[Sussex_G20]

Or....
Does it worry me that it appears normal to spend £500 to 600 a month on a lump of tin?
That I will never own....I am the last to accuse of being sensible with money having just put cash into a 45k car, but committing hard cash to repayments which with depreciation means nothing to show for it, does it make sense?
Taking a hit against credit rating, paying a large sum each month sort of knowing there will be no equity left do these high repayments really mean affordability? Or, are we getting over excited as the marketing director dreamt we would?

I think I must be getting old......

[Rbrown]

Not getting old, I have the same question sometimes. But what would I do? Buy a 2nd hand Focus or Civic?nothing against cars like them, but I like my cars and take pride in them. Downgrading would just frustrate me.

I don't have an expensive hobby, so look upon it as a legitimate expense. Also I get a lot of pleasure from my car, life isn't a dress rehearsal, so I get value for money on a cost : enjoyment ratio.

Hopefully this makes sense and maybe helps you?

[Sussex_G20]

Haha
Doesn't help me I just bought a TTS, no monthlies, big smile, drive it bigger smile!
Decided probably not old, just a late mid life crisis without a credit rating hit!

[davyk31]

No matter how you pay for or rent a car depreciation still applies therefore your nice 45k lump sum is diminishing rapidly too. Only difference is that you save the interest payment.

[InquisitiveA]

Originally Posted by davyk31

No matter how you pay for or rent a car depreciation still applies therefore your nice 45k lump sum is diminishing rapidly too. Only difference is that you save the interest payment.

This is true.

That's not to say that some styles of ownership aren't more cost effective than others though. Like for example...

"I must have a BMW!"
Buys 320d, £4k deposit, £x per month
Joins forum
"Look at my new 320d guys!"
.......(fast forward two weeks)......
"My 320d doesn't have (19" wheels/HK/adaptive lights/ACS springs/etc) and it's sloooow"
"I must have a 330d!"
......(furious man maths later)..........
Trades 320d in, loses deposit, puts in another £2k, new payment £x+y per month
"Look at my new 330d guys!"
.......(fast forward 6 months)........
Repeat above but replace 330d for 340i

Joking aside, owning a car costs money but not nearly as much as changing a car. All ownership methods are valid but if you care about your wallet think carefully about what you want to own/drive, spec it thoughtfully, then keep it for as long as life allows.

[Sussex_G20]

That is right next I realize that. I suppose my question is when do repayments start getting silly? When do they get to that point that if something goes wrong you are in trouble. £600 is getting on for the average monthly mortgage payment in the uk, should we really be paying more for a car than a house each month?

[scozzer]

Originally Posted by InquisitiveA

This is true.

That's not to say that some styles of ownership aren't more cost effective than others though. Like for example...

"I must have a BMW!"
Buys 320d, £4k deposit, £x per month
Joins forum
"Look at my new 320d guys!"
.......(fast forward two weeks)......
"My 320d doesn't have (19" wheels/HK/adaptive lights/ACS springs/etc) and it's sloooow"
"I must have a 330d!"
......(furious man maths later)..........
Trades 320d in, loses deposit, puts in another £2k, new payment £x+y per month
"Look at my new 330d guys!"
.......(fast forward 6 months)........
Repeat above but replace 330d for 340i

Joking aside, owning a car costs money but not nearly as much as changing a car. All ownership methods are valid but if you care about your wallet think carefully about what you want to own/drive, spec it thoughtfully, then keep it for as long as life allows.

Haha thats almost my journey lol! Had kids young, 320d m sport when turned 30, 335d to match my age now!!

Next................ M3 and bankruptcy!!

Only joking........... about the bankruptcy

[InquisitiveA]

It's down to the individual really. I get the impression you have quite a range of wealth with posters on this forum, some people could be stretching themselves financially to own their cars and others clearly aren't in the slightest. So I don't think you can look at £600pm (or higher) and say it is too much.

Anyone risking their security, or worse the security of their family/children, to own a nice car is an idiot. But if someone earns well in a secure job and wants to spend £600+ per month on a nice car then fair play to them.

[WeaverBeaver]

It's funny isn't it, I have this kind of internal dilemma all the time.

I'm perfectly happy to pay a certain amount per month for a car given how much I enjoy driving, ownership etc.

BUT....it gets to a point where if you go over a certain amount it starts to feel like too much which is all down to the individual.

For me that's around £500 for some reason. Even though I could afford more than this comfortably, it still starts to ping the alarm above this amount and it's completely arbitrary.

Which is why the 340i I've just ordered has finally ended up at £498 per month!

[JustChris]

Originally Posted by InquisitiveA

It's down to the individual really. I get the impression you have quite a range of wealth with posters on this forum, some people could be stretching themselves financially to own their cars and others clearly aren't in the slightest. So I don't think you can look at £600pm (or higher) and say it is too much.

Anyone risking their security, or worse the security of their family/children, to own a nice car is an idiot. But if someone earns well in a secure job and wants to spend £600+ per month on a nice car then fair play to them.

This it right here folks.

This is car forum Mecca, thanks poster!

[....,,,,..,,..]

Originally Posted by WeaverBeaver

It's funny isn't it, I have this kind of internal dilemma all the time.

I'm perfectly happy to pay a certain amount per month for a car given how much I enjoy driving, ownership etc.

BUT....it gets to a point where if you go over a certain amount it starts to feel like too much which is all down to the individual.

For me that's around £500 for some reason. Even though I could afford more than this comfortably, it still starts to ping the alarm above this amount and it's completely arbitrary.

Which is why the 340i I've just ordered has finally ended up at £498 per month!

Pretty much the budget I set myself, mainly just to be somewhere realistic lol.

However when we moved from Cambridge to West Midlands, we deliberately avoided 4 bedroom £200k plus houses, decided was just two big for 2 people.

Also meant my pension would cover any mortgage and car, leaving actual salary for other stuff (daughter and wife's shopping and holiday fund lol).

For some friends, anyone paying more than £300 a month on a car or not just buying a used one for £6k - £10k is stupid.

[335i nthehouse]

I have the choice of a company car or car allowance.

Middle of the road diesel company car or 335i plus about £100 per month of my own (taking tax on each in consideration)

My savings are for pension and house(s). Everything else I pay for or don't have it. I save a bit for holidays etc yes, but there is no way I would lump 45k capital into a car.

Without a car allowance/co car (which means I need cars less than 6years old all the time) I would likely be driving a used £10k hot hatch I think

To date my capital has worked better in property than interest on my cars so that's what I do with it. But risks always involved

[Mark1966]

Originally Posted by InquisitiveA

It's down to the individual really. I get the impression you have quite a range of wealth with posters on this forum, some people could be stretching themselves financially to own their cars and others clearly aren't in the slightest. So I don't think you can look at £600pm (or higher) and say it is too much.

Anyone risking their security, or worse the security of their family/children, to own a nice car is an idiot. But if someone earns well in a secure job and wants to spend £600+ per month on a nice car then fair play to them.

Exactly this.

Someones £600 a month is like £100 to another. The OP thinks £600 is the sensible limit, someone on a Ford Fiesta forum might say £150 is enough and the Porsche guy might say £1500 is enough.

Main thing is dont overstretch yourself and think of your car ownership as a hobby, otherwise go get a Skoda

[Mark1966]

Originally Posted by Lobb

Show me a man with a full bank account on his death bed and I'll show you a wasted life.....

Show me a man that hasn't made provision for his family and I'll show you a Bonehead

[....,,,,..,,..]

Originally Posted by Mark1966

Exactly this.

Someones £600 a month is like £100 to another. The OP thinks £600 is the sensible limit, someone on a Ford Fiesta forum might say £150 is enough and the Porsche guy might say £1500 is enough.

Main thing is dont overstretch yourself and think of your car ownership as a hobby, otherwise go get a Skoda

i also frequent the Peugeot 208 forum, a large number are buying 2 year old cars as their first car, having to go for a 1.2 as they are unable to stretch to a GTI.

It does put some conversations about adding extra options that we have on here firmly in the crazy money camp.

[PurpleTT]

Originally Posted by Lobb

Show me a man with a full bank account on his death bed and I'll show you a wasted life.....

Hmm, agree with the sentiment, although some have kids (and grandkids) that we'd like to leave something to. (I'm 53)

I could bore you with my life and what's happened in the last year or so and what my salary is and house is worth etc etc but you don't need the detail because I guarantee everyone on here will have wildly different circumstances to each other.

So we all factor in our own particular circumstances, weigh up the relative importance of what's essential and what's "nice to have" and come up with what we consider is the best fit for ourselves and our nearest & dearest.

FWIW if I can get an M3 (new or nearly new) for about £650/m having only spunked a few grand on the cost to change, I'll do it this week. If it's £700 I still might, if it's sunny out. If it's £750, I'll probs not and wait and see how things look in a few months. Mind you, I might be dead by then, so maybe you have a point.

[gtsussex]

I don't quite get the point of this, apart from the cost of interest. You go and buy a new Audi and then question why people pay a monthly figure for their cars????

Simple point is DON'T buy what you can't afford and accept that PCP is a false idea of where you are with life in terms of assets/liabilities. Until you've paid for it, it's debt.

BUT and it's a HUGE BUT. Please don't assume that that means that all of us are taking this to the point of living beyond their means (though sadly I think some are).

For me I'd love to say that mortgage comes first but sadly it's a case of company comes first and mortgage (and everything else) comes second. Thankfully we've done okay and mortgage is nearly gone but I'd rather put cars on finance as capital very much better tied up in the company.

Thing is, you make a point of how uncomfortable is it paying out £500 a month on your car but the reality is that this is what YOU are losing in depreciation and loss of interest on your capital payment on the car anyway. The fact that is was capital you had doesn't matter - you're still effectively losing money.

Main thing is to do what is best for you but please do not consider yourself free of ridiculous running costs and depreciation by buying with cash.

[HighlandPete]

Cars are a money pit and typically a waste of resources, however we 'buy' them. I think we all agree on that. What I observe, many are addicted to cars and I question whether all can really afford their current car. May be 'head in the sand' to the realities of more essential things, cost of debt, pensions, etc. I speak from knowing the heartaches, where some over stretch on cars and the family suffers as a result. Men are often in denial of the reality. (Same for heavy drinkers, so not just cars).

As I've said before, for me the pain barrier is cost per mile, that brings home the realty of motoring costs. Knowing the real costs, no hiding under flawed man maths makes it all pretty stark.

Setting my pain barrier dictates what I have to drive, even if I can easily afford more, just won't go there. I could run an M5, but I'm not prepared to pay above my self imposed limit of ppm.

[gtsussex]

Originally Posted by HighlandPete

Cars are a money pit and typically a waste of resources, however we 'buy' them. I think we all agree on that. What I observe, many are addicted to cars and I question whether all can really afford their current car. May be 'head in the sand' to the realities of more essential things, cost of debt, pensions, etc. I speak from knowing the heartaches, where some over stretch on cars and the family suffers as a result. Men are often in denial of the reality. (Same for heavy drinkers, so not just cars).

As I've said before, for me the pain barrier is cost per mile, that brings home the realty of motoring costs. Knowing the real costs, no hiding under flawed man maths makes it all pretty stark.

Setting my pain barrier dictates what I have to drive, even if I can easily afford more, just won't go there. I could run an M5, but I'm not prepared to pay above my self imposed limit of ppm.

Perfectly said.I really don't want to discourage anyone but money is still money.........

[robwils]

Amazing how many times you read a thread and people have similar thoughts.

Feeling lots of similar thoughts, especially as I'm about to change the car (although part of me wonders if I should or not as its 3 year old and paid for)

As others have said its a balance, but you have to look at total cost of the cars, not just monthlies surely and balance this with everything else.

I often look fondly at the 16 plate Porsche parked round corner, but then my Mrs one day pointed out the size of the house vs our own - sometimes she's great . I then asked myself would I swap ?

I'm very wary of Pcps , I know that I paid less overall to get to the point where I am now compared to deals I was offered but I can see the benefit for some.

To be honest these forums don't help sometimes as I'm sure it convinces you that you need / want something.


Just hope people are not stretching themselves whichever way they buy a car. Life's full of choices and often a delicate balance.

[bodtwo]

I work out how much i am happy to lose a month on something i spend 20 to 30 hours a week in. If my circumstances change massively, then i'll adapt accordingly.

What's interesting is my 21 year old son, he has a 7 year old 116i thats costing him a fortune in petrol while he's on his year in industry as part of his degree. He is doing some serious man/boy maths on how swapping it for a new more economical 120d on a PCP makes more sense.

As dad i'm not happy as A/ he will not need a car when he's back at uni for his final year. And B/ his life is going to be pretty dynamic over the next few years as he joins the rat race, travel's etc.

The trouble is, for so many people, signing up for a PCP is so easy. They're great if you know what you're getting into and it fits your situation, but if it doesn't, avoid.

[creepy coupe]

Originally Posted by Lobb

Show me a man with a full bank account on his death bed and I'll show you a wasted life.....

I tend to think like this these days. Recent health scare in the family have put things into perspective for me & Mrs Creepy. Enjoy it while you can.

A new car cost pretty much the same however you buy them. the difference is the finance percentage rate or the interest rate you are loosing by not having you £50k invested.