Mortgage Rate Rises
- Thread starter glenimp617
- Start date
I'm not talking about very wealthy.
I'm talking about middle to upper middle income. Ie upto few million net worth.
It's a weird rule that will mean that I can drive any car I want in the future. Live like no one else today and you can live like no one else tomorrow.
Soldato
As with all things, cars and houses and other expensive things are purchased with relative spending power in mind, I think we can all agree that logic works.
Middle income people in the UK don't have a few million in net worth, even a mere £80k salary puts you in the top 5%.
Caporegime
A car for me is a hobby too. Also if you buy right they lose you no money. (GR Yaris you could have owned one for 3 years with basically zero depreciation, the GR86 will be exactly the same) One of my cars has gained 600% in appreciation in 10 years 
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So you need to be worth a few million quid to buy a fairly expensive car? Not too sure about that one.
Assuming you don't become ill/have other issues as you get older.
Soldato
A car for me is a hobby too. Also if you buy right they lose you no money. (GR Yaris you could have owned one for 3 years with basically zero depreciation, the GR86 will be exactly the same) One of my cars has gained 600% in appreciation in 10 years
There is an element of this I can appreciate for sure, though to run around in an expensive car whilst you can't afford the mortgage is folly (especially if you could afford the mortgage if you didn't have said expensive car).
This is more my thinking, so hopefully people can see where I'm coming from.
No you don't need to be worth a few million quid to drive an expensive car. That's the point. There's a choice.
A mcdonalds worker living at home could lease a Porsche. Can they afford it? No.
I live within my means. Having an expensive car won't provide me the satisfaction when I know that x payment is resulting in me having to work x number of years longer. Put that £500 a month average car payment into the stock exchange, after 30 years with average returns you will have millions.
Get buying a high performance car on finance. Why? Because they are an experience.
500 is the average. In the US its about 700 dollars a month now.
Soldato
Definitely higher than this.
I prefer HP over PCP because at least you get to own the thing without the balloon payment they know most people can't afford.
PCP is renting a car forever, which may be preferable to some if they like to change the car they drive a lot (as a hobbyist I could see this being a positive).
Smart. Btw I don't pcp a car but I like that people do spend their cash as it is drives those returns
I think you're talking PCH not PCP. On a PCP you can pay the balloon or finance the balloon and own the car. PCH you have to return it.
Too shaySmart. Btw I don't pcp a car but I like that people do spend their cash as it is drives those returns
Soldato
I see, my sisters both do this and they keep chopping the car in every 2-3 years, they've mainly mentioned PCP when talking about them, but it's possible it was PCH.
My knowledge on this is limited as I've never done it personally, so I can definitely be a little wrong in what I'm saying, even if it's mostly on the right track
Soldato
Under the base rate I think is good, especially with more increases expected.
Only to croak it and the taxman to take a big chunk of it