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 am allowed to use the shorthand of 'can't afford' to mean that I do not have circa £50-100k savings in the bank to buy a luxury car. Because I do not have those cash savings. The only thing I could sell to afford it would be my home – which is getting a bit silly, when discussing affordability isn't it?

You could find someone on £20k a year who also smokes 20 cigarettes a day, equating to the same cost of a car on finance per month. It's arbitrary and you have 100% picked on my post because I'm a high earner.

YET AGAIN, I did not say I could 'only afford an old run down car', I did not say 'woe is me, I only wish I could afford a new one'. I said I could not afford a brand new car, and told OP the car I do drive. They are unconnected sentences. You have no idea what my outgoings are and why, and why my affordability for cars is what it is, so unless you do you'd do better to put your disgruntlement back in your pocket.

I agree with the above poster (@MUCHtodoAboutSomething) - on £185k you could obviously afford to buy or lease a newer car, you just choose not to (which is fine!) but it’s a completely different scenario. Very few people have £50k savings in the bank to buy one outright, you’re hardly in the minority there.

You cannot claim pip just for a "bad back", so try again!
I know people with missing limbs who have been refused pip or just awarded for 3 years because they might grow back.
To be awarded pip you have to have extensive medical evidence and that evidence has to match with what the claimant says about how their condition(s) affect them.
You obviously have no idea what's involved

Likewise, our down payment alone was £22.5k, there was only one vehicle available and then there are adaptations on top. Without a wav my child can't easily get around.

Everyone has different priorities. You see ‘poor area’ and think everyone who lives there must have no money. But actually their rent and mortgages are far lower so maybe allows them the £500pm for a car.

Lots of people lease, have company cars or company lease schemes so it comes off their gross income. Also includes tyres, insurance, roadside cover, servicing etc. And no repair costs.

The true cost of a vehicle is the depreciation. Mostly the monthly lease cost covers this. Sometimes it actually works out beneficial. For example - those who cash bought an EV 5 years ago have lost way more money than someone leasing one.

I have a bad back and I'm well versed in filling in the PIP forms appropriately, having two DSs on enhanced rate daily living and mobility and there is no way I could use the points system to get any award at all for myself. Just the odd 2 points here and there.

You are obviously not privy to the full details of your distant relative's condition.

It always amazes me how high earners have so much time to be argumentative on the Internet.

Lease or work for the company that makes them.
No way we would get new cars if it wasn't for these 2 factors. Mine is leased my DH works for a car company.
It's cheaper than us owning 10 year old cars brought via a loan and paying maintenance etc.

I didn't say I was in the minority. I didn't say I couldn't afford a 'newer' car. I said I couldn't afford a brand new car. Kindly, you have no idea what my outgoings are and why – affordability doesn't only cover income, it covers financial wellbeing and appetite to risk.

I lease a new t roc for just over 200. I insure it and fuel it. Everything else is included. If I was constantly saving for the next second hand car plus budgeting for service and repairs and tyres I would at least be spending 100-150 monthly. (You need 6-10k every 5-8 years for a second hand car)

Didn’t realise that. I bought my wav outright, never got one through the scheme.

It isn’t only WAVs. For some people there isn’t a suitable car with a £0 AP either.

Indeed 😂

Just a note for those who need specific Motability vehicles or WAVs you can apply for a grant to cover all or part of the advance payment but you have to have the grant agreement in place before placing the order for your car/WAV.

I'd also recommend keeping an eye on the special deals - they change every quarter. When I ordered a new car in June it was on a special offer of £199 advance payment it's now £1,000.

In poorer areas they will be mobility cars. Also lots of people get cars through their jobs. I imagine a very small percentage of cars nowadays are bought outright.

PCP or PCH? How long a lease? How many miles?

Take away those who need a large vehicle for mobility reasons, so the other 95% plus of Range Rovers, SUVs, high performance cars are not needed. I'd make them much less affordable by large taxes, say 25% on PCP and maybe £1000 plus a year per vehicle.

I'm sure even if only half of those cars were retained, the tax raised could be put to good use.

The men who live in the low cost / poverty are tradesmen . They have a van for work , and 1 suv as their family car . The suv is leased through their business.

Tradesmen living in poverty 🤣 Have you seen what they make these days? Far better prospects with a trade than most university degrees

The grants go on the household income and are only awarded to those on means tested benefits

We have new car its 3 year finance on it. So we might look well off we not ha. His is a work car they upgraded their work cars.

That kind of tax would put JLR and other manufacturers out of business. I imagine they're a pretty big British tax payer (and employer) themselves so I can't see the government going out of their way to make business difficult for them.

People just have different priorities. Some people have a really nice car, but pretty much nothing else.

I feel the same, our salaries are over £100k, we both have
Cars 15 years old (decent makes so last) but I couldn't contemplate £400 plus a
Month for a new car. Saying that we make a lot on our house so when we downsize we may be able to get new cars then ... it'll be a skateboard til then if they die at the MOT lol

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

Oh come on😂. Where oh where is this mythical place?

On your salary you can afford a car, it's a case of budgeting properly.