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spyguy

'Buying' record number of cars

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Apparently its deue to the new way we are buying cars.

I think they need to look at the word 'buy'

Apparently its all down to PCP. With an affordable monthly repayment .....

85% of cars on finance are on PCP.

'Affordable' monthly payment mentioned again.

And we are 'buying' premium cars - 4x4, Audis, BMW.

Oh FFS.

PCP is borrowing money to rent a car FFS.

If you need a top end car the PCP cotnract you being able to drive it car.

Im living in an country of idiot punters, idiot car dealers and an idiot government.

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It is utterly bonkers mate.

thing is, so far the idiots get the sweet meats and honey; how many good years of your life do you want to evaporate in fiscal prudence.

maybe I should have a Porsche. I deserve it, don't I?

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More low interest rate, easy credit driven madness.

Mr or Mrs Average must see one of these (the HPC favourite German luxury brand, underpowered and recession white):
https://www.motorpoint.co.uk/vehicleadvert/audi/a1 sportback/674590
and think £250 a month for a (practically) brand new Audi is a bargain.

A quick scroll down to the Finance Illustration tells a different story.  Over 49 months and limited to just 6000 miles a year:

  •     If you give it back once the PCP is up it will have cost ~£14,000 and you're left with nothing.  
  •     If you decide to keep it it will have cost you ~£5,000 in interest.

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1 minute ago, moneyfornothing said:

If it any consolation ... I bought my first new car ever at age 43 last year ... an E class merc.. for cash.. always drove used cars before .. for cash always

Did you find it harder to buy in cash?....Was pressure put on to take a finance deal?

 

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2 minutes ago, winkie said:

A three year old low mileage clean car is now the new new car...Due to penalties with pcp find they are far better looked after.;)

There does not seem to be a flood of cars coming off pcp.  Someone did post on here a while ago that a lot were shipped overseas so as to maintain the price of second hand cars.  I can't find any information to suggest that this is true but it would not surprise me in the least if true

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3 minutes ago, winkie said:

Did you find it harder to buy in cash?....Was pressure put on to take a finance deal?

 

Surprisingly no... it was an end of line 'clearance' before the new model came in the following month.. I think they were embarrassed to sell it to me.. I bought it at a price that accounted for roughly the 1st 18 months worth of depreciation..

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15 minutes ago, sisyphal said:

More low interest rate, easy credit driven madness.

Mr or Mrs Average must see one of these (the HPC favourite German luxury brand, underpowered and recession white):
https://www.motorpoint.co.uk/vehicleadvert/audi/a1 sportback/674590
and think £250 a month for a (practically) brand new Audi is a bargain.

A quick scroll down to the Finance Illustration tells a different story.  Over 49 months and limited to just 6000 miles a year:

  •     If you give it back once the PCP is up it will have cost ~£14,000 and you're left with nothing.  
  •     If you decide to keep it it will have cost you ~£5,000 in interest.

Recession White.

 

lmao - so true

 

the Range Rover Evoque comes in chunt white

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43 minutes ago, One-percent said:

There does not seem to be a flood of cars coming off pcp.  Someone did post on here a while ago that a lot were shipped overseas so as to maintain the price of second hand cars.  I can't find any information to suggest that this is true but it would not surprise me in the least if true

Wouldn't be surprised, but where to? I was under the impression that the rhd car market was quite small globally? 

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It's all about the monthly payments and getting a shiny new car at the end of each payment term.

Clever business for the car companies whilst it lasts. However when this sales technique implodes the scam will be revealed for all to see. Although I can see a bailout looming for all of those on these deals.

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4 minutes ago, btd1981 said:

Wouldn't be surprised, but where to? I was under the impression that the rhd car market was quite small globally? 

So the question is .....Where do all these three year old cars go? Who buys them?

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I understand that BMW employs people to buy up many of their used cars.

As for RHD cars going abroad I would imagine that they go to one of the African countries that drive on the left side of the road. The UK imports quite a few Japanese spec vehicles that are several years old as their MOTs are very tough.

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31 minutes ago, btd1981 said:

Wouldn't be surprised, but where to? I was under the impression that the rhd car market was quite small globally? 

https://en.wikipedia.org/wiki/List_of_countries_with_left-hand_traffic

Larger than I thought. Includes India, Japan and Indonesia!!!

Which begs the question, has anyone bought second hand from abroad? Good idea or not?

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1 hour ago, sisyphal said:

More low interest rate, easy credit driven madness.

Mr or Mrs Average must see one of these (the HPC favourite German luxury brand, underpowered and recession white):
https://www.motorpoint.co.uk/vehicleadvert/audi/a1 sportback/674590
and think £250 a month for a (practically) brand new Audi is a bargain.

A quick scroll down to the Finance Illustration tells a different story.  Over 49 months and limited to just 6000 miles a year:

  •     If you give it back once the PCP is up it will have cost ~£14,000 and you're left with nothing.  
  •     If you decide to keep it it will have cost you ~£5,000 in interest.

What I find most amusing is that the overall costs / figures are there in black and white, as clear as day. 

Similar to house prices, hasn't this PCP / cheap lending on cars caused their base price to rocket? What happens when rates go up?

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Not to mention Thailand and Malaysia.

Malaysia even has UK plug sockets.

Today's useless fact.

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42 minutes ago, MattW said:

I understand that BMW employs people to buy up many of their used cars.

As for RHD cars going abroad I would imagine that they go to one of the African countries that drive on the left side of the road. The UK imports quite a few Japanese spec vehicles that are several years old as their MOTs are very tough.

So what do these BMW people do with all these bought up secondhand cars?  Maynard' link is illuminating and would be worth scanning any news reports from the southern part of Africa and India to see if there is a sudden growth of white 4x4s in the background. 

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2 minutes ago, ccc said:

Not to mention Thailand and Malaysia.

Malaysia even has UK plug sockets.

Today's useless fact.

Might not be that useless and could explain a lot about where secondhand goods go so as not to flood the uk market.  I do like a good conspiracy in the morning :)

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Malaysia is a very modern country (generally speaking) as well so wouldn't be a huge surprise. 

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Surely UK consumers can afford to pay more for 2nd hand cars than Thais, Indians, Indonesians, even Malaysians? Malaysia is not a particularly big country (30m) and has a nominal GDP per capita of $10k, 1/4th of the UK's.

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I guess so but also think that if true, it is a way to keep prices artificially high.  If all those three year old pcp deals flooded the market then surely it would put downward presssure on second hand cars, which in turn would put pressure on the price of new cars. Supply and demand 

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5 minutes ago, One-percent said:

I guess so but also think that if true, it is a way to keep prices artificially high.  If all those three year old pcp deals flooded the market then surely it would put downward presssure on second hand cars, which in turn would put pressure on the price of new cars. Supply and demand 

I picked up my (at the time) 4 year old BMW for half what it cost brand new; thanks to depreciation and PCP. Lovely motor with loads of toys. Bought for cash obviously.

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34 minutes ago, Bronson said:

What I find most amusing is that the overall costs / figures are there in black and white, as clear as day. 

Similar to house prices, hasn't this PCP / cheap lending on cars caused their base price to rocket? What happens when rates go up?

My daughter is a district nurse Bronson so gets mileage allowance.Every single person out of the 28 in her group has a lease car.The girl who started with her (23) has an audi.They all said the mileage allowance pays for it and they only need to put £100 a month,cant go wrong.I worked out the figures though and they very much were going wrong.They were getting roughly £230 a month in fuel/travel allowance,so were paying £330 for the lease cars because they were spending the allowance on them+ extra and then paying their own fuel.

My daughter bought a car for £4k.1.6 diesel and got the allowance.Paid for in 1.8 years from the allowance.She will change after 4 years each car and have to put £2.5k now each time (cars roughly 5 years old) so will pocket £1600 a year net.She is paying the savings off her mortgage.HPC member trained ;)

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12 minutes ago, durhamborn said:

My daughter is a district nurse Bronson so gets mileage allowance.Every single person out of the 28 in her group has a lease car.The girl who started with her (23) has an audi.They all said the mileage allowance pays for it and they only need to put £100 a month,cant go wrong.I worked out the figures though and they very much were going wrong.They were getting roughly £230 a month in fuel/travel allowance,so were paying £330 for the lease cars because they were spending the allowance on them+ extra and then paying their own fuel.

My daughter bought a car for £4k.1.6 diesel and got the allowance.Paid for in 1.8 years from the allowance.She will change after 4 years each car and have to put £2.5k now each time (cars roughly 5 years old) so will pocket £1600 a year net.She is paying the savings off her mortgage.HPC member trained ;)

Very well trained db. Well done. Mind who knows what the right decision is.  Live within your means, paying as you go from your hard earned. Or splurging it all, living the highlife and then getting debt forgiveness?

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