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Mk7.5 outright vs Mk8 lease


Grr

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43 minutes ago, Booth11 said:

This is why I dont lease, can’t be bothered to work out the sums, and even if so, get them accurate.  Much easier to just buy the thing outright.  😂


but unfortunately for most that’s just not an option ….. I’d much rather have a slightly older car and own it , than a brand new one and lease it . A slippery slope once in that cycle I suspect , only ending in debt . Just my opinion of course , as I do tend to air on the side of caution! 

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On 23/05/2022 at 18:27, Bodyboarder81 said:


but unfortunately for most that’s just not an option ….. I’d much rather have a slightly older car and own it , than a brand new one and lease it . A slippery slope once in that cycle I suspect , only ending in debt . Just my opinion of course , as I do tend to air on the side of caution! 

Agree, I’ve not had a loan on any vehicle for almost 20yrs and back then it was straight HP so at least you owned it at the end of your term I’m old school and just can’t get my head around paying hundreds of ££ out each month just hand the keys back and walk away at the end. 

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1 hour ago, Stobsie said:

Agree, I’ve not had a loan on any vehicle for almost 20yrs and back then it was straight HP so at least you owned it at the end of your term I’m old school and just can’t get my head around paying hundreds of ££ out each month just hand the keys back and walk away at the end. 


Same here.  Never leased or PCP’d or had a loan on any car.  I know it’s whatever is right for each individual needs and circumstances but just not a route I’d want to take. 

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40 minutes ago, Booth11 said:


Same here.  Never leased or PCP’d or had a loan on any car.  I know it’s whatever is right for each individual needs and circumstances but just not a route I’d want to take. 

PCP’d my last three cars, just to get the additional finance contribution (1k-2.5k) and paid it off within days of getting the car. Makes sense if you have the cash just to get more discount.

 

Kept the current one on the PCP this time, but only because it’s 0%. Bought premium bonds with the cash rather than leave in my account, and already won a few hundred, so well happy. Monthlies are only £160 so not noticing it out of current account and will pay it off at the end.

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1 hour ago, Shug said:

Makes sense if you have the cash just to get more discount.

Some savvy work here Huw👏
I always buy my cars. Like to get them discounted.  A deal has to suit, and be right fo me and my particular circumstances.  That may Not be the absolute cheapest purchase price.   Would not be averse to purchase via a Broker mnext time, sell my car thru a ‘broker type set up’, use PCP Deal for discounts, incentives, extras.

Would give my dealer the opportunity to compete…..

 

A few hours spent researching, checking, investigations can save many £ thousands.   Works for me.

 

All stuff frequently talked about on here. And done by you Huw😀

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2 hours ago, Booth11 said:


Same here.  Never leased or PCP’d or had a loan on any car.  I know it’s whatever is right for each individual needs and circumstances but just not a route I’d want to take. 


You have to be very fortunate these days to have a spare £40-£50k to splash out on a car outright.

I remember buying my 7 and it was only that it cost £27k and not £38k I managed to buy it outright at the time.

 

We both work full time (I have a good pension and run my own business)  and my wife likewise works in Social Care (Fostering) runs a separate business and we both look at todays generation now struggling with rent, mortgage, debt etc and wonder which way the market will go next with increased PCP interest rates looming.

 

The mantra from most car sales reps was keep your money and use ours to buy a new car.  I suppose with prices as they are most people are buying Vauxhall Mocca’s Pumas, Kia’s on PCP’s…..we’ll they are where I live.

 

If you’ve got a mortgage kids, grand children buying a £50k hot hatch would indicate a salaries in excess of £60-£80k to comfortably live and finance £600 per month  PCP  deals on a R. 
 

Average salary in UK is £26-27k….only the well off or stay home kids can afford these cars nowadays .

 

I digress😡

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5 hours ago, Msportman said:


You have to be very fortunate these days to have a spare £40-£50k to splash out on a car outright.

I remember buying my 7 and it was only that it cost £27k and not £38k I managed to buy it outright at the time.

 

We both work full time (I have a good pension and run my own business)  and my wife likewise works in Social Care (Fostering) runs a separate business and we both look at todays generation now struggling with rent, mortgage, debt etc and wonder which way the market will go next with increased PCP interest rates looming.

 

The mantra from most car sales reps was keep your money and use ours to buy a new car.  I suppose with prices as they are most people are buying Vauxhall Mocca’s Pumas, Kia’s on PCP’s…..we’ll they are where I live.

 

If you’ve got a mortgage kids, grand children buying a £50k hot hatch would indicate a salaries in excess of £60-£80k to comfortably live and finance £600 per month  PCP  deals on a R. 
 

Average salary in UK is £26-27k….only the well off or stay home kids can afford these cars nowadays .

 

I digress😡

Not fortunate, I work hard.

 

Left school at 16. Did a 4 year apprenticeship on way less money than most of my mates. Did 2 other jobs at the time to top up my wages.

Always lived within my means.

Never over stretched on mortgages.

Never used to have any spare cash, big TVs, expensive holidays.

 

Was lucky to land a junior role in current industry. (Insurance / Risk Engineering) and slowly got promoted - mostly through hard work, long hours. Have managed one of the largest global insurance risk engineering teams. 
High pressure job, close to breakdown a couple of times, but great support from SWMBO over 40 odd years.

Travelled internationally for work for 35 yrs now. Regularly away 15 weekends a year travelling / 100 nights a year on business. Up at 5 am, home after 8 pm. Missed a lot of my kids growing up.

 

Yep, on a decent salary now. Pension pot maxed out. A few rentals. Adequate savings etc.

 

Last few years have reassessed and had some very nice holidays and treated myself to some nice cars and bikes.

Still not pushing it, as currently driving a Toyota, whereas most people in my road have big Audi’s, Merc’s, Range Rovers, new cars on tick every three years, and hear them moaning about no money, not sure how they can sustain retirement when it comes.

 

Retiring soon, and off to coast 

 

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10 hours ago, Msportman said:


You have to be very fortunate these days to have a spare £40-£50k to splash out on a car outright.

I remember buying my 7 and it was only that it cost £27k and not £38k I managed to buy it outright at the time.

 

We both work full time (I have a good pension and run my own business)  and my wife likewise works in Social Care (Fostering) runs a separate business and we both look at todays generation now struggling with rent, mortgage, debt etc and wonder which way the market will go next with increased PCP interest rates looming.

 

The mantra from most car sales reps was keep your money and use ours to buy a new car.  I suppose with prices as they are most people are buying Vauxhall Mocca’s Pumas, Kia’s on PCP’s…..we’ll they are where I live.

 

If you’ve got a mortgage kids, grand children buying a £50k hot hatch would indicate a salaries in excess of £60-£80k to comfortably live and finance £600 per month  PCP  deals on a R. 
 

Average salary in UK is £26-27k….only the well off or stay home kids can afford these cars nowadays .

 

I digress😡


 

 

4 hours ago, Shug said:

Not fortunate, I work hard.

 

Left school at 16. Did a 4 year apprenticeship on way less money than most of my mates. Did 2 other jobs at the time to top up my wages.

Always lived within my means.

Never over stretched on mortgages.

Never used to have any spare cash, big TVs, expensive holidays.

 

Was lucky to land a junior role in current industry. (Insurance / Risk Engineering) and slowly got promoted - mostly through hard work, long hours. Have managed one of the largest global insurance risk engineering teams. 
High pressure job, close to breakdown a couple of times, but great support from SWMBO over 40 odd years.

Travelled internationally for work for 35 yrs now. Regularly away 15 weekends a year travelling / 100 nights a year on business. Up at 5 am, home after 8 pm. Missed a lot of my kids growing up.

 

Yep, on a decent salary now. Pension pot maxed out. A few rentals. Adequate savings etc.

 

Last few years have reassessed and had some very nice holidays and treated myself to some nice cars and bikes.

Still not pushing it, as currently driving a Toyota, whereas most people in my road have big Audi’s, Merc’s, Range Rovers, new cars on tick every three years, and hear them moaning about no money, not sure how they can sustain retirement when it comes.

 

Retiring soon, and off to coast 

 

 

We (me and my other half) are fortunate to be in a position to buy a car outright, but that fortune and ability has come from a lifetime of hard work, risk taking (in business and investment), entrepreneurial character, but mainly good financial management, and much motivation, and staying within our means.  Finance is self-generated, not boosted by family wealth (there isn’t any on either side, no parental handouts, no inheritances etc, my dad died last year and every penny from his estate is paying for my mums dementia care - eye watering cost!).  I’m from “average” background (what you might call lower middle class stock - left home at 17, degree educated, left college and started work straight after and have worked hard and continuously ever since (bar taking a year off when I had my daughter); my partner is from large family working class background hailing from a council estate, was out of school more than he was in it, no qualifications, left school at 14 to start working on market stalls, in his 20s started his own painting/small building works contracting business (directly employing local tradespeople long-term, as well as offering work for local subcontractors) and run it for 35+ years and continues to. 

 

By no means all plain sailing - with all that comes both good and bad times in business - (redundancy for myself in the past;  other companies going bust and owing lots to our business over the years, economic downturns, etc etc); and some bad times in health -  hwmbo has had x 3 heart attacks and cancer - but we support each through those times, and you pick yourselves up and reassess and make the next move, whatever that is; decent pension schemes and property investments help, but at the end of the day, the work is put in.  Retirement is a few years away yet, neither of us want to retire atm, we enjoy the mix of work/life so to speak.  

 

We enjoy spending some of that hard earned money on our family (one daughter) improving our home, holidays; eating out, and I enjoy having a decent performance car to drive, although it’s still just a Golf 😀  (ok a £50k Golf, but in reality £43k with discount).  We don’t have particularly expensive hobbies (other than enjoying tropical travel) and when and where possible prefer to fund it through saving for things and paying outright.  Financially for us, it’s a case of forward planning, regular reassessment and shifting accordingly to maximise resources for those things that are important to us, and tightening the proverbial belt in when necessary.  And having personal drive and enthusiasm to do stuff.  

 

I do feel for the generation below mine and beyond, and my own child’s financial future as it’s a different world, and a different way of life for many in terms of funding home, car, holidays etc now, although my daughter has inherited her dad’s financial flair and astuteness, both our work ethics and hates spending money (that’s all her own, lol), so maybe there’s hope.  
 

BTW- Totally get the going PCP route to benefit from the discount contribution and then paying it off straight away but then you’re not really paying for it on PCP are you.  Just maximising discount and paying off in full either in cash or maybe funded via a personal loan or some other means?   I didn’t do that this time with my 8R purchase, just took the DTD discount and was happy with that so paid cash from the off.  

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There isn't a simple answer to the whole finance vs cash as there are so many variables.   Just looking at PCPs, the first one is the interest rate.  If it's a 0% deal at the best purchase cost, then why wouldn't you?  Anything over what you'd get on your savings/investments, then it's different.   It wasn't that long ago that you could get 6-8% on investments while taking a fairly low risk, so at 3-4% interest you'd have been better off leaving your money where it was.   

 

Some people will tell you to always finance depreciating assets, but they must be wealthier than me!   If you're used to buying cars with cash, have moved up over time and put money away each month towards the next one then (stating the obvious!) it's much easier to keep going without finance.  But if you're starting from scratch, then it takes time.

 

I've had one PCP, which was back in 2014 when the company car scheme changed and I had to buy the main car for the first time in 20 years.   It was also only 2 years after a divorce, so I didn't have any equity in another car and everything I'd saved had gone into buying a house.   I was only looking at the paperwork a couple of days ago when I was sorting out my files, it cost me £620 a month, with a £9k deposit and £15k GFV.   So £780 a month, which was quite a lot at the time, but it was a car with a £60k list price (20% discount though, so £48k) and on a 30k miles a year deal.   I think the interest was just over £5k, but it was worth a couple of £k less than the GFV 6 months before the end of the deal, so I just handed it back.   I bought the next car with 60% cash and 40% personal loan at 2.8% (it was the cheapest way of doing it) and 2 years later bought my current one without any finance/loan.   I hope to be able to stick to that way of buying cars, but I'll caveat that slightly, as 'man maths' is always a factor!

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A ramble from me.

I totally understand the PCP route to getting behind the wheel of a new, decent car which would otherwise be unobtainable any time soon.   And folk want what they want now, or sooner. But once you go down that route with car funding, or a bit like renting a property rather than saving and buying, it’s hard to get out of it and change later on down the line.  I feel for the young as it is really tough, and a different financial landscape compared to 30, 40 or more years ago, with different choices and pitfalls.


Short term choices and solutions will have long term consequences.  A trap really. 
i can hear @Shug , @Booth11 and the likes of me being sneered at by others”, it’s alright for some”…etc , and this has always been such where there’s a divide between the Haves and Have Nots.   I’ ve had it for years 😂.  
I returned to higher education for 4 years after motorbike crash and made lots of sacrifices to get professional qualifications.   Getting employment with a severe disability wasn’t a barrel of laughs in the 80’s either, but the world has changed for the better since then. But saving, investing and living well within your means has and still will pay dividends in the long run.  And that often means sacrifices and unpleasant choices.   Who would begrudge Huw or Rebecca the fruits of hard work over many years? not I, enjoy every treat that you choose.  
I do think buying new cars outright can now involve what I feel ridiculous sums of money.  £50k for an R……never mind an RS3 or A45S, is well into my discomfort zone.  But I’m tight. 

Have to say running a GTI and now R over the last 10 years hasn’t been too painful on my pocket! and hopefully when I do change a I’ll get decent money for my R.  One of the benefits to disabled buyers of new car + adaptations is that the vehicle can be bought exempt from, without VAT payable - but cannot be re sold before 3 years has passed.   This has helped me to man-maths my R, and a £47k new car after discount will relieve me of some £39166, still under my £40k psychological buy barrier. (Used to be £30k haha).  Not planning to change any time soon tho😂

 

That said a Black beast of an Audi recently caught my eye at a neighbouring house, had to look it up. Wow. An RSQ8.  600bhp.  0-60  in 3.8 secs and a mere £123260 list.  Or £99070 + Hand Controls, for me after discount and VAT exemption.   So even tho time is the most precious commodity as you get older I’m unlikely to fork out the extra £60k to get to 60 that tad quicker😂😀

Captures how sweet a spot the R remains as a £value option.

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22 minutes ago, Bodyboarder81 said:

Well my head is spinning with numbers now😂 

 

all I go with anything really is … if I can’t afford it don’t buy it . And if I want it that bad , I’ll save for it and the waiting will only make the day of purchase sweeter . 
 

how old are you lot anyway ? 


That’s the abridged version of what I was saying. 😂

 

I’m mid 50s. 
 

You? 

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