Page 5 | To ask how much you pay monthly for your car?

Mysteriousgirl2 · 2023-12-14T19:20:25+00:00

I’ve got an EV (basic, not flashy) I pay £325 a month. Is that a lot? I’m on a PCP deal, with a payment at the end (£9000) I can, and probably will hand it back in April and do have savings (£12,000) ish Should I buy something outright? One consideration is that we do have solar so the electricity is out of the sky (mostly - less so in Winter) I do about 120 miles/ week Please could anyone tell me what they pay a month and whether they enjoy their car. I would like to save money.

GuitarGeorgina · 15/12/2023 07:25

I always purchase cars outright. At the moment we haven’t got a second car because we haven’t had the funds to buy one.

somewhereovertherain · 15/12/2023 07:28

We bought my i20 2018 at 18 months old for £11k will keep till it dies. And then replace from cash.

oh has always had company cars

personally would never borrow for a depreciating asset

also mileage isn’t an issue service history is far more important and regular serving once you own it.

PCP is the work of the devil

Missamyp · 15/12/2023 07:31

I pay via a lease scheme through work £290-dp pays £479 although he uses his vehicle as a way to mitigate tax via capital allowances.

NotFastButFurious · 15/12/2023 07:36

Nothing. It’s nearly 6years old and was paid for with trade in and hefty deposit and a small amount on a low interest car loan as I didn’t want to wipe out my savings too much (single income with a household to run). I get a car allowance through work so if I was really sensible I’d squirrel that away into a separate savings account each month……but I’m not that organised!! I hardly use my car at the moment and it’s got pretty low miles on it so I’ll be running this one for a few years yet. Previously I’ve bought new cars on 0% finance deals but I haven’t seen those on offer for some time.

daffodilandtulip · 15/12/2023 07:41

Nothing. Save whilst owning then part exchange and add a bit of savings.

jhy · 15/12/2023 07:42

It a lot but I know plenty of people who do pay more.
I'm surprised so many people own their cars outright as all I see on the road is new 70-71-72 plates and Tesla's! Surely it's not the everyday thing to buy a new 2023 car outright?

Anything new ish is not going to be less than £300 a month.

Dacadactyl · 15/12/2023 07:45

@jhy my car is just under 10 years old and was bought in cash, 2nd hand 7 years ago.

I only have one friend who has a new leased car every couple of years, but she's the least financially sensible of all of us. And by that I mean she and her DH earn the most out of all of us, but their standard of living is equal to the rest of us because they waste a lot of money on "stuff".

TerfTalking · 15/12/2023 07:48

jhy · 15/12/2023 07:42

It a lot but I know plenty of people who do pay more.
I'm surprised so many people own their cars outright as all I see on the road is new 70-71-72 plates and Tesla's! Surely it's not the everyday thing to buy a new 2023 car outright?

Anything new ish is not going to be less than £300 a month.

I’ve posted above, I own mine outright. DS is one of those brand new Tesla drivers you keep seeing.

BUT, it’s a company car, chosen because he does 700 miles a week and the tax benefit in kind is much lower 😀

Probably a lot of other similar Tesla drivers are driving company cars.

User2856948 · 15/12/2023 07:54

As PP says, a lot of the newer EV's will be company cars because of the tax, also some people use salary sacrifice at work and get a good deal. These are not to be compared with the average person going to buy their car privately, not through a work scheme, this will be more expensive option especially with higher interest rates at the moment.

Jenry · 15/12/2023 08:01

Aygo, 22 plate. £140 per month

ichundich · 15/12/2023 08:06

Apart from fuel and insurance £0. Paid it off over 4 years for around £360 a month with a £3000 down payment.

NotFastButFurious · 15/12/2023 08:25

jhy · 15/12/2023 07:42

It a lot but I know plenty of people who do pay more.
I'm surprised so many people own their cars outright as all I see on the road is new 70-71-72 plates and Tesla's! Surely it's not the everyday thing to buy a new 2023 car outright?

Anything new ish is not going to be less than £300 a month.

I think there’s an increasing number of schemes for buying electric cars though. My brother has one that’s a company car with some sort of tax relief on it (I think maybe they don’t pay tax on it as a benefit) and our company has some sort of leasing scheme for electric vehicles. That said, I’m still shocked at how much they cost! To replace my current car which cost £21k 6 years ago with an equivalent new electric one would be £45k!!

plominoagain · 15/12/2023 08:33

I have a new Yaris Hybrid. I pay 325 a month on PCP , with the maximum mileage allowance of 35k. I usually change it somewhere between two and three years , and get another because of the amount of commuting and it means if it ever goes wrong , then I don't pay to fix it . Gets serviced every 14 weeks , and me and my local showroom are on first name terms 🤣

Cosyblankets · 15/12/2023 09:16

Sundlowergirl1 · 15/12/2023 05:33

Oh and another reason for leasing is that electric cars are horrendously expensive to repair so if buying second hand you need a long extended warranty. So,thing I wouldn't have bought but would consider

You also need to check if the warranty applies if the car is second hand. It often doesn't

Original poster

Mysteriousgirl2 · 15/12/2023 10:36

This reply has been deleted

This has been withdrawn by MNHQ at the request of the user.

Thank you for the info- I will check him out.

OP posts:

Peacheroo · 15/12/2023 10:52

Personally, I think leasing in any form (HP/PCP etc) is very expensive and costs more than owning outright - there have been countless studies usually aimed at leasing for business purposes which show the opposite but as a personal user it's cheaper to own outright.

Example, i leased a brand new 1 series for 3 years and all in it cost 9k plus maintenance. I then handed it back with nothing to show for it. DP has a 5 series that is older but extremely reliable. He paid 6k. It's still worth around 4k after 2 years. Probably less with the recent drop in used car values. His car is older but better and cost him a hell of a lot less.

Peacheroo · 15/12/2023 11:26

@TerfTalking can I ask how he finds it for that sort of mileage? I just ordered a hybrid as a company car instead of a Tesla as I do similar miles and was simply too much of a wimp that I'd be sitting in charger bays all the time. I thought about it for a long time due to the tax incentive.

TerfTalking · 15/12/2023 11:35

Peacheroo · 15/12/2023 11:26

@TerfTalking can I ask how he finds it for that sort of mileage? I just ordered a hybrid as a company car instead of a Tesla as I do similar miles and was simply too much of a wimp that I'd be sitting in charger bays all the time. I thought about it for a long time due to the tax incentive.

He only got it in September I think, but so far so good.

His mileage is mainly commute to either his current office or other branches. His company has chargeable charging ports in the yard outside the offices, and he paid about £1k for a charger installing at home, so charges the car mainly at home now overnight.

I guess for his circumstances, he isn't reliant on public charging. I think he's only done one long trip from Yorkshire to Edinburgh and back for the weekend and said it was stress free. His partner also has a petrol car and works close to home, so worse case there is a back up.

Not sure it would be as successful if he didn't have access to home and work charging.

Fieldofbrokenpromises · 15/12/2023 11:47

I am not going to be much help as my car is a 20 year old banger I own outright. No way I could afford the £300 or so I’d need to lease/pcp/hp a new(er) car so like a pp this will keep going till it breaks and be replaced with another banger.

WeAreBorg · 15/12/2023 12:50

Kazzyhoward · 14/12/2023 20:01

I've never had a loan, HP nor lease for a car. Always buy outright. Saved up from my wages from first job and bought first car (Austin Allegro!! for £750 in the mid 80s). Continued saving and upgraded 2/3 years later to a car costing £3.5k then again 2/3 years later to one costing £8k and bought new outright ever since.

It was good in the early days to have "equity" in a car so that you've something with value to part exchange against the next one, along with savings to buy outright again. Since those early days of second hand cars, We've had 4 brand new cars and keep them until they drop - first "died" at 195k miles, the next 3 were lower mileage as I gave up my "big commute" job - they've all easily lasted 10-15 years.

The two we have at the moment were both bought new, one is 15 years old, the other is 10 years old, both still going strong and we expect them to last another few years yet. Costing us nothing except annual service, MOT and the occasional "repair/replacement" such as tyres, brake pads, battery, spark plugs, etc which is far cheaper than paying £200-£300 per month for a car!

The average age of cars on the road these days is 13 years, and unless a car is hammered, written off in an accident, or badly driven, life expectation of 20 years isn't unrealistic.

Leasing etc is a mug's game - it's only the cheapest way to have a new car if you're always wanting to keep up with the Jones' by having a new/nearly new car all the time. It's far cheaper to "own" your own car by buying outright or getting cheap loan/HP and keeping it for longer rather than unnecessarily changing it every three years!

I’m not sure that is always the case, just depends doesn’t it.

Hypothetical figures, but say if instead of buying a car with my 10K it’s invested. Over 10 years at 8% average thats now 20K - 10K tax free growth in a ISA. Leasing through a salary sacrifice means I’m out of the 60% tax trap and keep tax-free childcare.
I wouldn’t say that I was a mug in that situation.

I didn’t do that by the way but in hindsight probably should have!

Peacheroo · 15/12/2023 13:10

@WeAreBorg great username! I think your example is flawed because a lot of people don't have access to salary sacrifice. The amount spent on a lease without Sal sac would far exceed what your money could make in a savings account.

I think @Kazzyhoward post is a great summary.

I got a loan for my car which I'm still paying despite now having a company car so I am 100% a fancy pants, keeping up with the Jones's kind of person.

WeAreBorg · 15/12/2023 13:51

Peacheroo · 15/12/2023 13:10

@WeAreBorg great username! I think your example is flawed because a lot of people don't have access to salary sacrifice. The amount spent on a lease without Sal sac would far exceed what your money could make in a savings account.

I think @Kazzyhoward post is a great summary.

I got a loan for my car which I'm still paying despite now having a company car so I am 100% a fancy pants, keeping up with the Jones's kind of person.

Yes I know what you mean and agree, I was just highlighting that people have different financial circumstances - leasing may work out much better for some people so worth at least taking a look. In hindsight I wish I’d invested the money I spent buying cars outright and leased instead, as my investments were going up by 10-30% over those years and the cars all depreciated massively

converseandjeans · 15/12/2023 17:32

You would be better buying one outright for £10k and then saving £200-300 per month. You could get decent second hand VW for that amount.