How do people afford such nice cars ?

Housey said:
Then get saving, there is no 'little bit pregnant' when it comes to funding cars. You have the cash or you don't, if you don't you need to buy some from people who will charge you for it. Owning the car is overplayed as most people keep them and sell them after 18 months to 2 years, so why own it? This who "yea but its' never mine" means sweet **** all if you do what most people do with cars.

Fox keeps his FOR EVER and also buys astutely, most people don't and finance em. Amazing how many people on this site talk up a big game about buying their car with cash.....until they want something good and grow up a bit and realise that all that glitters isn't pink.
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What makes you think fox didn't use finance?
 
I am a nightmare with cars I get bored to fast and justify things in my head way to much.

Last year I bought two cars on finance and to be honest even though the cash stays in the bank I really cant stand monthly payments.

It just makes any car so much more expensive when you factor the interest and then consider depreciation... Like a car may cost you £300 quid a month and then lose £300 a month deprecation.

I sold both cars and came out even on one and lost on the other but only due to the finance penalty's for settling early and interest.
 
Jono8 said:
In answer to the OP. The simple answer is different priorities. Some people spend a couple of grand a year smoking a packet of fags a day. Some spend a couple of grand a year buying a skinny fat latte, muffin and panini for lunch every day at work. Some booze a fortune up the wall drinking alcohol.

Spending a bit extra on having a nice or new car isnt really as expensive as any of those things.
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Some do neither of those things, people need to look at themselves rather than others :p
 
MatteH Oxford said:
Depends on what you want to do with your money.

I find it far more satisfying to run older cars and go on holiday 4+ times a year, go to superbikes/F1/motogp etc and be at some event or another every couple of weeks than have a new car - I'd have far less of a "life".

My peers with new cars sit in all weekend with their kids, today is the first time in ages that I'm actually home. I can't imagine how dull it would be to do this week in week out, all for the sake of a new car on the drive just to go to work in and visit the supermarket once a week like they do!
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I'm guessing you don't have kids then? I stay in most weekends with my kids, and spend some of my money on nice cars. But then the cars are to ship them about safely and comfortably.

I certainly dont need to go to "events" every other week to feel like I have a life. I get that feeling from spending the time with my kids.

Jumper118 said:
exactly. the 10 year old interior in my mondeo is like a rolls compared with those corsas, the age really fast as well. plus on top of the £250 they are paying for the finance they will be paying the same again or a bit less for insurance. such a waste of money.
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My old man just bought my 17 year old sister a new Corsa do learn in. Mostly because he struggled to get her insured on his 320d with a reasonable company.

I disagree it's a waste of money. She now has a nice, reliable, efficient, and safe car to learn to drive in, and he will likely "keep" it for 5 years or so to build up her no claims before giving it to her, once he has "depreciated" it to worthless.

Just because a new Corsa isn't the correct vehicle for you, doesn't mean it isn't for everyone else. He also got a decent chunk off it and 0% APR, so wasn't too bad a deal overall.

Iamzod said:
I also keep mine for ever, I have had one of mine 10.5 years and the other for 4 years. Never understood the whole new car every 18 months thing, but then mine are 33 years old and 13 years old :)
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I could never understand the keeping a car for 10+ years. There are LOADS of different cars out there to drive / own. Life is too short to stick to the same one for decades at a time.

Regy53 said:
I am a nightmare with cars I get bored to fast and justify things in my head way to much.

Last year I bought two cars on finance and to be honest even though the cash stays in the bank I really cant stand monthly payments.

It just makes any car so much more expensive when you factor the interest and then consider depreciation... Like a car may cost you £300 quid a month and then lose £300 a month deprecation.

I sold both cars and came out even on one and lost on the other but only due to the finance penalty's for settling early and interest.
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But it's not compounding there and costing you £600 a month. When you finance a car like that, on a PCP, that is exactly what you are paying. The monthly depreciation. So you pay £300, the car looses £300 in value, but you bought the car knowing it was a depreciating asset. How else is a new car going to cost you if not through depreciation?

It's not really making any car THAT much more expensive. It's only more expensive by the interest rate. But that is the cost of getting the car now rather than saving for 4 years or whatever to get it. Which in my opinion, is a minimal cost.

For example, a £20k loan (enough for a nice 4 year old 5 series as an example), will cost you £1679 in interest over 4 years. Or £35 a month (out of the £452 per month repayments). Based on 4.1% APR of compare the market. If you saved for the 4 years, sure, you would get the car 4 months earlier (so after 44 month rather than 48), but it will have taken you 4 years.

On the other hand, I got my NEW 5 series M-Sport, for a little more than that per month on PCP. Sure, it'll be costing me more in interest, and at the end of the 4 years, rather than having a 8 year old 5 series worth £9-10k, I'll have maybe £2k in residual value (if I'm lucky). But I'll have had a brand new car, with most of the ownership covered by Manufacturer warranty, and very little, if any, maintenance cost. £8k seems a lot to lose to some, but I'm happy to pay the £166 per month "fee" to cover all these issues (warranty, maintenance, servicing, possible repairs etc. are all but avoided from having a new car rather than a 4 year old one, I dunno how much the 5 costs per month to warranty, ask Fox, and the difference becomes even less).


All that said, I do also realise that I am paying the premium because I wanted a new car. And if it was purely an economics driven decision, then I would not have bought a new 5 series.
 
I love the fact most people finance new cars. It means lots of quality cars coming on the used market at a lower price :)
 
So the UK is turning into the USA? Nobody is buying new cars, and instead, people are getting cars on finance, which then go on to boost the used car market?
 
xs2man said:
I'm guessing you don't have kids then?
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Great post, thanks. This is what I joke with some friends. I just bought a relatively flash car, because I'm single and don't have kids. I totally understand the benefits of having kids... but I don't have them, so I'm going to take up the benefits of not having them! More disposable income! I then also get out quite a bit to different events when others can't as they have commitments.

xs2man said:
For example, a £20k loan (enough for a nice 4 year old 5 series as an example), will cost you £1679 in interest over 4 years. Or £35 a month (out of the £452 per month repayments). Based on 4.1% APR of compare the market. If you saved for the 4 years, sure, you would get the car 4 months earlier (so after 44 month rather than 48), but it will have taken you 4 years.
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This was my point earlier. It's costing me £10 a month for 30 months to buy my car now rather than in two years time. No problem with that at all.

Jono8 said:
In answer to the OP. The simple answer is different priorities. Some people spend a couple of grand a year smoking a packet of fags a day. Some spend a couple of grand a year buying a skinny fat latte, muffin and panini for lunch every day at work. Some booze a fortune up the wall drinking alcohol.

Spending a bit extra on having a nice or new car isnt really as expensive as any of those things.
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This too. I know people that will spend £60-£120 on a night out and do that 2 to 4 times a month.
 
Acme said:
So the UK is turning into the USA? Nobody is buying new cars, and instead, people are getting cars on finance, which then go on to boost the used car market?
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That's the idea though. People on here have some massive hatred for brand new cars but at the end of the day you wouldn't have good deals on approved used cars.

USA is a bit different from what I've seen. Used cars seem unbelievably expensive even random 10-20 year old cars. Then you have new car leases like the fiesta ST for like $170 a month. I wish we had those kind of new car deals.

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AndyCr15 said:
This too. I know people that will spend £60-£120 on a night out and do that 2 to 4 times a month.
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I totally agree...same with people who spend £50 quid a week on fags.
 
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xs2man said:
I'm guessing you don't have kids then? I stay in most weekends with my kids, and spend some of my money on nice cars. But then the cars are to ship them about safely and comfortably.

I certainly dont need to go to "events" every other week to feel like I have a life. I get that feeling from spending the time with my kids.
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You can ship them about in a safe and comfortable manner perfectly well inside a cheap 2nd hand car.

Perhaps you are happy staying in with the kids, but I was talking about my peers who happen to comment that I always seem to be doing something.
All I was pointing out was that they could too, if they didn't have to have a shiny new car costing several hundred ££ a month that's totally unnecessary.
 
You mean totally unnecessary from your perspective.

It would be like telling you that you could enjoy better foreign holidays if you didn't want waste all your money on weekend events in the UK - ie totally missing the point.
 
[TW]Fox;27899353 said:
You mean totally unnecessary from your perspective.

It would be like telling you that you could enjoy better foreign holidays if you didn't want waste all your money on weekend events in the UK - ie totally missing the point.
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This.

I get it, you would rather be doing stuff. I would rather have the car. Different people are different, that's all. As Fox said, I might be happier with fancier holidays than going to "events" every other week.

I realise I could ship the kids around as safely in a second hand car. But a second hand car may or may not be as reliable as a new car. I get certain perks with my new car that I would have to pay for in a second hand car. This goes some way to offsetting the extra costs of a new car. Perhaps not against a 10 year old car, sure, but against a 3-4 year old car it can be significant. But then the 10 year old car may not have the same modern safety features as the new car too.
 
I'm happy with the compromise of buying a 4 year old version of the current generation car that's available new and having the holidays :p
 
[TW]Fox;27898142 said:
Why do people do that :(
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Well if you must know the reason I did it was because the money was set aside for that purpose from some inheritance I had from my Aunt who always said she wanted to help me through University. I was aware that financially it might have been less sensible choice but that was the "right thing" to do with that money.
 
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