What percentage of new cars on the road are finance based payments

euser1984 · 06-07-2018 11:25PM #1

There's quite a few 181's about the place.

Lots of construction, lending etc.

Would be great if someone has something on this....thank you very much

Rackstar · 06-07-2018 11:26PM

It’s all about the 182s now.

There was a thread on this a while back with a poll which gave a good insight.

euser1984 · 06-07-2018 11:39PM

yip, i know but there ain't too many 182's around yet....seems you can tell the state the economy is in depending on how many financed cars there are??

i'll try and get that poll, never really got searching this forum right

EPAndlee · 06-07-2018 11:41PM

Most dealers I've talked to say their sales are down a lot on last year. All seem to be blaming UK imports

euser1984 · 06-07-2018 11:42PM

actually, if I might put this out there....

is it not better even if you have the money to buy the financial plan anyway if you believe in the economy to hold onto your principle - you can give the car back at anytime.

i'm not actually talking about me here because i did buy a new car with cash/draft recently and i'm thinking the finance choice would be the better option because even if the economy goes bang you can just give it back?? are maybe there are massive charges for this kind of thing?

it just seems to be the most logical choice from a business type persepective....i'm not saying i would need to give it back, but you always have your option then! perhaps you might even just want an upgrade

DaveyDave · 06-07-2018 11:44PM

I've seen a few articles about how the bubble is going to burst on PCP financed cars from the likes of the Journal.

A large number of cars are financed, I believe the majority of them are. Is there people out there who are probably struggling to pay for their car? Probably. It's not limited to PCP though.

The thing that bugs me the most about the finance bubble going to burst is that people have been financing their cars for decades. Before PCP was a thing people would get new cars every 2-3 years regardless. It's nothing new, PCP is just another way to do it.

I believe there was an article suggesting PCP was a very large number of car sales this year.

Yes, if you have cash you're better off going finance anyway so you have more money available on hand and the interest rates are rather low. It's good to have if something comes up and if you have the cash you're obviously well off enough to pay monthly payments.

euser1984 · 07-07-2018 12:07AM

well i am bringing this up because i bought it off a large dealership, and they were shocked that I was paying them with a draft, do dealers normally say he paid with cash when something like this happens?

i was more shocked at the amount of the cars out there on monthly payments than anything else.

this is going to a bad place fast - a very uncertain era ahead of us imo

euser1984 · 07-07-2018 12:08AM

EPAndlee wrote: »

Most dealers I've talked to say their sales are down a lot on last year. All seem to be blaming UK imports

are these pcp plans available on the imports too?

TallGlass · 07-07-2018 12:14AM

EPAndlee wrote: »

Most dealers I've talked to say their sales are down a lot on last year. All seem to be blaming UK imports

Nah, it's the reg plates. We need to now have 1-4. 1,2,3,4. Bring up sales. Sure 9 is an awfully unlucky number.

euser1984 · 07-07-2018 12:18AM

TallGlass wrote: »

Nah, it's the reg plates. We need to now have 1-4. 1,2,3,4. Bring up sales. Sure 9 is an awfully unlucky number.

don't get what this means, but you might know about the special registration plates like 1 which is used for city mayors I believe?

Does the count for each county normally start at 100? thanks

Toyotafanboi · 07-07-2018 05:22AM

euser1984 wrote: »

actually, if I might put this out there....

is it not better even if you have the money to buy the financial plan anyway if you believe in the economy to hold onto your principle - you can give the car back at anytime.

i'm not actually talking about me here because i did buy a new car with cash/draft recently and i'm thinking the finance choice would be the better option because even if the economy goes bang you can just give it back?? are maybe there are massive charges for this kind of thing?

it just seems to be the most logical choice from a business type persepective....i'm not saying i would need to give it back, but you always have your option then! perhaps you might even just want an upgrade

That's a fairly logical view, particularly if you get a low APR.

Why would you the all your capital up in a depreciating asset? I can't think of many logical reasons. Sure you "own" it immediately but if you have the ability to buy it out (or buy most of it out) at any time then does that really matter?

It takes all the risk out of the purchase and you're only paying the cost of the APR to protect your capital.

EPAndlee · 07-07-2018 05:30AM

TallGlass wrote: »

Nah, it's the reg plates. We need to now have 1-4. 1,2,3,4. Bring up sales. Sure 9 is an awfully unlucky number.

I dont agree with splitting the into two. If you've two cars a 171 and 172 both identical, the price difference will only be a couple of hundred. When you get to 151 and 152 there's basically no price difference

jacksie66 · 07-07-2018 05:40AM

This post has been deleted.

Toyotafanboi · 07-07-2018 05:43AM

Having a new car is nice too though, lots of people aren't reg plate snobs too and if they are earning a few quid it's just nice to have a new or new ish car.

Indricotherium · 07-07-2018 06:13AM

Toyotafanboi wrote: »

Having a new car is nice too though, lots of people aren't reg plate snobs too and if they are earning a few quid it's just nice to have a new or new ish car.

100%

I can't understand why so many posters find this attitude totally unreasonable.

jacksie66 · 07-07-2018 06:27AM

This post has been deleted.

Indricotherium · 07-07-2018 06:30AM

jacksie66 wrote: »

Don't get me wrong I'd love a new car. But I love my Saab. I'll keep it until I get bored of its 210hp..

Don't get me wrong, my second car is something similar. But I still like a newish car for the family.

MarkN · 07-07-2018 06:44AM

Indricotherium wrote: »

100%

I can't understand why so many posters find this attitude totally unreasonable.

... on a motoring forum!

euser1984 · 07-07-2018 08:18AM

Indricotherium wrote: »

100%

I can't understand why so many posters find this attitude totally unreasonable.

nothing like a warranty, a tight chassis and a phone call if you have any problems at least

euser1984 · 07-07-2018 08:12PM

jacksie66 wrote: »

Bought my 2006 Saab 9-3 2.0 petrol turbo back in March for 1000 euro. Car is mint and puts a smile on my face everytime I drive it. Apart from the tax it's pretty economical to run. I got a new well paying job a few months ago. The amount of people who said I should buy a new car on finance is staggering. Get into huge debt to save a few bob a year on tax and fuel. No thanks.

i think a sum up of what was said earlier on is the more money you can get off the bank the better as long as your have protection (like a limited company) and buy out isn't too bad..

Heres Johnny · 07-07-2018 08:18PM

I prefer to have as nice a car as I can rather than as new as I can.
And the cars I like are too expensive new for me to justify the monthly payments would be on a par with my mortgage.
But that's just me.
I like that the girlfriend has a new car, she is not into cars it's just reliability for her.
So each to their own really.

euser1984 · 07-07-2018 10:03PM

Heres Johnny wrote: »

I prefer to have as nice a car as I can rather than as new as I can.
And the cars I like are too expensive new for me to justify the monthly payments would be on a par with my mortgage.
But that's just me.
I like that the girlfriend has a new car, she is not into cars it's just reliability for her.
So each to their own really.

fair play to you with this attitude because i don't think it's so common in ireland

euser1984 · 07-07-2018 10:07PM

DaveyDave wrote: »

I've seen a few articles about how the bubble is going to burst on PCP financed cars from the likes of the Journal.

A large number of cars are financed, I believe the majority of them are. Is there people out there who are probably struggling to pay for their car? Probably. It's not limited to PCP though.

The thing that bugs me the most about the finance bubble going to burst is that people have been financing their cars for decades. Before PCP was a thing people would get new cars every 2-3 years regardless. It's nothing new, PCP is just another way to do it.

I believe there was an article suggesting PCP was a very large number of car sales this year.

Yes, if you have cash you're better off going finance anyway so you have more money available on hand and the interest rates are rather low. It's good to have if something comes up and if you have the cash you're obviously well off enough to pay monthly payments.

the high availability of these pcp contracts reminds me of the real estate boom, only about 10+ years ago.

07-07-2018 10:20PM

Where's the pcp problem? Worst case scenario loads of folk hand back their cars and the cars are likely worth just about more than what's owed on them as the pcp deals generally are structured so almost 60% of the value us paid over 3 years.

bazz26 · 07-07-2018 10:34PM

People fear what they don't truly understand.

Indricotherium · 07-07-2018 10:56PM

euser1984 wrote: »

the high availability of these pcp contracts reminds me of the real estate boom, only about 10+ years ago.

No one Is expecting a car to be worth more than they paid for it in 4 years.

euser1984 · 08-07-2018 09:46AM

regarding pcp? you can't give everyone out cars so easily when they could lose their jobs and not be able to pay them back.

those bank loans or financial loans could go into default easily creating more bad debt for the bank. The banks are still trying to move non performing loans of their portfolio the last time I heard.

Did this happen in greece already with german cars?

JJJJNR · 08-07-2018 10:24AM

The central bank warned about the amount of debt out on cars is running at 2.8 billion, that is a debt bubble, there will be a point were anyone who can afford a new car on PCP already has one and its getting there.

Its fairly patronising to say people fear what they don’t understand, just because they dont subscribe to the normal sheep mentality but maybe they do understand the situation and opt out. That's a lot of money to have out on loans, given we are running global debt at pre- recession levels I would say a correction is on the cards. I could be wrong as I think trump will save us from that.

euser1984 · 08-07-2018 10:52AM

jacksie66 wrote: »

Bought my 2006 Saab 9-3 2.0 petrol turbo back in March for 1000 euro. Car is mint and puts a smile on my face everytime I drive it. Apart from the tax it's pretty economical to run. I got a new well paying job a few months ago. The amount of people who said I should buy a new car on finance is staggering. Get into huge debt to save a few bob a year on tax and fuel. No thanks.

congrats on the new job - finance does make sense if you have yourself protected...get everything the bank will give you if you are protected - cos the whole thing might fall apart soon anyway.

Toyotafanboi wrote: »

Having a new car is nice too though, lots of people aren't reg plate snobs too and if they are earning a few quid it's just nice to have a new or new ish car.

regarding reg plate snobs it makes economical sense to change your car every 2 years or 3 years. After that and the value drops fast....there is logic to alot of those owners...i'd imagine those pcp plans are 3 years anyway?

the warranties are setup to encourage you to upgrade.

is bmw still only 2 years?

I just look at it like an annual cost to have the car - just like the car tax fee

euser1984 · 08-07-2018 10:59AM

JJJJNR wrote: »

The central bank warned about the amount of debt out on cars is running at 2.8 billion, that is a debt bubble, there will be a point were anyone who can afford a new car on PCP already has one and its getting there.

Its fairly patronising to say people fear what they don’t understand, just because they dont subscribe to the normal sheep mentality but maybe they do understand the situation and opt out. That's a lot of money to have out on loans, given we are running global debt at pre- recession levels I would say a correction is on the cards. I could be wrong as I think trump will save us from that.

the global financial system is a debt based system...as a business you get as much as you can off them and put your profits somewhere else, like a different limited company. the debt is restricted to your business if the banks come off ya to take your house and everything.

in my limited understanding the limited company can just be put into receivership and get the debt written off.

08-07-2018 11:09AM

JJJJNR wrote: »

Its fairly patronising to say people fear what they don’t understand, just because they dont subscribe to the normal sheep mentality but maybe they do understand the situation and opt out.

I know one distant family member who upgrades every year to a car that looks to be way beyond his visible means (new Qashqai, works on a CES scheme in a church/parish). He has no understand of cost of borrowing, APR, depreciation, ownership terms. He just knows what he has to pay each week, and he decides that he can live with that.

euser1984 wrote: »

regarding reg plate snobs it makes economical sense to change your car every 2 years or 3 years. After that and the value drops fast....there is logic to alot of those owners...

There's no logic in it. Depreciation is highest in the first year or two. The value drops most when you drive the car out of the garage.

From http://www.klipnik.com/used-cars/buying-tips/why-buy-used-avoid-the-hidden-costs-of-buying-new/

What percentage of new cars on the road are finance based payments

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