AIBU to wonder how on earth do people afford new cars ?

[CarsAreExpensive]

OK, so I'm probably BU here but I really do wonder. I'm a single parent but earn what a lot of people consider a good salary of 100k. I rent, as its hard to get on the property ladder living in big city and can't move away as rely on family to help with childcare a bit.

Today I have driven through few areas / towns that are seen as deprived areas, full of council homes, refugees etc. I won't name the areas, but those areas are known for poverty. Anyway, every other driveway there was a brand new car on and I'm talking about Mercedes, bmw, audi, range rover. Houses and driveways looked terrible.

How on earth can people afford those cars ? Even HP agreements, those cars would be at least 400-500 per month if not more !

My car is getting old. 10 yrs old and I'd like better car but simply can't afford to spend that much money a month for something I won't own. Am I going somewhere wrong and missing the trick?

This baffles to me too. Every other car where I am is some kind of large new SUV!

Presumably your living costs/rent in a big city vs their rent/mortgages are very different.

Former prep school mum who used to spend her mornings surrounded by massive luxury SUVs. Nobody actually owns them - they’re all leased!

Parents used to be baffled on the regular that we actually owned our (big but not so fancy) car 🤣

🤔no Idea

Not everyone owns their own cars... you have those on HP, those provided by PiP, those on lease, the odd one or two bought by mummy or daddy.

I'm dreading when i have to replace mine, we did purchase it outright about 3 years ago, but won't be in the same financial position again. I'm afraid we will be driving round in ours when bits are dropping off it left, right and centre.

just remember... all that glitters is not gold

We don’t get new cars but quite close. We’ve mostly gotten cars on hp and shopped around, you’d be surprised the deals you get. I’ll be honest, most people would hate the way we live, we started going on holidays the last few years through loans too, you get fed up of never going abroad and having a car that breaks down all the time

There’s one of these threads every bloody day. “How do people afford holidays / cars / houses / food?” They earn more than you or they prioritise differently, it’s not rocket science

Company cars. We all have Teslas through work, costs me £20pm in tax.

I'm a single parent on 30k a year and I have a brand new car on PCP, renewed every 2 years.

I live in an area where my mortgage is very cheap in comparison so most areas, although it is not a 'poor' area or however you want to word it.

I traded in my old and battered car a few years back for a new one and although yes you have the monthly cost in the long run with what we were spending on the older car it seems worth it. We also have no MOT it's always under warranty and often the servicing is included and the tax for a year 🤷‍♀️

I often wonder the same. I earn close to six figures, and I drive a 23 year old MG. Not necessarily because I can't afford a newer car, but a big part of it is that I don't want to be saddled with a £400/month debt for a slower car that could be rendered a write-off for the sake of a faulty sensor buried so deep that it needs an engine rebuild to replace it.

We don’t buy brand new cars but a little bit older than new; we’ve never leased as always been told it’s the most expensive way to have a car! So we started off with old bangers when young annd have aleats saved ans much as we can- and it’s only now mid thirties we can save a decent amount each month and so now can afford to buy outright. I suppose if you live really consistently within your means and save generously for years you have a cash pot to spend as you like. We’ve never done fancy holidays etc as I hate holidays so I suppose it’s just choices made over a long period of time!

I can tell you but you won’t like the answer and I’ll get accused of benefit bashing

3.3 million people are currently claiming PIP, 33% of which are entitled to the higher rate. There are no stats for mobility cars that I find a reliable source but take from that what you will.

Some people genuinely prioritise their cars over their homes too

I've had company lease cars for the last 6 years but due to ongoing issues with changeovers, got fed up and bought my own outright. Was 3 years old with 12k miles on the clock, back seats/mats/boot never appearing to have been used. It was around £22k cheaper than the new version, and I've just stuck a private plate on it so no one knows it's that old! We don't holiday abroad, don't drink or smoke and don't have a mortgage so having a decent car is our luxury.

I often wonder the same thing. We buy old bangers worth about £5k. As long as it works I don't really feel the need for anything fancier. I've also got no interest in getting into debt or making unnecessary financial commitments.

There is a direct correlation between disabilities and poverty. A number of those cars may be motability.

People may also have new cars through their work.

They may also be going into debt for a new car.

Does it matter though? You buy a new car in the way that works for you, earning £100K you should be able to afford a new car. PCP is not the only way to buy a new car that you won’t own. You can do Hire Purchase or a bank loan, which probably has the most competitive rates at the minute. You also don’t need to buy a brand new car but a nearly new car.

Mobility cars. Exactly the same in the area I live.

I’d rather spend money on my house than a car so I always drive older cars. Some people have different priorities though.

Company cars/credit cars.

They're all company cars, everyone I know with a fancy car it is a work perk/salary sacrifice that's not extortionate/ some sprt of tax benefit for the company

New cars aren't worth the cost. A nice, reliable Japanese/maybe German car, bit old, doesn't cost much but easy to maintain, spare parts in easy supply, and you don't have to worry so much about someone dinging it. Simples.

Anyway, every other driveway there was a brand new car on and I'm talking about Mercedes, bmw, audi, range rover.

Every other driveway my arse 🤣

I live in London's poorest borough and it might surprise you to learn, many of my neighbours are mortgage free and earning a fairly decent wage.

There are plenty of new cars around, but as you know, they're not on 'every other driveway'.

Yep. Nobody bats an eyelid. Yet the country is in dire straights according to the government so they’ve stripped poor pensioners of their winter fuel payments. My parents are extremely wealthy. They don’t give a toss but I know people who that made a difference to. I am going to have to give them extra wood this winter to make sure they don’t worry about heating the house

We bought a new car on the scrappage scheme in 2009 with a loan from PIL. Took 8 years to pay it off. It's had several new tyres but still going strong. We are on a very low income.

You have an issue with disabled people being able to get around and therefore hold down a job (amongst many other things!)? Very strange.

I don't know and I don't actually care, either 😁

I'm lucky to have a 16yr old car that I bought for £900 3yrs ago. And, like all the cars before it, I will drive it until it collapses and begs, 'no more!'. I try and save a bit each year for the MOT and towards a replacement fund as needed.

I mean, how lucky are we to even own a car? Who cares what it is or how new it is? We have cars, we're not worrying about HP or loans. We have a car that we can hop into and use as we like. No worries about dents, dings, scratches and subsequent surcharges when we have to return them. They are ours, they have character and we are happy.

I could have a mobility car, but, noooo thank you. If you have a company car costing you £20 pm as PP, yay, go for it! But for the rest of us...aren't we lucky?!