Mortgage Rate Rises

Could kind of see the appeal pre covid. Interest rates were low and the supply high so you could get a good deal if you looked for one. Now the prices have gone a bit mental.
 
413x said:
Always amazes me what people spend on cars. I'm still yet to have A car on finance. I just can't get over the monthly costs.

Even my old s2k was bought outright.

I just don't see the appeal for a 30k car on pcp vs a 3k car bought outright.
Really, there isn't much difference to me apart from "having" it. So many people with new cars. And I know the average salary, so I dread to think how much of people's take home goes on thier car.
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It depends what you are doing with the "cash". I might sell my Merc to take the cash, and PCP something. The man maths will say between 300-400/mo isn't outrageous.

And then the value of the car is "less important" as a £30k may have a residual/balloon of £17k versus the £20k focus having a residual of £7k. You are only paying the depreciation so important to look at the whole equation.
 
413x said:
Always amazes me what people spend on cars. I'm still yet to have A car on finance. I just can't get over the monthly costs.

Even my old s2k was bought outright.

I just don't see the appeal for a 30k car on pcp vs a 3k car bought outright.
Really, there isn't much difference to me apart from "having" it. So many people with new cars. And I know the average salary, so I dread to think how much of people's take home goes on thier car.
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theres about 4 new staff here, all 22 and under probably earning under 20k. Each one has a motor under 3 years old that id guess they paid over 15k, one over 20k for.

shouldn't the parents be handing out financial advice for these people or are they just as thick. They certainly 'aint thinking about leaving home anytime soon.
 
dLockers said:
It depends what you are doing with the "cash". I might sell my Merc to take the cash, and PCP something. The man maths will say between 300-400/mo isn't outrageous.

And then the value of the car is "less important" as a £30k may have a residual/balloon of £17k versus the £20k focus having a residual of £7k. You are only paying the depreciation so important to look at the whole equation.
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Yeah I'm aware that right now sometimes you can flip these new cars for more than the cost. And things like that.

Its more the standard "I want a nice car but can't really afford it".
Spending 300 a month, putting on the miles.
Our car cost 3k. Apart from servicing and one repair job (about 250) that's all is cost. It saves 1000s a year and does exactly same job.

Now I'm not criticising people's personal spending. I mean I spend that on holidays.
But a modest expensive car (ie not sports, or hyper etc) doesn't really (to me) give you any more than a cheapo outright.
All I can think of is to look richer?


Each to their own, and if you have the money, fine, but I do feel too many people compromise themselves especially with car loans
 
I've just recently gotten my most expensive car ever, a Mini Cooper SD probably worth about £6-7K, with 100K miles on the clock.

I got it from a family member for a good price, they've owned it since new, so I know it's well looked after.

Paid in cash no finance or anything, I don't like paying for a car monthly if I can avoid it. This is my 3rd car I've had since 2006, I like to stretch them out a bit, spreads the cost nicely.
 
rhobbyh said:
theres about 4 new staff here, all 22 and under probably earning under 20k. Each one has a motor under 3 years old that id guess they paid over 15k, one over 20k for.

shouldn't the parents be handing out financial advice for these people or are they just as thick. They certainly 'aint thinking about leaving home anytime soon.
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I was never one to succumbing to peer pressure. But I guess that's what it is. Once one person gets a fancy car, peers need to follow. Especially with how people seem to live through social media.

It baffles me. But each to thier own.
 
413x said:
Yeah I'm aware that right now sometimes you can flip these new cars for more than the cost. And things like that.

Its more the standard "I want a nice car but can't really afford it".
Spending 300 a month, putting on the miles.
Our car cost 3k. Apart from servicing and one repair job (about 250) that's all is cost. It saves 1000s a year and does exactly same job.

Now I'm not criticising people's personal spending. I mean I spend that on holidays.
But a modest expensive car (ie not sports, or hyper etc) doesn't really (to me) give you any more than a cheapo outright.
All I can think of is to look richer?


Each to their own, and if you have the money, fine, but I do feel too many people compromise themselves especially with car loans
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Well don't most materialistic things come to this? Houses, cars, clothes, phones etc

But indeed as a nation we've come to unhealthy rely on credit.
 
Kill_Phil said:
Well don't most materialistic things come to this? Houses, cars, clothes, phones etc

But indeed as a nation we've come to unhealthy rely on credit.
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Houses tend to go up in value. And spending more you usually get a better location, or a better house.

Phones I agree with, but I think that's filtering through now. Find more people are keeping thier phone longer.

Clothes.. Yeah kind of the same for some people. There's a definite bump in quality from tat to modest. But then after that you're paying for brand.
 
dLockers said:
Ah, here we go - the "I don't PCP my car" crowd are flexing.
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Well it's PCP or Hire Purchase here, I have family members who do use PCP, it means they always have nice fairly new cars, but it comes with a monthly cost.

I don't drive my car much either, so spending a lot on a car isn't really something I want to do, I only take it out a few times a week, a few thousand miles in a year maybe.

Hardly going to be flexing with a car worth a few £K that is going on a decade old though! :D
 
I'll add a bit.

I understand getting a loan for a car, let's say going electric as you do a lot of miles. Or even getting a really fancy sports car. Because it's more fun (loved my s2000), and a completely different experience.

But to get a brand new ICE ford focus (other white bread cars are available) rather than an old cheaper one?.. That I don't get.
 
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413x said:
Yeah I'm aware that right now sometimes you can flip these new cars for more than the cost. And things like that.

Its more the standard "I want a nice car but can't really afford it".
Spending 300 a month, putting on the miles.
Our car cost 3k. Apart from servicing and one repair job (about 250) that's all is cost. It saves 1000s a year and does exactly same job.

Now I'm not criticising people's personal spending. I mean I spend that on holidays.
But a modest expensive car (ie not sports, or hyper etc) doesn't really (to me) give you any more than a cheapo outright.
All I can think of is to look richer?


Each to their own, and if you have the money, fine, but I do feel too many people compromise themselves especially with car loans
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A car is a hobby to a lot of people too, or a source of enjoyment. You can make exactly the same case for a holiday being a complete waste of money - it all depends what you want.
 
I just don't really get expensive cars in general, I think this falls under the "spend cash where you value it the most" thing.

I like to buy expensive PC components and media equipment, where some people would not, but it's because I get more value out of them, for me a car is (largely) a vehicle that gets me from A to B, and I don't really care if it's the best car in the world, or the most fun to drive etc.

However, in the context of this thread, and not to throw it too off-topic, it's a good place to cut spending if the mortgage rates increasing cause worry about affordability, it's an area where you can save some cash and put it towards the higher mortgage costs.

This was really the main point I was trying to make, you can save money by financing a cheaper car or holding onto a slightly older car that still drives and is reliable.

Same parallels can be drawn with the tech I like to buy, if I need to save cash to use elsewhere, then I'll just keep it for longer if I can. I have an older phone (S10+) because the newer ones aren't fundamentally changing that much, and I don't change my PC, TV etc every year, they are mostly good for a few years now (with maybe just a GPU change every couple of generations).
 
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Totally agree.

You cannot afford the car if you're PCP or leasing it. You can afford it if its maximum 3% of your net worth and you pay for it in cash. Ie if you have 1 million net worth and you buy a 30k car cash, that is fine.

People on 30k salaries driving a 30k car is RIDICULOUS.

My car is worth about 7k, paid cash. I will buy a new car when it dies.
 
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ProStreet said:
Totally agree.

You cannot afford the car if you're PCP or leasing it. You can afford it if its maximum 3% of your net worth and you pay for it in cash. Ie if you have 1 million net worth and you buy a 30k car cash, that is fine.

People on 30k salaries driving a 30k car is RIDICULOUS.

My car is worth about 7k, paid cash. I will buy a new car when it dies.
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So your net worth is 100k?

Honestly these arbitrary caps you have are kind of strange.

ProStreet said:
Good man
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I'm not really.
 
ProStreet said:
Totally agree.

You cannot afford the car if you're PCP or leasing it. You can afford it if its maximum 3% of your net worth and you pay for it in cash. Ie if you have 1 million net worth and you buy a 30k car cash, that is fine.

People on 30k salaries driving a 30k car is RIDICULOUS.

My car is worth about 7k, paid cash. I will buy a new car when it dies.
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That's a pretty bizarre assertion.

Most supercars are sold on finance - to very wealthy people.
 
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