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?

I'd really love to know how all these people claim PIP fraudulently! I had to claim ESA once because I became in need of surgery while still on probation period in a new job and was let go. The stress and anxiety and (metaphorical) hoops I had to jump through just to claim that was astronomical. People who deserve PIP frequently get turned down until it's taken to appeal. Quite how people think it's easy claim PIP fraudulently is beyond me!

Couldn't have said it better. And then they'll be moaning about poverty when they're pensioners. I have no sympathy for that type of person, they reap what they sow. I can't imagine how hard it would be to be my age(60) and not own my house outright and have no savings or any pension above the state pension. My car is 7 years old, I own it outright, I think it's a great car.

They can't afford them. They get them on tick/PCP and thus find themselves in the never ending cycle of consumerism due to the 'need' to have a flashy car. They will pretend that they don't want to actually own a depreciating asset but really they just want to a keep up with the Joneses.

Unlike many others, I appreciate £100k in a big city as a single parent doesn't go that far. Best option is likely to be a bank loan with a good rate. Buy the car (just less then new) and then after a few years you will actually own it and can make a decision as to how to proceed then.

Live in the north! Mortage 590new car 400, some deposit put down. Easy! Household income 110k

Don’t know about the relation to less well off areas and nice cars, but a lot of younger colleagues get a new car on finance, paying as much as a mortgage on monthly payments. Maybe it’s because they still live at home so they can afford it? I can’t! I’m not jealous, but I don’t understand why people buy brand new cars and pay so much-do they want the warranty/to be guaranteed that new cars don’t need much work/you bet annual servicing?

Mine is relatively new but we live 2.5h away from our closest city and do a lot of miles on it so we wanted something sturdy (often do 12h round trips a couple of weekends a month). We just pay PCP on it and traded in our previous one. We share a car (which appreciate you are single household) and it’s £280pm between the two of us. We see it as another bill. I don’t care about owning it or not. If we lose our jobs we hand it back but hopefully won’t come to that as we do have emergency savings. So yes, maybe these other people are in the same boat. I would hate to have an old car and be constantly worried that something was going to break and I was going to have to fork out huge amounts to get it fixed or get stranded on the A9 somewhere.

One of ours is a company car, the other is leased. The total lease cost and insurance of our new Audi SUV was less than the insurance of our old diesel mid range SUV. When we included how much we’d spent on MOT, Repairs and depreciation of the one we owned outright we were better off leasing.

We earn over £120k between us and have recently sold our 13yo car and bought a 2021 suv. We saved over the years and paid cash. It felt uncomfortable spending £26k on a car but we do love it. It’ll last us another 10+ years hopefully. We looked at lease but it would cost the same over 3 years then we’d have nothing to show for it. Seemed a false economy. If you’re earning further into the higher tax bracket we can get lease cars through work that are cheap as they are salary sacrifice so you pay less tax. I’m not at that salary level for it to be beneficial. I’d also have to stay with my employer for the lease period or pay a fee.

I'd rather nice holidays than expensive cars though. My friend has a 10yo Audi and she likes to remind us all she brought it brand new for 40k. It’s a bit lost of me as it looks and behaves like my VW to me 😂🤷🏻‍♀️

I have worked with some very vulnerable people, many of whom claim benefits and many of whom have been refused PIP unfairly. I have also worked with many individuals who have been in receipt of PIP whereby it's utter bullshit. One who springs to mind was able to lease a brand new BMW 1 series through motability. He was able to pay a down payment because his PIP got back paid. He prioritised the car over his living costs but would target vulnerable women to pay the rest. He was an exceptional narcissist and liar. He is just one example but there are many who play the system successfully which sadly then detracts from those in actual need.

To answer your question OP - we have two new cars. Both are company cars through our businesses.

Id Have an issue if you were out cleaning said car every weekend as in that case you clearly aren’t entitled to the higher rate.

You are clearly incorrect in your view. Why do you think some (yes not all) people who can’t follow the route of a familiar journey without the another person, an assistance dog or an orientation aid can’t clean a car? Why do you think some (yes not all) with 2 prosthetic legs can’t clean a car?

I lease my car. I have zero interest in owning a car outright for myself. I set myself a budget I know I can afford and am comfortable spending which meets my criteria and search for a car I like in that budget

i bought a car for my kids outright and I am constantly irritated that I did. It’s a 10 year old run around that I bought at 4 years old. The insurance is about £1200 and has just cost me £800 to service and MOT. I’ve also had it in the garage over the year for another £500 of work. Totally not worth it and the only reason I keep it is because it doesn’t bother me particularly if they knock and scratch it

Company cars.
Mobility cars.
Lease cars.
PCP cars.
Financed cars.

TBH hardly any of them will be bought outright.

PIP has a very very low level of fraud.
Have you ever seen an application form?
And you can work and claim PIP.

This is where I'm torn! If I leased, it would be new and I wouldn't have to worry about repairs. Mine just costed 950 to fix and I could have cried. We were finally going to go on holiday and that's half the holiday budget gone. However what happens if you are leasing and someone scratches your car or knocks your mirror off ?

We buy new every 10 years it's the devil we know

I would love tohave more details from folk who do high mileage and have pcp, and does anyone have a tow bar fitted on a lease plan.
I have a tiguan for commuting and towing my horse, but have just spent £1500 on repairs - would go a long way( perhaps?) towards a lease plan

I get mine through motability. 24 plate suv.

We are on our third PCP and would never go back to owning a car. Brand new car was cheaper than leasing a 2 year old car as the finance was 10% less. No MOT, service included. Mileage can be added depending on how many miles you predict you will use, we have ours set at 10,000 miles per year and if we go over that then they will charge you ~20p/mile over I think. If anyone damages your car you just do what you would normally and claim on your insurance, you are still named on the V5 and you pay your own insurance and sort it out, it's nothing to do with the leasing company.

Ours is PCP. We got an amazing deal so only pay just over £200 per month including the gap insurance etc. I know we won't be lucky enough to get it anywhere near that price when we swap it!

We had always bought older cars in the past, usually partly with cash savings and partly on a credit card. I just couldn't take the stress of failing MOT's, things going wrong, repair costs, being without a car etc.

You don’t know they own them. We lease ours. Works for us.

We buy cars outright and run them until they need replacing. Mostly Volvo, they seem to last forever.

Yep.. prepare yourself!! My last lease was taken out in 2020, just had to renew and in 4 years the price has nearly doubled for the same car 🙈

PCP. It’s a terrible scheme, for the environment and people’s bank accounts, but it does let you drive brand new cars for a relatively affordable monthly cost.

Not everyone is poor.
Some people may have a council house where the rent is considerably cheaper than private renting.
The car could be on mobility.

A number of different reasons and people's circumstances are different - you sound a little judgy.