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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
AnneElliott · 19/02/2023 16:51

I'd get a bank loan for the settlement figure. It will be lower than what the dealer is offering you in terms of APR.

Toddlerteaplease · 19/02/2023 16:53

Wait until the dealership does a 0% event. I got a really good deal that way.

Lozzybear · 19/02/2023 16:54

Prices have risen considerably. I bought a brand new car in 2016 for £37k. The same make and model if bought new today would be £52k.

rothbury · 19/02/2023 16:55

I’m amazed the cost of replacement car isn’t even higher. Second hand car prices have increased by an average of 34% over the past few years apparently.

Interest rates have also increased.

If the only problem with it is that the radio station changes randomly, I would suck that up and stick with it for as many more years as I could.

Member589500 · 19/02/2023 16:57

12k over 4 years at 5% on a bank loan would be about £275 a month so about the same as you’ve been paying. Then you own your 8 year old car and can’t start saving for the next one 🙂

Grumpybutfunny · 19/02/2023 17:01

@Goldplatedbag I'm sure finance rates will come down when people stop using them. 12k over 3 years is only £360 a month

Pawpatrollermum · 19/02/2023 17:02

Have you looked at leasing a car rather than getting one on finance/pcp? This is what we do so have it for 4 years and essentially “rent” it for that time. It’s worked out cheaper for us.

Original poster
blueyislife1 · 19/02/2023 17:02

@Sadlifter advantage of a new is not having to MOT for 3 years and my tax is a bit cheaper than it was

OP posts:
Original poster
blueyislife1 · 19/02/2023 17:05

ZacknKelly4eva · 19/02/2023 16:48

LOL at need an SUV.

Get an estate. Cheaper. People will totally think you’re poor though. IME the richest people have the oldest cars as they don’t fritter away hundreds of pounds a month on something they’ll never own.

Again we had an estate. We had to upgrade as we simply didn't all fit and pram and dogs etc.

I will look at Octavia though as we haven't got a Skoda anywhere near us so haven't explored them.

OP posts:
Original poster
blueyislife1 · 19/02/2023 17:08

rothbury · 19/02/2023 16:55

I’m amazed the cost of replacement car isn’t even higher. Second hand car prices have increased by an average of 34% over the past few years apparently.

Interest rates have also increased.

If the only problem with it is that the radio station changes randomly, I would suck that up and stick with it for as many more years as I could.

It's the screen. So it will go off, freeze, change things e.g go into settings etc. it doesn't always fix by turning on and off either.

A right pain when you're trying to follow a satnav!

OP posts:
Flyinggeesei234 · 19/02/2023 17:08

WhoToldYou · 19/02/2023 16:21

Why do you “need” to trade in an 18 plate car? It’s barely 5 years old. If you can’t afford a new you have to make do with what you’ve got, just as people have always done. It’s really that simple. No need to “keep up with the Joneses”.

@WhoToldYou read the OP’s posts!

WonderingWanda · 19/02/2023 17:08

I bought my car 2016 plate 3 years ago and have been saving to upgrade to a newer model and was shocked to see that the one I have is selling for the same price I paid 3 years ago even with the mileage I've added. I know I won't get the same price as a dealership but I was amazed, cars have always depreciated so quickly in the past, I've never had one hold it's value for 3 yrs. Was hoping to get a 5 year old car again but just cannot find one so will be keeping what I have and continuing to save.

bellabasset · 19/02/2023 17:09

I'm retired and had to part with my well maintained car about 5 years ago. I bought a small 5 year old car with 16000k mileage ,which I haven't doubled and it's worth about what I paid for it.

category12 · 19/02/2023 17:09

blueyislife1 · 19/02/2023 17:02

@Sadlifter advantage of a new is not having to MOT for 3 years and my tax is a bit cheaper than it was

An MOT is about £40-50 🙄And my road tax is £12 per month. I save money every month for potential car repairs and an eventual replacement.

It seems daft to me to spend tons of money on car finance.

Original poster
blueyislife1 · 19/02/2023 17:10

@category12 as I said we weren't looking new anyway but I have to say a difference of 3k for a brand new or used one doesn't seem worth getting an older one with lots of miles on it.

OP posts:
woodhill · 19/02/2023 17:11

WonderingWanda · 19/02/2023 17:08

I bought my car 2016 plate 3 years ago and have been saving to upgrade to a newer model and was shocked to see that the one I have is selling for the same price I paid 3 years ago even with the mileage I've added. I know I won't get the same price as a dealership but I was amazed, cars have always depreciated so quickly in the past, I've never had one hold it's value for 3 yrs. Was hoping to get a 5 year old car again but just cannot find one so will be keeping what I have and continuing to save.

Yes its definitely a different market

Ulez threat isn't helping either

category12 · 19/02/2023 17:13

blueyislife1 · 19/02/2023 17:10

@category12 as I said we weren't looking new anyway but I have to say a difference of 3k for a brand new or used one doesn't seem worth getting an older one with lots of miles on it.

But you can't afford it.

Original poster
blueyislife1 · 19/02/2023 17:13

Just spoken to MIL who brought a new car in Dec. (Same VW model we were looking at) she is only paying £230 a month so it's skyrocketed massively in 2 months.

OP posts:
Original poster
blueyislife1 · 19/02/2023 17:14

@category12 I was answering your question of why new! Nothing to do with whether I can afford it

OP posts:
SamanthaCaine · 19/02/2023 17:17

blueyislife1 · 19/02/2023 17:13

Just spoken to MIL who brought a new car in Dec. (Same VW model we were looking at) she is only paying £230 a month so it's skyrocketed massively in 2 months.

What deposits have you been paying and what's the PCP term? Interest rates aside, your monthly payments will depend on the deposit, final payment amount and duration.

Quoting the monthly doesn't tell you much as there are so many variables.

category12 · 19/02/2023 17:17

blueyislife1 · 19/02/2023 17:14

@category12 I was answering your question of why new! Nothing to do with whether I can afford it

But not having an MOT and slightly cheaper road tax - it doesn't really add up.

If you're buying on finance, you're paying interest and more than the car is worth for years on end. New cars can still need repairs, still need new tyres etc.

SummerSazz · 19/02/2023 17:19

My current car is on a 0% finance deal as was the one before it. I very much doubt I will get that now when it comes up in April for renewal. It has some niggly issues (main one is it's not quite big enough!) but I'm going to pay off the finance and keep it until things calm down.

Can you ask 'we buy any car' what they would offer for it as 2nd hand prices are pretty good and then buy one outright?

SummerSazz · 19/02/2023 17:21

@category12 not always true! My last 2 have been on 0% finance and purchase price def not uplifted for it (went to another garage and checked the cash deal they would do)

I accept that's not likely now but for years the new option @0% has been a pretty good way to run a new car. Servicing covered in mine too for £243 a month.

Namethattune56 · 19/02/2023 17:22

Your mother in law may have a deal where it’s a larger payment at the end OR she may have paid a bigger deposit? The more you pay up front or at the end, the cheaper the car payments. Interest plays a part but car sales play around with finance deals to suit them and help them sell. Perhaps they’ve made the payments at the end smaller - because they know damn well that people are not going to be able to afford them and the bottom is going to fall out of their market with the affordability of things. It’s all about to tumble and cars will have to get cheaper as no one will buy them! Or their demanding the higher payments because people like you NEED a new car. Car prices will fall but yes finance for those who can’t actually afford a new car will be high.
Get a loan, pay the car and trade it in against something you can better afford with less finance to pay.

OntarioBagnet · 19/02/2023 17:24

It’s not just a recent blip. Prices started going up probably 2 years ago? I remember I was buying Dd a second hand car just as prices were going up and had a thread about options on here and everyone was saying that the cars I was looking at were overpriced. Sadly that was just the price of all cars and it’s just got worse. I don’t think they’ll ever be as affordable as they were.

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