Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Young people are foolish for leading cars?

183 replies

Kitchendrama1 · 08/09/2021 13:19

£2k to get the car and 36 payments of £350 of which you get nothing at the end of 3 years. £14,600 with insurance included, for a car you won’t own for 3 years.

I can understand insurance is high for a young person, but it’s dumb?

OP posts:
Wombat96 · 08/09/2021 16:28

And I think leasing is probably more cost-effective atm due to all the pressures on car prices.

Rugsofhonour · 08/09/2021 16:33

This reply has been deleted

Withdrawn at the user's request

Audeca · 08/09/2021 16:38

Borrowing against a depreciating asset has never seemed like a particularly smart idea to me.

Marmight · 08/09/2021 16:42

Owning a depreciating asset has never seemed like a particularly smart idea to me.

Shitfuckcommaetc · 08/09/2021 16:43

Bought a 10yr old car for 5k 6 years ago.
Probably paid 1k for repairs plus servicing cost, although I change the oil/filters myself.
It'll run for at least another 2-3 years if not longer, so I know what I'll stick with!

But then I don't really care what other people think about the car I'm driving, although all my friends do like to take the piss out of my old girl, as they all get shiny brand new cars every couple of years.
I wouldn't want to be tied down to a car payment every month.... Forever

mistermagpie · 08/09/2021 16:49

But presumably you had 5k sitting there to buy the car with? A lot of people don't and it's a way to spread the cost and get what you want.

I think a lot of the criticisms are the same for renting a property- that it's wasted money. But I don't really see it that way - the way I see it, I get the car I want at a price I want to pay and the peace of mind that a new car under warranty gives. Yes, I'm paying more in the long run than if I bought a second hand car, but I get to have a new car and the benefits of that, so that is fine by me!

Saz12 · 08/09/2021 16:54

£15k over 3 years therefore £5k per year. That does sound a lot just for driving a new car.

Modern cards should be very reliable for at least 9 or 10 years, and few make radical changes to safety ratings in that time. So whilst you MAY be unlucky, it’s more likely that buying a perfectly sound 3 year old car and running it trouble free for 5 years, with a reasonable chance of squeezing a couple more years out of it thereafter, particularly if you get it serviced properly.
However - I have no interest at all in cars so don’t take pleasure in having “the right marque” or “better spec”, so those are not things I’d want to spend my money on. I much prefer to have a glamorous(!) car like a Nissan or Dacia and more ££ for something else.

Sinuhe · 08/09/2021 16:56

It's fine to lease a car... until you loose your job and can't pay for it.
Happened to us, now we own a car outright ... paying something like £600.- in repairs is far cheaper than the 2k+ for the lease.

Ok it's not the latest model but we are also not trapped in a consumerism circle!

FourteenSixteenTwentyTwo · 08/09/2021 16:57

I didn't think this was a specific 'young' person problem. Don't a lot of young people still have old bangers?

I have an old banger so I just figured I was young at heart.

Shitfuckcommaetc · 08/09/2021 16:59

I didnt have the 5k upfront actually, I got a personal loan and paid it back over 3 years. The 5k I quoted included the interest on that loan

Baggingarea · 08/09/2021 17:03

I dunno some people need a car for work / are disabled and can't afford a car upfront and hire purchase too expensive. Sometimes loans are cheaper Apr, sometimes not.

Shade17 · 08/09/2021 17:05

But you’re only comparing to buying brand new which is for mugs.

Bought my wife a brand new car a year ago on a 0% PCP and kept the capital in the ISA where it grew £5k. Just sold it with 9k miles for £2.5k more than we paid for it new. Made £7.5k in a year getting a car on a PCP. Feel a right mug.

Gingersay · 08/09/2021 17:07

I lease a car I'm not young and I'm certainly not vain either. Its not for anyone else, it's so me and my children can travel in a nice reliable car, no Instagram here!

RollaCola84 · 08/09/2021 17:09

Why is it dumb ? New cars depreciate massively and many people (me included) couldn't afford to buy something nice outright. Buying an older car outright you're more likely to incur costs for repairs and wear and tear maintenance.

I'm about to take delivery of a brand new car on lease, my first ever new car. 3 year deal, servicing included, covered by warranty, no MOT required in the period I'll have it. What's dumb about that?

Kinneddar · 08/09/2021 17:09

So does leasing only make sense for older people? I don't understand your logic at all

Glittertwins · 08/09/2021 17:13

We lease ours. Just as well we could hand DH's back at the end as it turned out a whole lot of work would be needed and it was not a cheap car. We gave it back, no questions and no massive bill. And it was well maintained and looked after too.

Original poster
Kitchendrama1 · 08/09/2021 17:25

@RicherThanYow

I’ve always leased. I literally do not have thousands of pounds in savings to buy a car outright, so it’s out of necessity rather than choice. I choose cheap, ubiquitous cars (eg used Ford fiestas) which only cost me around £120-30 per month, plus insurance and MOT ect. It’s manageable for me this way even though I might be paying more in the long run.
What’s the deal? You spend that a month and is there a down payment etc?
OP posts:
Original poster
Kitchendrama1 · 08/09/2021 17:26

@Kinneddar

So does leasing only make sense for older people? I don't understand your logic at all
Look at the figures I’ve given. Spending that much on a car when you are on a low income?
OP posts:
Original poster
Kitchendrama1 · 08/09/2021 17:27

@Shade17

But you’re only comparing to buying brand new which is for mugs.

Bought my wife a brand new car a year ago on a 0% PCP and kept the capital in the ISA where it grew £5k. Just sold it with 9k miles for £2.5k more than we paid for it new. Made £7.5k in a year getting a car on a PCP. Feel a right mug.

This only happened due to the pandemic.
OP posts:
Original poster
Kitchendrama1 · 08/09/2021 17:28

How long are cars supposed to last?

OP posts:
BoredZelda · 08/09/2021 17:30

It's no different to renting a home. We've done it both ways and to be honest, it is much better to have a car you give back after 4 years than to get to that point and to start having to pay for the things that start to go wrong.

There's normally a final optional buyout payment at the end if you fancy keeping the car, if not you can swap it and get a new one.

Not normally. It depends on whether you have a hire/purchase or leasing agreement. Both are common.

Baggingarea · 08/09/2021 17:31

Also what a weird thing to have an opinion on.

whynotwhatknot · 08/09/2021 17:34

My dsis got a lease 3 years ago no down payment but didnt include insurance she seems happ with it and doesnt pay alot

Original poster
Kitchendrama1 · 08/09/2021 17:34

@Baggingarea

Also what a weird thing to have an opinion on.
What a weird thing for you to have a opinion on
OP posts:
Baggingarea · 08/09/2021 17:37

Lol ok