How can anyone afford a car?

[PoisedGoldBiscuit]

So we've leased cars for the last 14 years or so. Have paid a non-refundable deposit of between £500 (for a regular hatchback) to around £900 for a SUV. I pay just under £300 p/m now for a Qashqai that includes maintenance (so services, MOTs, most repairs not covered by the warranty or caused by accidental damage). I also don't need to pay car tax.

I'm conscious of the fact that this is a debt that I'll essentially never pay off as I'm not gaining any equity in the car and just hand it back. I've looked at other options and they seem so far out of reach.

• buying cars second hand, friends who have done this seem to regularly spend £££ on maintenance issues, even for cars that are only a few years old.
• buying cars new but with a warranty, the monthly payments are huge and the car seems to drop so much in value that it's not worth the payments.

-taking out a PCP/ other scheme where you can hand the car back or pay a balloon payment, again, these seem to have huge monthly payments. Dealerships have never been able to get anywhere near the lease payments (and then have a huge balloon payment).

Am I missing something?

Also this. I have a dull car from a reliable brand and it's been reliable for the last ten years, I bought it second hand. I had the previous dull but reliable brand car for eleven years and the one before that for six. I save into premium bonds every single month, even when it's been a stretch, so that I don't need a car loan. I'm hoping current car will give me another year but am starting to think about the next one. My car is probably the oldest in the car park at work but I'm not spending £££ on internet on loans or leases...

I bought a 2008 Honda jazz in 2015 for £4k and sold it in 2018 for £2k. So that worked out at £83 a month! It only ever needed standard replacements like tyres, break pads, I changed the air filters etc.

I bought a 2012 Honda jazz in 2020 for £5k. It’s going strong. I got new tyres last year and this year the break pads.

I paid for it with £2k savings and a short term £3k bank loan.

Bought my car for 12k with 12k miles on the clock 9 years ago. I've spent about £350 a year on it since then, nothing major, just tyres/services. So it's cost me just over £100 a month so far and still going strong. Getting a similar replacement now would be about £16 - 17k, so closer to £150 a month. And of course needing to pay that money up front/loss of interest. Cars are not cheap.
And we currently pay the cost of repairs/services /insurance for 4 cars as 2 kids at uni. Might not have a holiday next year!

Yup. First car was an old banger when I was in my first entry level job but I saved up like a madwoman and second was a very mediocre but brand new super mini which I was able to buy outright with cash. Then drove it for 13 years and it was still going strong but unfortunately someone smashed into the side of it 😭 so had to buy another. The compensation from the resulting personal injury claim and for the car went to my current brand new slightly bigger more powerful car which I have serviced every year and plan to keep until it literally dies on me. I’ve done this alone whilst having a mortgage also and all associated costs which are usually unfortunately higher when you’re single also. So shows can be done. I’m please the only loan I’ve ever had was only my mortgage.

How vain are you to lease a new car every three years and pretend it's your only option? The only time this makes sense is as a company car and you reap the tax benefits.

We've had loads of cars, from RR's (look lovely, break every 5 minutes) to Honda Jazzs (an indestructible little bug which I loved pootling about in) and can't fathom why anyone would spend hundreds a month to rent something like a Quasqai (or however you spell it) when they are not a particularly high calibre of vehicle and cost a bomb over three years to then have zero to show at the end of that. All this "oh I don't pay for the MOT" is a saving of about £4 a month over the 3yrs.

Pick an older Nissan kumquat, get a bank loan if you've got nothing to put down, then pay the bank loan off in 3yrs and drive the car for free after!! It's not rocket science. You just don't get the image of a new one. Which I'd understand a little more if it was an outlandish status vehicle where being newer would massage someone's ego...but being very frank and realistic, do you think driving a 2024 model of your car is notable to driving a 2020 one?

Here's a £10k 2020 kumquat. Have only scanned the description, this one may be a dud, there are others. The point is, you'd pay it off in 3yrs with the same payments you're making now.

Also - Japanese. Indestructible things!

I think car finance is keeping a lot of young people poor. I am in my early 70s and my last car I bought new 10 years ago. This was the first new car that I bought. Previously to that I bought fairly recent second hand cars with a long warranty. I think these were usually ex hire cars. They were nothing special. My husband bought his first new car about 7 years ago.
I would consider us reasonably well off and have been able to pay for our children’s university fees and weddings and also give them some money towards their house deposits. I just think car finance is a mugs game and it is fuelled by people always wanting something new.

We bought our mini in 2019 for 8k and I thought that was a lot! Bought outright and it’s 10 years old now. Ridiculous what some people will spend renting a car.

Just buy Toyota. I have to replace cars every 4 years (25k miles per year and I buy them with 50k on) but it's good to know the car is less fashionable, therefore cheaper and mechanically sound.

Ignore the people that say they buy cars for 8 peas and a lolly then keep it for 10 years having only put on 40k miles in that time

I drive a 2013 Audi A1. Had it 11 years. Lowest category of road tax, standard MOT fees and pretty cheap service costs at a local independent garage. This year I've spent more as it needed a new cam belt and (thanks to some shocking pot holes) new front suspension (£1000 for parts and labour to do both). Very economical fuel use and apart from a couple of scuffs on the wheels it looks new. It will probably run for another 10 years....

Surely that depends on how many miles the OP will do in their vehicle. Different people have different needs.

I buy second hand basic models of not fashionable cars, known to be reliable, don't care what they look like. No electrical doo-dahs and gadgets to go wrong, bog standard mechanics only that can be fixed cheaply anywhere if something goes wrong. With one exception they've all lasted around 15 years with minimal costs, annual service, wear and tear replacements like tyres and filters, only had a couple of actual repairs that didn't cost much.

Currently most basic model Dacia, bought as I know it's essentially an old model Clio, and I always found those incredibly reliable. Now 7 years old and not spent a penny on it other than servicing and cheap 'wear and tear'stuff. In the last 12 months only needed new windscreen wipers and service filters. 12 months before that only needed 2 new tyres.

It's the desire for new cars, high-specs, trendy cars that get super expensive. Image or function.

I've had Aygos on PCP since 2014 - it makes swapping for a new one every three years quite easy as I usually have equity to use, and then the dealer buys the older car back. Atm its £162 a month plus £27 monthly service plan.

I think the most economic way is to buy a car say 2 years old from a reliable large garage. Otherwise it's too hit and miss if you buy privately. Fine if you are a car mechanic or know one.

@PoisedGoldBiscuit the answer is that they don't go for status cars.
I bought my 10 Yr old Kia, 3 years ago, for 5K. 40,000 miles on the clock.
It is very low insurance/tax, very economical to drive and cheap to fix.

I've had the luxury, status cars and every time felt i was just throwing my money away. I love my 13 Yr old car and it costs me peanuts.

I drive old bangers that I buy cash. Sure they cost a bit at MOT (£500 this year) . Still cheaper than leasing and if I get another year out of it that works out at less then £50 per month 🤷
Most I've had to spend on repairs was 1k, last year. Still works out at less than £90 p/m. Mostly my old cars last at least a few years.

I’ve never owned a car less than 15 years old and it’s a lottery. I can’t afford 300pcm on a lease. It’s that simple. Some years my maintenance is less than 1000. I think my record was £3000 in one year.

Currently own a Nissan Micra, last was a Peugeot 107. Small, very basic, not even air con, low insurance and tax, cheaper repairs than status cars. . If you’re going to lease or buy status cars or all bells and whistles you’re going to pay.

My well cared for 2011 car has already cost me 2k in repairs this year. I could honestly cry. I'm trying to save for a newer one but it's an uphill battle.

I buy a good, boring car second hand and run it til it’s dead. Current car is a 5 year old focus, going from previous models it’ll easily last another 7/8 years without major repairs. It’s expensive to run a nearly new, top of the range car; it’s not necessary expensive to run all cars.

I got a personal loan to buy my car as the interest rate was so much better. Paid a chunk off then cost me £300 a month for 3 years for a car that was just turning 3y old. I've now got a 2018 Audi that I own outright and the way the second hand market is going il be able to sell it on in a few years if it starts to get expensive.

I had a 63 plate csr which I loved. I was aware it wouldnt last forever but while it was running well and costing nothing I was happy to keep it. With replacing it at the back of my mind I started saving.

When I got a big estimate for its mot we parted ways. I've now got a car which is a year old and was bought outright with cash

Im still going through my autotrader results, Skoda Roomster, reversing cameras, ULEZ free, 11 years old, 90k miles, tax is 195pa (bit higher than I would like)

But the size and the reputation is what I would go for, its huge at the back which is great

Thats the sort of thing I would be looking for, £4500. Years MOT

I don’t think there’s anything wrong with what you’re doing already. It’s a price you can afford and you don’t get stuck with expensive repairs and unexpected bills.

I lease now but before this had HP/PCP and the price was just rising and rising. I’ve never kept the car and paid the balloon payment, I’ve traded in.

I stopped worrying about paying for something I didn’t own because it didn’t matter really. What mattered was a well maintained, comfortable and reliable vehicle I needed to do my job.

I didn’t need the stress of needing to travel for work which happens often and having car trouble. The worst case scenario now is I wait for a courtesy car and not repairs etc.

I think it’s about shifting your mindset. You’re paying for a service and something you need/want. It doesn’t matter if you don’t own the asset because as you say, it’s depreciating anyway.

In my experience, it has been the complete opposite. My older, cheaper cars have cost me so much money but barely a penny on my new/nearly new ones.

With free servicing and MOT included in finance deals, extended warranties and choosing good brands, I’ve barely spent a penny.
My last car was nearly 5 years old when I sold it and I don’t think I had to pay for a thing in all that time.

What has cost me money is repairing or losing value for damaged paintwork but that’s on me and not a fault with the car.