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And this is why the motor industry relies on car credit. Nearly all car manufacturers are actually Finance companies with a side line in motoring. No credit, no car companies.

The reason why car manufacturers push credit so hard is that as well as making direct profit on the finance they also control, your next purchase as well as the current one.
 
this is still ongoing?

Why is it anyones business how the next man choses to finance his lifestyle? I personally couldnt save up £35000 for a new car because my spending habit just wouldnt let me. If I had half that amount sitting in the bank on my way to saving up the whole amount, I know I will spend the money on something else.

If I however buy the car on credit, I know I must pay the required monthly payments. I am just into the last year of my PCP and at the end I would have paid just under £18000. I have saved up £6000 on the side + I will borrow £10000 to buy out the car at the end. I hope to pay of the £10000 back over 18 months.

Now thts my car paid up in 4 and a half years. Taking into account that about £3500 of the total amount paid is interest,I could have saved up the amount required to buy the car brand new over 4 years but I am not disiciplined enough to save that amount over that period of time.

Let people spend their money they way they see fit. I always sense a bit of jealousy and envy when people go on about hire cars not really belonging to people who drive them. The man with a wife and 2 kids who buys a 10 room mansion on a mortgage doesnt really need all that space. why pay all that interest on a house you dont really need. he might as well just buy an ex-council 2 up 2 down in the cheapest part of town and take the money he saves to heaven.
 
What is that supposed to prove? That houses are dearer than cars? Er..yes. I think we all know that, in general, most houses are dearer than most cars.

The question is whether it is ever OK to borrow to buy expensive assets like houses and cars. Some say yes (including me): some say no.

It shows that , in real terms , cars have in recent years become much cheaper than houses .

I can remember that 50 years ago when my father bought the house I grew up in , he paid £3000 for it ( in cash as it happens ) ; around the same time ha also paid around £1700 for a new W110 190 Fintail ( the 220S was around £2100 and the 300SE about the price of the house , as was the 230SL when it was introduced a couple of years later ) .

We sold the house in 1983 after my dad died , and last time it changed hands the price tag was over half a million ; the cars mentioned above will also have appreciated , although not by as much as the house .

So , once upon a time the cost of a car would have been comparable to the cost of a house , but these days they can be bought for very much less .

Houses still tend to appreciate ; new or expensive cars tend to depreciate rapidly , but if you have the wisdom to let someone else take the hit , you can still drive a nice car without the financial pain .
 
I always sense a bit of jealousy and envy when people go on about hire cars not really belonging to people who drive them. The man with a wife and 2 kids who buys a 10 room mansion on a mortgage doesnt really need all that space. why pay all that interest on a house you dont really need. he might as well just buy an ex-council 2 up 2 down in the cheapest part of town and take the money he saves to heaven.

People buy houses in better areas because they want to live somewhere nice and also, in general houses don't depreciate, so borrowing money on an appreciating asset makes sense.

Why do all those so in favour of easy car credit keep referring to others as jealous of them?
Why would I be jealous of someone who can't pay cash for their £35k Mercedes and is permanently in debt up to their eyeballs :dk:

It seems that the very cheap lease deals have come to an end as year end, box shifting, sales figures have been met, but I can see the attraction of the cheap deals that were out there due to them being cheaper than the depreciation by some margin.
I personally prefer the flexibility of outright purchase, I can change the car after 5 minutes or ten years. The old bus has been good so has stayed around a lot longer than was first intended.
 
People buy houses in better areas because they want to live somewhere nice and also, in general houses don't depreciate, so borrowing money on an appreciating asset makes sense.

30k cars are usually better than 10k cars and people also want to drive around in nice cars. Apart from houses, most of the things we buy in life depreciate in value so why buy that £50 shirt brand new from M&S when you could buy it used 4 years later for a fiver at the Salvation Army? why buy that £35000 car for £20000 when it is 3 years old when you can buy it for £1000 in 10 years? why waste £6000 on a Carribean cruise when you can get an £800 holiday at Butlins?

Why do all those so in favour of easy car credit keep referring to others as jealous of them?
Why would I be jealous of someone who can't pay cash for their £35k Mercedes and is permanently in debt up to their eyeballs :dk:
It is jealousy and envy otherwise no one should bother how the next man affords to run that flash new Mercedes. I may not be able to pay cash now but like you can see in my earlier post, With some discipline, I could pay cash for it in 4 years. I just chose instant gratification and I am paying £3500 for that!
 
It is jealousy and envy otherwise no one should bother how the next man affords to run that flash new Mercedes.

Being honest, I don't think anybody cares less that "one" may drive a new Mercedes either purchased or leased, so jealousy/envy don't come into it...other than the people that rent such cars on cheap deals keep insisting that others are jealous.

The irony is that those that can afford to purchase outright never bother mentioning either the cost or that others are jealous. It's the ones who can only afford to buy on "terms" that need to shout about their apparent wealth.

I'd rather have an old car on the drive and some real net worth than some new metal and be financially crippled to afford it...not that I would be...;)
 
30k cars are usually better than 10k cars and people also want to drive around in nice cars.

No they aren't . Most cars tend to have the majority of their problems early in life , and newer cars due to grater complexity tend to be the ones with the most problems , besides being built down to a cost more than in the past . Witness the engine replacement on a new car query that started this thread off and the majority of technical problems which tend to be about newer cars . I , too , like to drive around in nice cars , but my idea of a nice car is not an anonymous metallic grey box the same as countless others I pass on the road every day .

Apart from houses, most of the things we buy in life depreciate in value so why buy that £50 shirt brand new from M&S when you could buy it used 4 years later for a fiver at the Salvation Army?

Apart from I would never spend £50 on a shirt when I can get a perfectly nice one from Tesco or Asda for a fiver , lots of the things I buy don't depreciate significantly : taking my hi-fi as an example , my Gyrodec will now be worth more secondhand than I paid for it new in the 1980's ; I recently sold an SME Series III pickup arm for three times what I paid for it new in the late 1970's , my Quad amplifiers are worth more than the original cost etc . - if you buy quality , the value remains .


why buy that £35000 car for £20000 when it is 3 years old when you can buy it for £1000 in 10 years?

My point exactly , as made in earlier posts : wait until the price hits rock bottom and you can't lose - right now W124 , W140 and R129 models are probably just about there ; my W126's will now be worth more than I paid for them 2 or 3 years ago , W123's are on the rise as probably now are R107's also .

why waste £6000 on a Carribean cruise when you can get an £800 holiday at Butlins?

I don't waste money on foreign holidays : spend that six grand ( or less ) on a nice caravan and you can enjoy countless holidays in it , helping the economy by spending money at home too .

It is jealousy and envy otherwise no one should bother how the next man affords to run that flash new Mercedes. I may not be able to pay cash now but like you can see in my earlier post, With some discipline, I could pay cash for it in 4 years. I just chose instant gratification and I am paying £3500 for that!

I bother how others squander money when it affects the economy , job security and causes a recession which affects all of us when the debt bubble bursts . I don't feel envious in the slightest since I don't aspire to any newer car - I liked the cars I drive now when they were new , drove a lot of these same cars back when they were current models , and stopped admiring newer models when Mercedes quality started to go downhill in the 1990's .
 
I'd rather have an old car on the drive and some real net worth than some new metal and be financially crippled to afford it...not that I would be...;)

Its the same jealousy and envy that led to C63 owners being bashed on this same forum.

Financilly crippled you say? I went on 4 holidays this year and I am up to my limit in premium bonds with no debt except my house, my flat and my car!
 
No they aren't . Most cars tend to have the majority of their problems early in life , and newer cars due to grater complexity tend to be the ones with the most problems , besides being built down to a cost more than in the past . Witness the engine replacement on a new car query that started this thread off and the majority of technical problems which tend to be about newer cars . I , too , like to drive around in nice cars , but my idea of a nice car is not an anonymous metallic grey box the same as countless others I pass on the road every day .

This bolded is so very not true.
 
This bolded is so very not true.

This very thread started over a serious problem with a new car , there are many others , Mercedes faced near bankruptcy in recent years over warranty claims mainly due to paintwork issues ( not to mention the well documented issues with coolant contaminating transmission fluids on newer cars costing thousands apiece to fix ) , most of the cars you see broken down by the roadside are newer ones , garages are mostly busy fixing problems with newer cars , mainly down to poor engineering brought about by cost cutting .

Need I continue ?
 
Its the same jealousy and envy that led to C63 owners being bashed on this same forum.

You mean the ones that got humiliated because they kept banging on about how others were jealous of their cheap rental cars...

Yep...I guess so.
 
Financilly crippled you say? I went on 4 holidays this year and I am up to my limit in premium bonds with no debt except my house, my flat and my car!

So three large loans and you say no debt...I bet you forgot about all the maxxed out credit cards too..

Your net equity is probably worse than zero.
 
Financilly crippled you say? I went on 4 holidays this year and I am up to my limit in premium bonds with no debt except my house, my flat and my car!

That doesn't show a lot of financial sense. You borrow money at, say 7% to drive a £30k car, buy a depreciating house and flat and then invest a small amount of money at 1% return.
Surely you would be better to use the cash to reduce the debt.
 
Why do some of you lot care so much about how someone wants to pay to use the car they want to use, its up to them, get over it...get a life, seriously!!!!!!
 
That doesn't show a lot of financial sense. You borrow money at, say 7% to drive a £30k car, buy a depreciating house and flat and then invest a small amount of money at 1% return.
Surely you would be better to use the cash to reduce the debt.

Again Jealousy and envy! Its just so obvious. This is a free world. You should live and lets live. All of a sudden you speak from both sides of the mouth and say houses and flats are depreciating assets. Come on old man! Get a grip. My premium bond is not an investment, It is lets just say putting something away for the rainy day. If you care to know, the profit I make on my flat will cover my monthly car payments but unfortunately the missus thinks its best spent on holidays!
 
Damn right they'll be lower and retain value, because there'll only be basic ones for sale. :doh:

What do you think happened before people could borrow money for cars, plenty of cars were sold and a number being upmarket models.
 
Again Jealousy and envy! Its just so obvious.

There you go again.

Nobody is jealous of you, you don't have enough to be jealous about.

Now, maybe my maths isn't too good, but when prices are down 1% annually, I reckon that's a depreciating asset.

http://www.lloydsbankinggroup.com/media/pdfs/research/2011/HousePriceIndexNovember2011.pdf

If the predicted chaos ensues in 2012, God help anyone who is over-extended.

http://www.bbc.co.uk/news/business-16288438
 
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Apologies to bpsorrel but his thread start seemed perfect...
 

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