How do lots of people afford the brand new luxury cars ?

[Stroganoffo]

Keep seeing 22 plate Mercedes, Audi , BMW and tesla, when I was little these were quite rare as only the wealthy had them. Now it seems everyone has one considering the average wage isn't that high and the cost of one is 50k. I have a good wage and still don't want to fork out lots. How are people affording them. Is it all on credit ? Aren't people worried with everything else going up and the cost of living crisis ?.

We are retired and could afford a new posh car but we would prefer to spend our money otherwise and buy cars about 3 years old

People prefer to lease than brake down coughing up service charges

Lease cars break down. They're not magic. Yes the repair charges will be covered, but in 20+ years of car ownership (2nd hand, usually 5-15 year old cars bought for 2-5K each) I've only broken down once (clutch).

I think people are scared of 3+ year old cars; there's no reason to be.

I spend nowhere near the thousands of pounds it costs to keep a lease car on the road.

I would probably lease my next car. My car nearly brand new cost 10k 6 years ago thats just not possible now the cheapest car same car I have same age and mileage is 8340 that's crazy . I'm guessing a new even basic car costs a lot.

PCP and lease.

It actually makes it fairly cheap. I got an A class for about £250 a month.

For anyone doing
"I got my banger years ago for 600"
This is the cheapest drivable car on Autotrader around Manchester
www.autotrader.co.uk/car-details/202301313789649?advertising-location=at_cars&metropolitan=manchester&postcode=M25DB&sort=price-asc&page=1&price-from=500&radius=20&year-to=2023&onesearchad=Used

I know someone who bought similar for dirty job and it lasted a fucking month.
Used cars are not cheap anymore ESPECIALLY if you want reliable one for a job

We have 2 company cars (Tesla and Mercedes) and 2 cars we own outright (Range rover and Land rover). Obviously we pay nothing for the company cars but they are brand new, the rovers we bought with cash. We have a high income, no monthly payments here

I'm guessing a new even basic car costs a lot.

Dacia Sandero: £12,595

Top 10 cheapest cars on sale 2023

I only drive automatic, I paid 10k for my automatic 6 years ago, Dacia Sandero automatic is 16k.

@noworklifebalance

Generally speaking there is no point in owning a car outright as it will depreciate in value

If you're planning on holding the car for the longer term rather than constantly renting a new one every 2/3 years, then leasing costs a lot more. If you buy, then you can probably keep the car several years longer meaning years of not paying the monthly cost, hence why it's cheaper to buy and keep. Obviously, if you plan to replace every 2/3 years then leasing is probably similar to buying/selling every 2/3 years in terms of cost.

We tend to buy new and keep, we have one that's 15 years old and another that's 8 years old. Neither are costing us much at all, just a few hundred per year to service/MOT them and replace tyres, brake pads and other consumables.

I have to have epilepsy to get mine as it’s a motability car 🙄 🙄

Things aren’t always as they seem.

The depreciation isn't as much as I've thought either , my car has lost £1700 in total from when I bought it nearly brand new 6 years ago, which is nuts.

I have 250k worth of cars parked on my drive and I bought them outright. I'll trade them in in a year or two and shell out another 80k or so to replace like for like. I like cars and can afford it.

Just to clarify, DH drives. Not even I’d wanna be in the car if I was driving 😆

Lots of people I know have bought new cars. Mostly it's on finance for 3 years and at the end you have to pay a "balloon" payment to get full ownership of the car. I do know a few people who are rich and just buy a new car for cash when they want one.

Same here, we've not had a single "breakdown" in a couple of decades, despite our cars being 15 and 8 years old respectively. But we have them properly/regularly serviced and drive carefully.

The average lifespan of a car at the moment is 13 years, so people worrying about reliability of cars over 3 years old are out of touch with reality.

I do wonder what kind of cars people have who get landed with repair bills of thousands, or how they drive them. I think you have to be very unlucky or a very bad driver or don't bother servicing your car, to get a bill for thousands if you car is, say, under 10 years old.

@ThreeLittleDots of course they can brake down but as you've mentioned it's covered. I broke down loads with my second hand cars paying loads more than my monthly lease now just so it goes back up and running again and only to break down again. In the end I got sick and tired and my financial circumstances changed and got my first A class for 250 a month a few years ago. I paid between 250-400 many times to get my second hand cars back to life and was so pleased with my A class which came with all the specs my second hand car never had. Imagine the luxury of having a/c lol, heated seats, better fuel consumption despite owning a similar sized car previously. I will never ever willingly own a car ever again.

flyingdino

Different strokes isn't it, but someone would have to be incredibly unlucky to spend £3,000 a year, every year, in repairing their car.

I maintain that 2nd hand car ownership works out cheaper, on average. But money isn't some peoples' main concern and they want to pay to have new.

I know someone through my book club whose DH earns well over £500,000 and drives an old Ford. They have no concerns about image whatsoever. They also have a SEN son so maybe that’s their priority.

😅

We lease our car and have an SEN son. Not sure why leasing a car would mean he’s not my priority?

Financial crimes, fraud, tax evasion and grug dealing.

Cars are much cheaper now, almost everyone I know has a brand new car (not necessarily Mercedes etc). Second hand cars are much more expensive so the gap between the two isn't much, so people opt to buy a new car instead. Also lots of people might not actually own them, they could be leasing them

I would never lease a car. You pay stupid prices and still own nothing in the end.
“Only an idiot would lease a car” is the tone in my circles 😃

1- he didn't intend it for a month. It only lasted a month
2- that was an example of what these prices some people mention as past purchases now buy you

One would think that would be clear from me actually saying "For anyone doing "I got my banger years ago for 600""
HTH