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 think they are also failing to grasp the crucial fact that these ‘fancy brand new cars’ aren’t being given to ‘undeserving’ disabled people just to maximally exploit government money, but because it is the most cost effective way of doing things. New car = little to no repairs, no MOT and can be sold on for a good price by Motability at the end of the lease. Older cars would be a nightmare for them in terms of fleet management and maintenance.

It's a mixture. Some people have prefer to lease cars, others have inheritance and buy nice cars which will last, some use their PIP for get mobility cars and are more than happy to pay the extra to have a larger vehicle, some have company cars and some make their money from cash in hand work/criminal activities.

The mean-spiritedness of some people just depresses me. Is this who we are as a society now.
How dare some people have nicer things than me!
Who cares what car other people drive and where the money came from?

How dare some people have nicer things than me!

Actually on Mumsnet it seems to be ‘how dare people who I deem to be of an underclass have nice things? Either you can afford a full lifestyle of nice things or I’ll assume that the one or two luxury items you have are gained illegally/immorally/as personal spite to me and my large income’.

Lots of people get trapped in a cycle of PCP / lease arrangements - it's more expensive overall and paying monthly makes it harder to save. But its also very convenient and we choose to lease even though we could buy an older car outright. There are some good deals around if you are happy to get whatever car is on offer and don't have a specific make / model in mind.

Its not too dissimilar to renting too, you can generally rent in a nicer area than you can afford to buy and you can finance / lease a nicer car than you can afford to buy too.

The advance payment is generally optional though- I have a mid range 24 plate Suzuki s cross that didn’t cost me a penny.

Lease, PCP, HP. When interest rates were lower, there were some good deals. A few years ago I paid £160 a month for a brand new Honda and the lease included MOT, servicing, maintenance. Next car was much swankier - a Ford Puma - and that was £250 a month. My current car I bought. I slightly resent driving an older car for not much less money, but I needed to have something a bit more insurable for young people.

saving a decent amount each month is probably what a lease costs- but you are still saddled with the mot service etc so leasing may be better for you in that senario

We lease, and shop around for deals. I have had some very lovely cars for under £300. If you don’t choose the color and options you can get over stocks for really good prices.

We don’t like holidays much so don’t spend in them, it’s all about your priorities. Although we also own houses, I wouldn’t spend money on anything else until I had at least one rung on the ladder (we have 3).

Some jobs you would need to prioritise a car as appearance is important. Some ethnic minorities prioritise a nice car to prove they've made it in new country. Some posh cars depreciate fast so can get a newish one much cheaper than you'd expect

Apart from my extremely wealthy friend (£1m joint annual income) everyone I know with a nice ‘new’ car leases it. My dad did the same and always had a new flashy car every couple of years. No doubt a lot of people thought he bought them. Our cleaner has a lovely new Land Rover – leased.

We earn combined £185k and still can’t afford a new car. We drive a 17yr old one that is continually on the verge of collapse.

I'm really sorry to hear about the struggle people have with PIP. I was not familiar with it as luckily noone in the family needs it but it sounds awful how much you have to put down and pay towards new car when you require it to have a life. Sending lots of love 🫂

I don't usually make these comments but come on using the word cannot afford when you are on £185k is slightly wrong.

You have obviously made other decisions on how to spend the money and so maybe you don't have enough left for high car payments but to say that driving a falling apart 17yo car is your only choice is a bit wrong.

Ours is the same, was an in stock offer so under £300 a month with no upfront payment.

No where did I say driving that car was my only choice – inferring that sounds like a you problem.

Yes after mortgage, childcare, house repairs, commuting costs and bills – no I don't have £30k to drop on a new Ford Focus – and certainly not the £70–100k+ cars that OP is talking about – and paying for one on credit seems like a very dumb and unnecessary decision while I still have a mortgage and young children to pay for. Forgive me for being financially sensible, I guess ...

You can afford it, just have other priorities, a lifestyle you are
maintaining in other ways (absolutely up to the individual how his/her money is spent). The thread is about being clueless how others afford it.

"We earn combined £185k and still can’t afford a new car. We drive a 17yr old one that is continually on the verge of collapse."

😂 Not affording something on a wage that would rival the prime minister, having other priorities and a "nice" lifestyle is entirely different to not affording something. It is an insult to people who are actually struggling.

My husband had a brand new car on pcp for under 300 a month. Also a lot of people on PIP qualify for motability so would have a new car

I’m not going to argue with those who think every claimant is in desperate need and there is no fraud. It’s futile. Those that know that there is a large amount of fraud know for a reason. It does detract and take resources away from those in need but until people are willing to have a real conversation about it then we’re just going to go round in circles. I have a very distance relative who claims PIP for her ‘bad back’. There’s nothing wrong with her. It isn’t hard to play the system if you know how

The OP is about how people afford super luxury vehicles. Affordability is not about rinsing every penny you earn, it's about a decision based on an individual's appetite to financial risk. I don't care about luxury vehicles or new ones, therefore once the things I do prioritise come out of my account, no there is no money left for one.

Nowhere did I say I didn't have financial choices, so I'm not about to be lectured on affordability on this forum of all places.

Quite a lot of snobbery on here about financing cars. I don't much care how anybody pays for their car. If they can afford it great, if they can't they'll lose it. Nothing to do with me.

I've been looking at getting a new car recently and there are loads of 0% deals around. I could afford to buy outright but would rather have my savings earning interest in the bank. In fact if there's 0% on offer for most things I'm buying I take it, as I know I can pay it back. Horses for courses.

I don't think you'd be "rinsing ever penny" to buy a new car, on £185k a year. Only on MN.
It is about priorities. You can afford it, don't want that, which is absolutely fine. Some really can't afford it, and do it anyway, spending beyond their means, some couldn't do it if they tried. Some people can afford it, and do because they have other priorities to you, and spend their money differently. Just don't make out you can only afford a run down old car. It is like Rishi with his sky TV.

And sandwiches *

They don't afford them; they have bad money management skills.

Cars depreciate so quickly that you're nuts to buy a new one. Buy a second hand car for half the price and a few k on it and you're laughing.

Not if like me you need a wav