he went happy with his lower than expected monthly payments.

I'm not saying that everyone on hear is that gullible, but to many, monthly payments are all that matter...not just on cars either.   

[Raffe]

But why is that a problem?

How many people keep cars for more than 3/4 years...I would gamble the higher proportion of owners change at this frequency level.

Therefore why not pay nice manageable monthlies for the duration of your ownership and why would you tie up savings in a depreciating lump of metal? Plus if you are on a tight budget this type of ownership gives you security on your outgoings...older cars have a habit of springing comparatively large bills.

The reality is the general public have bought into this low cost way of buying new cars and I can't see that changing quickly.

[Jimmymature]

But why is that a problem?

How many people keep cars for more than 3/4 years...I would gamble the higher proportion of owners change at this frequency level.

Therefore why not pay nice manageable monthlies for the duration of your ownership and why would you tie up savings in a depreciating lump of metal? Plus if you are on a tight budget this type of ownership gives you security on your outgoings...older cars have a habit of springing comparatively large bills.

The reality is the general public have bought into this low cost way of buying new cars and I can't see that changing quickly.

I bought my GTI with my savings, never again......


Jim

[dubber36]

Therefore why not pay nice manageable monthlies for the duration of your ownership and why would you tie up savings in a depreciating lump of metal?

Because being self employed, my income can be extremely haphazard. Other than utility bills, I don't have monthly outgoings for anything. If I've got sufficient money to buy a new car, I'll buy one, knowing that there is no more to pay out. If I haven't got enough money, I'll wait until I have, driving round in my current car.

Also, if things go tits up, I'll still have my car without worrying about how I'm going to carry on paying for it. If things go beyond tits up, I've got a car to sell for it's full value, not just a small amount of equity.

People will no doubt prove that you can run a new car for 3 years on a PCP for less money that you could paying up front, loosing interest on your savings, than selling or px'ing it at 3 years old. However I prefer the piece of mind of doing it my way and not having my hand forced to make a decision about what to do at the end of a finance deal. I'm old, tight and set in my ways.

[Obbzi]

I am definitely in the owning a car party!

It is nice to be in a position where you have paid for a car (either a loan or cash etc) and then eventually driving it without any loan payments etc so you can save money! Also if some unforseen circumstances arrive and you need to get your hands on some money you can always sell the car 

[Booth11]

I am definitely in the owning a car party!

It is nice to be in a position where you have paid for a car (either a loan or cash etc) and then eventually driving it without any loan payments etc so you can save money! Also if some unforseen circumstances arrive and you need to get your hands on some money you can always sell the car 

Me too.  Only ever bought cars outright.  I just don't think it would feel like it was your car if paying monthly for it.  Each to their own though.