To ask, if you have a car, how much you pay per month?

[Threeflyingducks]

I've had three cars in my lifetime, each one so far has been budget/secondhand and paid for outright. For the first time I'm looking to buy a car and pay per month (PCP). My days of cheap runarounds are done, I need something that is reliable for high mileage/long journeys and can fit a gaggle of children/friends in when required, with good safety standards.

Having never had a monthly car payment going out I'm a bit daunted tbh, and would appreciate views! I know it's going to be relevant to respective incomes, I'm just curious what other people see as reasonable. I've heard that lots of the very fancy cars on the road are bought by people on very low mileage/leasing so their options are more affordable than they might appear. But then a work colleague proudly told me that his car (a top of the range SUV, to be fair) was 'only' £300 a month and I thought cripes thats more than my half of the mortgage!

I know how much I'll be paying will be skewed by needing to do a lot of miles (unavoidable currently due to rural-ish location and using the car for work) but I'm curious about what people consider a typical range. Right now everything seems like such an indulgent amount, but that's probably because it's not that long since my travel expense was a weekly bus pass!

I would be interested to see the monthly salary of people/% they spend on cars per month. Really seems like most people spend an unreasonable amount for their salary (looking at UK averages)

@Megan2018 - wait until your DCs are older. The order will then be

DCs horses ( including those left behind when they move out)
DCs retired ponies
DCs university living costs
Your horses
Everything else

I got a two year old Ford Focus Titanium last year for £10k - I got a loan through Admiral for £9k as the interest rate was so much lower than car finance and put £1k down as deposit. After four years and £200 per month the car is nine and I’ll probably keep it another two or three years.

@notquiteruralbliss I have to admit a secret part of me will be relieved if DD not keen on horses. But I do have a share of a LR pony already lined up (and she’s only 6 months) so time will tell!

Mine is retired from competing so no longer have a lorry or tow car-I imagine an expensive PCP or lease may be needed down the line

110 Suzuki celerio first car now covered in dents, economical to run. Looked at buying a cheap car outright but insurance was really high. This was the best option all round for me

We have always owned our own cars. However, after having lots of issues with my DH’s car recently (spent over 4K to keep it on the road and it’s really only just limping on now) we’ve realised that owning a second hand car is more expensive than having a brand new one on PCP. We will be paying around £440 a month for a brand new RAV 4. Feels expensive but worth it for the peace of mind of having a reliable car.

Car cost £800. Good deal.
Tax £20. Insurance £28.
So outlay £48 a month .
So if car is ok for three years and no cost.
£70 ish a month outlay.
So the lease option is suddenly not so bad.

I previously had a new Honda Civic at £260 a month. This increased to £315 a month when I realised my mileage was 17000 a year . When I handed it back, they also tried to bill me £1000’s for minor scratched. I haggled them down but it was very stressful. I would avoid any desks through Lex auto leading like the plague

*leasing

I got a loan from the bank and pay approximately £154 for 5 years.

I didn't want to have to pay a larger amount of money at the end to own it.

I'll drive it until it becomes not worth repairing.

I got a 2015 Peugeot 107 from a second hand dealership in 2017. It had only done 8,000 miles and it was as close to new as I could afford. No road tax as the engine is so small and £123 a month.

We've just got an electric MGZS on pcp for around £300 a month over 4 years with 7000 miles per year. Like a PP says, no road tax or congestion charge and only around £4 to fill the "tank".

I’ve got a 62 plate Vauxhall Mokka, £197 per month until this November. Had it on a 5 year term and will own it by the end. If I ever did it again I’d get a shorter term for sure as you never know where your finances will be by the end of it, and now that we have nursery fees the £197 is more than I’d like to spend really.

I need something that is reliable for high mileage/long journeys

I think this will exclude a PCP deal then, aren't they usually limited to 10k or 15k max a year.

A car load is a good idea; you end up owning something you can sell and if the car is new your maintenance will then be limited to an annual service/MOT. As long as the loan is paid off within 3 years, do the maths, you will be better off.

It's leasing that is usually limited to about 12k a year, it is possible to get PCP deals for up to 20k mileage, though not all dealers will do them & not all cars. HP is also something I'm looking into for that reason. I'd not really thought about a car loan though it's worth considering (some of the cars I've been looking at have deposit discounts if using their finance so I'll need to do a few calculations to see what's best overall)

@coffeeandpyjamas it's a good point about not knowing where finances will end up. That is one of my anxieties, though one of the reasons I've started looking is the realisation that over the last ten years I've almost always been saving up for the next car or something car related so the expense always exists even if it's not a fixed bill.

I'm feeling less guilty about my potential spending now!

200 pm on a Honda Jazz (new)/8k per year mileage which I wont do. Prob do 6k max. electric cars are the future (well, one future) but come with their own issues re charging

I pay £85 a month but that’s from a loan, I bought a ten year old car. I considered PCP but like you I compared it to my mortgage which is £250 and found it too much! I don’t use the car enough to justify such a high outlay.

So my car was bought using a a 4 year loan, it's a year old, I pay 235 pcm for those 4 years then probably keep it another 3/4 years with no monthly payment. Much cheaper in the long run than pcp?

@crispysausagerolls our car is 10% of mine and dh combined monthly income. I think that's quite reasonable and not that extortionate tbh.

Thanks all, I've had another look and I think HP might be the way forward as I've got a decent deposit saved up and a small trade in value (APRs on the finance calculators aren't guaranteed I know but they are comparatively lower than the PCP rates)
Car loan looks to be a good option if I decide I want to borrow more/for longer as the rates are better for higher amounts.

I'd love to go electric but I can do 300 miles in a week just for work, not including commuting, so that'll be a way off yet!

You can go car finance to get any dealer discounts and a car loan with low interest rates at the same time.

Get the finance agreed to get the cheapest price for the car, then pay it off the next month in full with the loan and continue paying that for however many years. Car finance rates are 6% and up, usually higher. Whereas personal loan rates are around 3% for people with decent credit rating. You can even get 2.7 and 2.9%.

Another option is an interest free credit card, you can get 28 month terms interest free, if they offer you a high enough limit. I was offered 7k so this plus any savings and using old car as deposit would be enough for me to get a new to me car (2 it 3 years old). Also if your credit rating stays good then go onto another interest free deal, to pay it off over a longer time frame.

Lots of info on money saving expert about credit cards and personal loans best buys.

New Kia Sportage - leased through lex auto lease, £316 a month including the maintenance package and road tax. Insurance cost £47 a month for it and fuel about £100 whilst I’m on mat leave. When I’m working fuel cost double that.

I’ve got a VW Polo on HP and I pay £190 a month. Insurance was £700 this year, £20 a year tax and a full tank of petrol does me the month - £40.

I’d like to do PCP but i did 24000 miles last year so not an option. I have a company car which reduces my tax free salary by £5,500 per annum but I also don’t pay for any repairs, tax or insurance.