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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

267 replies

MonkeyTrap · 10/07/2019 08:41

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.

OP posts:
Pinkyponkcustard · 10/07/2019 09:11

Never heard of car leasing before! Do they cover anything that goes wrong with the car? We bought DH car secondhand on a 0% cc and everything that could go wrong has gone wrong with it?

What happens at the end of the term?

Doublevodka · 10/07/2019 09:12

I think one reason may be that there will always be some people who buy stuff, with money they don't have, to impress people they don't know.

IncrediblySadToo · 10/07/2019 09:12

You answered your own question

They get them on finance and keep changing them because they can’t afford to buy them but then get to look as though they can/ except everyone knows most of them are on finance

The sales guys are pushy pushy pushy and cars are priced and pushed at the ‘monthly cost’

Deities gavung Tim’s then all I was a cash buyer (no longer their ideal customer) they still kept quoting me monthly prices when I asked how much

They have good patter, it’s no wonder youngsters or the vulnerable fall for their bullshit

LadyRannaldini · 10/07/2019 09:12

They do it much for the same reason live on credit cards, because they want a perceived lifestyle they can't afford and are too dim to see that eventually the bills have to be paid. A colleague of mine bought a lovely new Alfa which he knew he couldn't afford but he would have the pleasure of driving it until it was repossessed.
The PCPs are now coming to bite a lot of people and they're complaining, anyone could see how they would work out years ago.

PooWillyBumBum · 10/07/2019 09:13

@BurningTheToast we have a very rich friend who says if it floats, fucks or flies...rent it.

Although he has a ridiculous racehorse habit and admits he’s terrible with money.

PooWillyBumBum · 10/07/2019 09:13

Buying racehorses that is, not betting on them

Original poster
MonkeyTrap · 10/07/2019 09:13

It’s unlikely you’d know which apply to a random car/person combo so always think it’s not right to judge.

To be clear, I’m not judging everyone with a brand new car, DH has a new car quite frequently because it’s a company car (and I don’t think that’s worth it given the tax implications but that’s another thread). Im talking about my juniors at work, who drive better cars than me, then can’t afford a x, y and z. Who clearly don’t have £X for that car sat in the bank and are being savvy.

OP posts:
IncrediblySadToo · 10/07/2019 09:13

Deities gavung Tim’s????

Despite having told them

Fecking phone!!

GPatz · 10/07/2019 09:15

Congratulations for saving hard for a car! Not many of your ilk nowadays. Pesky credit card users!

RiddleyW · 10/07/2019 09:17

Well they get them on finance to spread the cost and also to make it predictable. So an old banger might suddenly become irreparable and you’d need a lump sum. And also because they want a nicer car than they can pay for outright.

I have no interest in cars at all so we have an old bit reliable small car that we bought outright for I think about 4k. It’s not really worth anything by now I expect.

Whatsforu · 10/07/2019 09:17

It really isint anything to do with you, it's down to the individual. One person may be willing to put a large proportion of money to a car and sacrifice other costs. Personally I could not not risk using an older car as my car is for work. However I don't go for flash. Each to their own.

Ambydex · 10/07/2019 09:18

Because they can afford the £x per month, it buys piece of mind, lower risk and something they enjoy and they don't need to own a car outright.

Me, I am not fussed about cars so we buy and keep them.

MyOpinionIsValid · 10/07/2019 09:19

Im talking about my juniors at work, who drive better cars than me, then can’t afford a x, y and z. Who clearly don’t have £X for that car sat in the bank and are being savvy.

Touch of the green eyed monster!

Original poster
MonkeyTrap · 10/07/2019 09:19

Second hand baby clothes wont kill a child. A second hand old banger very well might. A car would always be the priority for most familys, the need to get to work, to safely transport the children.

Yes I know, DC has plenty of things that have been gifted. But not because I’m up to my neck in monthly payments and wondering how I’ll support him.

OP posts:
Original poster
MonkeyTrap · 10/07/2019 09:21

@MyOpinionIsValid

What’s odd about that statement is I absolutely could drive a car like theirs, the onus is that I don’t want to... Given I have a higher salary etc.

OP posts:
Scorpiovenus · 10/07/2019 09:21

Ego.. Cant afford a car bought outright, lease cars in a way. 3 years up they trade in. want to keep up with joneses and most people not into motoring these days. Just dribbling about annoying people on the roads.

UnderTheTree · 10/07/2019 09:23

I have a car on finance, don't really have much choice because we live in the sticks where there is limited public transport.

But it isn't a flash car by any means, mid 2000s second hand car.

I need something reliable so I don't really want to buy a 1980s old banger.

We can afford it in our monthly outgoings.

Original poster
MonkeyTrap · 10/07/2019 09:25

Congratulations for saving hard for a car! Not many of your ilk nowadays. Pesky credit card users!

Are we denying theirs a huge amount of debt caused in part by consumerism in this country?

OP posts:
JudgeRindersMinder · 10/07/2019 09:25

Congratulations being a better person than me OP, because I lease my car.
However I’ll accept your gratitude for supplying the 3 year old car, which you’re buying, to the second hand market once I change my car!

VivienneHolt · 10/07/2019 09:26

Not everyone can afford to buy a car outright. If you need a car right away (as many people do, if they don’t live somewhere where the public transport is adequate) then you may well decide that it makes sense to spend £120 a month on a car on finance instead of saving that amount for 5 years to buy one second hand.

It’s part of a broader issue affecting people on low incomes, where they end up paying more for items they have to buy on finance than wealthier people, who can buy them outright. It’s especially an issue for things like cars and white goods. For a lot of people, a monthly payment is manageable where an outright purchase is not, even though it costs more in the long term.

It’s all very well saying ‘just save up’ but if it will take you several months or even years to do so, that isn’t really an option. People need fridges and washing machines etc, and I don’t think you’re being fair to judge people for buying these things on finance when it’s often the only option.

sleepingbelvi · 10/07/2019 09:28

Lots of people stretch themselves because they want new things and finance is offered to them. I know a couple who bought a £245,000 house a few years back. We live in Scotland where you can pick up a reasonable 3 bed for £150k but they totally overstretches themselves for a 5 bed new build, they didn't even have any kids. Also way turned down the offer of nights out because they didn't have the cash. They both had new BMW's on the drive: couldn't even afford a take out on a Friday night. Keeping up with the Jones'

sleepingbelvi · 10/07/2019 09:29

Meant to add, the spilt up and walked away with nothing about 3 years later.

oohyoudevilyou · 10/07/2019 09:30

Owning stuff (houses, cars, phones, music, books...) isn't so important (or indeed possible..) with younger people these days. They've grown up into a world where they'll never get a foot on the housing ladder, so have to rent. Can't blame them for applying the same logic to cars: Why save up for an buy a less desirable car (that will depreciate anyway) when you can "rent" via a PCP something you'll enjoy driving for 3 years, then get something different when the contract ends?

You rent your mobile phone as part of your usage contract, rent your music and movies through Spotify or Amazon etc, and read books on the Kindle. Owning stuff forever isn't a big thing anymore.

user1480880826 · 10/07/2019 09:30

He excuse that you do it because like to drive a new car is ridiculous. As long as the car works and is reliable what does it matter how new it is?

Does anyone ever stop to think about the environmental impact of constantly demanding brand new cars?

PooWillyBumBum · 10/07/2019 09:32

@Ambydex it's the opposite mentality for us. We don't like monthly payments because if one of us lost our job or another financial commitment cropped up, we'd still be liable for the payments. As it is, when we get our next car we'll have the car until it dies and stash cash for the upgrade. If we come to upgrade and our financial situation has changed we can either buy a cheaper car or consider whether we can do without. Having been on the bones of my arse in another lifetime I don't want to put myself under unecessary pressure.

OP, I think the same at work. There are people I know who are single and on £20k less than me (and I'm not the primary earner) who have Audi's on tick and go out a couple of times a week then moan that they'll never get on the housing ladder. I don't care what people drive but I hate the woe is me when it's clear they've prioritised their money elsewhere!