Car Lease Agreements

[David H]

I would actually also add though that people are not very bright even when it comes to credit.

We all need some form of credit (I.e. mortgage) so I never believe it is something that should be ultimately shunned, even though over the years I have come to accept that a mortgage is really the only acceptable form of credit but that is just me, unless you come from money and your family can afford to buy you a house.

I mean, when I’ve walked past a Bright House I almost cringe when I look at the “total amount repayable” and I just think “Jesus, those sofas are ugly anyway! Go to British Heart Foundation and get a sofa for £100!” Even the mattress I’m sleeping on at the moment cost me £35 (I’m not fussy haha). People are so quick to finance everything, but you can get some amazing finds on the selling sites!

They seem to be pushing this “second hand culture” now albeit very much linked to the environment and to cut down on all of this overproduction of New things.

Really, and this is what I would do: dealer HP is always exorbitant and they do this to incentivise PCP on new cars, I would get a personal loan for a used car at 3% and if I couldn’t get it then tough! I couldn’t think of anything worse than paying more interest than I had to.

This is slightly contradictory to my previous posts haha, but really unless you can afford it: get an older car in cash (a well looked after older car, low mileage, very good MOT history) and just pay for the repairs as and when because that will likely always be cheaper over the course of owning the car than financing a newer used car on HP because once you’ve paid off the HP things on that car will need replacing anyway.

 

[Aurelian8]

I would actually also add though that people are not very bright even when it comes to credit.



I mean, when I’ve walked past a Bright House I almost cringe when I look at the “total amount repayable” and I just think “Jesus, those sofas are ugly anyway! Go to British Heart Foundation and get a sofa for £100!” Even the mattress I’m sleeping on at the moment cost me £35 (I’m not fussy haha). People are so quick to finance everything, but you can get some amazing finds on the selling sites!

This is the instagram generation. It is not about what you can afford, it is about what the people you follow have. £1000 phones, German cars, designer clothes. It is a continual push from companies, everywhere you look, everywhere you go. It is a part of the draw of social media, where everybody has this great life, and its not real, but people think it can be.

 

[Jon]

My dad always said to me when it came to buying a car

the more electronic gadgets and gizmos in a car the most stuff there is that can go wrong!

 

[David H]

This is the instagram generation. It is not about what you can afford, it is about what the people you follow have. £1000 phones, German cars, designer clothes. It is a continual push from companies, everywhere you look, everywhere you go. It is a part of the draw of social media, where everybody has this great life, and its not real, but people think it can be.

Completely agree.

I never used to be like this and I do have £1000 coats and £500 shoes gaining dust in my wardrobe. This financed with cash AND subsidised with credit cards (I.e. I have no cash for my holiday because I’ve wasted it all on clothes I couldn’t afford so I’ll both but I have to put the holiday on my 0% credit card). Ironically, I have an almost perfect credit score so I have no issue getting these 0% fee 0% balance transfers. I also currently pay no rent (this will change soon).

What have I learned...that all of this, all these labels (still made in China) is completely bulls***. It is absolutely worthless, which is why I wouldn’t sell any of it as I just think well, you’ve paid for it now you might as well treat it as a utility. It’s all crap! I’m not trying to be depressing, but it is all crap that is worthless at the end of the day! This is all stuff we’re working our arses off to afford, which of course we (I) actually couldn’t. I’m not preaching communism, but the greatest feeling in the world isn’t having these labels and everything we’re told because of reality TV and instagram culture it’s having financial security, savings etc.

This is assuming a 0 hours contract: “oh crap, I’ve only got 22 hours this week, 32 the next” but it’s okay, because I’m careful with money and I know I can afford food and water, not: “oh no, how am I supposed to afford the minimum on my plastic, or the payment on my brand new Focus RS and still go to the pub, and still buy food?!” If you catch my drift.

I wouldn’t even say that the above is an extreme example, this is the world we live in now, and people are going to have to be very careful.

 

[homie]

My dad always said to me when it came to buying a car

the more electronic gadgets and gizmos in a car the most stuff there is that can go wrong!

Your dad sounds like my dad.

The last two cars he had when I were a kid were a Triumph Herald (bought for £95) and a Ford Cortina Bought for (£150) Mum bollocked him for spending so much on a car when he brought the Cortina home. That was around 1985 I think. No one in our family or circle of friends ever had a new car back then.
My dad could pretty much fix anything that went wrong on those cars too. He even had the engine out of the Herold once. Nowadays people don't even know how to change a wheel.

It's the interest rates that get me on some of these loans. Wonga had loans at an equivalent of over 1000% APR at one point.

 

[An-na]

Completely agree.

I never used to be like this and I do have £1000 coats and £500 shoes gaining dust in my wardrobe. This financed with cash AND subsidised with credit cards (I.e. I have no cash for my holiday because I’ve wasted it all on clothes I couldn’t afford so I’ll both but I have to put the holiday on my 0% credit card). Ironically, I have an almost perfect credit score so I have no issue getting these 0% fee 0% balance transfers. I also currently pay no rent (this will change soon).

What have I learned...that all of this, all these labels (still made in China) is completely bulls***. It is absolutely worthless, which is why I wouldn’t sell any of it as I just think well, you’ve paid for it now you might as well treat it as a utility. It’s all crap! I’m not trying to be depressing, but it is all crap that is worthless at the end of the day! This is all stuff we’re working our arses off to afford, which of course we (I) actually couldn’t. I’m not preaching communism, but the greatest feeling in the world isn’t having these labels and everything we’re told because of reality TV and instagram culture it’s having financial security, savings etc.

This is assuming a 0 hours contract: “oh crap, I’ve only got 22 hours this week, 32 the next” but it’s okay, because I’m careful with money and I know I can afford food and water, not: “oh no, how am I supposed to afford the minimum on my plastic, or the payment on my brand new Focus RS and still go to the pub, and still buy food?!” If you catch my drift.

I wouldn’t even say that the above is an extreme example, this is the world we live in now, and people are going to have to be very careful.

In another thread recently I paraphrased a quote from the film Fight Club.
Here is another quote, but I am not paraphrasing this one.

“The things you own end up owning you. It's only after you lose everything that you're free to do anything.”

There are many more quotes from this film like this all of them relevant to what you are saying. Go look them up, or watch the film. Better still, read the book ​

 

[David H]

In another thread recently I paraphrased a quote from the film Fight Club.
Here is another quote, but I am not paraphrasing this one.

“The things you own end up owning you. It's only after you lose everything that you're free to do anything.”

There are many more quotes from this film like this all of them relevant to what you are saying. Go look them up, or watch the film. Better still, read the book

I have seen the film, but haven’t read the book: I’m a terrible reader I just can’t sit down and read without getting impatient haha.

What we own in life never has a massive value, even a house that *tends* to appreciate...well, you still gotta live somewhere and you can only release cash in a house if you downsize, or..live in Zone 1 haha. Don’t get me started on equity release!

 

[The Reverend]

My dad always said to me when it came to buying a car

the more electronic gadgets and gizmos in a car the most stuff there is that can go wrong!

Bet he also said the Internet would be a passing fad and unless you got a 'real job' you'd never get any money?

:incheek:



p.s. I've got a car that is over 60 years old, and it constantly has stuff going wrong with it!

 

[Jon]

Bet he also said the Internet would be a passing fad and unless you got a 'real job' you'd never get any money?

:incheek:



p.s. I've got a car that is over 60 years old, and it constantly has stuff going wrong with it!

Well they thought I was going to go to prison for doing Matched Betting so ya know........

 

[The Reverend]

Getting this thread back to cars.

I've bought old 2nd hand cars
I've bought new cars on lease
I've bought new cars for cash

I currently have a new car that I got for about 60% list price. New cars aren't bad. Loans aren't bad. Leases aren't bad. They are just things.

Someone needs to buy a new car for you to be able to get a 2nd hand car. If you need a reliable car today it is no good saving £250 a month for 5 years to buy one in 5 years time.

 

[The Reverend]

Well they thought I was going to go to prison for doing Matched Betting so ya know........

The irony is that most stock-market stuff is based on the logic around match betting...except they never use their own money!

 

[homie]

p.s. I've got a car that is over 60 years old, and it constantly has stuff going wrong with it!

I'd take that over a new modern car any day. No tax or MOT and its value should appreciate over time rather than sink like a stone. A well chosen classic car can be a pretty good investment actually.

I wonder what the second hand market for electric cars is going to be like once they become more popular. The fact the batteries don't last forever and are a big cost item to replace will make older electric cars become pretty much worthless I think. No one's going to buy a ten year old car if they think they will need to spend several thousand £ on a new battery a year or two down the line.

Edit - Actually, just had a thought. There will probably be a new type of garage spring up specialising in selling refurbished or cheap replacement batteries from Asia for electric cars at a fraction of the price that main dealers would charge. So maybe in time it will become more viable to buy an older car and swap out the batteries. Or even convert an old petrol car to electric!
And then come the hover conversions.

 

[David H]

I'd take that over a new modern car any day. No tax or MOT and its value should appreciate over time rather than sink like a stone. A well chosen classic car can be a pretty good investment actually.

I wonder what the second hand market for electric cars is going to be like once they become more popular. The fact the batteries don't last forever and are a big cost item to replace will make older electric cars become pretty much worthless I think. No one's going to buy a ten year old car if they think they will need to spend several thousand £ on a new battery a year or two down the line.

Edit - Actually, just had a thought. There will probably be a new type of garage spring up specialising in selling refurbished or cheap replacement batteries from Asia for electric cars at a fraction of the price that main dealers would charge. So maybe in time it will become more viable to buy an older car and swap out the batteries. Or even convert an old petrol car to electric!
And then come the hover conversions.

I think with the Renault Zoe you actually down own the battery you lease it which I believe subsidises the cost of replacement?

Which of course brings the question into the future of car ownership: I think I read somewhere that to change one of BMW’s batteries (may have been the posh i8) it was something like £8k+! So we may eventually see mass leasing of cars because the electrical components become very expensive to maintain and replace, perhaps.

 

[Castro]

Bought my first car recently! Spent £700, what could go wrong!

 

[David H]

Bought my first car recently! Spent £700, what could go wrong!

The thing to remember is that even if you were to spend £500-£1000 a year in repairs that is still very good value motoring!

 

[Castro]

The thing to remember is that even if you were to spend £500-£1000 a year in repairs that is still very good value motoring!

Well this was sort of my thinking. I've only recently passed my test so insurance is a big cost, I can't afford an expensive car and to be honest if I stretched to £1500 or so to buy a car it could just as easily need an expensive repair as a £700 car!

It's got MOT until end of October, if it last until then with no real issues then great, if it gets through that without any big expenses then it will start to look a very shrewd purchase!

 

[David H]

Well this was sort of my thinking. I've only recently passed my test so insurance is a big cost, I can't afford an expensive car and to be honest if I stretched to £1500 or so to buy a car it could just as easily need an expensive repair as a £700 car!

It's got MOT until end of October, if it last until then with no real issues then great, if it gets through that without any big expenses then it will start to look a very shrewd purchase!

You have to take these risks at the end of the day, because a lot of the time they will pay off and you can find you got a real bargain and something that is value for money.

Remember to put your parents on your insurance if you live at the same address; you could probably still do this if you don't live at homes will likely lower your premium.

You can also go on Honest John for a list of reputable garages to use and/or ask around about garages that don't have an exorbitant labour rate.

 

[Jon]

I'm been quite into getting an electric car at the moment. I'm not sure if this is a fad or anything however I see the new Corsa-E is coming out in March next

Corsa | Stylish City Car | Vauxhall

The UK's official best selling car. The Corsa is today’s perfect super mini for every journey, available with as fully-electric or petrol. Take your pick and dive in.

www.vauxhall.co.uk

Am I able to hand back my existing car and just start a new lease agreement to get this electric version or should I just wait until my remaining 3 years are done and swap then?

Am sick of paying for petrol lol

 

[Aurelian8]

Most people can manage with an electric car these days. Personally, i drive a PHEV, which gives me a best of both worlds. 75% of my driving is short journeys, and i can charge my car at home, and work. For the journeys over my cars battery range (36 miles) i have the benefit of an engine (we go to glasgow once per month). I am 100% going full electric next time i change though, i love running my car on battery. It is smoother, quieter and more relaxing.

If you are mid lease Jon, it is not easy to get out of. You basically have to buy out your lease, which means paying all of the payments. If you are in a pcp, its a different matter. Leases are pretty inflexible sadly.

 

[Jon]

Most people can manage with an electric car these days. Personally, i drive a PHEV, which gives me a best of both worlds. 75% of my driving is short journeys, and i can charge my car at home, and work. For the journeys over my cars battery range (36 miles) i have the benefit of an engine (we go to glasgow once per month). I am 100% going full electric next time i change though, i love running my car on battery. It is smoother, quieter and more relaxing.

If you are mid lease Jon, it is not easy to get out of. You basically have to buy out your lease, which means paying all of the payments. If you are in a pcp, its a different matter. Leases are pretty inflexible sadly.

ah well I'll just suck it up and carry on. It's not like my 2018 Corsa is a shit show or anything I just REALLY like the idea of an electric car. We do a LOT of short journeys much like you however when we go off to see families down south it's quite a drive and petrol costs can REALLY mount up!