To wonder why people finance cars they can’t afford?

[MonkeyTrap]

Just that really. I saved hard to buy my car, to replace a car over ten years old with 150k miles on the clock. Nothing flash, just reliable and 18 months old. Which was luxury to me.

But it seems so many people finance their cars and ironically, those that can’t afford it drive out a sleek brand new one and those that want to pay outright rein it in.

Think the option to finance everything, sofas, holidays, cars, home improvements is just pushing up the prices where people seem focused on the monthly and not overall price.

Ps.. I have Zero issue with people leasing the ordinary everyday cheaper brands of car- I get that

I get that not everyone can save a big aim to buy outright. But bloody everyone seems to drive an Audi, bmw or range rover now, regardless of income. Those cars used to be considered luxury, it was a seriously big deal to get one.

Aragog, it can cost less due to the savings you make with a new electric vehicle.

I guess so, especially if you have solar panels as well - I was just referring more to leasing in general, over buying a car outright. Also, at present electric cars are dearer (than non electric versions) to buy in the first place.

We found not all lease companies are overly knowledgable on electric cars when looking last year - to be honest a lot of car showrooms weren't either, not even those selling their own brands! I am sure this is changing quickly though.

We found not all lease companies are overly knowledgable on electric cars when looking last year - to be honest a lot of car showrooms weren't either, not even those selling their own brands!

Yes, you really have to do your own homework! Waiting lists for new models needs investigating too.

Why have a new flashy car sat on the drive whe you cant afford to put fuel in it

I appreciate cars aren’t my thing whereas they’re more important to some people

Well you clearly don’t do you or you wouldn’t have started this thread.

I agree, OP. My parents always taught me that if you couldn’t afford to buy something outright (with the exception of a mortgage, obviously), then you couldn’t have it.

I’m very grateful that I still have my first car, many years after I purchased it. She runs well, is reliable in terms of maintenance and passing MOTs, etc, plus I just bloody love her!

Plus, not being tied down to expensive monthly car payments, I’m free to be able to leave teaching this year, and not have contracts tying me to having to earn X salary a month or else. Whenever I talk to colleagues they often say they can’t afford to change jobs because of expensive car leases, etc. So why have them then?!

If leasing I would be worried about penalties for scrapes, dents and scratches on the car.

I live on a terrace and park my used 15 year old car on the road. The amount of times selfish inconsiderate neighbours have squeezed their cars into tight spaces, and end up scraping my car trying to get inor out, makes me mad!

I can't risk it happening to a new or leased car and having to pay up when it's someone's fault.

We have a car on lease pay 216 a month but will never do it again. It goes back next week and who knows what they are going to charge me. I'm so worried about it. I have saved in tax, servicing, and mots but the worry off keeping it in good condition and worrying about it not getting scratched. Is not worth it. It has a big scruff mark on it where someone must have scraped against it and a massive scratch where it looks like someone has keyed it.
We have just got a big Loan out to buy a car and a van so oh can go self employed, payments are 380 a month, not ideal but it is buying a decent car which will last at least five years and a half decent van which should also last 5 years ( I hope) and then obviously we can keep them for longer and not have payments for a year or so if we wish.
We could have got a smaller loan but Going to be older cars/van and more chance of things going wrong so not worth it.

@Pleasebeafleabite

Well you clearly don’t do you or you wouldn’t have started this thread.

Thank you thread police.

I think yabu. I couldn't afford to buy a new car outright because i have limited savings that i need to spend on higher priority things to me like the house and kids.

However i can comfortably afford the finance on my car as i receive a car allowance,some of which i still save.

So if i can comfortably afford the monthly payments without sacrificing anything then why shouldn't i just because i cant afford it outright?!

Your idea of saving to buy everything sounds really depressing to me. It's one thing if you can't afford the monthly payments - in that situation (which I've been in when i was younger) it's silly to overstretch yourself.

There's nothing wrong with debt you can afford to pay off though, imo. I work hard and want the balance of saving and spending so i can enjoy my life!

I'm tempted to when I next need a car. I work for a car brand so we get v good deals. Most of them are lease for 6 months then swap cars

Oh and i dont have a nice car to keep up with anyone. I have it because i personally love how it drives and getting into a lovely car i enjoy being in makes me feel good!

@MonkeyTrap

Well you can or you can respond

Effectively what you said I appreciate cars aren’t my thing whereas they’re more important to some people

Is the antithesis of your OP and subsequent comments

I have a car on finance because I had £1500, needed a car immediately that would cope with doing 20,000 miles commuting a year without any issues.

£1500 wouldn't buy that kind of car, so I put it down as a deposit.

After 4 years I'll pay off the £5k left over.

Not every situation is the same. Maybe you spend money on other things that I never would.

@Pleasebeafleabite
It’s entirely possible that people might both like cars and be able to afford them, which wasn’t the point made in my OP. The two issues are mutually exclusive.

Post is about people who like cars and buy beyond their means with the aid of finance.

Does that help your understanding?

Post is about people who like cars and buy beyond their means with the aid of finance.

Whenever I've bought a car on finance, I've had to fill out a credit application that checks whether I can afford the repayments, so in theory anyone who buys a car that way can "afford" the repayments. If they are struggling to cover all their outgoings, then they've obviously underestimated what they spend, or aren't sticking to a budget in general....you can hardly attribute that to the cost of the car, it's more their general attitudes and behaviours around money.

I pay a lot for my car finance (it's a high performance sports model) but take packed lunches to work, rarely buy new clothes, and take low cost UK holidays. A friend spends a lot on redecorating her home every 2 or 3 years, another takes 3 or 4 foreign holidays a year. Different people have different priorities, and obviously yours isn't cars, OP (though you've said your partner has a nice company car, which you presumably use for outings together, so you driving a cheap runaround is hardly living in extreme austerity!)