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AIBU?

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Original poster

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

361 replies

Stroganoffo · 02/02/2023 15:24

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 ?.

OP posts:
Greensleevevssnotnose · 02/02/2023 19:02

That's gorgeous, I have an Aygo but that is lysh

BashirWithTheGoodBeard · 02/02/2023 19:03

I maintain that 2nd hand car ownership works out cheaper, on average.

On average being the key phrase there.

There are always people who feel more comfortable knowing the set amount they'll have to pay for, even if they have to pay a bit for that certainty. Like how some borrowers want a longer mortgage fix even if it's a higher rate and they don't mind if it works out more expensive, whereas that wouldn't work for others. And anything that involves saving money by paying upfront won't be accessible to some people.

Second hand cars have also got a lot more expensive in the last couple of years, for obvious diseased bat reasons. So there are going to be people who'd have bought a second hand car for 4k a few years ago but now can't afford or balk at paying 8k for the same type of thing.

Nowdontmakeamess · 02/02/2023 19:04

WaddleAway · 02/02/2023 18:56

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

Show quote history

Maybe they want to save as much as possible for his future when they aren’t around

FieldsOfRoses · 02/02/2023 19:05

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Yarrawonga · 02/02/2023 19:06

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

Generally speaking. We have one that is worth more than twenty times what was paid for it.

WaddleAway · 02/02/2023 19:07

Nowdontmakeamess · 02/02/2023 19:04

Maybe they want to save as much as possible for his future when they aren’t around

Show quote history

I think implying that leasing a car means that your SEN son isn’t your priority is pretty shit to be honest.

CaptainMerica · 02/02/2023 19:16

I never understood why people leased cars, but the tax breaks for electric make it well worthwhile, if you are a higher rate tax payer.

I pay £380 per month salary sacrifice (no deposit), so the savings on tax, NI, etc mean it costs half that. I have high mileage and an off peak EV tariff, so also saving £100+ per month in petrol. It would be stupid not too.

Useit · 02/02/2023 19:17

I wouldn't want to lease a car because I would have to look after it too much and watch the mileage, what happens if they get a scratch or dint, a car is a means for getting from A to B not a showpiece.

noworklifebalance · 02/02/2023 19:17

Yarrawonga · 02/02/2023 19:06

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

Generally speaking. We have one that is worth more than twenty times what was paid for it.

Yes, that’s why I said “generally speaking”‘ in the vain hope that someone doesn’t feel they have to tell everyone how much their car has increased in value, which adds nothing to the discussion, as it is not typical. We all know such cars do exist.

Applesandcarrots · 02/02/2023 19:17

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

I didn't imply that 2nd hand cars are all uselessConfused
I have specifically mentioned the super cheap second hand cars. You simply cannot now buy a car for few hundred which you could drive away or which would last. That is what I was (in my opinion) clearly pointing out by cleraly specifying the price range I am talking about and showing the cheapest drivable car.
I don't know how much clearer I can be.

WaddleAway · 02/02/2023 19:18

CaptainMerica · 02/02/2023 19:16

I never understood why people leased cars, but the tax breaks for electric make it well worthwhile, if you are a higher rate tax payer.

I pay £380 per month salary sacrifice (no deposit), so the savings on tax, NI, etc mean it costs half that. I have high mileage and an off peak EV tariff, so also saving £100+ per month in petrol. It would be stupid not too.

This is very similar to our situation. The tax breaks on our EV are huge.

LeilaGetTheHose · 02/02/2023 19:20

We drive a brand new jaguar, we have it on lease. We have the salaries to afford one but don't want the expense that comes with maintenance of older cars and we get to upgrade every few years so it just suits our lifestyle best. Prior to that I had a Mercedes company car (from the age of 24, so quite young). So different ways for people to have expensive cars.

Yarrawonga · 02/02/2023 19:24

Yes, that’s why I said “generally speaking”‘ in the vain hope that someone doesn’t feel they have to tell everyone how much their car has increased in value

Sorry if I touched a nerve.

User1857498 · 02/02/2023 19:31

We lease a Tesla, but in the past have always bought cars outright, we own a diesel SUV for towing, we wouldn't tow with any electric car. Most people nowadays buy or lease new cars, not so many have older cars like they did pre 2000

Comedycook · 02/02/2023 19:33

You simply cannot now buy a car for few hundred which you could drive away or which would last

A few years ago my dh bought a cheap runaround to tide us over for a few months...cost £450. I ended up driving it for three years! It never once broke down in all that time. I never even had to get anything fixed on it and it passed every mot first time. He even sold it for a profit. I cried when we sold it even though I had a newer car as a replacement.

I appreciate we got lucky with that particular car though!

Applesandcarrots · 02/02/2023 19:36

Comedycook · 02/02/2023 19:33

You simply cannot now buy a car for few hundred which you could drive away or which would last

A few years ago my dh bought a cheap runaround to tide us over for a few months...cost £450. I ended up driving it for three years! It never once broke down in all that time. I never even had to get anything fixed on it and it passed every mot first time. He even sold it for a profit. I cried when we sold it even though I had a newer car as a replacement.

I appreciate we got lucky with that particular car though!

Yes, but the point in there with "now" means now. Look how much it would be now.

As you saw, second hand cars risen in last few years quite considerably that we also made money on ours after paying off the pcp. Well it was like £1500 but still good!

I am in no way disputing people could buy years ago cars for few hundred and drive for years

Comedycook · 02/02/2023 19:39

Yes true! In fact when I see people driving second hand cars and people driving flashy new ones, I would now assume the person driving the older car was actually wealthier!

StressedToTheMaxxx · 02/02/2023 19:40

My sister has a 22 plate audi on finance, £350 ish a month. I bought my 2007 car outright, so no monthly HP/PCP cost. However it's old and needing taken to the garage once every 3months or so for repairs for this or that, just little things but I'm about £150 ish a pop. I can't afford a new car but sticking with an older car also has its expenses. My sister never has her car in the garage, so no costs like I do.

sydneysunset · 02/02/2023 19:41

I think so much less of people who regularly lease new cars. Environmentally irresponsible and frankly pretentious.

We could afford expensive cars but have other priorities

safeplanet · 02/02/2023 19:41

I balk at spending £500 on a car per month, I'm in a high income household. Aren't people worried about denting it ? Scratching the alloys ?

This is me, I think I would be too scared! I also don't care about cars at all & feel like i'm not rich enough to not miss £500 a month.

Applesandcarrots · 02/02/2023 19:42

Comedycook · 02/02/2023 19:39

Yes true! In fact when I see people driving second hand cars and people driving flashy new ones, I would now assume the person driving the older car was actually wealthier!

😂😂 Totally.
Second hand ford with less than 100k miles? Ooooh, someone was lucky in lotto, weren't they😂

rumship · 02/02/2023 19:43

Buy all my cars second hand at usually 1-2 years old still with warranty. My employer gives me a car allowance to buy a car.

So it makes more sense to put it towards a 30k car and keep trading it in for newer ones when I spot a bargain.

Why would I lease, my employer is paying for it so if I leave my job I still have a car at the end of it worth something.

Applesandcarrots · 02/02/2023 19:44

sydneysunset · 02/02/2023 19:41

I think so much less of people who regularly lease new cars. Environmentally irresponsible and frankly pretentious.

We could afford expensive cars but have other priorities

Someone haa to use them so they can become acceptable second hand tho

Krakenes · 02/02/2023 19:45

I have one, but it’s a company car. Have to change it every few years due to emission regulations changing etc. I personally wouldn’t be bothered but as we don’t have off street parking I like not really caring about insurance/damage/etc.

Lordofmyflies · 02/02/2023 19:47

I have a lease car through my business. I pay just under £250 for a 22 plate BMW. I don't pay for MOT, road tax or repairs as its under warranty. If it breaks down they give me a replacement. With a DH who works away a lot I need something reliable and security of being mobile.