How do people afford new cars?

You have a deferred payment

In reality this is the minimum the car would be worth to the trade

And most cars it's set so high you will have no equity left in the car

So the garage tells you about the new deals and away you go again

So the payments are irrelevant

Compare 5 yr hp to three year pcp there is little in it

If you borrow the money to pay off the last payment you effectively have done the same as HP

I Know because I work in the trade :-)
 
I bought my car after paying off the mortgage, I was used to payments going out so just thought it was time to treat myself. I would not do it again though
 
AlpinaBoy said:
They offered min 5000 px and a choice of colours. £12 a month more for the 1,6 petrol

The new astra drives really nice

It's a car for the wife

Got it in red looks really smart with alloys cruise air con

Cracking deal for brand new car

Can never see the point of pcp you are only renting

As least on hp you own the car

Also best warranty in the business 10 years 100k
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Ah, so your deposit is effectively £5209 :wink:
 
AlpinaBoy said:
You have a deferred payment

In reality this is the minimum the car would be worth to the trade

And most cars it's set so high you will have no equity left in the car

So the garage tells you about the new deals and away you go again

So the payments are irrelevant

Compare 5 yr hp to three year pcp there is little in it

If you borrow the money to pay off the last payment you effectively have done the same as HP

I Know because I work in the trade :-)
Click to expand...

Depends re the equity, I traded the Z4 after 2 years into a 4 year PCP and had a nice wodge of equity that went towards the M135i, this with BMWs 5K contribution meant the cost to change was little and changed to a new vehicle. Depends how often you wish to change the car.

Tim.
 
Funilly enough I do have a friend that lives by his 3 year PCP routine. Effectively paying £XXX for warranty covered motoring then a new car at the end of it. Probably on his 4th or 5th car.
 
Zed_Steve said:
AlpinaBoy said:
They offered min 5000 px and a choice of colours. £12 a month more for the 1,6 petrol

The new astra drives really nice

It's a car for the wife

Got it in red looks really smart with alloys cruise air con

Cracking deal for brand new car

Can never see the point of pcp you are only renting

As least on hp you own the car

Also best warranty in the business 10 years 100k
Click to expand...

Ah, so your deposit is effectively £5209 :wink:
Click to expand...

No any old car with 3 months mot and £209

The 5k is wooden dollars

So you are paying 12151

That's a cheap new car

You will pay 10490 for a year old used astra with lower spec
 
AlpinaBoy said:
No any old car with 3 months mot and £209. The 5k is wooden dollars.
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I'm guessing that £5k for 'any old car' would not include a 2001 Mk4 Golf 1.6 auto on 43k miles and only one key :lol:
 
There is no right or wrong answer on this.......the only guide is, try and buy a car where the residuals are stronger....like a Mini, or PVR's Beetle.....
 
When I think that every car that goes past somebody bought new my mind boggles!
I've never had a new car as I'm not one for finance and couldn't stomach the instant depreciation, just thinking of losing 20% to the government makes me :cry:
I've been happy with decent second hand cars and have been lucky. Having kept the last Fiesta for 7 years it worked out at £40 a month. Obviously without any warranty but I don't think it has cost much over that time. :driving:
 
AlpinaBoy said:
budfox said:
I'm buying my Nissan Leaf on a PCP deal. When I do all of the sums, which obviously include the fuel cost savings, it's going to cost me around £90/month more to drive this brand new car, than to cover 48k miles over four years in my Skoda Fabia.

After four years, it will be given back because there will certainly be a better and cheaper EV out there by then.

To me, that's the proverbial 'no brainer'.
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Apart from when you run out of juice in winter with a range of 60 miles

Used to work for Nissan and they are great for a town car but if you venture further afield no thanks
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My drive to work is 30 miles, and we have charging points installed. Even the worst conditions in the coldest of winters a round trip of 60 miles will present no problem.

During weekends our trips are rarely more than 30-40 miles and we'll be keeping a conventional car too for travelling further afield.

The tone of your post suggest that I've no idea of the range capabilities of the Leaf, but I've had one on extended test drives during winter and summer. I've driven the Gen 1 and Gen 2 cars and am very well aware of their limitations. This purchase has been very well researched and I know considerably more about the car than the dealer selling it to me.

Believe me I've done all of the maths. I have such a perfect commuting distance on decent roads, and even if the charge points were out of action at work, I pass free rapid chargers provided by Ecotricity at two motorway junctions.
 
After having car loans for the past few years and having to wait to be in positive equity before we trade in i decided to lease a car. Costs the same a month as a loan and I can hand it back in a couple years. Over 2 years the lease works out cheaper then a £15k 5 year loan.
 
budfox said:
AlpinaBoy said:
budfox said:
I'm buying my Nissan Leaf on a PCP deal. When I do all of the sums, which obviously include the fuel cost savings, it's going to cost me around £90/month more to drive this brand new car, than to cover 48k miles over four years in my Skoda Fabia.

After four years, it will be given back because there will certainly be a better and cheaper EV out there by then.

To me, that's the proverbial 'no brainer'.
Click to expand...

Apart from when you run out of juice in winter with a range of 60 miles

Used to work for Nissan and they are great for a town car but if you venture further afield no thanks
Click to expand...

My drive to work is 30 miles, and we have charging points installed. Even the worst conditions in the coldest of winters a round trip of 60 miles will present no problem.



During weekends our trips are rarely more than 30-40 miles and we'll be keeping a conventional car too for travelling further afield.

The tone of your post suggest that I've no idea of the range capabilities of the Leaf, but I've had one on extended test drives during winter and summer. I've driven the Gen 1 and Gen 2 cars and am very well aware of their limitations. This purchase has been very well researched and I know considerably more about the car than the dealer selling it to me.

Believe me I've done all of the maths. I have such a perfect commuting distance on decent roads, and even if the charge points were out of action at work, I pass free rapid chargers provided by Ecotricity at two motorway junctions.
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If you need to know anymore ask away

I was on the launch campaign with the tech team

I had one for six months as a company car
 
I will never buy a new car and that has nothing to do with the cost but I just can't justify the massive depreciation in de the first 2 years... I would rather get a second hand young car with a bank loan (unless I can buy it cash of course)
 
The last several cars I have purchased have been 2-3 year old lease returns, purchased from a dealer. They usually have less than 30,000 miles on them, are in pristine condition (because the leasers knew they would have to return in good condition, and usually owned by corporate executives), plus if you buy CPO (Certified Pre-Owned) you get a fantastic warranty (100k miles or 5 years), so the risk is minimal.
You don't suffer the depreciation, so the cost is appealing.
On the down side, you may not get the absolute list of features you would purchase on a new car, but you can usually get 90%.
 
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