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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:
CleaningOutMyCloset · 19/02/2023 15:49

I've just bought a car, finance via the dealership was over 14%, a loan of the same value is 5%. Look at personal loans rather than taking the dealership finance

Original poster
blueyislife1 · 19/02/2023 15:50

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?

It doesn't need to be a new one. Clearly state we were looking at a 20 plate so newer than ours but not brand new.

What is confusing us is that the apr that they are quoting (4%) is what our PCP plan says at the moment.

Looking at the bank loan it seems much more reasonable.

FWIW I expected it to go up but for context a 14 plate same model as ours is up for £430 a month!

OP posts:
Silverbook · 19/02/2023 15:50

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?

Exactly what @KettrickenSmiled said. Nobody “needs” a new SUV.

Original poster
blueyislife1 · 19/02/2023 15:50

@Silverbook again not looking at new!

OP posts:
LBF2020 · 19/02/2023 15:51

Interest rates have risen. I got a used car last year and the APR was 8% we are changing again now and most dealerships interest rates are around 13%. Find the dealership with the lowest % rates and get something from there. Alternatively, you might be able to 'sell' your call via we buy any car/motorway to write of the remaining finance and potentially a bit more in your pocket to put down against another car.
Are you going direct to the dealer? I.e. Land Rover? If you go on auto trader you can view approved vehicles which are sold through private dealerships and you can also see what the finance would be too. You may save a bit of money doing it that way, whilst still have the security of a warranty/approved used.

watchfulwishes · 19/02/2023 15:51

has to be an SUV No, it doesn't.

These cars cause additional pollution and there is additional risk of injuring/killing pedestrians/cyclists/other vehicle occupants.

Jobalons · 19/02/2023 15:51

Just out of interest how did your cart get Malware and what sort of car is it?

FlissyPaps · 19/02/2023 15:52

Clearly state we were looking at a 20 plate so newer than ours but not brand new.

Look for an 18 plate then. Or 17, 16, 15🙄

MooseAndSquirrelLoveFlannel · 19/02/2023 15:52

I assume you have the current car on PCP? Check if the dealership will refinance the 12k, some will do.

I have an SUV bought in 2020 for £26k, its an 18 plate but registered 2019.. My dealership did a valuation on it as part of my MOT/Service and warranty deal just on Monday this week and valued it at £29k. Bonkers!!!

Whatdayisitalexa · 19/02/2023 15:52

The clue is interest rates have gone up for a start...I take it you're not worried about affording your mortgage? Sell the car and buy a different one if you don't like it...one without malware problems of a similar cost to what yours is worth once the finance is repaid

KettrickenSmiled · 19/02/2023 15:53

blueyislife1 · 19/02/2023 15:50

@Silverbook again not looking at new!

Fair enough - but to most of us, a 3 year old car is pretty damn new.

Given how volatile interest rates are going to get, why not buy something outright (with a fixed rate personal loan if necessary) & run it for as many years as possible before replacing it?

Silverbook · 19/02/2023 15:53

blueyislife1 · 19/02/2023 15:50

@Silverbook again not looking at new!

I don’t mean to sound insensitive but get an older one, a smaller engine size, lower spec…. Generally it’s a case of buy what you can afford.

Original poster
blueyislife1 · 19/02/2023 15:55

MooseAndSquirrelLoveFlannel · 19/02/2023 15:52

I assume you have the current car on PCP? Check if the dealership will refinance the 12k, some will do.

I have an SUV bought in 2020 for £26k, its an 18 plate but registered 2019.. My dealership did a valuation on it as part of my MOT/Service and warranty deal just on Monday this week and valued it at £29k. Bonkers!!!

Thank you for a kinder response!

We asked for a valuation of what they'd sell ours for and they said about 29-30k (won't offer us that price though haha)

SUV in question is an eco crossover and runs mostly on the battery unless we forget to charge it! It also works for us with children and animals which would not and does not work in an estate hence why we upgraded to an SUV in the first place

OP posts:
Summerfun54321 · 19/02/2023 15:56

Welcome to 2023.

Sadlifter · 19/02/2023 15:57

So a 3 year old SUV will cost you 12k? Sounds like a good deal to me.

TaraMock · 19/02/2023 15:58

Sounds to me like you'd be better off to take a bank loan for the settlement amount & keeping your current car. This is the thing with PCP, you have a balloon payment at the end - the sensible thing is to save towards it during the PCP period so you can pay it off bit some (most?) People don't do that. It's the reason why PCP is, or was, so cheap to start with.

TaraMock · 19/02/2023 15:58

TaraMock · 19/02/2023 15:58

Sounds to me like you'd be better off to take a bank loan for the settlement amount & keeping your current car. This is the thing with PCP, you have a balloon payment at the end - the sensible thing is to save towards it during the PCP period so you can pay it off bit some (most?) People don't do that. It's the reason why PCP is, or was, so cheap to start with.

Bit = but

Original poster
blueyislife1 · 19/02/2023 15:59

Jobalons · 19/02/2023 15:51

Just out of interest how did your cart get Malware and what sort of car is it?

Couldn't tell you, that's what the service guy said. It's a Ford Kuga - the screen randomly freezes, goes on and off and will switch itself over to different stations etc. it's happened a few times after being 'fixed'

OP posts:
kitsuneghost · 19/02/2023 15:59

This was always gonna happen. They have spent a lot of time and money sucking people into PCP (or whatever it's called). Now they have a captive audience knowing fine well they can't afford the buy out

kitsuneghost · 19/02/2023 16:01

Pay the 12k. Sell it and buy a different brand.

Exasperatednow · 19/02/2023 16:02

Interest rates and brexit. Several car manufacturers shut down, supplies became more expensive and importing cars is more expensive. Combination of Johnson, Truss and Sunak. Not forgetting May for setting the course and Cameron for starting us off.

KettrickenSmiled · 19/02/2023 16:03

We asked for a valuation of what they'd sell ours for and they said about 29-30k (won't offer us that price though haha)

So pay them their £12k, then sell the car on privately for anything over £25k.
You'll then have a cash sum of £13k - £17k left over to buy a good second-hand car with. AND you won't be needing to find £270 a month, let alone £450 a month, just to lease somebody else's asset, in a scheme that is weighted in the dealer's favour & financially detrimental to you.

It's a no-brainer. Even if you set £200 a month aside for service/unexpected repairs, you'll be instantly better off, & likely saving up a nice sum of cash for the vehicle after this next one.

EmmaDilemma5 · 19/02/2023 16:05

Secondhand car costs have gone up since pre Covid.

I'd also imagine the lenders are having more people forfeit their obligations. So to mitigate that risk, they hike up the repayments (so that they recover as much of the cost as quickly as possible).

It sounds like you can't afford what you want now.

You'll need to look at an older car or more milage. FWIW I've never had a car younger than 4 years old. I don't see the point in paying more. I'd get a 6 year old car, 50k milage and enjoy 10 years of driving until you have to think about it again. I definitely wouldn't be paying £400+ a month, that's crazy!

Original poster
blueyislife1 · 19/02/2023 16:08

EmmaDilemma5 · 19/02/2023 16:05

Secondhand car costs have gone up since pre Covid.

I'd also imagine the lenders are having more people forfeit their obligations. So to mitigate that risk, they hike up the repayments (so that they recover as much of the cost as quickly as possible).

It sounds like you can't afford what you want now.

You'll need to look at an older car or more milage. FWIW I've never had a car younger than 4 years old. I don't see the point in paying more. I'd get a 6 year old car, 50k milage and enjoy 10 years of driving until you have to think about it again. I definitely wouldn't be paying £400+ a month, that's crazy!

For what it's worth our car before this one we had for years and was running over 100k mileage so have no issue with older cars however at the moment in our local dealerships (Ford, VW, Nissan) they don't have anything older than a 13 plate to compare to.

As I say the 14 plate was over £400 a month and I defo would not pay that for a car of that age and midge of 60k!

OP posts:
Goldplatedbag · 19/02/2023 16:13

I'm surprised actually that the cost of the car itself hasn't gone up more, considering the shortage in the market, but as others have said, the increase in finance costs is because of interest rates