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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
Aworldofmyown · 02/02/2023 19:48

Ours is a company car.

oneuponedown · 02/02/2023 19:51

New Tesla company car

noworklifebalance · 02/02/2023 19:54

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.

You haven’t

saleorbouy · 02/02/2023 19:56

Because very few people pay for their cars outright right days. Most are just paying the monthly payment so they're not actually forking out 70k + for a nice car.

Pradapopsyloulou · 02/02/2023 19:59

Both had healthy car allowances so bought brand new with our savings and keep for years. The car allowances then topped up the savings. No interest to pay and owned outright.

Whiterose23 · 02/02/2023 20:03

We lease a Tesla at £500 per month, this includes insurance for DH and I plus repairs and replacement tyres. This is our first lease car and I’m loving it so far.
This is more than affordable on our income and we’re happy with our choice especially as I was paying over £300 per month on fuel.
We do own a Volvo outright as a second car.

Endlesssummer2022 · 02/02/2023 20:04

Why do these type of posts come up every week? Some people just have more money.

DH and I have paid off our mortgage and we bought a new Tesla outright because we can afford it and hate owning money to anyone so won’t lease or buy a car on credit because we don’t have to. No agreements with small print.

We will keep it for a long time e.g. 10 years (that’s how long we had our last new Audi and we sold it for s decent price) then sell and buy another new car.

Sillybanana · 02/02/2023 20:05

It’s not rocket science, it’s leasing

MrsGhandi · 02/02/2023 20:07

babasaclover · 02/02/2023 18:22

They get picked up by a national auction house and sold on to end up on second hand car dealers forecourt.

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Not for all brands - auto companies are working towards certain recycling scheme too.

Sillybanana · 02/02/2023 20:07

It’s false economy to buy a new car outright as they lose their value very quickly, so most people I know lease. Not me though, I prefer an old car that I own.

StillWantingADog · 02/02/2023 20:09

Baconand · 02/02/2023 15:40

We lease. We get some absolute bargains.
Only a financial idiot would buy a depreciating asset like a new car outright.

Not when you plan to keep them and drive them for years. Costs far less over a lifetime to pay for an occasional car rather than lease forever.

MrsGhandi · 02/02/2023 20:09

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.

Surely you would do the same if it were a car you owned - get it touched up or would you not bother?

MrsGhandi · 02/02/2023 20:11

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That's why you have insurance.

NextPrimeMinister · 02/02/2023 20:13

Baconand · 02/02/2023 15:40

We lease. We get some absolute bargains.
Only a financial idiot would buy a depreciating asset like a new car outright.

We do this too, for the same reason.

Original poster
Stroganoffo · 02/02/2023 20:14

MrsGhandi · 02/02/2023 20:09

Surely you would do the same if it were a car you owned - get it touched up or would you not bother?

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I personally wouldn't bother I drive a non luxury brand. Bodywork repairs are expensive for something I don't really care about.

OP posts:
Nosleepforthismum · 02/02/2023 20:15

In my circle there seems to be a weird status in having a top end car. I had an old Jeep for years before it finally gave up on me and I had so many people negatively comment on it or even send me links to new cars to lease or buy on finance. One even refused a lift in it 😅

My younger step sister has a new BMW on lease but lives in a rented house and constantly complains about how hard it is for her generation to get on the property ladder. Her friends all have much nicer cars than we did at their age as well and all on finance or leased. I think it’s just more commonly known that you can get these finance deals now. I certainly wasn’t aware of any of them in my 20’s.

FieldsOfRoses · 02/02/2023 20:15

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WalkingThroughTreacle · 02/02/2023 20:16

Hobbesmanc · 02/02/2023 15:43

Actually it's not silly. For example someone like Cazoo will hand over a Range Rover or Jag in a 2000k deposit and affordable monthly payments even for average earners. Say £400 a month. But you don't own the car and after the three years contract ends you basically hand it back and start again. Just watch your mileage

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This must be where I'm either old-fashioned or a tightwad. Or maybe I'm an old-fashioned tightwad. I earn well above the average income with low overheads (kids grown up, low mortgage etc) and the idea of committing to anything like £400 pcm for a car seems like madness to me.

Notplayingball · 02/02/2023 20:16

It will be on tick for most people out there.

MrsGhandi · 02/02/2023 20:17

Baconand · 02/02/2023 17:15

I genuinely despair at the lack of basic reading comprehension shown on mumsnet.

OP asks a question about the financing of expensive cars. Some people answer that question.

Then dimwits pile in to post absolutely unrelated twaddle about their superiority for not owning an expensive car and that they drive the legs of their £500 car which has absolutely nothing to do with the OP’s post.

Why? Genuinely baffling.

I think it is like the other thread that is running currently about wealth. There are a lot of jealous people out there. So many misunderstandings on this thread - people commenting about " on the tick", people living beyond their means, people showing off blah blah. Some seem to have no concept of the commercial auto world today and the options. Some people are happy to have an old banger to run about it and others like myself want to have a good car that does what I need it to do - long trips at certain times of the year and the rest of the time a bit of luxury for my retirement. I don't want the hassles of broken down cars - my brother can cope with all of that but no thanks, not for me.

MrsGhandi · 02/02/2023 20:22

WalkingThroughTreacle · 02/02/2023 20:16

This must be where I'm either old-fashioned or a tightwad. Or maybe I'm an old-fashioned tightwad. I earn well above the average income with low overheads (kids grown up, low mortgage etc) and the idea of committing to anything like £400 pcm for a car seems like madness to me.

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Yeah but it's not madness to someone who can afford it and wants a decent car. If you alternately pay out 35000 for a car that's 35K you don't have sitting somewhere earning interest for you. A decent car to me is not necessarily a big SUV but it does mean a reliable one so it could be a Toyota Ago at 200 pounds a month.

Original poster
Stroganoffo · 02/02/2023 20:24

For people sniping I must be skint can't afford it I was thinking of what to do when my car packs in at some point. My household is in the top 10 percent of household income according to ONS. I was wondering how every other car seems to be a new BMW , Merc , Audi or Tesla when that doesn't correspond to the statistics of wealth. I must just be very tight.

OP posts:
Kualma · 02/02/2023 20:26

I drive a Jaguar F Pace which I bought outright. I just have a good salary however I saved up for years & bought one a few years old

MrsGhandi · 02/02/2023 20:27

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

So accidents only happen to PCP cars or lease cars and not to others?

I can't agree with you about cars being never the same again even with an accident - an accident can range from a small bump to something fairly major - if you are with a decent insurance company and you are not nipping off to Kev's Garage up Rosamund Street. My practically brand new car was rear ended by another which pushed me onto the car in front of me. There was 6000 pounds of repair on my car - no negative effects and I sold it about 6 months ago at 5 years old for over 1/2 of the price I paid for it originally.

MrsGhandi · 02/02/2023 20:29

Stroganoffo · 02/02/2023 20:24

For people sniping I must be skint can't afford it I was thinking of what to do when my car packs in at some point. My household is in the top 10 percent of household income according to ONS. I was wondering how every other car seems to be a new BMW , Merc , Audi or Tesla when that doesn't correspond to the statistics of wealth. I must just be very tight.

You said you didnt want to fork out loads which is not the same as not being able to afford it. Maybe you just need to look at some of the new buying options.