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?

If I had £350 spare a month as a young person I'd save it for a year and buy a car with it, it's what I did when I was young, eight year old VW polo £1650 in 2007

But the second hand car market is a completely different beast to what it was in 2007.

There’s very slim pickings for £3500

^ So if 20 people buy a new car, then 20 will be produced. If the 20 people then get a new car after 3.. 6 ... 9 ... 12 years 80 more cars are produced...
If they don't get a new car and keep it for 12 years, only the original 20 cars are produced in that time period.
Same with 2nd hand, if you buy a 3/4 year old car and keep it for a further 10 years rather than replacing it after 5 years, 1 car less needs to be entered into the supply chain.^

But this isn’t what happens in reality.

As demonstrated on this thread there are many people who would prefer to buy second hand and wear it into the ground.
And there are many people only leasing because second hand car prices are so expensive.

So we don’t have 20 people all changing their car every year

We have ten people changing their car and then ten people buying those cars and continuing to use them.

If those ten people didn’t have access to second hand cars then they would need new cars as well so we’d still have to make the same number of cars.

Like I keep saying those lease cars don’t go in the bin, they get used usually right up until their parts are recycled.

Leasing isn't for me, but if its done with proper consideration for cost vs needs then I can't see why it's an issue generally.

What I see a lot of, and it is with younger people, is people leasing a high spec car which they could no way afford to have any other way, for in excess of £500 a month. Often they also complain about how they can't afford to save up.

@InFiveMins

I always lease and have had monthly repayments of more than £350 for years. But I like having a nice new car every 3 years and never have any trouble with maintenance. Works for me!

I get that having no maintence would be good. However I have a loan for a (lovely car) at 150pm. If I saved the additional £200 per month that leasing would cost me this would easily cover all tax, maintenace and insurance with some to spare. And then once my loan is paid off then I'm only paying out basic amounts. Also have to bear in mind the car isn't yours as a PCP and then it's a nightmare if you unfortunately do have an accident.

@NHSWoes

Again, mixing up leasing and PCP.

They are absolutely not the same thing.

I always bought my cars outright. Now I lease. The depreciation of the car counterbalances the interest on the lease and honestly I prefer not paying out a lump sum. Most people I know lease - we could all buy outright if we wanted but it works for us. I will be leasing a car for my son when he is old Enough to drive

@whatthejiggeries

I always bought my cars outright. Now I lease. The depreciation of the car counterbalances the interest on the lease and honestly I prefer not paying out a lump sum. Most people I know lease - we could all buy outright if we wanted but it works for us. I will be leasing a car for my son when he is old Enough to drive

How much is it?

The depreciation of the car counterbalances the interest on the lease...

There is no interest on a lease???

Is this another post confusing leasing with PCP, which is completely and incomparably different, or have I misunderstood?

Leasing and PCP are as different as renting a house and buying a house (with a mortgage).