Mortgage Rate Rises

[413x]

Yes, they are PCPs though so a bit different to a pure lease where you have no option to purchase. Its a neat setup for the car companies, especially as their finance arm is doing the financing and often a hefty APR, you pay interest on the full value including the balloon payment even though you never pay it down. People can say what they like about coffee and avocados, much money is wasted on cars like this.

If I was guessing I'd say lease cars are the main fair criticism "boomers" can make on people who have these leases, but because of the lease can't save rapidly.


Its 100sva month. 100s.

Sure, if it was 200 and you don't have to worry about bills etc. I get that. But when it's pushing 400+ that's a lot of cash that could be being funneled to a deposit.

You're talking 3-4k a year that's just "gone".

Avocado/takeaways are a bit more drop in the ocean. Unless you're having them 3 times a week.. Again.. That's excessive and fair to criticise.


Maybe even coffees too. Aren't they like 5-7 pounds? If it's multiple times a day, every day it could be 1000s a year just on coffee. But I'd hope anyone saving for a house isn't doing this and it's just one of those clichés

 

[decto]

500 a month? Bajesus!

Almost £700 for an iPace @10k pa on our scheme and a good few of those in the car park.

Would say the almost everyone here above the UK average salary..... Though still struggling with deposits.

 

[200sols]

$22 for avocado on toast

I don't even like avocado

You're missing out but I bet you have a mansion.

 

[Syla5]

Yep, this is pretty much the norm now.

That is considerably more than my mortgage

Well your mortgage is considerably below the average then

 

[413x]

Almost £700 for an iPace @10k pa on our scheme and a good few of those in the car park.

Would say the almost everyone here above the UK average salary..... Though still struggling with deposits.

Sweet bajesus.
700 a month?
That's insane. I can't imagine how much I'd have to earn to even consider spending that.

Itd be over 100k that's for damn sure.

What I have struggled with on cars is.
That cars are a great example of diminishing returns.
Unless you're getting into supercars/high end stuff, what's 700 going to give you vs 300? A bit nicer car. That's so much for a bit nicer car.

I absolutely have no issue with people spending on cars if they love cars. I do on holidays. But you certainly shouldn't be moaning "lm poor" with life choices like that.

 

[decto]

Sweet bajesus.
700 a month?
That's insane. I can't imagine how much I'd have to earn to even consider spending that.

Itd be over 100k that's for damn sure.

What I have struggled with on cars is.
That cars are a great example of diminishing returns.
Unless you're getting into supercars/high end stuff, what's 700 going to give you vs 300? A bit nicer car. That's so much for a bit nicer car.

I absolutely have no issue with people spending on cars if they love cars. I do on holidays. But you certainly shouldn't be moaning "lm poor" with life choices like that.

I can't justify it either, even with no mortgage.

Bought a 3yr old car on finance 19 years ago. After the finance was paid I kept saving the £250 into an account and as if by magic when I wanted to replace it 12 years later I bought with cash. Still have a car fund rolling now for the next one but hoping to get 15 years from this one... Half way there.

Leasing / PCP every few.years is just burning cash.

 

[Stu999]

I absolutely have no issue with people spending on cars if they love cars. I do on holidays. But you certainly shouldn't be moaning "lm poor" with life choices like that.

I love cars but there's absolutely no way I'd spend £700/month on one. I'll just read about it online, watch YT videos. Like you, unless I was earning well above of £100k or something.

 

[IvanDobskey]

I can't justify it either, even with no mortgage.

Bought a 3yr old car on finance 19 years ago. After the finance was paid I kept saving the £250 into an account and as if by magic when I wanted to replace it 12 years later I bought with cash. Still have a car fund rolling now for the next one but hoping to get 15 years from this one... Half way there.

Leasing / PCP every few.years is just burning cash.

Yep, same here, even with minimal mortgage remaining, I just can't justify it. Bought my current Leon with cash as a 2 year old car and still have it 5 years later. Will keep it until I have run it into the ground, then will buy another car with cash

 

[200sols]

Sweet bajesus.
700 a month?
That's insane. I can't imagine how much I'd have to earn to even consider spending that.

Itd be over 100k that's for damn sure.

What I have struggled with on cars is.
That cars are a great example of diminishing returns.
Unless you're getting into supercars/high end stuff, what's 700 going to give you vs 300? A bit nicer car. That's so much for a bit nicer car.

I absolutely have no issue with people spending on cars if they love cars. I do on holidays. But you certainly shouldn't be moaning "lm poor" with life choices like that.

Basically all these people ever do is pay the depreciation.

 

[decto]

Basically all these people ever do is pay the depreciation.

Yes... The huge initial depreciation at that

 

[413x]

Basically all these people ever do is pay the depreciation.

And I suppose profit for the creditor too.

 

[200sols]

And I suppose profit for the creditor too.

Yep. The average apr on these things is in the 4-6% range or it used to be, likely higher now with the rate hikes. Literally thousands each year down the toilet.

 

[Richie]

Yes... The huge initial depreciation at that

People like stating the old "you lose thousands when you drive a new car away" argument but fail to realise why.

Even an average car these days is circa £25,000 new. You lose a minimum of 20% as soon as you take it away as thats the VAT content on the car which the dealer never gets to keep. In this example, the dealership "gets" £20,000 for selling you the car and yet people wonder why it drops so much and just blame the "thieving dealers"

 

[tonys]

People like stating the old "you lose thousands when you drive a new car away" argument but fail to realise why.

Even an average car these days is circa £25,000 new. You lose a minimum of 20% as soon as you take it away as thats the VAT content on the car which the dealer never gets to keep. In this example, the dealership "gets" £20,000 for selling you the car and yet people wonder why it drops so much and just blame the "thieving dealers"

People also don't want to pay nearly new prices for second hand goods, but you always have execptions.

 

[decto]

People also don't want to pay nearly new prices for second hand goods, but you always have execptions.

That's dealer markup for you.

When I bought the last car, dealer was pushing a 2 year old low mileage car in a terrible colour as an near 10k saving on new. I paid 3k more for a new one factory fresh via a broker.

 

[platinum87]

Frothy coffees, avocado toast and now anecdotal mercedes. Is this a sketch show? No amount of "financial education" makes average wages fit into today's housing market.

Stop with the netflix subscription excuses and get onboard with the fact we need to cap rents, build more and make affordable housing to solve the crisis facing young people.

Make average wages and do average things and be average.

 

[matt100]

People also don't want to pay nearly new prices for second hand goods, but you always have execptions.

I see you've come to pointlessly derail this thread now?

To be fair in SC you were told your **** belonged in GD and here we are

 

[dlockers]

Almost £700 for an iPace @10k pa on our scheme and a good few of those in the car park.

Would say the almost everyone here above the UK average salary..... Though still struggling with deposits.

700 before tax with no deposit ya monkey

 

[tonys]

I see you've come to pointlessly derail this thread now?

To be fair in SC you were told your **** belonged in GD and here we are

Free country I've been told
I didn't start the derailment

 

[ChrisD.]

Back to mortgages. Is there any advantage of lining up a house move when out of ERC lock in versus porting?