Car advice

[Trackdaybob]

9 minutes ago, Gaz FFC said:

I keep seeing/hearing  all these renting deals on the TV/Radio and can anyone tell me what the attraction is?

The price you pay seems ridiculous considering you own nothing and I can only compare it to Renting instead of a mortgage.

Am I missing something?

Not really but the demographic is shifting. The dealers are taking advantage of that. They're only offering what the customer wants. A lot of people are just looking at the monthly cost (same as their rent, phone, etc) and no giving a f**k about the actual outright cost of owning or actually owning whether it is a good deal or not in any way, shape or form.

I bought my car outright because I wanted to own it. Just the way I've been brought up really. I own all my vehicles.

The young lads at work were like "but Bobby, you could have this, or this, or that". I could but I'd not own any of them. They don't think of it that way, they drive around in their 16,17+18 plate motors with not a care about the actual cost of owning them. All they care about is what they can afford each month and what it gets them.

Mrs TDB's 15 year old daughter is the same. Doesn't matter what it is, it's all about "it only costs £xxx a month". I bought Mrs TDB a 15 plate Suzuki Swift a while back. Daughter wanted us to 'buy' a Fiat 500 because "it's only £xxx a month so you can afford it". 

It's all about the monthly payment these days. 

 

[Al B]

25 minutes ago, Gaz FFC said:

I keep seeing/hearing  all these renting deals on the TV/Radio and can anyone tell me what the attraction is?

The price you pay seems ridiculous considering you own nothing and I can only compare it to Renting instead of a mortgage.

Am I missing something?

It's basically a way of getting a car that you couldn't ordinarily afford, for a price that you can.

If a car is worth 30k, then the payments on that amount of finance or loan would be beyond many people. With these deals, you are only taking finance to the value of it's projected depreciation over the term of the deal, as opposed to the full value of the car. If you took the deal over 48 months, they would project what the value of the car would be after that, and your monthly payment would be the difference, divided by 48.

You then have the option to pay the remaining value of the car at the end of the period if you want, and then it's yours.

Edited April 16, 2018 by Al B

[Shandon Par]

33 minutes ago, throbber said:

As I said previously i was thinking of getting a car on PCP as you pay a smaller deposit and smaller monthly repayments but the more I have been looking at deals the less attractive an offer it seems. For example I could get a £9k car with £300 down and £160 a month repayments on a 4 year pcp deal and by the end of that term I would have paid about £7000 for a car that I won’t own after it. I’m now thinking for of putting down a deposit of £1000 and taking out a bank loan and buying a £8000 car at cash price. What sort of monthly repayments would I have on that sort of loan and what interest rates would I pay on that in comparison to a pcp deal or hire purchase deal? I have never taken a loan out before.

I suppose the attraction of a PCP is all you're really paying is the depreciation. Finding something nearly new or with a big chunk of money off (eg a pre registered car) that will hold its value well can get you a much higher spec car than you'd be able to afford otherwise and are never going to have to think about big repair bills etc. After 3 years (for example) you might want to shell out the big whack of money to keep it or simply trade it in an do the same again. 

[Homer Thompson]

34 minutes ago, Gaz FFC said:

I keep seeing/hearing  all these renting deals on the TV/Radio and can anyone tell me what the attraction is?

The price you pay seems ridiculous considering you own nothing and I can only compare it to Renting instead of a mortgage.

Am I missing something?

Its not comparable to renting instead of a mortgage. If you buy a house you expect the value of it to go up and, once you've paid off the mortgage, you have an asset worth more than you paid (in most cases anyway). A car loses a huge chunk of its value as soon as you buy it and continues to lose value the more you drive it. While theres always a chance the value of your house will go down, theres no chance the value of your car is going up.

10 minutes ago, Trackdaybob said:

Not really but the demographic is shifting. The dealers are taking advantage of that. They're only offering what the customer wants. A lot of people are just looking at the monthly cost (same as their rent, phone, etc) and no giving a f**k about the actual outright cost of owning or actually owning whether it is a good deal or not in any way, shape or form.

I bought my car outright because I wanted to own it. Just the way I've been brought up really. I own all my vehicles.

The young lads at work were like "but Bobby, you could have this, or this, or that". I could but I'd not own any of them. They don't think of it that way, they drive around in their 16,17+18 plate motors with not a care about the actual cost of owning them. All they care about is what they can afford each month and what it gets them.

Mrs TDB's 15 year old daughter is the same. Doesn't matter what it is, it's all about "it only costs £xxx a month". I bought Mrs TDB a 15 plate Suzuki Swift a while back. Daughter wanted us to 'buy' a Fiat 500 because "it's only £xxx a month so you can afford it". 

It's all about the monthly payment these days. 

 

Whats the massive advantage of owning a car?

9 minutes ago, Al B said:

It's basically a way of getting a car that you couldn't ordinarily afford, for a price that you can.

If a car is worth 30k, then the payments on that amount of finance or loan would be beyond many people. With these deals, you are only taking finance to the value of it's projected depreciation over the term of the deal, as opposed to the full value of the car. If you took the deal over 48 months, they would project what the value of the car would be after that, and your monthly payment would be the difference, divided by 48.

You then have the option to pay the remaining value of the car at the end of the period if you want, and then it's yours.

This. I'm coming to the end of a 3 year lease and its been great. I've had a much, much nicer car than I would have been able to afford to buy and with the maintenance option its been serviced every year and had two sets of new tyres without paying any extra.

[Al B]

Indeed. I've just done it for the first time and take delivery next month. As I also wanted to keep my old car I was able to negotiate a monthly cost that meant I didn't need an initial deposit. I also don't do very many miles per year compared to most, so in the opposite direction I was able to negotiate the monthly cost to reflect that too. It's great to be able to customise the deal to suit your needs.

[Trackdaybob]

1 minute ago, Mr X said:

Whats the massive advantage of owning a car?

I'm not sure there is one but it's a nice car and it's mine. I like that. Owning my vehicles hasn't done me any harm so far. 

Other options and opinions are available. It's pretty simple. If you're happy to run about in a lease car, carry on. 

[Homer Thompson]

5 minutes ago, Trackdaybob said:

I'm not sure there is one but it's a nice car and it's mine. I like that. Owning my vehicles hasn't done me any harm so far. 

Other options and opinions are available. It's pretty simple. If you're happy to run about in a lease car, carry on. 

I am. In your other post you seemed rather critical of those who didnt own their car

[strichener]

20 minutes ago, Mr X said:

...theres no chance the value of your car is going up.

 

Porsche have had a few cars where you could have kept them for a couple of months and then sold them for more than the list price.  This was due to the length of the waiting lists from Porsche for new cars.

[Al B]

When I get my new one, the main difference I can see so far is that if something goes wrong with both of them, I'll only have to pay to fix the one that's mine, and pay to put it through it's MOT every year with any associated work. Sure I own it, but the only benefit to that is that I'll get the money for it, but that will be nowhere near what I paid for it anyway, to the point where I don't really see the difference it makes in day-to-day terms.

[Trackdaybob]

1 minute ago, Mr X said:

I am. In your other post you seemed rather critical of those who didnt own their car

Oh dear, I'm so sorry, I didn't mean anything by it. If by having a different opinion from you is being critical so be it. I'll sleep ok tonight  

I said the buyers demographic has shifted, the dealers have cottoned on and that's pretty much it. Soon as that changes again, so will the dealers. 

I've noticed attitudes have changed towards owning (or not) IMO and also that I'm happy to continue owning my car's, bike's and van because that's what works for me at the moment. I'm say £400 a month better off if you like. In the future I may decide to go down the PCP route. At the moment, I'll carry on as I am. 

I call it as I see it. That's all. Don't mean I'm right  Usually I am though  

 

 

[strichener]

1 hour ago, throbber said:

As I said previously i was thinking of getting a car on PCP as you pay a smaller deposit and smaller monthly repayments but the more I have been looking at deals the less attractive an offer it seems. For example I could get a £9k car with £300 down and £160 a month repayments on a 4 year pcp deal and by the end of that term I would have paid about £7000 for a car that I won’t own after it. I’m now thinking for of putting down a deposit of £1000 and taking out a bank loan and buying a £8000 car at cash price. What sort of monthly repayments would I have on that sort of loan and what interest rates would I pay on that in comparison to a pcp deal or hire purchase deal? I have never taken a loan out before.

I am not sure what PCP deal you are looking at or what miles etc. the deal is for but the interest rate on that deal is abysmal.   On PCP deals, there are two things that affect the deal;

1. The future guaranteed value.
2. The interest rate.

Get a high 1. and a low 2. and there is no better way of purchasing a new car.

Edited April 16, 2018 by strichener

[Al B]

 

9 minutes ago, Trackdaybob said:

Oh dear, I'm so sorry, I didn't mean anything by it. If by having a different opinion from you is being critical so be it. I'll sleep ok tonight  

I said the buyers demographic has shifted, the dealers have cottoned on and that's pretty much it. Soon as that changes again, so will the dealers. 

I've noticed attitudes have changed towards owning (or not) IMO and also that I'm happy to continue owning my car's, bike's and van because that's what works for me at the moment. I'm say £400 a month better off if you like. In the future I may decide to go down the PCP route. At the moment, I'll carry on as I am. 

I call it as I see it. That's all. Don't mean I'm right  Usually I am though  

 

 

You're not really £400 a month better off though, as you still had to pay for your car at some point. Although you had the money in the bank to pay for it up front, you had to put it there in the first place rather than spending it on something else. your 3/400 pounds per month were put by in one way or another before you got your car, ours is being put by after we got it. You're not really saving anything....just changing the timing of allocating it to a car purchase.

Edited April 16, 2018 by Al B

[Shandon Par]

31 minutes ago, Mr X said:

While theres always a chance the value of your house will go down, theres no chance the value of your car is going up.

 

Unless it was a 1M BMW. I'd tried to get the missus to get one but she thought they were ugly so got an M135i instead. The other day she saw a 1M and said "ooh that's nice, what is it?". It's worth nearly double what they cost when they were new in 2012/13. 

[Homer Thompson]

 

13 minutes ago, Trackdaybob said:

Oh dear, I'm so sorry, I didn't mean anything by it. If by having a different opinion from you is being critical so be it. I'll sleep ok tonight  

I said the buyers demographic has shifted, the dealers have cottoned on and that's pretty much it. Soon as that changes again, so will the dealers. 

I've noticed attitudes have changed towards owning (or not) IMO and also that I'm happy to continue owning my car's, bike's and van because that's what works for me at the moment. I'm say £400 a month better off if you like. In the future I may decide to go down the PCP route. At the moment, I'll carry on as I am. 

I call it as I see it. That's all. Don't mean I'm right  Usually I am though  

 

 

So, theres no real benefit to owning a car? Glad we got that sorted

I just had a very quick check. To get a loan for what I've spent on the lease would cost about £50 a month more than the lease costs. I'd be driving a car worth a third of the one Im driving now and would have to pay for servicing, MOT, tyres, repairs etc.

As Al said, you're only better off because the money was there before.

15 minutes ago, strichener said:

Porsche have had a few cars where you could have kept them for a couple of months and then sold them for more than the list price.  This was due to the length of the waiting lists from Porsche for new cars.

3 minutes ago, Shandon Par said:

Unless it was a 1M BMW. I'd tried to get the missus to get one but she thought they were ugly so got an M135i instead. The other day she saw a 1M and said "ooh that's nice, what is it?". It's worth nearly double what they cost when they were new in 2012/13. 

OK, so there are exceptions and some cars go up in value. Very few though.

[thistledo]

On the Lease/PCP v Buy debate, there's usually no right or wrong answer. There's so many variables, that will mean more often than not, it's luck or your own research that will dictate what was more financially beneficial.

[Rugster]

10 minutes ago, thistledo said:

On the Lease/PCP v Buy debate, there's usually no right or wrong answer. There's so many variables, that will mean more often than not, it's luck or your own research that will dictate what was more financially beneficial.

Maybe you could use your car to drive over TO KEBAB MAHAL AND REPORT BACK!!! 

 

[thistledo]

4 minutes ago, Rugster said:

Maybe you could use your car to drive over TO KEBAB MAHAL AND REPORT BACK!!! 

 

Aw fucking hell man, actually laughed quite a lot at that. I'm gonnae go man, honest. Probably. 

[welshbairn]

Buy a 3 year old car with low mileage, shell out for extended warranty, run it into the ground and scrap it, repeat.

[D.A.F.C]

Turn down the finance put the warranty on full blast.

[RandomGuy.]

3 hours ago, throbber said:

As I said previously i was thinking of getting a car on PCP as you pay a smaller deposit and smaller monthly repayments but the more I have been looking at deals the less attractive an offer it seems. For example I could get a £9k car with £300 down and £160 a month repayments on a 4 year pcp deal and by the end of that term I would have paid about £7000 for a car that I won’t own after it. I’m now thinking for of putting down a deposit of £1000 and taking out a bank loan and buying a £8000 car at cash price. What sort of monthly repayments would I have on that sort of loan and what interest rates would I pay on that in comparison to a pcp deal or hire purchase deal? I have never taken a loan out before.

I got a bank loan to buy my car. £10k over five years comes to £180pm

2 hours ago, Mr X said:

 

Whats the massive advantage of owning a car? 

All personal preference. I can repair my car myself for almost nothing. To buy the car I wanted I was going to be making payments over five years. I decided a bank loan, buy it outright, own the car, was the best approach. As if any financial difficulties come my way a few years down the line I can sell the car, get all the money and use it to help. A finance deal wouldn't allow me that. 

2 hours ago, Shandon Par said:

Unless it was a 1M BMW. I'd tried to get the missus to get one but she thought they were ugly so got an M135i instead. The other day she saw a 1M and said "ooh that's nice, what is it?". It's worth nearly double what they cost when they were new in 2012/13. 

M135is are absolutely filthy cars. Ten years down they'll be classics.