Energy Prices

[DA Baracus]

Your bank details are not kept on your phone with mobile banking.

[Detournement]

11 minutes ago, oaksoft said:

It's going to be interesting to see if this precipitates a major house price crash if enough people desperately try to downsize at the same time.

That's not likely is it as every sale is also purchase and every person who downsizes has to find a house to buy.

No one is going to downsize due to interst rates unless it's the very final straw. Holidays, nights outs, new cars, new clothes etc will all be sacrificed before selling the house.

[Dawson Park Boy]

11 minutes ago, oaksoft said:

The only thing which matters is whether the forthcoming price rises is going to cause you problems with any PCP deal you can't back out of.

With pcp deals, if you want to keep the car rather than hand it back, there is still a fairly hefty final payment to make.

If you have money and the MV of the car is higher than the final payment, then it’s a no brainer to buy the car.

If you hand the car back then you’ll still need to find the funds for the deposit on the new car.

I went down this route last time but I don’t recommend it.

[Bonksy+HisChristianParade]

14 minutes ago, DA Baracus said:

Your bank details are not kept on your phone with mobile banking.

Oaksoft does all his banking in branch I assume? Fine if you’re a pensioner with nothing else to do I suppose.

[welshbairn]

The oil price is now below pre Ukraine invasion levels.

Edited August 4, 2022 by welshbairn

[mathematics]

2 hours ago, oaksoft said:

Interesting to think of red and blue as constituting "exotic colours"?

I work with a chemist who specialises in pigments and paints; it is quite interesting to hear him talk about the industry.

[Dunfermline Don]

Back to energy prices.

I look after an autistic guy who lives in his own home and has 24/7 support. He received an email from his energy provider yesterday offering him a fixed price tariff which based on current usage would be around £5.5k pa. If he stays on the standard tariff it would be around £3.3k.

This makes me wonder how much they are expecting to be increase their prices in the near future?

[DA Baracus]

42 minutes ago, Bonksy+HisChristianParade said:

Oaksoft does all his banking in branch I assume? Fine if you’re a pensioner with nothing else to do I suppose.

The bank manager knows his name.

[die hard doonhamer]

1 hour ago, oaksoft said:

The only thing which matters is whether the forthcoming price rises is going to cause you problems with any PCP deal you can't back out of.

Rising prices are a good thing if you want out of a PCP deal. We bought a brand new car on PCP last year. Usually you are in negative equity until about year 3 on these deals. Thanks to the strong prices of used cars, we are already in a position with that car where the trade in value is more than the outstanding finance left, so we could get out of it and release a bit of cash if we found ourselves in a position that we needed to. 

Edited August 4, 2022 by die hard doonhamer

[V.Aye.R]

14 minutes ago, die hard doonhamer said:

Rising prices are a good thing if you want out of a PCP deal. We bought a brand new car on PCP last year. Usually you are in negative equity until about year 3 on these deals. Thanks to the strong prices of used cars, we are already in a position with that car where the trade in value is more than the outstanding finance left, so we could get out of it and release a bit of cash if we found ourselves in a position that we needed to. 

True, although there's no asset remaining and you'd be getting the bus.

Once you're in these deals, unless you go car-less you'll be on the hook forever. 

[Bonksy+HisChristianParade]

4 minutes ago, V.Aye.R said:

True, although there's no asset remaining and you'd be getting the bus.

Once you're in these deals, unless you go car-less you'll be on the hook forever. 

Not true. I could’ve taken my equity and bought a car had I wanted to. 

[Jacksgranda]

2 hours ago, oaksoft said:

It's going to be interesting to see if this precipitates a major house price crash if enough people desperately try to downsize at the same time.

Aye, who is going to be buying all these mansions which come onto the market at the same time?

[Billy Jean King]

Oaksoft does all his banking in branch I assume? Fine if you’re a pensioner with nothing else to do I suppose.

And you can find a branch open more than a gallon of petrol drive away !

[Left Back]

53 minutes ago, V.Aye.R said:

True, although there's no asset remaining and you'd be getting the bus.

Once you're in these deals, unless you go car-less you'll be on the hook forever. 

No you aren’t.  You can pay the balloon payment and keep the car.  We’ve done that on 3 or 4 cars.

[die hard doonhamer]

12 minutes ago, oaksoft said:

The red flag for me is the tie-in to a fixed monthly fee for years ahead plus any excess mileage. The mileage for the car I posted about was 32,000 which is only 8k miles per year. The excess is 4.5p per mile above that. A typical car commute will easily rack up around 20k miles per year so that's 4.5p per mile for up to 48,000 miles = £2160 - payable on the day you hand the keys back and walk away with no car.

My view was always to minimise the number of these things I sign up to, to ensure maximum resilience to major income shocks like gas/electricity prices going through the roof, illness meaning the loss of a job, redundancy etc. It's one thing having to find a like-paying job when you're 30. Trying to do it in your 50s is another story.

Taking on these things just seemed like too big a risk for me personally. I'd rather own a smaller car, have no major outgoings and have the option of starting to relax into my 50s instead of still needing to pan my nut in until I was physically broken at the age of 68.

Very few people will actually hand the car back at the end, as most will still want a car. The best way to do it is to either pay the balloon payment, or trade the car in and account for the balloon payment in the deal for the next car. I’ve had 4 cars on PCP, one I’ve bought outright at the end (in the current market it was a much better choice than changing it), traded 2 in, the other deal is still running. 
 

PCPs make a lot of sense of you like to change your car every few years, as although you never own it, you also never have to commit the capital to the full value of the car. I fully believe that when I do eventually come to change the car I own outright I’ll be replacing it on a PCP and taking a load of the capital tied up in that back out. 

[Jacksgranda]

6 minutes ago, oaksoft said:

What are you talking about?

Do you not read your own posts?

[Aufc]

The red flag for me is the tie-in to a fixed monthly fee for years ahead plus any excess mileage. The mileage for the car I posted about was 32,000 which is only 8k miles per year. The excess is 4.5p per mile above that. A typical car commute will easily rack up around 20k miles per year so that's 4.5p per mile for up to 48,000 miles = £2160 - payable on the day you hand the keys back and walk away with no car.
My view was always to minimise the number of these things I sign up to, to ensure maximum resilience to major income shocks like gas/electricity prices going through the roof, illness meaning the loss of a job, redundancy etc. It's one thing having to find a like-paying job when you're 30. Trying to do it in your 50s is another story.
Taking on these things just seemed like too big a risk for me personally. I'd rather own a smaller car, have no major outgoings and have the option of starting to relax into my 50s instead of still needing to pan my nut in until I was physically broken at the age of 68.

Pretty tiring listening to your life story

[vikingTON]

3 hours ago, welshbairn said:

Just about everyone who has recently bought their first house or flat will be extended to the max. If interest rates keep going up say to Truss's economist guru's prediction, 7%, or higher, they'll be fucked.

Anyone who has recently bought their first house/flat and didn't snap up the plentiful fixed rate deals going around should just move in with the wallet inspector tbh.

[SuperSaints1877]

3 hours ago, Detournement said:

Holidays, nights outs, new cars, new clothes etc will all be sacrificed before selling the house.

You clearly forgot that Netflix subscription and Starbucks Latte come before all those items.

Edited August 4, 2022 by SuperSaints1877

[welshbairn]

4 minutes ago, virginton said:

Anyone who has recently bought their first house/flat and didn't snap up the plentiful fixed rate deals going around should just move in with the wallet inspector tbh.

For sure..