To ask how you afforded your car?

[letsgogogo]

Me and my partner aren't rich by any standard but we do ok. I wouldn't say we are poor.
Even so we can't afford to buy a new car or a decent second hand car. However, I see so many people driving around in new range rovers and Audi's, BMW and various other really expensive cars and I just wonder how can people afford them? AIBU to think that most of these cars were attained through finance? Or if you have a nice car that you didn't need credit for, how did you manage it?

Most high end cars are leased or on PCP (i.e. lower monthly payments and dont own car outright at the end of the contract period). I recently 'purchased' a new car on PCP. No part-ex, just £1k down. Throw the car back after 4 years or trade in for another (can use equity as down payment on a new car)

My last car was second hand. My current car was brand new - I'm in my 50s and it's my first new one. I made a down payment of £3K or so and then had 3 years of monthly payments. Paid off now.

Bought cheap second hand cars for less than a grand, for years.
Today bought a posh (by my standards) second hand car for over 3k which I can only afford because I made extra money (matched betting) and saved it up. Feels very extravagant.
I can't imagine ever getting a car on finance, it just isn't something my or DH's family have ever done so seems wierd!

We used to always buy second hand with cash they all eventually became liabilities. We now do private leasing and it suits us much better. There are some fab deals to be had if you’re not a badge snob, our current car with a full maintenance package costs us £238 pm which is very affordable to us and completely care free motoring.

My personal view is a car is a depreciation asset so it I don’t really care that much about owning one. I just want a reliable one that gets me from A-to-B without it being my problem when things go wrong with it.

@Itsjustmee, which BMW is that as we're on the lookout for a new one, so would be helpful to know whether 2 series, 3 or 4 etc?

Thanks.

@Baileys4two I'm guessing it's a 2 series. I bought a 3 series last year with cash but noticed the monthly costs to lease and they were much higher than that. Having said that I'v always been impressed with the discounts/deals that BMW are willing to do.

We've found that it's cheaper to lease a new/expensive car. Part exchange old car and/or put down a deposit to make monthly lease repayments affordable. Exchange for another new car once lease term ends. Do not keep car by paying large balloon payment as it's likely that you'll have to take out finance to cover balloon payment.
Again, put down a decent deposit to make monthly lease payments affordable. Repairs and servicing is covered during 2-5 yr warranty period (except for general wear and tear, e.g. Tyres, brake pads, wheel balancing, etc). No MOT costs for first 3 yrs. No or low car tax costs if car has low emissions. No more throwing good money after bad for repairs on older cars. We Initially did this when we were earning less money.

Our other car is an electric car leased via DP's business, so even lower costs that can be offset against the business.

'My personal view is a car is a depreciation asset so it I don’t really care that much about owning one. I just want a reliable one that gets me from A-to-B without it being my problem when things go wrong with it.'

^This. A lot less car drama when you lease.

The car I have now was purchased via finance from new. no balloon payment though just straight forward 5 years repayment.

I now own it outright, it has needed work it's now 10years old, but it's that brand that just keeps going and is a workhorse of a car, the trusty Volvo estate.

I budget it needing about £300-£400 of work to get through an MOT generally so save this up over the year. Occasionally it just passed with no work needed so the £400 becomes surplus and tots up my savings, I continue then to save another £400 through the year to the next MOT.

I repair and maintain my car now, and I will literally keep this car going till it dies. It's also only £20 a year road tax so is cheaper than a "new car". It's fuel economy is fantastic so I also get the benefit of that.

I knew when I purchased it, it would be the car I drove for the next 15-20 years so didn't mind the finance option originally.

Most people I know either save 3 or 4 grand and get a cheap run about, most folk especially younger adults that have brand new sports cars like bmw its because it's either on finance or hire purchase which is sad. Our first car was purchased via a bank loan as we were desperate due to 2 small kids. My dad used to have a car dealership so he could get me a good car for dealer price so our car I paid £6,000 it was only 3 years old and it had only been used by a pensioner couple to go out once a week and it was actually worth £10,000 .

I also paid cash - about three grand.
I love my car!
High mileage but a reliable Toyota.
Leather seats, aircon, V6 Turbo, great stereo.

All of those features are just what it came with. I killed my car by cooking the engine on a long trip and had to buy a car to get home! This is what was in the nearby car yard. I was lucky that i had the money in the bank as I certainly don't always have that lying around.

Bought outright, best decision ever. It's not a cool car by any means and friends & family zip around in newer & flashier cars (I have no idea nor care whether they've paid for them yet) but I DGAF what anyone else thinks.

I've had a friend asking when mine will be replaced which I find

Bought outright, best decision ever. It's not a cool car by any means and friends & family zip around in newer & flashier cars (I have no idea nor care whether they've paid for them yet) but I DGAF what anyone else thinks.

Yep same here. I've had it 12 years and I only paid £6k for it, so it's "capital" cost has only been £500 per year, plus annual service/MOT and a new set of tyres. So actual cost per year under a grand. Never broken down.

I really don't know what these people do to their cars who say they need a brand new one every 3 years as they need a reliable one that doesn't break down. If you get it properly serviced every year and don't abuse it by bad driving, etc., there's no reason why they shouldn't be reliable. Yes, some makes of cars have inherent problems, but they're just as likely to fail in the first year as the 10th year if they have, say, a manufacturing fault.

I think most people lease cars now, I'm lucky in the fact my husband can buy a car very cheap eg a mot failure and fix it for next to nothing my current car was £900 worth £4000. We never get loans we used to years ago but not worth it