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I’m 29 with a £425k mortgage, £44k student debt and £600 monthly car bill. Help!


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2 hours ago, TenYearToGetMyMoneyBack said:

Back in the 1980s, when 3x salary was the maximum mortgage you could get, a fried only managed to get 2.5x salary so ended up with flat rather than a house. The reason was that he had a car loan which the building society deducted from his 3x salary. The car in question was a used Renault 5!.

PCP for cars didn't exist.......you either got a car loan to buy, used that or paid for it outright.....were ways could lease cars but that was generally for company cars.

Wouldn't surprise me to make more money out of people a kind of PCP designed to purchase a home.....lots of ways now to provide financial props to get people to purchase and consume ever more at higher prices.;)

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26 minutes ago, lemonaid said:

I think we have different opinions about where the power and reponsibility lie.

Oh the humanity. I feel so sorry for the middle classes. What a burdensome responsibility having bomad must be, and the expectations of PCP car ownership.

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21 hours ago, desiringonlychild said:

I have a big mortgage (£278k) but no car or student loan. My husband has £5200 left on his student loan.. I might consider increasing my mortgage to £400,000 (or more likely £360k as more debt would be paid off by then) when our household income increases from £120k to £150k ( so that the increased mortgage debt is 2.6 times combined income) and student loan is paid off.  But wouldn't get a car as we live in London and my mother in law had 4 kids and no car. Would probably move somewhere with better bike storage for my husband so he can continue cycling  to work.

 

If you want a big mortgage, you have to sacrifice in other ways. I don't actually going to restaurants or holidays are that bad unless they are on the credit card as you can easily cut back. But i would steer away from expensive fixed payments like for PCP cars or phone contracts. I still use a phone with a cracked screen for a reason. 

I wouldn't skimp on that. Phones soon stop getting security updates.

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29 minutes ago, winkie said:

PCP for cars didn't exist.......you either got a car loan to buy, used that or paid for it outright.....were ways could lease cars but that was generally for company cars.

Wouldn't surprise me to make more money out of people a kind of PCP designed to purchase a home.....lots of ways now to provide financial props to get people to purchase and consume ever more at higher prices.;)

PCP is really a way to obscure the real price of a car from people. 

As you say 20 years ago a car had a sticker price (OTR) and you funded the purchase yourself. You can't walk onto any dealership forecourt today and see a OTR price, even most 2nd hand car showrooms only list the monthlies in the windscreen. 

Todays OTR prices bear no resemblance to the production cost of a car. they are overstated to make the 3 year lease deal look good and to derive a "fictitious" future value to underpin the lease calculation. 

For years there is supposed to be a "glut" of lease cars that will hit the 2nd hand market and drop prices but its never happened. i've seen people on forums claim that manufacturers would rather export 3 yo cars, or even break them for parts, then allow the 2nd hand market prices to fall. 

We've allowed manufacturers to "break" the new and used car markets and price discovery in those markets in exactly the same way as house builders have "broken" the uk housing market and ramped prices.

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1 hour ago, regprentice said:

PCP is really a way to obscure the real price of a car from people. 

As you say 20 years ago a car had a sticker price (OTR) and you funded the purchase yourself. You can't walk onto any dealership forecourt today and see a OTR price, even most 2nd hand car showrooms only list the monthlies in the windscreen. 

Todays OTR prices bear no resemblance to the production cost of a car. they are overstated to make the 3 year lease deal look good and to derive a "fictitious" future value to underpin the lease calculation. 

For years there is supposed to be a "glut" of lease cars that will hit the 2nd hand market and drop prices but its never happened. i've seen people on forums claim that manufacturers would rather export 3 yo cars, or even break them for parts, then allow the 2nd hand market prices to fall. 

We've allowed manufacturers to "break" the new and used car markets and price discovery in those markets in exactly the same way as house builders have "broken" the uk housing market and ramped prices.

Don’t agree. It’s very easy to go and discuss a cash offer for a car, negotiate a OTR price , new or used . 
I take the PCP, negotiate bigger discounts to get a deal , then pay it all off after 31 days . 

In the OP, must be some car for a final balloon payment of 40K. That’s more than my RS4 would have been . 

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7 minutes ago, Johnno1167 said:

Don’t agree. It’s very easy to go and discuss a cash offer for a car, negotiate a OTR price , new or used . 
I take the PCP, negotiate bigger discounts to get a deal , then pay it all off after 31 days . 

In the OP, must be some car for a final balloon payment of 40K. That’s more than my RS4 would have been . 

Yeah I get that export is preferable but it's not an inexhaustible market especially for RHD. Yes balloon of 40k sounds a little unreal, even a high end Tesla shouldn't be that high? 

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53 minutes ago, Johnno1167 said:

Don’t agree. It’s very easy to go and discuss a cash offer for a car, negotiate a OTR price , new or used . 
I take the PCP, negotiate bigger discounts to get a deal , then pay it all off after 31 days . 

i've done the same myself. 

The point im trying to makenis that todays prices are based around "fitting" finance. if you passed a law stopping car manufacturers selling finance deals then i would expect them to radically change their prices. they would have to go back to "what are the raw material costs of this car, plus labour and a fair profit...whats a fair price taking these into account?" and most cars would drop 10k in price overnight imho. 

Cars today are priced so that the interest costs of buying them are in the sticker price. 

53 minutes ago, Johnno1167 said:

In the OP, must be some car for a final balloon payment of 40K. That’s more than my RS4 would have been . 

The numbers quoted fit a Range Rover Velar link

£11k up front, £630 for 4 years, final balloon of £30k.

I know their final balloon is £40k not £30k.... i wouldn't be surprised if they only wanted a 3 year lease instead of a 4 year which is the default option on the link above. That term change to 3 years, and selecting two options packs from the list of seven available, gets you very very close to that number. 

Edited by regprentice
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1 minute ago, regprentice said:

 

£11k up front, £630 for 4 years, final balloon of £30k.

 

I'm convinced that when Sunak says there's a war on motorists I think he really means a war on Range Rover owners (and similar). Ford Fiesta drivers may as well be sweaty public transport users in his world view.

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1 hour ago, Lagarde's Drift said:

Yeah I get that export is preferable but it's not an inexhaustible market especially for RHD. Yes balloon of 40k sounds a little unreal, even a high end Tesla shouldn't be that high? 

Teslas aside from the s and x are not that high compared to some of the motors that are quite common.

The one that always gets me is the Land Rover Defender plasticy off-roader for the rough and tumble...... 60k and the rest for a decent one.  They are common as muck around here you would think they were 241.  And that BMW IX with about 5 m performance around here  £100k+.

 Logically now the rates are higher the next round of buyers are not going to get the same deals
 

Edited by Fromage Frais
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1 hour ago, Si1 said:

I'm convinced that when Sunak says there's a war on motorists I think he really means a war on Range Rover owners (and similar). Ford Fiesta drivers may as well be sweaty public transport users in his world view.

........parts are an issue as well, hard to get hold of, if can, very expensive........some are waiting weeks for parts for these big range rover style vehicles.... ;)

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17 minutes ago, Fromage Frais said:



The one that always gets me is the Land Rover Defender plasticy off-roader for the rough and tumble...... 60k and the rest for a decent one.  They are common as muck around here you would think they were 241.  And that BMW IX with about 5 m performance around here  £100k+.


 

F0lHqzxWYAIEP-Z.thumb.jpg.8d3687dd50ef83831bf47e0c230e51bc.jpg

 

https://www.londonworld.com/read-this/wimbledon-school-crash-driver-of-land-rover-which-crashed-into-school-had-seizure-and-bit-through-tongue-4213307

I'm guessing a ford focus does less damage when accidentally accelerated through a fence and into a group of young children.

Still. Appearances heh.

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  • 3 weeks later...
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On 02/11/2023 at 08:52, Fromage Frais said:

https://www.theguardian.com/environment/commentisfree/2023/nov/22/car-culture-car-industry-consumers-debt

Rishi take note:

the car industry – and its servants in Westminster – are not consumers’ friends. Public transport investment, bike lanes and LTNs are not an attack on motorists, but a helping hand out of the gilded cage that is contemporary car ownership.

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1 hour ago, Si1 said:

 

the car industry – and its servants in Westminster – are not consumers’ friends. Public transport investment, bike lanes and LTNs are not an attack on motorists, but a helping hand out of the gilded cage that is contemporary car ownership.

Left-wing clap-trap. It's great to have a car, brilliant. 🙂

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8 hours ago, yodigo said:

Left-wing clap-trap. It's great to have a car, brilliant. 🙂

Straw man. They, and I, didn't say it isn't.

 

7 hours ago, LivingWithTheInlaws said:

Essential if you live in the countryside. Most policy makers do not understand this.

Where are policy makers trying to stop people in the countryside owning cars? Who is doing this?

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