Young people are foolish for leading cars?

[Kitchendrama1]

£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?

I think it's just personal choice.

I buy cheap-ish second hand cars for around 5k and run them into the ground. My current car is a 2016 Hyundai which cost me just under 5k. It flew through it's last MOT with nothing wrong with it whatsoever and I drive daily.

Insurance is £30 per month and tax is £30 per year.

@icedcoffees

I think it's just personal choice.

I buy cheap-ish second hand cars for around 5k and run them into the ground. My current car is a 2016 Hyundai which cost me just under 5k. It flew through it's last MOT with nothing wrong with it whatsoever and I drive daily.

Insurance is £30 per month and tax is £30 per year.

Cars are heaps more reliable than before. This is why I don’t understand a young person spending £15k over three years for a car they won’t own.

It was handy for me, leased one at £100 a month for 3 years. Finished it, moved to London and didn't need to have/sell a car.

I was at uni so didn't have any savings and couldn't get a loan... this way I got a car

@CorianderBee

It was handy for me, leased one at £100 a month for 3 years. Finished it, moved to London and didn't need to have/sell a car.

I was at uni so didn't have any savings and couldn't get a loan... this way I got a car

So £3600 for a car for 3 years? And that’s all the payments you had?

No one I know actually keeps the car at the end. For myself and everyone I know it's a way of getting a new car every 3 years

Why does their age matter?

@Kitchendrama1
"This is why I don’t understand a young person spending £15k over three years for a car they won’t own"

Why do I want to own it ? I'll hand it back before before starts needing MOTs, new tyres, other wear and tear replacements.

@SheWoreYellow

Why does their age matter?

Low income.

[quote RollaCola84]@Kitchendrama1
"This is why I don’t understand a young person spending £15k over three years for a car they won’t own"

Why do I want to own it ? I'll hand it back before before starts needing MOTs, new tyres, other wear and tear replacements.[/quote]
Because it’s money thrown away and much cheaper ways to have a car.

People talk about cars as if they’re these fantastic assets to have bought outright. An average family car bought at a couple of years old and paid for outright is going to be worth a few thousand pounds at most after 4/5 years.

It’s a lifestyle choice same as paying for expensive houses or holidays is. No one is forcing you to do it.

We have a 6 year old vw and we were so pleased to have paid it off. What now? No HP payment but a car that’s only worth a few K to trade in against a new one when the time comes. It’s swings and roundabouts.

@Sinuhe

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!

Yeah that's the issue isn't it, it leaves you really exposed to a change in circumstances like a reduction in income or the loss of a job. Not for nothing has car finance (particularly PCP) been identified for a good few years as potentially a big problem come the next recession.

Look at the figures I’ve given. Spending that much on a car when you are on a low income

Well clearly they feel ots worth it. Don't know why you're giving this so much thought

Not always a low income. My friends graduate son is on a very healthy wage for 'a young person'

@Redglitter

Not always a low income. My friends graduate son is on a very healthy wage for 'a young person'

That I don’t mind.

The person I know leasing it has those figures

@slightlyworriedthissunday

People talk about cars as if they’re these fantastic assets to have bought outright. An average family car bought at a couple of years old and paid for outright is going to be worth a few thousand pounds at most after 4/5 years.

It’s a lifestyle choice same as paying for expensive houses or holidays is. No one is forcing you to do it.

We have a 6 year old vw and we were so pleased to have paid it off. What now? No HP payment but a car that’s only worth a few K to trade in against a new one when the time comes. It’s swings and roundabouts.

No one does. They know they are money pits and aren’t an asset.

Your car works so why would you trade it in?

It's fine to lease a car... until you lose your job and can't pay for it.

Very good point.

@Kinneddar

Look at the figures I’ve given. Spending that much on a car when you are on a low income

Well clearly they feel ots worth it. Don't know why you're giving this so much thought

Ditto yourself

All the BMWs round here seem to be driven by 20 yr olds, complete waste of money, it's clearly about 'status' not having a reliable car.

Why are you so pressed about what others choose to do with their money? If they want to take a car on finance that's their decision and obviously plenty reason for it!

If you are happy with your car and how you choose to buy it not sure why you are so interested in what others do. How do you even know most of the cars are leased?

They may have plenty income to cover the costs and making regular payments can only help with improving credit rating at the same time, as well as allowing them to manage money and run about in a safe car.

@SpacePotato

If I needed a car for a commute, I'd rather rent a decent car that will be safe and serviced than buy an older car that would likely need more repairs, maintenance and higher car tax.

There is no need to pay £350 a month though.

Exactly.

I’ve always bought old cars but invariably after a year or 2 expensive shit starts to go wrong with them. I have a motorway commute for work and need something that’s I know going to start and work like it’s supposed to.

Got my first car on PCP 3 years ago and it’s great, modern, safe and reliable. Cost me £200 a month and money well spent!

@icedcoffees

It's fine to lease a car... until you lose your job and can't pay for it.

Very good point.

You could say the same about a mortgage though.

@Blinky21

All the BMWs round here seem to be driven by 20 yr olds, complete waste of money, it's clearly about 'status' not having a reliable car.

Yep, at work all the young under 24’s drive BMW or Audi all on pcp. I personally think it’s a waste of money but if that’s what people choose to spend their money on fair enough. For some people it’s all about status symbols.

I buy a 5 year old car drive it for 6/7 years then change it, others would cringe at the thought !

Just to add, I got a car that was a year old rather than brand new and would do this again, brand new is a bit unnecessary.

@Kitchendrama1 That I don’t mind

Oh well, in that case as a non young person on an above average salary I'm glad to have your blessing to lease my new car. I must have missed the part of the process that required your approval

@JudyGemstone still need somewhere to live.