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?

What gives absolutely no incentive to work?

I'm just wondering. I'd get some cars at that range but was really surprised by the amount of cars at that level ! I'm in no way bashing people, just wondering how I can afford better car and if there is a trick 🤣

I am annoyed that the PIP scheme is exploited so that there isn’t MORE money for those that actually truly need help because of their disabilities.

Im also annoyed that decent people are going to lose something they rely on.

You can spin it as much as you like but my issue isn’t with the money given to disabled people. I have issues with those that could clearly work but don’t. Maybe if the false claimants were dealt with we could find disability services properly

I've seen this too. For a while I had to visit the part of my city which is at the bottom of the tables on all poverty measures, highest crime, high number of benefits claimants, most houses are council housing etc. I was surprised how many large new cars there were. I came to the conclusion that lots were bought from criminal proceeds eg drug dealing, lots of cash in hand undeclared work while on benefits, bought on lease, people not caring about debt, people who would never be able to have a nice house so don't bother about that and spend their money on a nice car instead, lots of young men for whom a flash car is important and gives some status amongst their group( as compared to better demographic areas where job/career gives status).
I live in a part of the city where incomes are generally high and houses are quite large and well-cared for, of course there are plenty of new cars but plenty of older cars around too. I buy a one or 2 year old Japanese car outright, then keep it till it starts to cost more in maintenance, my last one was a honda civic that lasted 15 years only needing tyres and brake pads/discs.

I live in Cornwall, traditionally one of the poorest regions of the country.

When we first moved her 27 years ago everyone drove old cars, vans and pickups. Suddenly we noticed that the number of new cars being driven had suddenly increased massively, and they were expensive brands too Like Mercedes.

I assumed it is down to the availability of cheap credit (it might not feel cheap but some of remember interest rates of 15%).

We always buy second hand, the only new car we've had was a company car.

Used to work with a woman who;s partner refused to downgrade his car and therefore the payments, so they could afford to buy a house. He said that he would rather live in a shit house than drive a shit car.

They split up eventually and the house/car issue was the main reason (although she stayed far longer than I personally thought she should as he was a total dickhead in other ways too!). So it wouldnt surprise me if other people think like that.

True, but leasing is not cheap either for a large car or SUV. We looked at leasing as don't want to own a car and for a family car the prices starts at c. £400 p/m and up... not cheat at all, so the question is an intriguing one ..

@CarsAreExpensive Does your employer have a salary sacrifice ev scheme - my employer has just bought it in and if you are hitting that £100k tax issue the savings are massive! They include tax, insurance, tyres, breakdown etc as well.

We bought an almost new car recently (we paid for it outright though) but if we lived in a council house here we’d be able to afford another 2 brand new cars on finance easily!

And just to add that with leasing you also need a large lump sum to start with.

Not cheap but certainly cheaper than buying - with the added bonus that you don’t have to worry about selling the car at the end, you simply hand it back and start over. I now lease and do prefer it to buying as I like my cars newer.

Unfortunately not... we are remote workers so no car allowances 😢

I worry about leasing as one its a massive monthly cost for something I don't own, and two what if I get a scratch or damage ? I heard penalties are big?

OP I pay about £150 a month for mine and got a service package included. It’s not a huge SUV, just a normal car.

yep... my neice does not have a pot to piss in, her council house is disgusting, their garden is like a battlefield of dog shit and weeds... but she has a lovely brand new car outside the house!

Some people are happy to pay monthly for a new car on finance, then just hand the car back in a couple of years and get another new one. It’s a really common thing to do.

How can you say the PIP scheme is being exploited?
Are your very wealthy parents exploiting any tax loopholes?

I would never spend £1000s on a holiday - a week in Spain for our family costs the same as a year of payments on my car lease.
DH thinks leasing a car is money down the drain - he owns his car outright (he will keep them for 10 years or so).
It’s about priorities.

Drug dealing.

Rent paid for by housing benefit +universal credit+child benefits +pip/dla+carers allowance +cash in hand job= lots of money to buy new 4x4/suv

PIP is notoriously hard to get. It is not being exploited. In fact, it was recently reported that the fraud rate in PIP was less than 1% (off the top of my head, I think it was 0.4%).
And denying people benefits does not return money to the pot to give to the people "more deserving". It simple does not work like that.

Plus, PIP is for people that work too. For some, without the motibilty car, they would not be able to work or have much of a life outside of their home.

How many pensioners work, or are expected to work?

I haven't been on holiday in years! Hard to afford as single parent with an ex that doesn't take interest so school holidays are far too expensive.
My car is 10 yrs old and starting to need work too and also means I can't drive abroad to see other part of family as wouldn't risk with DC and a dog 😬

I looked at smallers cars but the dog ex left me with is huge and won't fit into little toyotas, fiats or bmw 1 series 😬

As a single income household l also worry getting stuck into a finance agreement, one never knows how the job market goes.

Wow!
that is amazing…
can you use them for whatever you want???

@CarsAreExpensive
i feel you. My mum is in an council estate in London which has 27 flats
their private parking has
a lambo, a Maserati, TWO Bentleys, a fistful of bmw and Audi 4x4s and Teslas and then about 5 “normal cars”
there is also one 4x4 I can’t remember the “brand” something like finch? but I googled it and it’s a is import that allegedly costs over $500k - the flats are less than that 😅
we are always fascinated!

Yes. They paid for home charging ports to be fitted and we can reclaim the charging usage to the company. I've never had a company car before so I'm extremely grateful. Always had old £5k cars for a couple of years.