How do people afford to PCP brand new cars?!

[JusWunderin]

DH recently mentioned looking into us getting the car I’ve had my eye on for many eyes now. But we’ve looked at prices for financing one and my good god alive it’s not what I expected!

I’m struggling to imagine someone having £400 a month to comfortable pay for a car, we had a budget of about £200 a month.. which I thought would get me something pretty nice!😂

My heart is a little sore, I’ve never really had anything ‘proper nice’ we don’t buy anything designer, branded/luxury. We live modestly, both work full time in what we thought were good jobs on relatively good money for where we live. this car was the one thing I just thought would be my little bit of luxury in life.. but it turns out it’s quite far out from ‘a little bit’ of luxury 😂 it’s big luxury and now I’m pretty gutted as I can’t imagine us ever having that sort of money to fork out every month for a car 😅

If you lease/brought a brand new car recently.. how? What job do you do? How much do you earn (if you don’t mind me asking)? I need to know where I’m going wrong 😂

If a half decent car is at least £20k then even the most basic maths would tell you that £200 a month wouldn’t be right as even interest free would be over 8 years to pay it back

I have a new Toyota Yaris hybrid, picked it up last week. I trade it in every three years or so. Costs a couple of thousand up front and around £180 per month.
My husband has a Hyundai Tucson. Nothing particularly posh but it’s our main family car. He gets a car allowance from work (used to get a company car but they changed the system.) His car is £450ish per month, but that’s covered by his car allowance. You could probably get a posher car than mine if you didn’t get brand new and took a loan to pay for it outright, and then paying that back at a couple of hundred a month, rather than finance maybe.

I can understand why people get lease higher cars if they have the money as you then often don't have to worry about services/MOTs ect.

But it is the most expensive way to buy a car. DH is obsessed with crunching numbers and do the most economic option. We have always bought 3-4 year old cars then kept them forever (until they go off to the scrap yard). Even buying a car that's a year old will save you a lot of money. So look around and see what you can find, I'm sure there will be some good deals out there.

It probably doesn't help that cars like everything else seem to have gone up in cost the last few years.

I got a brand new pcp car end of last year and pay £180 per month . I sold my last car and only lost 2k on it after having it for 4.5 years. Used what I got as a deposit so that lowered monthly payments.

They lease them, half the price, 3 or 4 years hand them back and get another new one

PCP payments aren’t supposed to cover the cost of the car. With PCP, you pay x amount a month and then a balloon payment at the end of the term. Eg, the car costs £20k, you pay £5k over the term and then make a final payment for the balance of £15k.

I lease my car directly from manufacturer due to a working for them. I pay £265 a month but that includes insurance, tax and a yearly service if i have the car long enough for it to need its first service, sometimes im offered a new lease before the 12 month agreement is up.

We have leased fully loaded SUVs for the last 10 years. Always paid between 300-400 per month but now to replace with anything similar is £600+ which I just refuse to pay. Leasing used to be a reasonable option but not really now ☹️

We bought an almost new car via Ford Direct. Only owned by Ford and usually only done 4-6k miles. These are much cheaper than a brand new Ford. Done this a couple of times.

My Audi G3 was a year old when I got it, £450 a month. Cheaper than the Range Rover I had before. I’d say ithat was quite an average cost for a car on PCP but then my husband drives very expensive cars like Bentley, Aston Martin, Lamborghini (not at the same time) which are more like £2k - £2.5k a month.

I wonder the same thing. We are importing an Toyota Alphard from Japan because we couldn't afford a 7 seater from the UK. The ones we saw were all £15-20k to get a reasonable car. The Alphard is a 2014 model, about £60-80k when new (equivalent to a Lexus LM), including shipping and taxes it's costing just under £9k. Similar cars are ~£16k on Autotrader. It has taken months to get to this point, but we simply couldn't afford that chunk of cash every month for a car that isn't half as good as the one we are getting.

I pay almost £500 a month on hp for my lovely BMW. I've always liked a nice car, but this is my first luxury vehicle, and by god I've earned it! I have a decent income, self employed, and relatively low outgoings in other areas so I've prioritised my car. I'm sure people will think I'm foolish but we all have our extravagances

It's one less Merc driver to watch out for on the roads🤣

A van might have worked out cheaper. More leg room as well in cabin crew vans or mini vans.

I’ve had a brand new Mercedes on pcp and loved it, however I bought my 4 year old evoque to cut monthly costs but I prefer leasing if I’m honest. I’m a civil servant and take home around 3.3k dh pays 500pm for his car and his take home is 7k he does something to do with nuclear power. Try getting pcp on a car that is 3yrs old, my friend has a gla on pcp and pays 350pm

when we had our third child (almost 9 years ago now) I researched cars that would accomodate 3 x isofix seats. There were very few and I decided on a Q7. To lease one for 3 years was £1000 pm! Instead, I purchased one second hand for @ £35k which seemed far better value, it was only 2 years old!

Brand new, 12k miles per annum, new style ford focus...I think we paid a couple of grand deposit which is totally normal with a lease. You can pay for something called a maintenance package where it will cover any wear and tear etc and all servicing. Of course any damage is payable by the person, but name a car or policy where it isn't? I did a load of research and we had a very good deal. We were driving the most unreliable piece of shit from which we bought directly from a dealer before, and this costs the same per year for what we lost on the other.

I pay Motability £303 every 4 weeks for a brand new SUV and that includes insurance, tax, tyres, breakdown & windscreen repairs. Calculated to monthly is £328.25

My current car is a merc, when I change it I’ll be going back to a Kia that I had before, I didn’t ever have an issue with it the 7 year warranty is excellent and it was lovely to drive… this has been in and out of the garage and is far more expensive to service!

I've heard Carwow are quite good at finding a good price/haggling on new cars with dealers on your behalf

Ooh that comment oozes jealousy! When I had a new Audi it was because I bloody loved the car! They're a dream to drive, like nothing else out there and have exceptional build quality. My parents always had Audis growing up as DM previously raced them and loved them. Never crossed her mind or mine what other people think.
Audis are many things but "common as muck" they are not!

There are currently 631,299 brand new Motability vehicles on the road. Motability require them to be brand new. A huge majority of cars on the Motability scheme are SUVs because the disabled person cannot get into a lower down vehicle.

So the next time you tut at a brand new SUV, just remember that it very well could just be a disabled person ffs

You obviously don't live where I live! More people are millionaires in my large northern town, than those of us who aren't. There's 2 billionaire families who own properties here as well though not their main residence.

I can understand how people who live in some run down parts of the country could think that everywhere is like their area though I suppose

I'm always bemused by people who will happily pay a fortune every month just to blend in with everyone else in their Audis/BMWs/Mercs. They're as common as muck yet so many people seem oblivious to it.

If I'm going to be paying that much I would want my car to be something special that stands out from the crowd rather than follows it.

It absolutely oozes jealousy. Like you, it’s not about what the neighbours have; it’s about having something that’s a dream to drive. I used to have a brand new Mercedes. It was £650 a month and worth every penny. Everything about it was luxury: self-driving, radar adaptive cruise control, automatic adaptive high beams, blind spot light, voice activated computer, park assist, 0-60 in 4 seconds, electric memory seats, plus all the usual things you’d expect, such as heated seats, folding mirrors, keyless entry, push start, electronic handbrake. It had so many bells and whistles on it that I sold it for £13k more than the balance of the finance.

Thank you but I'm not convinced they will pay out if a tyre prematurely wears out due to your negligence/ignorance when the tracking is off, but good luck

We never keep old cars as they may look cheap but cost a lot in repairs - they tyres on our cars cost us loads and two have 20 inch very wide tryres and one has 22 inch

looks like you have a good deal, good luck