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AIBU?

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Original poster

To ask what is going on with buying cars at the moment

182 replies

blueyislife1 · 19/02/2023 14:56

We need a new car, we currently have a SUV type and want another SUV type. 3 years ago we put on finance a £19,800 SUV and pay approx £270 a month.

Looking today at same model same sort of age gap e.g we got a 18 plate in 2020 and now looking at a 20 plate. Showing as £21,500. Fine things have gone up. But the finance in now £450 a month!!!

This seems to be the same for most dealerships except VW who show as £279 on the website then in the dealership they say that's no longer the case it's actually £530 a month!!

What is going on. We are loosing our patience with it and need to trade in the car!!

We need a 'big' car due to children and various dogs so has to be an SUV!

OP posts:
Supernova23 · 19/02/2023 14:59

In the nicest possible way, if you want a car that is only a couple of years old and especially an SUV, that is the price you will be paying. Like everything else, the price of newer cars has skyrocketed.

I suggest a slightly older estate model. Just as much if not more space as an SUV.

Jedsnewstar · 19/02/2023 15:00

You can’t afford what you want. Keep the 3 year old car.

GCAcademic · 19/02/2023 15:00

Presumably that will be because interest rates have risen quite a lot in the last two years.

paintingwithcampbells · 19/02/2023 15:01

Have you looked at the APR? Costs are up everywhere, including interest rates for loans. Which is what PCP/etc is.

Miscellaneousme · 19/02/2023 15:02

Interest rates have gone up.

ElinorDashwood68 · 19/02/2023 15:04

Look at loans from a bank rather than through a dealership. Dealership loans will be at a higher interest rate

Timeforachangeisitnot · 19/02/2023 15:04

Basic costs of cars have gone up, interest rates have gone up,, dealers possibly not able to discount as much, residualsbeing calculated more conservatively ( if it’s PCP)

Try your own bank for finance, may be cheaper than the dealer

SleepingisanArt · 19/02/2023 15:06

There has been a worldwide shortage of the 'chips' used in cars (and also computers) so far less new cars have been manufactured. As a result the price of second hand cars has sky rocketed. Cars will remain expensive until the supply chain for new car parts works itself out.

JizzlordTheCat · 19/02/2023 15:06

Have you not seen the news about interest rates increasing? That will make loans more expensive.

Additionally, Covid meant that secondhand cars in a lot of countries increased due to delays with new cars being built and delivered. Add to that, the increased cost of materials like metals and glass, and the cost of a new car increased along with longer wait-times so many people who would have previously bought new ended up going for second hand.

I was considering trading my car in in 2020 and got a quote but decided not to trade. Eventually sold it in 2022 and got over £3k more for it compared to what I’d have gotten in 2020, and that was with more miles on the clock.

89ghud · 19/02/2023 15:07

Interest rates, obviously.

Flamingogirl08 · 19/02/2023 15:09

Can't you just keep the car you have?

daffodilday · 19/02/2023 15:26

Jedsnewstar · 19/02/2023 15:00

You can’t afford what you want. Keep the 3 year old car.

This.

C4tastrophe · 19/02/2023 15:29

Flamingogirl08 · 19/02/2023 15:09

Can't you just keep the car you have?

Exactly. Cheapest option, more environmentally friendly as the thing already exists. Nowadays any well looked after car can get past 250k miles as well.

C4tastrophe · 19/02/2023 15:30

Get an estate car. The Octavia or Superb are huge and lots about.

Original poster
blueyislife1 · 19/02/2023 15:30

Flamingogirl08 · 19/02/2023 15:09

Can't you just keep the car you have?

We have to pay the settlement figure which we didn't want to do.

It's not the best car and has had lots of malware issues in the touch screen.

Settlement figure is £12000 upfront

OP posts:
Wishawisha · 19/02/2023 15:31

Well it’s obviously interest rates…

But why do you need to trade in the current car?

Wishawisha · 19/02/2023 15:32

Cross post. I guess you could just borrow the 12k from a bank and finance it that way?

Either way, financing for cars was exceptionally low because interest rates were basically zero. They aren’t now.

DashboardConfessional · 19/02/2023 15:32

Interest rates for borrowing have gone up, and yes that means credit cards, loans and car finance even if the media outlets insist on only talking about mortgages.

Coupled with the rise in cost of cars and here we are.

We bought a 10 year old Mini yesterday as a second car and there was no budging on the price, as he quite rightly said in the dealership - they have no need to discount!

Youcancallmeirrelevant · 19/02/2023 15:34

Obviously the finance has increased, interest rates have gone up!

medianewbie · 19/02/2023 15:36

.

Bippetyboppityboob · 19/02/2023 15:41

Sadly things have changed massively in the past few years, it is indeed pricey to buy a second hand vehicle or to purchase something new. You could try and sell it, I think you can as long as you're clear it's under finance and then you clear the balance with the lender? Although do check as it might vary. Or take a bank loan to pay the 12k? Not ideal if you don't like it but if a new car is unaffordable then you're a bit more limited.

DottieUncBab · 19/02/2023 15:44

because interest rates have gone up…

Patchouli6 · 19/02/2023 15:45

Interest rates and second hand car prices due to stock shortages. You might get a better rate with a bank loan to pay the settlement or buy a new car. Are the dealership giving you any equity for your current car? Second hand cars have really held their value lately. If you own is rather than lease it you could ask what price they are giving you and see if you can get a better price from a different dealer or we buy any car.

In the nicest possible way, you might want to educate yourself on finance and things like APR, interest rates and PCP vs buying outright before you buy another car?

Ultraninja · 19/02/2023 15:46

Supernova23 · 19/02/2023 14:59

In the nicest possible way, if you want a car that is only a couple of years old and especially an SUV, that is the price you will be paying. Like everything else, the price of newer cars has skyrocketed.

I suggest a slightly older estate model. Just as much if not more space as an SUV.

This is about interest rates increasing, not the price of cars. :-)

KettrickenSmiled · 19/02/2023 15:47

What is going on.
What is going on is there is a cost of living crisis & interest rates are beginning to rocket, ahead of yet another recession.
Maybe you've been cushioned from that, but you seem to be ... quite ill-informed for somebody looking to lease a £20k asset every 3 years.

We are loosing our patience with it and need to trade in the car!!
Do you?
Can you not pay off the remaining lump sum, & keep it? Or let it go, & buy a second, third or fourth-hand car?
Why do you "need" a new one?