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?

HP combined with trading in previous car. Can bring the monthly balance down to about £200-300. DH just did this instead of buying outright. 30k car for a few hundred pounds a month

They haven't stripped the 'poor' pensioners of their Winter fuel payments.

They've just stopped giving it to those not on benefits.

No, they haven't. People who need it, ie poorer pensioners will still get it.

This is me, I’m clinging on to mine for as long as I can. When I bought it it was 10 years old. Now a 10 year old car is more than double what I paid so I wouldn’t be able to buy outright.

I went through a phase of wanting to lease one just to have a few modern comforts, but thankfully that idea cooled.

Hmm. Council houses and refugees you say? I’m pretty sure it won’t be every other driveway.

Not everyone who drives a new car gets it through work or PCP. Some of save and part exchange our previous cars.

Mobility cars aren't free. DLA or PIP benefit is diverted to pay for them, and if you want a more expensive one you pay more. They often have to be adapted which can be an additional cost.

Do you have a mobility car yourself? It doesn't sound like it.

In case you're wondering, although it's true that mobility customers get offered 'new' cars, they have to trade part of their PIP to get that.

Secondly, a top of the range, massive car will require you to put quite a few thousands of pounds of your own money down as part payment.

You’re annoyed that disabled people have a means of transportation? Wow!

Company car. 50 pound a month.

I am going to have to give them extra wood this winter to make sure they don’t worry about heating the house

Could you build them a wooden car? 🤔

The level of blatant ignorance in many people’s comments re: this issue (and I dare say jealousy) is quite astounding. Yes, some people do exploit the Motability scheme but for many others it is a lifeline.

Let me guess... they are living in a "deprived" area, so they must all be on benefits, but drug dealing/working cash in hand on the side to afford new cars... or they are all fraudulently claiming PIP and getting a "free" new car.
/sarcasm

My mum is in a council house, but leased a car through her company. It had to be big for all the equipment she carries, and she would have a brand new car every 3 years.
I also know people who have cars via PIP, and they also had to be large and sturdy for wheelchairs/hoists etc.

Some couple be via motorbility, we don't use it but I investigated, new car every 3 years, costs covered bar fuel for approx £180 reduction in benefits. Due to circumstances makes more sense for dsd to have the money but if she came here full time I'd take the car

On 100K, if you can't afford a new car you're going something wrong

Some of the roads I have been on was literally at least every other driveway if not every driveway ! Some other makes too but all higher end cars that would cost 40k up 🙈

Yes I get that there are plenty of people mortgage free, I was just surprised I saw better cars there than in some of the nicer areas. I live where house prices are fairly expensive and I can barely see any higher end cars on driveways.

Anyway I'm just curious wondering if I'm missing the trick somewhere to get more affordable car as mine will really need an upgrade

I just checked 3 of those car manufacturers on motability. The only Merc has a non refundable advance payment of £6000 and the BMWs start at £4000. There are more affordable audis starting with an advance of just over £1000.

These people aren't just given their motability cars. They have to forfeit the £300 per month mobility element of their PIP and give the car back again after 3 years.

*doing

Company cars
Personal leases
Finance agreement

In my cul de sac, 6 houses have 8 cars less than 3 years old between them. All company cars.

Flashy motability vehicles usually come with a large down payment that has to be made before you take the vehicle on, it's not just a case of you can have whatever you like in return for handing over £75 a week.

@CarsAreExpensive I used to live in a similar area to the one you describe. Lots of multigenerational housing, "poor" on the surface. But a lot of the young people in that area would live at home until they were married and often beyond. Parents would pay all the bills. So the money they earned was all their own, they bought really nice cars and designer clothes. Fair play tbh!

About twenty or so years ago the local Vauxhall dealer was doing an offer on pre registered cars.

At the time we were having money pit issues with various elderly cars and as I pointed out to the woman who is now my ex wife we could use the loan my employers offered to buy a new car with a warranty and fix our motoring costs or be stuck with the unknowns of the car we currently had.

Needless to say Ms Back Seat Driver turned it over the following winter and didnt understand why she got no sympathy from me but thats another story.

So I can understand that given the option of a new car with warranty etc thats the option some people choose.

The downside is large number of young men buying high performance cars.

Rude to say the least.

I'm fully aware that people will earn more than me. There is no way that majority of those households in the streets i drove through are on more than me. They had sheets hanging in the windows rather than curtains etc. Only 15%-20% of people in the UK earn over 50k. Only 5% earn over a 100k. I'm pretty sure that people meeting those statistics won't all be living down those roads only.

My curiosity is based more on the fact of how to buy a better car cheaper

Some people really do rely on that money or are you so far up your own behind you don’t know that. It has been removed from the wrong group of people. It gives absolutely no incentive to work.

I wonder this too.
I'm required to use my car for work and get 45p a mile for work related appointments and it doesn't stretch far. I have a 2015 Tiguan I need a 4x4 as live rurally. I make 19K and work 5/6 days a week.
Husband has to commute to work about 45minutes each way, has to have another car for that (a 2013 car) and about 49K. Mortgage is increasing to 1K a month next month. Tax band G for a small house in my area. It's not a big house (no driveway no garage no front garden 3 beds small back garden and tiny kitchen) all houses in the village are high tax band. No idea why.
Cars are the Bain of my life. I'd love a new car that's not constantly in the garage but just can't afford it. Now with LEZ zones it's a bloody nightmare.