When people moan about people with nice cars on finance it always comes across as bitterness. Just a life decision that works for some and not for others, nothing more. Outside of serious 7 figure cars it’s rarely an indicator of personal wealth. Also it’s a myth that the really wealthy only drive cheap runabouts and wear Timex watches. Most don’t they just don’t flaunt it.
How are people affording cars?
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Soldato
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I think it's they just aren't bothered about what others think. My boss is currently driving around a golf while his Cayenne is on order and leaves the Turbo S at home most of the time.
Another one of the directors who is seriously filthy rich just had a Citroen DS3 for a while.
Deleted User 298457
Deleted User 298457
I think that's more of a you thing than a wider issue with the statement. Buying an older car with cash is a totally different solution to the problem of needing a car anyway, where you can still PCP if you wanted to.
As an aside - I clicked on the motability website the other day randomly. They have a £400m surplus from selling their second hand cars last year. They now have enough cash they've stopped paying for insurance and set up their own endowment.It's actually interesting to see these deals have not come back with the current residuals. As an example if you'd set up Lease a Porsche in 2007 and leased somebody a 911 for £1 a month you'd probably still have made a profit at the end of a 4 year agreement'
If like me you are in the house you are going to die in 
it doesn't matter that your house appreciates or not, at least not to me, kids maybe but by the time they can take advantage they'll already be halfway through their life. with their own families, so whether a house appreciates or not makes no bloody difference, the money is as gone as any money I spend on a car.
A car lease often costs at much as buying the thing if not more than getting a car on PCP, so why not buy it unless you don't want the ownership costs, both lease and PCP have the same get outs but you'll often be able to negoitatie the purchase better as well as take advantage of FDC etc, I play the finance chicken game where you buy on finance for a cheap monthly and see if I can beat the cars costs via parallel investments, some times I win, sometimes I loose, each time I don't care, if you care, you shouldn't enter into these things.
That said it is quite satistifying, when you do have a vehicles that ends up costing you next to nothing, me I am a serial Italian car buyer I may as well just set my money on fire
it doesn't matter that your house appreciates or not, at least not to me, kids maybe but by the time they can take advantage they'll already be halfway through their life. with their own families, so whether a house appreciates or not makes no bloody difference, the money is as gone as any money I spend on a car.A car lease often costs at much as buying the thing if not more than getting a car on PCP, so why not buy it unless you don't want the ownership costs, both lease and PCP have the same get outs but you'll often be able to negoitatie the purchase better as well as take advantage of FDC etc, I play the finance chicken game where you buy on finance for a cheap monthly and see if I can beat the cars costs via parallel investments, some times I win, sometimes I loose, each time I don't care, if you care, you shouldn't enter into these things.
That said it is quite satistifying, when you do have a vehicles that ends up costing you next to nothing, me I am a serial Italian car buyer I may as well just set my money on fire
I don’t care what people think and I suspect most others don’t care either. The attachment of finance to image is just wrong in most circumstances, though not all.
Soldato
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I agree with you, I'm the same. Still rocking a 07 plate Focus I have had for 8 years now.
Like others have said PCP get's a bad image from the sort of people still living at home spunking £400 a month on a A class but PCP is just another financial tool.
I had a friend who wanted to buy a car for £10,000, they had the savings but still lived at home. I was trying to get him to get a bank loan with low interest instead so if a flat come up for sale he still had a deposit to go for it.
He didn't listen to me and not long after he bought the car a flat come up for sale that would have been perfect but he already spent most of his deposit money.
Soldato
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£70k car for £250 a month (no deposit, servicing, insurance, fuel, tyres etc etc).......a deal which will never be repeated and I'm dreading the day it goes back.
Car schemes on EVs were amazing 18 months ago. Then things changed
Car schemes on EVs were amazing 18 months ago. Then things changed
£70k car for £250 a month (no deposit, servicing, insurance, fuel, tyres etc etc).......a deal which will never be repeated and I'm dreading the day it goes back.
Car schemes on EVs were amazing 18 months ago. Then things changed
what a cracking deal that is
Soldato
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It was just pure luck I stumbled across a works email, and saw an etron at a crazy price (one week only deal).....then, due to covid and a mileage reduction they did some other deal on the car which saw me paying that.
They even installed a free home charger
Work will extend the deal only once for either 6 or 12 months, so it has to go back Aug '23 at the latest.
It was just pure luck I stumbled across a works email, and saw an etron at a crazy price (one week only deal).....then, due to covid and a mileage reduction they did some other deal on the car which saw me paying that.
They even installed a free home charger
just keep it
That is the absolute definition of a steal and even a cash buyer would be worse off buying that car as all deals of that nature tended to be incumbent on being part of a finance package of 2-4 years and not open to forecourt cash buyers. My Polo deal was the same, 200 cars bought by a dealer chain and offered on 2 year cheap lease but only via lease. I believe the dealers got 33% discount on the cars from VW to fill the market with 2nd hand stock 2 years down the line but could not sell them to cash buyers.£70k car for £250 a month (no deposit, servicing, insurance, fuel, tyres etc etc).......a deal which will never be repeated and I'm dreading the day it goes back.
Car schemes on EVs were amazing 18 months ago. Then things changed
Not sure we will see such deals again.
Fleet buyers discount used to be a thing back in the days of company cars. It would typically see a 25%-30% discount applied to companies buying volumes of cars. Not sure how it works these days but probably much the same for the few companies that buy in volumes. In the 80's a company car was a real benefit, these days less so outside high mileage.
The whole market seems to have skewed repositioned in a mode where PCP/lease is more economic -
the dealers want their finance pound of flesh (like houseys example) along with a pipeline of 2nd hand cars coming through, and, the cash buyer, who would have previously been king, negotiating a good discount, is in the cold.
It would be interesting to know if German and other EU markets are the same as UK
Not really an issue if you are a cash guy unless you can't get finance for some reason as in this case you'd buy on PCP then settle the finance in a couple of months, I did that on one of my cars just to get the FDC as I no dealer would match that discount.
Won't the finance monthlies just be offset against the mortgage monthlies on the affordability criteria anyway leaving no net gain? Assuming a mortgage is part of the equation that is.
Apologies for the off topic, currently in the process of renovating our house to sell and the budget for our next house is a hot topic
I've been diverting the deposit money into cash savings and avoiding all possible monthly outgoings to maximise my potential mortgage going forward but I'm probably doing it all wrong Deleted User 298457
Deleted User 298457
Affordability wise it all comes out in the wash anyway, you are right - but PCPs are secured against the car, so it doesn't ding the credit record as bad as a £30k unsecured loan for example. The risk on a PCP is managed by policy that enforces fully comp insurance, it is kept road worthy etc etc. On an unsecured loan, from an mortgage co's risk management point of view, I could set fire to the car and still be left with a £30k bill (silly example).Won't the finance monthlies just be offset against the mortgage monthlies on the affordability criteria anyway leaving no net gain? Assuming a mortgage is part of the equation that is.
Apologies for the off topic, currently in the process of renovating our house to sell and the budget for our next house is a hot topic
I also have a lot of cash tied up in my car which ideally I would like to put towards a house deposit. If I was still on my old PCP setup I wouldn't have any cash other than deposit tied up.
When you do your mortgage application it normally asks what secured loans you have and car payments are treated differently. An unsecured loan is just a bundle of risk for them as you may not have the corresponding asset to "handle it".
The full amount of the car on PCP is on your credit file this would impact your mortgage, if you are going to take out a mortgage and worried about getting accepted for the size of mortgage you want then have nothing on any sort of finance, just wait until the house deal is all done.
Exactly. Somebody with a mortgage on a nice house who decides they want a nice car but for obvious reasons doesn't have 60 grand sitting around (Does anyone? Surely you'd be upgrading things in the house or whatever if you were that cash rich) doesn't need to tell the internet they are 'LEASE DEPRECIATION BUY APPRECIATION' to justify signing the PCP agreement at the local dealer if thats what they want to do. I don't get why they do it. There is absolutely nothing wrong with the idea that you don't want to drive an 06 plate Audi A6 so you took finance on a 6 month old one instead.
It's actually interesting to see these deals have not come back with the current residuals. As an example if you'd set up Lease a Porsche in 2007 and leased somebody a 911 for £1 a month you'd probably still have made a profit at the end of a 4 year agreement'
I might know someone that has that lying around for buying their first property...
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If they are somebody with a mortgage then why would they still be buying their first house
Not sure what your point is really?
If they are somebody with a mortgage then why would they still be buying their first house
Not sure what your point is really?
Well there are plenty of property investors sitting there with mortgages and cash ready to buy their next property