It’s not a repo crisis, it’s a materialism crisis. Sooooo many people trying to drive cars they can’t afford. I’ve always paid cash for my vehicles. I don’t think many people do that any more. It’s all about figuring out the most a person can pay each month for the car, then figuring the nicest car they can get.
Spot on, and it doesn't stop with the cars though. Consumer and peer pressure, people wanting the latest tech gadgets and designer clothing, wanting to go out all the time pubs clubs and dining. cut your cloth accordingly seems to be non existent these days from a lot of peoples thoughts.
When i was 18 i worked and saved up £600 for an old banger. I felt like a winner. I guess that winning feeling only comes from a brand new 40 grand Audi on PCP these days!
I shared my dad's Toyota banger that was over 14 years old that someone was going to junk. My dad brought it back to life. I paid half the insurance and fuel.
I only ever had one car using a bank loan and it was a beauty. Once I got over feeling like Billy Big Bollocks it was soul destroying buying Parkers Guide every month and seeing my car losing more money than I was paying off. So I sold it, downgraded and from then on over the last 40 years if I wanted anything I saved up till I could afford it.
This has been a time bomb waiting to detonate since lease / PCP etc became the norm. People couldn't care less anymore what a car actually costs. It's all about the monthly payment that gets you sat in the seat of that car you want on your drive so that the neighbours think you're doing well. What a messed up way to live. That and society wanting everything now now now.
@@yorkshiremike5083 yup. All the more so with tax breaks for businesses buying EVs. Second hand prices crashing as a result. Also private buyers get no tax breaks. Madness.
I think it’s a reflection of the higher cost of living and how tough it is for people to keep up with loan payments, especially car loans. With inflation, rising interest rates, and job uncertainty, many people are struggling.
What’s interesting is that for some buyers, repo cars could present an opportunity to get a decent car at a reduced price. But I also think it’s a warning sign of deeper financial struggles for many households
You’re right, It’s definitely a sign of broader financial stress. If someone’s getting a car repossessed, it usually means they’re in a tough spot overall
The repo market might be growing, but it’s not necessarily a good thing-it’s an indicator that a lot of people are facing serious financial pressure. And buying a repo car can be risky, too.
For a few decades, people have slotted into what I call a throw away society, new phone, cars because their mate have them, clothes, houses and everything in them, I'm a cash buyer because it's mine, and then I'll only buy what I can afford, instead of this I want it now at any cost. nobody saves up anymore, I got nothing off my parents, so I'm proud to own everything by working hard and saving. I think today people need to grow up and live in the real world.
@@CandyMan2001 "I know many people who buy a new car for the reliability factor" "... having new stuff is fine" 🤣🤣🤣🤣🤣🤣🤣 Give your head a wobble, mate.
I look at all these 21 year old kids running around in £30k MINIs and the likes, and remember back to the old bangers that were the norm when I was that age, and I come from a comfortable middle class area, and wonder how these people are doing it. If you can’t afford to pay cash, you can’t afford to own it. And I don’t care whether that hurts. Cut your coat according to your cloth.
Pay cash and find cars for half price.😂 I bought a nice 1994 Mercedes s class for £500 drove it for 10 years. Sold it for £500 and put the number plate worth £1000 on a retention certificate. 😂
They have them on a lease, all they end up paying for his the depreciation then hand the car back. Plus a monetary ppenalty if they exceed the contracted mileage
People haven't got 3 or 4 grand in the bank to buy a decent used car but can easily and will gladly borrow 10 grand + to finance one. This is the trend that has immigrated from the US.
Yep, classic modern materilism to post on instagram/show off at school gates. At same time there's been huge growth in junk financiers who lend to anyone, which they target via social media ads. The yanks consumer model/love of debt has always been one to avoid....they recently legalised online gambling & as expected they took it to the extreme in a way even us brits never did....let's hope we don't copy that trend either.
@@johnbrown3471 I argued this point with a lad on one of the FB groups - we both bought the same car, his brand new on the drip, mine 9 months old, paid cash. His balloon figure after 4 years was *more* than I paid. I tried to explain he had basically p*ssed £16k away, his response was “if I had £16k to buy a car I’d have used it as a house deposit”. It was at that point I pointed out he’d just thrown away his house deposit…😬
@@Mistabushi I think the worst thing is that most these people do have £2-£5k in the bank as that's what they often pay for deposit on new £40k cars or used ones they can't afford. So really they could drop £5-£10k on a decent used car...but simply choose not to show off a new 74 plate & vastly overpay over 2-4 years. Then they moan about how they can hardly afford the mortgage/rent...only few years ago up north you could still buy a 2 bed semi for what these folks spend on a monthly car payment. Everyones appartnly broke, but got a financed car, overpriced new build mortgage, 2 holidays a year, ubereats every other night...this generations nothing like the one before it. I say that as gen z myself😂
A lot of people in the UK are and have been living beyond their means for a long time. We seem to have a lot of German cars on our roads these days previously we would have seen more fords and Vauxhall's because they were cheaper but those people want to drive a Merc or Audi so they stretch themselves.
It's a shame too because as an owner of a vauxhall corsa, they're cheap to buy and parts are also cheap and easy to install. I never understood the obsession with expensive german cars.
@@jayc342009I had a Vauxhall Vectra bought at 4 years old. Worse purchase I’ve ever made. Got a Passat that was also unreliable but not as bad. Had 4 BMWs since and super reliable and great to drive. I agree there is a snob factor now that a lot of people wants German cars that they can’t really afford on PCP
I fell into that trap a few years ago, went into a showroom and got a lovely shiny Jag on finance. Driving round really smugly for the first year fooling myself that I had made it. What an absolute twat I was, when I eventually paid off the finance the car was worth NOTHING!!!! The bigger joke was that I couldn't even use it anymore because the lovely Khan had expanded the ULEZ and I didn't want to get trapped in another 6 years of expensive finance. Mad thing is my 22 year old Honda Insight that I paid cash for a few years earlier was still ULEZ compliant and is now my daily driver. Can you imagine how much earlier I would have paid off my mortgage by still using the Honda and not being caught up in the luxury car market by paying £300 a month for 6 years. Yes the Jaguar was a beautiful luxury car but being mortgage free tastes so much nicer and I think everyone is reassessing what is actually important. For me I do not waste a single penny on anything anymore that is not essential!!!!!
Absolutely that is the way to build real wealth. Be a tight arse!! The fifty year old postman that lives with his mum drives a beat up vw golf and has no wife kids or girlfriend is absolutely worth a fortune im sure of it!
When I was 18 (I’m 47) I bought a Renault 5 gt turbo and some tools as I was an apprentice engineer, which was the norm - minis, mark 1 fiestas, ford turbos, Astra gte etc, own it, learn it fix it, but by the time I was 20 the people who were 18 were getting brand new 1 litre Clio’s etc because insurance for them suddenly became extortionate, that was the start of the lease everything bubble. When I bought my first house when I was 20 I had a plate some knives and forks, my dad gave me a sofa and a washer and I bought a bed, that’s it I then built from there, I didn’t borrow money, I didn’t lease anything I didn’t rent anything, it’s how you start out, since 2008 that changed, interest was low and debt has ballooned, assets have increased because of that debt devaluation of our currency. That’s due to the business models to get growth from debt and make profit, it always in history ends, debt has to be repaid and to do it currency is further devalued to prevent default, that’s all that is happening, people have to prioritise which debt to pay, which is always going to be the home, everything else suddenly becomes a luxury so returning the asset clears the debt, that simple. The smartest will adapt and flourish, the majority will suffer. It’s up to the individual to work out which direction they are heading, they need to plan and work hard, that’s the big old cycle of life.
Except the house buying, all I had was a knife and fork story means nothing today. Now house prices are 7 to 8 times average industrial wage.....a free bed from your dad wouldn't get you a house now....
@@paulhayes2189 my life has been hard mate, but I have everything I need for me and my family, my point is what are you doing about it, we don’t need brand new own nothing things to be happy and successful, but that what society today thinks, so option are moping about moaning or investing in yourself to strive for better. That’s all your choice
A lot of people leveraged themselves to the limit, in order to get expensive motors when borrowing was cheap. This is the fallout from an overheated market.
ironically if you locked in when borrowing was cheap you are very in the money, the issue is those who have just rolled onto new contracts on newer cars, thinking rates are sub 4%
I got into difficulty with car finance some years ago as Ild foolishly took out the finance in my name but the car was for my then partner to pay the monthly repayment. She left me, stopped paying, lumbered me with the cost and Vauxhall Finance were brilliant in helping sort it. In the end they got the car back, auctioned it and I was left with the difference to cover. Life lesson learnt.
Unfortunately, when central bank interest rates went to 1%, people borrowed as much as they could to buy houses, cars etc etc. We were knee deep in cheap money and people seemed to think the rates would never go up. Young people have some kind of excuse, but not those old enough to remember 17% under Norman Lamont.
Another problem is the price of car parts, especially for euro 5 and 6 vehicles, DPFs/Adblue systems/Nox/ +other useless sensors for rubbish like ADAS etc. etc. are very very expensive. People A. can't afford the repairs on their cars; it may have cost them 2-3k to buy it and now its 2-3k to fix it, then they think "why spend this when its uneconomical when I can finance a car or find another one for 2-3k" (THOSE CARS REALLY DON'T EVEN EXIST AT THAT PRICE POINT ANYMORE) so, they end up in a cylce of financing a car or PCP which they couldn't afford in the first place, only to miss payments due to massively high intertest, high finance, poor credit scores, over priced cars etc. and that's when they default and end up getting repossessed. We've seen 15 plate, 16 plate cars that were once 30k,40k,50k+ getting scrapped because they're simply too expensive to repair. a 2016 Jaguar XE got totalled w/us last month as it was going to be nearly 10k to replace the engine/turbo/dpf etc. It's a really bad problem. This doesn't help that dealers have been giving people with awful credit scores/history massive car loans on not just cheaper end but also very high end cars like expensive Mercs, Rangerovers, BMWs etc. They're also to blame! this fake materialistic world doesn't do people any favours, wanting a new car every 1-3 years is mental.
Because almost everyone borrows for cars there is no need for cars to be cheap, or at least less expensive. The whole vehicle ecosystem factors in that repayments over up to 7 years are somewhat affordable per month, though financially very unwise. If vehicle finance was unavailable, manufacturers would be forced to offer cheaper cars. A consumer boycott would force prices much lower across the board. I save up and pay cash myself, but I tend to keep my cars for 10 years or so and get my money’s worth.
Finally! I don’t change my car very often but it feels more and more like they are making the numbers up. Plus paying an extra £410 for five years for the privilege of running a boring Eurobox? They’re on f**kin crack.
We looked around at replacing are 9 year old focus. We always bought nearly new. Prices are crazy. We are sticking with the focus! Dealers were desperate to sign us up to crazy pcp deals. No thanks.
U r not alone post covid a decent 2nd hand car is like £10-16k so people holding onto their cars now. The stats showing the 10+ year ownership percentages are at and all time high. A decent new car is like £40k when it should be £25k.
@@michaelgreen5515 exactly. We paid 13k for our 4 month old focus in 2015 from motorpoint. Look at what they sell for now. We were interested in a 3 month golf. Had less spec than our focus and they wanted 22k! No thanks. Our focus has done 100k, full service history, wants for nothing and has free car tax. I’ll keep it until it’s not economical.
@@michaelgreen5515decent new car? Thank the Euro emissions standards and idiotic engineering and you'll soon realise all these new engines barely last more then 60k or 5 years etc etc.
@@pacman7959 Depends what engine you get... Little tiny petrols with huge turbo's? Yea, those don't last, especially with dumb designs like wetbelts, etc. Plenty of very solid cars under £10k if you buy based on which engines are reliable and consistently able to achieve big miles... Instead lots of people seem to be looking for lower mileage, yet cheaper cars are blindsided by cheaper tax, overinflated mpg claims, etc and buy terrible cars... When sometimes a higher mileage example of a much better engine that drinks a bit more is a much more reliable and consistent/predictable companion.
Always paid cash outright so they can't take mine. Did look to change recently but a 40% increase in insurance on the car I was looking at meant I'll stay with what I've got. Owning a car is going back to the automotive start when it was a privilege not an expectation.
I bought my first car in 1988 I saved up as much as I could the 12 months before and then spent days looking for a nice motor in the classifieds.... Bought a MKI Escort, four door XL converted by its previous owner with a new engine which was a Mexico from his rally car (he also welded the rear diff which made handbrake parking fun... but hey I was 18 lol) The car cost me £395... that’s what I could afford cash up front. No getting finance and a younger car, most people were wanting what we would call bangers now. Even a local car hire firm was called "rent-a-wreck". The problem now is that every other person wants a vanity drive... something that makes them look good or gives them perceived status rather than being practical, affordable, and reliable enough to get them from A-B. This crisis isn’t down to the cost of living its down to the credit companies making debt easy especially for younger motorists.
First car in 1988 here too (i was born in 71), it was a Fiat 127 1050CL, guy wanted £100 i got it for £75, running, driving MOT'd etc, found a 127 Sport in the scrappy and got all the fancy Sport bits off that, wheels, body kit, spoilers, steering wheel, seats etc for £50, thinks were cheaper and simpler back then.
First car 17 was £500 banger, cheap insurance and breakers yard for replacement parts. In 2024, 17 year olds are driving brand new Audis, Mercedes and minis...good luck to them
Even back around 2003 ISH. I had a week between jobs, so my neighbour offered me a job cleaning and collecting/delivering cars to the main dealer body shop he managed. So many brand new small peogeots and Renault getting accident damaged within a year. I was told it was probably because of the finance deals which included insurance, that 19 year olds could get approved for. Nothing against 19 year olds, but they were signing up for brand new cars, partly for insurance reasons.
@@Evergreensands And then they wonder why it's such a struggle to get a house deposit together? 🤔 (Not an old man, but still far too sensible to throw money away on car finance - the only way is outright)
Just done 1.5k maintenance on a diesel Kuga Tyres Brakes Timing Belt Service, That'll do me for another 3 or 4 years paid cash for it 3 years ago I'll drive it till it physically falls apart 🤣 can't believe the amount of people paying over 400 quid a month to rent a run of the mill hatch.
Joe you need to move the plant from behind you or take the video from a different angle as you look like Julian Clary sorry I meant to say Julius Caesar 🤷🏻♂️🤦🏻♂️🤣
Never had finance on a car. I only drive what I can afford to buy and run. All the legoland estates are fully of new mercs, BMs etc all on PCP. Pure madness
The only surprise is that some are surprised. The high bank rate (by recent history) was bound to cause difficulties both for individuals and corporations. This was the BOE's intention when it realised inflation was out of control. What a great time to buy.
People living beyond their means. I know teaching assistants on about 17k with brand new Audi's. Poor money management is the reason for this trend in repos increasing, let's not blame external factors.
Own my 2016 Suzuki Swift outright had it for 4 years and paid cash for it and my insurance renewal 2 weeks ago was £192 fully comp and £35 road tax. I look at youngsters driving about in cars that they would never be able to buy outright and think yes you might impress your mates but you are throwing money away.
This holds zero surprise to me at all. The number of people driving cars that are way and above their means for decades is going to fail. Yet another reason why I love my 20yo V70 which owes me nothing and is worth every penny maintaining it. In fact, it's an appreciating asset as they're in big demand. As they say, things that go up, must go down.
The Bank of England's base rate in the UK was 0.75% from August 2018 to March 2020: My local Ford dealer was charging 13% interest for years through this time. A quick autotrader search today finds fixed rates of interest 17.9%. It's hardly surprising that there's a problem.
Great to see this type of content for the uk, I’ve been watching the US car repo videos so interesting to see the car market isn’t too different on our side of the pond. Is the finance for these cars in the uk the same as the US, I see they have crazy 7 year loans with 20% interest rates which is just mental
I had a car on finance over 20 years ago now, and got into difficulty, a representative from the finance company, ( a colour and an animal, part of a high street bank ), came out while I was at work and told my other half that I could hand the car back with nothing to pay. I did this and they sold it at auction for a third of it's value, and then came after me for the remaining money, totally different to what their rep had said! I'm fortunate that I was able to buy my current car outright in 2016, and so don't owe anyone a penny.
The cars being repossessed are down to people spending money they haven’t got , in other words living beyond their means , I was bought up with a simple rule " if you cant afford it you cant have it " its stood me in good stead all my life .
Borrowing money to buy a depreciating asset (not that "asset" is really an appropriate word to describe something that is losing value and is worth less than you owe)? Madness. People need to be honest with themselves about what they can afford. I buy older cars for cash. I look after them and motor for peanuts. Currently driving a 20 year old Camry that burns no oil, is comfortable and economical and still in good shape. Do I care if someone sneers because I drive an old car? Nope. I'm comfortably retired and could afford to buy a brand new vehicle for cash, but I'm not a fool. Bangernomics all the way for me. Fortunately for me and my fellow cheapskates, most peoples' snobbery prevents them from being smart about cars. Let's hope things stay that way. More cheap, decent cars for me to buy.
Insurance went up and also road tax on anything “nice” manufactured before 2017 is anywhere between £300-700. Costs of owning a car are mental these days
Cars are the biggest wealth killer, and leasing is the most expensive way to get one. People think the £500 monthly payment (plus £5k down) every 2 or 3 years is much cheaper than paying £40k cash, but ultimately it’s way more expensive. Live within your means, stop trying to look wealthy, do the sums - it’s just a car!
Well. We’ve been through a boom which leads to euphoria and people leasing cars to the limit of their ability. Three years after the peak prices for cars and with all the money pressures, buyers from 3 years ago are underwater with negative equity etc. Especially private EV buyers. It’s little wonder we’ll now face 18 months or more of this Repossession upsurge.
I made the mistake of taking out a £10k bank loan for a car over 20 years ago. I had the car for 9 years and still hadn't paid off the loan as I kept on renewing it for lower rates. Never again.
It’s not just that people get themselves into high-interest and high-cost debt for grossly overpriced cars, but there is irony in the reality of these cars being awful. Car manufacturing passed its peak over ten or fifteen years ago. Nothing since served anything other than chasing false and delusional emission targets and to undermine private motoring. Twenty year old cars are more reliable than recent ones with plastic and low quality rubber in the engine bay, even in the engine. Emission control devices like EGR, DPF and even the turbos they fit on small engines do nothing useful other than destroy the engines sooner. When you can’t pay cash for a car on your own, that’s a sign that you cannot afford it.
@@ComeJesusChrist Indeed - we've reached a point where the primary goal is not to build a reliable, low maintenance car that'll do big mileages anymore... Because of engine crippling regulations, combined with an excessive focus on MPG (as a result of overinflated fuel prices), it's all about maximum fuel economy on paper combined with conformity to senseless regulations. Sadly, plenty of 20+ year old cars come with either patchy/poor history or deteriorating components - they might've been better cars, but they can also be money pits sometimes (equally, they're much cheaper to buy and don't suffer horrible depreciation!). EGR and DPF aren't problems if they're implemented correctly and the driver buys an appropriate vehicle for their usage - people buying diesels for short journeys is just silly, but plenty do it... I've not had any issues whatsoever with DPF or EGR in Volvo D5's (euro 4 and 5, a couple of hundred k miles between them), but even with appropriate usage the badly designed setup on a PSA 1.6 16v diesel hit the wallet hard enough to make it far more expensive to own than the bigger and thirstier Volvo units.
@@EnglishTMTB I have a soft spot for D5s. I’ve been trying to get one for ages, but four(!) sales fell through in the last two years after the sellers on eBay claimed the car to have developed gearbox or brake faults, which was clearly not true. On one occasion, the seller stopped communicating after accepting my eBay offer. They know that what they have is better than what the market values these cars at. If the turning circle and parking wouldn’t be an issue, I would have pursued harder to get a 2004 XC70 or V70, which most of the cars I was bidding on or made offers on, were. I specifically wanted a pre-EGR/DPF five cylinder diesel estate Volvo, but as corners and parking spaces are tight where I live, I usually buy a Mercedes E-Class estate or a C-Class, which are also excellent value for money and are very reliable. I burnt myself with a 2010 C200 CDI and a 2013 E220 CDI, so I’d stick to five or six cylinder diesels, Kompressor models or a well-looked after E250 CDI. Our old E320 CDI estate was easier to park and drive than most smaller cars, it is a workhorse even more than most Mercs are and the power/fuel economy balance is exceptional. The straight-six diesel is bulletproof and I’d expect the same from the five cylinder E270 CDI, too. I have absolutely no interest in cars made in the last ten years or so. I can’t imagine any feature in a car that would justify giving up on reliability, depreciation and all the values that truly matter.
@@ComeJesusChrist I'm with you on the last ten-ish years - once the last 5-cyl D3/4/5 engines were out, I lost interest in newer Volvo's completely. Oddly, the Euro 5 is a bit less hassle than the Euro 4 (and if usage suits diesel, probably the best engine Volvo ever made, even above the T5!) just because the removal of the swirl flap assembly reduces the need for work to replace it once the linkage arms won't stay on anymore (and obviously usage makes a difference in how long you get before that happens). I like the Eu3, but when you do diesel friendly miles (which I do), the additional refinement and power of the later versions, along with slightly nicer cabins, just makes more sense to me. Not too long ago bought an S60 (late 2012, so just pre-facelift but still £35 tax on a D5 manual) - sub 80k miles, solid history... £6k... That's a car with easily 150k miles available, and it'll be whether everything else holds up well enough rather than the engine that's the limiting factor on how long I keep it. And people think you need to spend 20k+ for a decent car? Don't make me laugh!!
@@EnglishTMTB It is indeed sad how people chase a marginal reduction in mpg on paper and get themselves into disposable junk that will fail in less than a decade. I’m in my forties and as a younger man, could ry out a wide range of premium and classic cars on a shoestring budget, driving cars, like a 1983 SL280 that I wouldn’t be able to afford now. Driving older cars was cheap and a great experience. Then the government started pushing the false green agenda and suddenly, everything turned into waste, ironically. I am so glad whenever I see a younger person driving an old but special car. Motoring is a blessing and affordable motoring should remain a civil right. In terms of recent ‘development’ and ‘advancement’ in the car industry, how anyone with common sense would think that it’s a good idea to get cars with wet belt, small turbocharged engines or an EV, is beyond me. I encourage our son to appreciate old cars and to work on them, so he would be able to fix any smaller issues and service the car himself. There’s nothing more sustainable in motoring than good quality and traditional cars well-maintained and lovingly kept for hundreds of thousands of miles.
A lot of people simply had cars they could never afford in the first place anyway. This 'financing' culture in recent years has gotten out of hand. Welcome to the Instagram era of showing off & keeping up with the mums at the school gates. The rise in junk credit financers who mass advertise to the working class doesn't help either.
The amount of big luxury SUVs at the school gates is crazy, Discovery's seem to be most popular or the new defender. Those cars are like 500 pound a month on pcp I couldn't afford that,
I think it will get worse as many buyers are looking for high end marques , it is amazing how many Range Rover, BMW, Audi and Mercedes are being driven by under 40’s also the amount of Chelsea tractors doing the school run, I would hazard a guess they are either on finance or on leasing agreements. Either way they still have to be paid.
Paid off my car in 2023, was tempted to get a new car in 2025. looking at the direction prices are going and what it would mean for insurance, VED and monthly outgoings on a monthly payment...I think I'll keep my 5 year old car until it's 8-10 years old.
I drive a 2010 volvo v50, paid for and love it. Just went to Cyprus and hired a kia stonic for 2 weeks. Apparently a 32 grand car, 500 km on the clock so brand new. I honestly wouldn't pay 4 grand for one, weedy engine, bings and bongs every few seconds telling you what you're currently doing wrong. While I'm sure you can turn these things off it was a souless experience
my sonhas a company van but he and his wife want to keep up with their mates and have the new, shiney car every 3 years. I said to them maybe your friends are trying to keep up with you with a new car every 3 years and you follow them. It's a vicious circle and they're paying 500 quid a month lease costs. I never paid that on my mortgage!
Me too I only have maintainance bills. I drive a mega reliable 1999 -- 25 years old 😊 mega reliable and in good condition. Also a Jaguar enthusiast I got a XJ8 24 years old this too in good condition. I also am a classic car nut I have a 1970 Bentley T1. I pay cash never need to worry about bailiffs visiting. The reason I pay cash giving finance companies thousands in interest frightens me
I just replaced my very old car with a much nicer newer one. I bought it from the suzuki dealer and paid in full. I wouldnt want finance on any car. If I couldn't afford it I wouldn't have bought it. I do sympathise with people who need to finance a car though, it doesn't take much to derail someone
I just bought a new car. Checked the APR the dealer would charge, then saw the interest rate on my easy-access savings account, which made me just pay the car in cash. I've set up a regular savings account so I'm getting a better interest rate to replace the money I used. I also bought a car that was within my budget, rather than try to impress the neighbours with a car that was more than I really need.
Aroound 1970, I was in New Zealand, North Island. Asked why there were so many old cars around, and was told that it was legislation that if you wanted a car you saved up and bought one. There was no hire-purchase allowed, it was banned. ! Whether it was true or not I never discovered. Another strange custom, in Canada, I was driving a relative and wife, to a business convention, we needed gasoline, and my cousin insisted that his wife use her credit card, as she had only just got one, as up till then women were not allowed to have a credit card. Now, that one, I did believe. !.............
That was a really interesting video Joe, like the short punchy editing style. I know another issue is the huge repair bills on modern cars, sometimes people stop paying and get it repossed rather than put more money into a major repair. Always makes me suspicious of repo cars at auctions.
My insurance went up 50% last year I couldn’t beat the renewal quote anywhere, this year the quote was up 25% yes I’ve had a windscreen this year which I could have got done cheaper now I know how much the insurance paid plus my £125 But I saved £200 by removing the mods(window wind deflectors).
First rule of borrowing. Go to your bank (in person or online) Do the wealth check (incomings and outgoings) to see what you can actually afford per month at the lowest apr rate. The minute you start shopping round for dealer fianance, anything remotely resembling common sense and budgets goes out the window.
I drive a 20 year old car which I’ve had for 16 years. Full servicing , tax, insurance, MOT etc don’t even come near the PCP costings for that shiny new overpriced car. I owe nothing for finance so no one except government makes money off me.
Problem is low interest rates meant a lot spare income for nice cars. I know of people in 4 figures for their cars. Then interest rates went up and up. There’s the bite. Look at housing market a lot of houses being sold as they can’t be paid for.
I'm am going to watch the video but I can already summarise the reason as follows: 1. Over the last 10 years in particularly, it has become increasingly common for people to go for the 'latest and greatest'. Not because they genuinely need a 'new' car but because they want to show off to their neighbours, family etc. I suspect that's also the primary driver as to why there are so many more German marque cars on UK roads compared to 10+ years ago (as well as crappy JLR stuff) 2. Recent general cost of living increases (and also recent car insurance premium increases) has now made a greater percentage of the people that are part of my 1st point, start to struggle to pay all their bills each month Ultimately it can broadly be summed up with 'It’s a pathetic materialism crisis, NOT a repo crisis' (yes a small percentage of the people affected will NOT have been overstretching themselves showing off BUT, let's be honest, most have been doing exactly that for years and now it's biting them in the arse because they've forgotten how to truly live within their financial means). If you earn £20K p/annum (gross) what makes you think you can/should be able to afford a 3 year old Audi?!? 🤦 EDIT: Just thought of something else that illustrates the modern materialistic brain rot. A close friend used to work for a major UK telecom provider in their Collections department. Apparently it was far too common when speaking to customers who had failed to pay their FIRST BILL that when questioned as to why, their 1st response was genuinely "I'm on benefits, I can't afford £55 p/month". I'm genuinely not making this up, it used to drive my mate mental. Felt like saying "well why did you go into Cartoon Warehouse/Frauds For U and take out a 2 year iPhone contract if you knew you couldn't afford it?".
Al the wannabe's on PCP, who fake buy things they cant afford has caused this issue. The prices are not reflective at the dealer forecourts though. A 24 plate car is is under a thousand pound difference to a 21 plate same model? DEalers and finance companies are once again taking the piss with rates and prices.
It's almost impossible to sell a car privately above £5000 anymore as they now buy on the never never with an average of 30%added on for interest.Think car "dealers "are more like credit brokers and I c alot of inflated prices on cars on average £2000 more on a £18to £20 thousand vehicle so they offer a dilissional interest rate to rope a dope.
Not true it’ll depend on a variety of factors regarding FSH, MOT, condition etc. But the price has to be realistic and competitive against the others in similar age on selling websites of course.
Ten bob millionaires trying to look flash on credit. I always buy my cars cash but the price of driving these days and the small amount of mileage that I do these days (less than 2k miles per year / 38 miles per week), it is cheaper for me to call for a taxi.
It's almost like if you had a piece of paper and wrote down incoming and outgoings you could work out if you could afford something. If you couldn't afford it, you would either have to reduce other discretionary spending or buy something in your price range. I recall being in the Wirral three years ago on November 5th up on bidston hill looking down over Liverpool, Birkenhead and Prenton. I got my friends attention and waved my hand across the sky pointing to the countless thousands of fireworks and remarked to my friend. 'Cost of living crisis'
Yeah, until I was working (properly, not like a student job) and had a few years driving under my belt, my first 3 cars (R Reg Nissan Micra, 53 Reg Vauxhall Corsa and 57 Reg Ford Focus) that I owned were under £5k and for spare parts I went to breakers yards.
Consumerism gone mad. I live on a housing estate where every house - bar a handful - has a driveway. The problem is people living in these houses all have their own vehicle and so the roads are filled with curb parkers all night. It's a nightmare to drive around past 6pm. You also see a lot of people in council properties with a Range Rover on finance but a house which looks like it's about to fall down.
If you can afford a $200,000 car, you buy a $200,000 car. If you can afford a $20,000 car, you buy a $20,000 car. If you can afford a $2,000 car, you buy a $2,000 car. ...if you can't afford a car, you buy a $80,000 car on credit...
@@conorturtonexactly. Wealth management, is something that needs to be taught in school's, most folk I know with new cars are always telling me to get something newer, meanwhile we are two years away from owning our house outright, so before 40 years old, no more mortgage, the cost? Work hard, manage what you earn sensibly and drive an old car, put the money into what actually matters which is your family and home.
I don't know how people are affording them. It's like having a second mortgage then you have to add on insurance, tax, maintenance and fuel. Realistically buy what you need to suit your lifestyle, not buy what you want.
So many people made the mistake of pcp, then kept upgrading their cars after 2 or 3 years with negative equity. You want a new car? Just lease it, low down payment, hand it back in 2 or 3 years. Or, buy a used one. PCP is a scam.
Hi Joe, very interesting video. I work for a very large car finance company where I’m fairly senior. I think it’s interesting to hear about the rise in arrears and Hostile Terminations, as I haven’t noticed the same trend in our business, which leads me to think this is much more of a sub-prime problem, and makes me fear we’ll get to a similar position of the mortgage crashes of 2008/9 I think honestly a lot of these sub prime lenders are running the risk of being Icarus, the FCA with their New Consumer Duty has cracked down hard on how finance companies treat vulnerable customers, and indeed ensuring that customers who shouldn’t be financed aren’t.
I'm surprised that lenders are still chasing after poor and marginal credit consumers. I sat on a committee (back in 2013) as a lay-man for a revolving credit, zero % consumer credit provider when they went for FCA approval and had to review debt recovery strategies, loan contracts, affordability calculations etc for TCF and KYC compliance. I saw the stats - we made more money on zero % and revolving credit from certain people.They belonged mostly in D and E socio-economic classification, basically poorly educated and lowest income households. We had enough data to identify generations of people from the same household. We changed our lending guidelines and made sure that POS staff understood and communicated this to the punters. We even had the info pack approved by the Plain English Campaign.
If you need a example of the public buying stuff who can't actually afford it go to your large car superstores and see the inventory of BMW Audi Mercedes etc on their forecourts Worryingly premium brands now being sold for budget car values as they've been repo'd or returned early
My friends emigrated to Canada 10yrs ago. Every time they come back to visit they are gobsmacked at how new all the cars are compared to Canada. A "Keeping up with the Joneses" dose of envy cured by assumed cheap finance beyond their means are the first ones to crumble. I will buy a prestige ride for cheap in 2025.
Very good post, Joe. You have the credibility and experience to comment and the combo of UK and US content is a clever way to broaden your appeal. FWIW I agree that we have a problem. Credit has been readily available for products that can be very expensive to maintain and it only needs one big bill to derail a customer. Looking at some of the faults you have cured on JLR products, these could easily kill the product for a customer who takes the main dealer fix or, worse, uses their back street garage to bodge a repair. Customers seem obsessed with image over substance, borrowing 20k to drive something that does the same job as a much cheaper car that they might have had to put a bigger deposit into. I wish you well because you do seem to start them off with a reliable product - many others are just flipping problems for profit.
There is also a prroblem which is been covered up in the MOTORCYCLE TRADE. Dealers full with very low milage under 2 year old bikes. There is no market for these £ 8/ 10000 bikes. Far too many stitched up on Finance Deals and Variations of PCPs. A area manager for a leading finance provider said they are watching it very carefully.
Have I've been facing difficulties from increased insurance premiums? No, my insurance premium has not increased. How about from the interest rate? No because I have not financed my car, I bought it outright. I just know I can't afford an Audi or a Tesla or maybe an Ioniq 5 and I just bought the car I can afford, a Hyundai i30. It really is not that difficult. If you can't buy it outright, you can't really afford it. If you can only "afford" your payment for 5 years or more, you can't really afford it.
Nice compact video. Personally I’m always a cash buyer & try to only buy cars that will appreciate, definitely not depreciate. I do the same with everything because I want it to be mine & as cheaply as possible.
I drive a 16 year old Saab Aero. I love it and, since I paid the £3000 7 years ago for it, it's hardly cost me anything in repairs. But, more importantly, it's what I can afford.
I am a full-time and I know the financial world is very very unstable right now in the UK and the cars i had that I've had got repossessed no fault of mine but because I become to ill and the company behind all when bust and I am still today paying off a little bits and pieces because of their fault. But I don't even have a pot to piss in the time when you are very illen disabled and companies trying to take advantage. The way things are looking at the moment the society we're living in it's gonna be a lot more problems very shortly because o a p and the disabled and the infirm will have nothing when the government's finished i'm wearing money are we going is trying to keep warm this winter and trying to keep food in the cupboards
I did pcp on 2 cars and paid both off it can be done, you have to have the right mindset and ignore what the dealerships want you to do. Buying on finance can be cheaper than the alternatives I could have purchased, efficiency and insurance on old banger VW polos, etc was way higher than the cost of getting an new VW UP. I have a MK7 Golf now, 110K miles and I hope to run into the ground and pay for my next car in cash.
The problem now is people are so hard pressed they wont be able to afford these repo's, This will make 2010 on stuff more valuable. Remember this is all been done on purpose by governments across the globe. All the Best.
I passed my driving test in 1986 I was only 19 and took a small loan to buy my first car, then a couple of years later I upgraded and borrowed a bit more. Then I was made redundant and I felt so financially exposed. I never took out another loan again, I buy my car for cash. The only I had since was a mortgage. Very liberating to not owe money, as you never know what is going to happen in the future etc.
People living Champagne lifestyle on Lemonade Money. A lot of VTs coming via Santander, it can be the excessive interest in PCP deals. VT can have a sting in the tail though 😮
I had a seat leon fr e hybrid cost me 300£ a month, so i saved up got an audi A3 8P1 2.0tfsi quattro for 6k, ive since spent that on it fixing problems
I've had the same car i bought in 1998. Still runs and drives and has done over 300,000 kms. Just as safe as a new car as it passes a stricter test than the UK mots. I don't think i will bother buying another one if this conks out. As I'm 61 and retired and living in Gibraltar. In all my car driving years. I have never bought a car out of a showroom dealership, nor sold ot or part ex it. Just used it until it is literally unable to pass the spanish test. This one has all the things new cars have. And as its older. A bigger engine than what you get in them now built when cars where built to last. Not just to be used for 3 years and thrown away.
Loads of people doing VT because the price was so high 2 years ago. I worked for a large used/new dealer.. we were told to encourage customers to do a VT, because you can offer better rates on new cars
It’s not a repo crisis, it’s a materialism crisis. Sooooo many people trying to drive cars they can’t afford. I’ve always paid cash for my vehicles. I don’t think many people do that any more. It’s all about figuring out the most a person can pay each month for the car, then figuring the nicest car they can get.
Bloody right. Materialistic pricks and everyone is going to pay
Absolutely this.
I'm the same have paid cash for mine the last 30 odd years, however if you do need finance the best place to go is the Bank and not finance companies
Spot on, and it doesn't stop with the cars though. Consumer and peer pressure, people wanting the latest tech gadgets and designer clothing, wanting to go out all the time pubs clubs and dining. cut your cloth accordingly seems to be non existent these days from a lot of peoples thoughts.
@@MrCoxerbglife is for living you old grump
When i was 18 i worked and saved up £600 for an old banger. I felt like a winner. I guess that winning feeling only comes from a brand new 40 grand Audi on PCP these days!
Only mugs are impressed by the shiny shiny never never trinkets
I was the same. I spent 2 months wages on a Mk3 Ford Fiesta, insurance deposit and 1 months insurance back in 2005 age 17. I was so proud.
I shared my dad's Toyota banger that was over 14 years old that someone was going to junk. My dad brought it back to life. I paid half the insurance and fuel.
I only ever had one car using a bank loan and it was a beauty. Once I got over feeling like Billy Big Bollocks it was soul destroying buying Parkers Guide every month and seeing my car losing more money than I was paying off. So I sold it, downgraded and from then on over the last 40 years if I wanted anything I saved up till I could afford it.
I was the same brought a mini metro for £1700 £600 a year insurance 😂
This has been a time bomb waiting to detonate since lease / PCP etc became the norm.
People couldn't care less anymore what a car actually costs. It's all about the monthly payment that gets you sat in the seat of that car you want on your drive so that the neighbours think you're doing well.
What a messed up way to live.
That and society wanting everything now now now.
@@yorkshiremike5083 yup. All the more so with tax breaks for businesses buying EVs. Second hand prices crashing as a result. Also private buyers get no tax breaks. Madness.
If one cannot afford to pay cash, it is even more likely that one cannot afford the finance deals.
I think it’s a reflection of the higher cost of living and how tough it is for people to keep up with loan payments, especially car loans. With inflation, rising interest rates, and job uncertainty, many people are struggling.
What’s interesting is that for some buyers, repo cars could present an opportunity to get a decent car at a reduced price. But I also think it’s a warning sign of deeper financial struggles for many households
You’re right, It’s definitely a sign of broader financial stress. If someone’s getting a car repossessed, it usually means they’re in a tough spot overall
The repo market might be growing, but it’s not necessarily a good thing-it’s an indicator that a lot of people are facing serious financial pressure. And buying a repo car can be risky, too.
One missed car payment might lead to missed mortgage or rent payments, and things snowball from there
The previous owner might not have kept up with maintenance if they were struggling to make payments
For a few decades, people have slotted into what I call a throw away society, new phone, cars because their mate have them, clothes, houses and everything in them, I'm a cash buyer because it's mine, and then I'll only buy what I can afford, instead of this I want it now at any cost. nobody saves up anymore, I got nothing off my parents, so I'm proud to own everything by working hard and saving. I think today people need to grow up and live in the real world.
Sssh stop complaining it’s great for the rest of us!
Smart & teach your kids the same.
What about a mortgage?
@@robertsanders3213let the man rant, maybe they bought their house cash 50 years ago
@@CandyMan2001
"I know many people who buy a new car for the reliability factor"
"... having new stuff is fine"
🤣🤣🤣🤣🤣🤣🤣
Give your head a wobble, mate.
I look at all these 21 year old kids running around in £30k MINIs and the likes, and remember back to the old bangers that were the norm when I was that age, and I come from a comfortable middle class area, and wonder how these people are doing it.
If you can’t afford to pay cash, you can’t afford to own it.
And I don’t care whether that hurts.
Cut your coat according to your cloth.
I can buy a great modern classic ICE for under 3k. Paid for and mine. People are stupid wasting their money 😂
Well said sir
Pay cash and find cars for half price.😂 I bought a nice 1994 Mercedes s class for £500 drove it for 10 years. Sold it for £500 and put the number plate worth £1000 on a retention certificate. 😂
They have them on a lease, all they end up paying for his the depreciation then hand the car back. Plus a monetary ppenalty if they exceed the contracted mileage
Very true I passed my test in the 80s.we all had old rubbish cars and were pleased with them
People haven't got 3 or 4 grand in the bank to buy a decent used car but can easily and will gladly borrow 10 grand + to finance one. This is the trend that has immigrated from the US.
Yep, classic modern materilism to post on instagram/show off at school gates. At same time there's been huge growth in junk financiers who lend to anyone, which they target via social media ads. The yanks consumer model/love of debt has always been one to avoid....they recently legalised online gambling & as expected they took it to the extreme in a way even us brits never did....let's hope we don't copy that trend either.
The best part of borrowing 10 grand is the fact that you will pay back 15 grand 😂😂😂
@@johnbrown3471 I argued this point with a lad on one of the FB groups - we both bought the same car, his brand new on the drip, mine 9 months old, paid cash.
His balloon figure after 4 years was *more* than I paid.
I tried to explain he had basically p*ssed £16k away, his response was “if I had £16k to buy a car I’d have used it as a house deposit”.
It was at that point I pointed out he’d just thrown away his house deposit…😬
Yup...that's the way Billybob
@@Mistabushi I think the worst thing is that most these people do have £2-£5k in the bank as that's what they often pay for deposit on new £40k cars or used ones they can't afford. So really they could drop £5-£10k on a decent used car...but simply choose not to show off a new 74 plate & vastly overpay over 2-4 years. Then they moan about how they can hardly afford the mortgage/rent...only few years ago up north you could still buy a 2 bed semi for what these folks spend on a monthly car payment. Everyones appartnly broke, but got a financed car, overpriced new build mortgage, 2 holidays a year, ubereats every other night...this generations nothing like the one before it. I say that as gen z myself😂
A lot of people in the UK are and have been living beyond their means for a long time.
We seem to have a lot of German cars on our roads these days
previously we would have seen more fords and Vauxhall's because they were cheaper but those people want to drive a Merc or Audi so they stretch themselves.
It's a shame too because as an owner of a vauxhall corsa, they're cheap to buy and parts are also cheap and easy to install. I never understood the obsession with expensive german cars.
@@jayc342009 all for show I am afraid
@@jayc342009 simple a posh german car is associated with status.
@@jayc342009I had a Vauxhall Vectra bought at 4 years old. Worse purchase I’ve ever made. Got a Passat that was also unreliable but not as bad. Had 4 BMWs since and super reliable and great to drive. I agree there is a snob factor now that a lot of people wants German cars that they can’t really afford on PCP
"A lot of people in the UK are and have been living beyond their means for a long time." It is not only in UK believe me.
I fell into that trap a few years ago, went into a showroom and got a lovely shiny Jag on finance. Driving round really smugly for the first year fooling myself that I had made it.
What an absolute twat I was, when I eventually paid off the finance the car was worth NOTHING!!!!
The bigger joke was that I couldn't even use it anymore because the lovely Khan had expanded the ULEZ and I didn't want to get trapped in another 6 years of expensive finance.
Mad thing is my 22 year old Honda Insight that I paid cash for a few years earlier was still ULEZ compliant and is now my daily driver. Can you imagine how much earlier I would have paid off my mortgage by still using the Honda and not being caught up in the luxury car market by paying £300 a month for 6 years.
Yes the Jaguar was a beautiful luxury car but being mortgage free tastes so much nicer and I think everyone is reassessing what is actually important.
For me I do not waste a single penny on anything anymore that is not essential!!!!!
Absolutely that is the way to build real wealth. Be a tight arse!! The fifty year old postman that lives with his mum drives a beat up vw golf and has no wife kids or girlfriend is absolutely worth a fortune im sure of it!
Top comment this, my weakness is cars, I see it as a status symbol to myself BUT I can easily afford them so it's a treat for myself I guess?
Im old school, if you haven't got the cash you can't have it. Simple....don't live beyond your means.
Only drug dealers have 30 grand in cash. They don't live beyond their means until they do.😉
When I was 18 (I’m 47) I bought a Renault 5 gt turbo and some tools as I was an apprentice engineer, which was the norm - minis, mark 1 fiestas, ford turbos, Astra gte etc, own it, learn it fix it, but by the time I was 20 the people who were 18 were getting brand new 1 litre Clio’s etc because insurance for them suddenly became extortionate, that was the start of the lease everything bubble. When I bought my first house when I was 20 I had a plate some knives and forks, my dad gave me a sofa and a washer and I bought a bed, that’s it I then built from there, I didn’t borrow money, I didn’t lease anything I didn’t rent anything, it’s how you start out, since 2008 that changed, interest was low and debt has ballooned, assets have increased because of that debt devaluation of our currency. That’s due to the business models to get growth from debt and make profit, it always in history ends, debt has to be repaid and to do it currency is further devalued to prevent default, that’s all that is happening, people have to prioritise which debt to pay, which is always going to be the home, everything else suddenly becomes a luxury so returning the asset clears the debt, that simple. The smartest will adapt and flourish, the majority will suffer. It’s up to the individual to work out which direction they are heading, they need to plan and work hard, that’s the big old cycle of life.
Except the house buying, all I had was a knife and fork story means nothing today. Now house prices are 7 to 8 times average industrial wage.....a free bed from your dad wouldn't get you a house now....
Well done for not dying in the GT Turbo!
@brhodes0 the turbo never worked 😂
@@paulhayes2189 my life has been hard mate, but I have everything I need for me and my family, my point is what are you doing about it, we don’t need brand new own nothing things to be happy and successful, but that what society today thinks, so option are moping about moaning or investing in yourself to strive for better. That’s all your choice
@@JonahX-ui9tf yup. All I did was repair old cars to keep on the road as a lad.
A lot of people leveraged themselves to the limit, in order to get expensive motors when borrowing was cheap. This is the fallout from an overheated market.
Agree, that and just general living costs going through the roof.
ironically if you locked in when borrowing was cheap you are very in the money, the issue is those who have just rolled onto new contracts on newer cars, thinking rates are sub 4%
I got into difficulty with car finance some years ago as Ild foolishly took out the finance in my name but the car was for my then partner to pay the monthly repayment.
She left me, stopped paying, lumbered me with the cost and Vauxhall Finance were brilliant in helping sort it. In the end they got the car back, auctioned it and I was left with the difference to cover. Life lesson learnt.
Unfortunately, when central bank interest rates went to 1%, people borrowed as much as they could to buy houses, cars etc etc. We were knee deep in cheap money and people seemed to think the rates would never go up. Young people have some kind of excuse, but not those old enough to remember 17% under Norman Lamont.
I smell a recession..
We're already in it
Yep and it’s gonna be savage with everyone purse strings…
Showing off! Its the way of most of the world these days. Out in Portugal when I lived there it wasnt much of a thing and all the better for it.
I don't think the Portuguese are really that interested in cars.
Another problem is the price of car parts, especially for euro 5 and 6 vehicles, DPFs/Adblue systems/Nox/ +other useless sensors for rubbish like ADAS etc. etc. are very very expensive. People A. can't afford the repairs on their cars; it may have cost them 2-3k to buy it and now its 2-3k to fix it, then they think "why spend this when its uneconomical when I can finance a car or find another one for 2-3k" (THOSE CARS REALLY DON'T EVEN EXIST AT THAT PRICE POINT ANYMORE) so, they end up in a cylce of financing a car or PCP which they couldn't afford in the first place, only to miss payments due to massively high intertest, high finance, poor credit scores, over priced cars etc. and that's when they default and end up getting repossessed. We've seen 15 plate, 16 plate cars that were once 30k,40k,50k+ getting scrapped because they're simply too expensive to repair. a 2016 Jaguar XE got totalled w/us last month as it was going to be nearly 10k to replace the engine/turbo/dpf etc. It's a really bad problem. This doesn't help that dealers have been giving people with awful credit scores/history massive car loans on not just cheaper end but also very high end cars like expensive Mercs, Rangerovers, BMWs etc. They're also to blame! this fake materialistic world doesn't do people any favours, wanting a new car every 1-3 years is mental.
All designed to fail on the trojan horse of climate scams and Marxist net zero.
Because almost everyone borrows for cars there is no need for cars to be cheap, or at least less expensive. The whole vehicle ecosystem factors in that repayments over up to 7 years are somewhat affordable per month, though financially very unwise. If vehicle finance was unavailable, manufacturers would be forced to offer cheaper cars. A consumer boycott would force prices much lower across the board. I save up and pay cash myself, but I tend to keep my cars for 10 years or so and get my money’s worth.
Finally! I don’t change my car very often but it feels more and more like they are making the numbers up. Plus paying an extra £410 for five years for the privilege of running a boring Eurobox?
They’re on f**kin crack.
10 years 😮 fuck that i mean is vise but is like eating everyday for 10 years bigmak 😂 my record is 2 weeks
I drive i test and sold 😂
We looked around at replacing are 9 year old focus. We always bought nearly new. Prices are crazy. We are sticking with the focus! Dealers were desperate to sign us up to crazy pcp deals. No thanks.
U r not alone post covid a decent 2nd hand car is like £10-16k so people holding onto their cars now.
The stats showing the 10+ year ownership percentages are at and all time high.
A decent new car is like £40k when it should be £25k.
@@michaelgreen5515 exactly. We paid 13k for our 4 month old focus in 2015 from motorpoint. Look at what they sell for now.
We were interested in a 3 month golf. Had less spec than our focus and they wanted 22k! No thanks.
Our focus has done 100k, full service history, wants for nothing and has free car tax. I’ll keep it until it’s not economical.
@@michaelgreen5515decent new car? Thank the Euro emissions standards and idiotic engineering and you'll soon realise all these new engines barely last more then 60k or 5 years etc etc.
@@pacman7959
Depends what engine you get...
Little tiny petrols with huge turbo's? Yea, those don't last, especially with dumb designs like wetbelts, etc.
Plenty of very solid cars under £10k if you buy based on which engines are reliable and consistently able to achieve big miles...
Instead lots of people seem to be looking for lower mileage, yet cheaper cars are blindsided by cheaper tax, overinflated mpg claims, etc and buy terrible cars... When sometimes a higher mileage example of a much better engine that drinks a bit more is a much more reliable and consistent/predictable companion.
Keep it maintained and your in a good position.
I reckon the October budget will be the big indicator! Great video, as always, Joe.
Yep the shit will hit the fan.
Always paid cash outright so they can't take mine. Did look to change recently but a 40% increase in insurance on the car I was looking at meant I'll stay with what I've got. Owning a car is going back to the automotive start when it was a privilege not an expectation.
I bought my first car in 1988 I saved up as much as I could the 12 months before and then spent days looking for a nice motor in the classifieds.... Bought a MKI Escort, four door XL converted by its previous owner with a new engine which was a Mexico from his rally car (he also welded the rear diff which made handbrake parking fun... but hey I was 18 lol) The car cost me £395... that’s what I could afford cash up front. No getting finance and a younger car, most people were wanting what we would call bangers now. Even a local car hire firm was called "rent-a-wreck". The problem now is that every other person wants a vanity drive... something that makes them look good or gives them perceived status rather than being practical, affordable, and reliable enough to get them from A-B.
This crisis isn’t down to the cost of living its down to the credit companies making debt easy especially for younger motorists.
First car in 1988 here too (i was born in 71), it was a Fiat 127 1050CL, guy wanted £100 i got it for £75, running, driving MOT'd etc, found a 127 Sport in the scrappy and got all the fancy Sport bits off that, wheels, body kit, spoilers, steering wheel, seats etc for £50, thinks were cheaper and simpler back then.
First car 17 was £500 banger, cheap insurance and breakers yard for replacement parts. In 2024, 17 year olds are driving brand new Audis, Mercedes and minis...good luck to them
But we all know they don't even own them. 😂
All owned by the finance company.
Even back around 2003 ISH. I had a week between jobs, so my neighbour offered me a job cleaning and collecting/delivering cars to the main dealer body shop he managed.
So many brand new small peogeots and Renault getting accident damaged within a year.
I was told it was probably because of the finance deals which included insurance, that 19 year olds could get approved for.
Nothing against 19 year olds, but they were signing up for brand new cars, partly for insurance reasons.
@@Evergreensands
And then they wonder why it's such a struggle to get a house deposit together? 🤔
(Not an old man, but still far too sensible to throw money away on car finance - the only way is outright)
Loved going to the scrappy 😂 and running a banger
Just done 1.5k maintenance on a diesel Kuga Tyres Brakes Timing Belt Service, That'll do me for another 3 or 4 years paid cash for it 3 years ago I'll drive it till it physically falls apart 🤣 can't believe the amount of people paying over 400 quid a month to rent a run of the mill hatch.
The government might have other ideas.
VERY GOOD video Joe!! You come across really well in this one!
Joe you need to move the plant from behind you or take the video from a different angle as you look like Julian Clary sorry I meant to say Julius Caesar 🤷🏻♂️🤦🏻♂️🤣
Think the camera man put the plant there on purpose !
Thanks for your input Mr Spielberg.
😂😂😂
Peasants😂 shhhh caesar talking
Never had finance on a car. I only drive what I can afford to buy and run. All the legoland estates are fully of new mercs, BMs etc all on PCP. Pure madness
The only surprise is that some are surprised. The high bank rate (by recent history) was bound to cause difficulties both for individuals and corporations. This was the BOE's intention when it realised inflation was out of control.
What a great time to buy.
Living within your means has never been more apt…
I think it’s more systematic of a “want it now “generation.
People living beyond their means. I know teaching assistants on about 17k with brand new Audi's. Poor money management is the reason for this trend in repos increasing, let's not blame external factors.
Own my 2016 Suzuki Swift outright had it for 4 years and paid cash for it and my insurance renewal 2 weeks ago was £192 fully comp and £35 road tax. I look at youngsters driving about in cars that they would never be able to buy outright and think yes you might impress your mates but you are throwing money away.
This holds zero surprise to me at all. The number of people driving cars that are way and above their means for decades is going to fail. Yet another reason why I love my 20yo V70 which owes me nothing and is worth every penny maintaining it. In fact, it's an appreciating asset as they're in big demand. As they say, things that go up, must go down.
Big demand for a Volvo.....hilarious.
The Bank of England's base rate in the UK was 0.75% from August 2018 to March 2020: My local Ford dealer was charging 13% interest for years through this time. A quick autotrader search today finds fixed rates of interest 17.9%. It's hardly surprising that there's a problem.
Great to see this type of content for the uk, I’ve been watching the US car repo videos so interesting to see the car market isn’t too different on our side of the pond.
Is the finance for these cars in the uk the same as the US, I see they have crazy 7 year loans with 20% interest rates which is just mental
I had a car on finance over 20 years ago now, and got into difficulty, a representative from the finance company, ( a colour and an animal, part of a high street bank ), came out while I was at work and told my other half that I could hand the car back with nothing to pay.
I did this and they sold it at auction for a third of it's value, and then came after me for the remaining money, totally different to what their rep had said!
I'm fortunate that I was able to buy my current car outright in 2016, and so don't owe anyone a penny.
The cars being repossessed are down to people spending money they haven’t got , in other words living beyond their means , I was bought up with a simple rule " if you cant afford it you cant have it " its stood me in good stead all my life .
Maybe cost of living price gouging is a factor.
It's a pre planned wealth transfer.
Borrowing money to buy a depreciating asset (not that "asset" is really an appropriate word to describe something that is losing value and is worth less than you owe)? Madness. People need to be honest with themselves about what they can afford. I buy older cars for cash. I look after them and motor for peanuts. Currently driving a 20 year old Camry that burns no oil, is comfortable and economical and still in good shape. Do I care if someone sneers because I drive an old car? Nope. I'm comfortably retired and could afford to buy a brand new vehicle for cash, but I'm not a fool. Bangernomics all the way for me. Fortunately for me and my fellow cheapskates, most peoples' snobbery prevents them from being smart about cars. Let's hope things stay that way. More cheap, decent cars for me to buy.
Insurance went up and also road tax on anything “nice” manufactured before 2017 is anywhere between £300-700. Costs of owning a car are mental these days
Cars are the biggest wealth killer, and leasing is the most expensive way to get one.
People think the £500 monthly payment (plus £5k down) every 2 or 3 years is much cheaper than paying £40k cash, but ultimately it’s way more expensive.
Live within your means, stop trying to look wealthy, do the sums - it’s just a car!
Well. We’ve been through a boom which leads to euphoria and people leasing cars to the limit of their ability. Three years after the peak prices for cars and with all the money pressures, buyers from 3 years ago are underwater with negative equity etc. Especially private EV buyers. It’s little wonder we’ll now face 18 months or more of this Repossession upsurge.
Not helped by Ford discontinuing the Fiesta @@CandyMan2001
Glad I’ve found this channel. Great content. Scary seeing what is happening in the world of credit. Times are getting increasingly difficult.
I made the mistake of taking out a £10k bank loan for a car over 20 years ago. I had the car for 9 years and still hadn't paid off the loan as I kept on renewing it for lower rates. Never again.
It’s not just that people get themselves into high-interest and high-cost debt for grossly overpriced cars, but there is irony in the reality of these cars being awful. Car manufacturing passed its peak over ten or fifteen years ago. Nothing since served anything other than chasing false and delusional emission targets and to undermine private motoring. Twenty year old cars are more reliable than recent ones with plastic and low quality rubber in the engine bay, even in the engine. Emission control devices like EGR, DPF and even the turbos they fit on small engines do nothing useful other than destroy the engines sooner.
When you can’t pay cash for a car on your own, that’s a sign that you cannot afford it.
@@ComeJesusChrist Indeed - we've reached a point where the primary goal is not to build a reliable, low maintenance car that'll do big mileages anymore... Because of engine crippling regulations, combined with an excessive focus on MPG (as a result of overinflated fuel prices), it's all about maximum fuel economy on paper combined with conformity to senseless regulations.
Sadly, plenty of 20+ year old cars come with either patchy/poor history or deteriorating components - they might've been better cars, but they can also be money pits sometimes (equally, they're much cheaper to buy and don't suffer horrible depreciation!).
EGR and DPF aren't problems if they're implemented correctly and the driver buys an appropriate vehicle for their usage - people buying diesels for short journeys is just silly, but plenty do it... I've not had any issues whatsoever with DPF or EGR in Volvo D5's (euro 4 and 5, a couple of hundred k miles between them), but even with appropriate usage the badly designed setup on a PSA 1.6 16v diesel hit the wallet hard enough to make it far more expensive to own than the bigger and thirstier Volvo units.
@@EnglishTMTB I have a soft spot for D5s. I’ve been trying to get one for ages, but four(!) sales fell through in the last two years after the sellers on eBay claimed the car to have developed gearbox or brake faults, which was clearly not true. On one occasion, the seller stopped communicating after accepting my eBay offer. They know that what they have is better than what the market values these cars at.
If the turning circle and parking wouldn’t be an issue, I would have pursued harder to get a 2004 XC70 or V70, which most of the cars I was bidding on or made offers on, were.
I specifically wanted a pre-EGR/DPF five cylinder diesel estate Volvo, but as corners and parking spaces are tight where I live, I usually buy a Mercedes E-Class estate or a C-Class, which are also excellent value for money and are very reliable. I burnt myself with a 2010 C200 CDI and a 2013 E220 CDI, so I’d stick to five or six cylinder diesels, Kompressor models or a well-looked after E250 CDI. Our old E320 CDI estate was easier to park and drive than most smaller cars, it is a workhorse even more than most Mercs are and the power/fuel economy balance is exceptional. The straight-six diesel is bulletproof and I’d expect the same from the five cylinder E270 CDI, too.
I have absolutely no interest in cars made in the last ten years or so. I can’t imagine any feature in a car that would justify giving up on reliability, depreciation and all the values that truly matter.
@@ComeJesusChrist I'm with you on the last ten-ish years - once the last 5-cyl D3/4/5 engines were out, I lost interest in newer Volvo's completely.
Oddly, the Euro 5 is a bit less hassle than the Euro 4 (and if usage suits diesel, probably the best engine Volvo ever made, even above the T5!) just because the removal of the swirl flap assembly reduces the need for work to replace it once the linkage arms won't stay on anymore (and obviously usage makes a difference in how long you get before that happens).
I like the Eu3, but when you do diesel friendly miles (which I do), the additional refinement and power of the later versions, along with slightly nicer cabins, just makes more sense to me.
Not too long ago bought an S60 (late 2012, so just pre-facelift but still £35 tax on a D5 manual) - sub 80k miles, solid history... £6k... That's a car with easily 150k miles available, and it'll be whether everything else holds up well enough rather than the engine that's the limiting factor on how long I keep it.
And people think you need to spend 20k+ for a decent car? Don't make me laugh!!
@@EnglishTMTB It is indeed sad how people chase a marginal reduction in mpg on paper and get themselves into disposable junk that will fail in less than a decade. I’m in my forties and as a younger man, could ry out a wide range of premium and classic cars on a shoestring budget, driving cars, like a 1983 SL280 that I wouldn’t be able to afford now. Driving older cars was cheap and a great experience. Then the government started pushing the false green agenda and suddenly, everything turned into waste, ironically. I am so glad whenever I see a younger person driving an old but special car. Motoring is a blessing and affordable motoring should remain a civil right.
In terms of recent ‘development’ and ‘advancement’ in the car industry, how anyone with common sense would think that it’s a good idea to get cars with wet belt, small turbocharged engines or an EV, is beyond me. I encourage our son to appreciate old cars and to work on them, so he would be able to fix any smaller issues and service the car himself. There’s nothing more sustainable in motoring than good quality and traditional cars well-maintained and lovingly kept for hundreds of thousands of miles.
A lot of people simply had cars they could never afford in the first place anyway. This 'financing' culture in recent years has gotten out of hand. Welcome to the Instagram era of showing off & keeping up with the mums at the school gates. The rise in junk credit financers who mass advertise to the working class doesn't help either.
The amount of big luxury SUVs at the school gates is crazy, Discovery's seem to be most popular or the new defender. Those cars are like 500 pound a month on pcp I couldn't afford that,
I think it will get worse as many buyers are looking for high end marques , it is amazing how many Range Rover, BMW, Audi and Mercedes are being driven by under 40’s also the amount of Chelsea tractors doing the school run, I would hazard a guess they are either on finance or on leasing agreements. Either way they still have to be paid.
Paid off my car in 2023, was tempted to get a new car in 2025. looking at the direction prices are going and what it would mean for insurance, VED and monthly outgoings on a monthly payment...I think I'll keep my 5 year old car until it's 8-10 years old.
It's got to end somewhere, Mortgages, car finance, car insurance (which has doubled in 18 months) Utility bills, enough is enough.
I drive a 2010 volvo v50, paid for and love it.
Just went to Cyprus and hired a kia stonic for 2 weeks. Apparently a 32 grand car, 500 km on the clock so brand new. I honestly wouldn't pay 4 grand for one, weedy engine, bings and bongs every few seconds telling you what you're currently doing wrong. While I'm sure you can turn these things off it was a souless experience
my sonhas a company van but he and his wife want to keep up with their mates and have the new, shiney car every 3 years. I said to them maybe your friends are trying to keep up with you with a new car every 3 years and you follow them. It's a vicious circle and they're paying 500 quid a month lease costs. I never paid that on my mortgage!
Always bought my cars outright, £6k ish or a bit more for a Jag, both my cars are 19yrs old, so I spend on maintenance etc
Me too I only have maintainance bills. I drive a mega reliable 1999 -- 25 years old 😊 mega reliable and in good condition. Also a Jaguar enthusiast I got a XJ8 24 years old this too in good condition. I also am a classic car nut I have a 1970 Bentley T1. I pay cash never need to worry about bailiffs visiting. The reason I pay cash giving finance companies thousands in interest frightens me
I meant to say a 1999 Lexus 300gs.
I just replaced my very old car with a much nicer newer one. I bought it from the suzuki dealer and paid in full. I wouldnt want finance on any car. If I couldn't afford it I wouldn't have bought it. I do sympathise with people who need to finance a car though, it doesn't take much to derail someone
I just bought a new car. Checked the APR the dealer would charge, then saw the interest rate on my easy-access savings account, which made me just pay the car in cash. I've set up a regular savings account so I'm getting a better interest rate to replace the money I used. I also bought a car that was within my budget, rather than try to impress the neighbours with a car that was more than I really need.
Aroound 1970, I was in New Zealand, North Island. Asked why there were so many old cars around, and was told that it was legislation that if you wanted a car you saved up and bought one. There was no hire-purchase allowed, it was banned. !
Whether it was true or not I never discovered. Another strange custom, in Canada, I was driving a relative and wife, to a business convention, we needed gasoline, and my cousin insisted that his wife use her credit card, as she had only just got one, as up till then women were not allowed to have a credit card. Now, that one, I did believe. !.............
That was a really interesting video Joe, like the short punchy editing style. I know another issue is the huge repair bills on modern cars, sometimes people stop paying and get it repossed rather than put more money into a major repair. Always makes me suspicious of repo cars at auctions.
My insurance went up 50% last year I couldn’t beat the renewal quote anywhere, this year the quote was up 25% yes I’ve had a windscreen this year which I could have got done cheaper now I know how much the insurance paid plus my £125
But I saved £200 by removing the mods(window wind deflectors).
First rule of borrowing.
Go to your bank (in person or online)
Do the wealth check (incomings and outgoings) to see what you can actually afford per month at the lowest apr rate.
The minute you start shopping round for dealer fianance, anything remotely resembling common sense and budgets goes out the window.
I drive a 20 year old car which I’ve had for 16 years. Full servicing , tax, insurance, MOT etc don’t even come near the PCP costings for that shiny new overpriced car.
I owe nothing for finance so no one except government makes money off me.
Problem is low interest rates meant a lot spare income for nice cars. I know of people in 4 figures for their cars. Then interest rates went up and up. There’s the bite. Look at housing market a lot of houses being sold as they can’t be paid for.
I'm am going to watch the video but I can already summarise the reason as follows:
1. Over the last 10 years in particularly, it has become increasingly common for people to go for the 'latest and greatest'. Not because they genuinely need a 'new' car but because they want to show off to their neighbours, family etc. I suspect that's also the primary driver as to why there are so many more German marque cars on UK roads compared to 10+ years ago (as well as crappy JLR stuff)
2. Recent general cost of living increases (and also recent car insurance premium increases) has now made a greater percentage of the people that are part of my 1st point, start to struggle to pay all their bills each month
Ultimately it can broadly be summed up with 'It’s a pathetic materialism crisis, NOT a repo crisis' (yes a small percentage of the people affected will NOT have been overstretching themselves showing off BUT, let's be honest, most have been doing exactly that for years and now it's biting them in the arse because they've forgotten how to truly live within their financial means).
If you earn £20K p/annum (gross) what makes you think you can/should be able to afford a 3 year old Audi?!? 🤦
EDIT: Just thought of something else that illustrates the modern materialistic brain rot.
A close friend used to work for a major UK telecom provider in their Collections department. Apparently it was far too common when speaking to customers who had failed to pay their FIRST BILL that when questioned as to why, their 1st response was genuinely "I'm on benefits, I can't afford £55 p/month". I'm genuinely not making this up, it used to drive my mate mental. Felt like saying "well why did you go into Cartoon Warehouse/Frauds For U and take out a 2 year iPhone contract if you knew you couldn't afford it?".
Al the wannabe's on PCP, who fake buy things they cant afford has caused this issue.
The prices are not reflective at the dealer forecourts though. A 24 plate car is is under a thousand pound difference to a 21 plate same model?
DEalers and finance companies are once again taking the piss with rates and prices.
It's almost impossible to sell a car privately above £5000 anymore as they now buy on the never never with an average of 30%added on for interest.Think car "dealers "are more like credit brokers and I c alot of inflated prices on cars on average £2000 more on a £18to £20 thousand vehicle so they offer a dilissional interest rate to rope a dope.
Not true it’ll depend on a variety of factors regarding FSH, MOT, condition etc. But the price has to be realistic and competitive against the others in similar age on selling websites of course.
First car old mini at £300. Had to weld a floor into it but it was mine all paid for and no worries, if i bumped it a second hand bumper was a fiver 😊
Ten bob millionaires trying to look flash on credit.
I always buy my cars cash but the price of driving these days and the small amount of mileage that I do these days (less than 2k miles per year / 38 miles per week), it is cheaper for me to call for a taxi.
I call them weekend millionaires
Yes my elderly mother has noticed she has money left over each month, now she sold her car, and uses taxi / family.
It's almost like if you had a piece of paper and wrote down incoming and outgoings you could work out if you could afford something.
If you couldn't afford it, you would either have to reduce other discretionary spending or buy something in your price range.
I recall being in the Wirral three years ago on November 5th up on bidston hill looking down over Liverpool, Birkenhead and Prenton. I got my friends attention and waved my hand across the sky pointing to the countless thousands of fireworks and remarked to my friend.
'Cost of living crisis'
Yeah, until I was working (properly, not like a student job) and had a few years driving under my belt, my first 3 cars (R Reg Nissan Micra, 53 Reg Vauxhall Corsa and 57 Reg Ford Focus) that I owned were under £5k and for spare parts I went to breakers yards.
Consumerism gone mad. I live on a housing estate where every house - bar a handful - has a driveway. The problem is people living in these houses all have their own vehicle and so the roads are filled with curb parkers all night. It's a nightmare to drive around past 6pm. You also see a lot of people in council properties with a Range Rover on finance but a house which looks like it's about to fall down.
If you can afford a $200,000 car, you buy a $200,000 car. If you can afford a $20,000 car, you buy a $20,000 car. If you can afford a $2,000 car, you buy a $2,000 car. ...if you can't afford a car, you buy a $80,000 car on credit...
The kind of people who have the money in the bank to buy a $200,000 car typically buy $20,000 cars. That's why they have $200,000 in the bank.
@@conorturtonexactly. Wealth management, is something that needs to be taught in school's, most folk I know with new cars are always telling me to get something newer, meanwhile we are two years away from owning our house outright, so before 40 years old, no more mortgage, the cost? Work hard, manage what you earn sensibly and drive an old car, put the money into what actually matters which is your family and home.
But 2nd hand cars are still very high even for rubbish .
Good presentation. Well researched. Good advice.
I don't know how people are affording them. It's like having a second mortgage then you have to add on insurance, tax, maintenance and fuel. Realistically buy what you need to suit your lifestyle, not buy what you want.
So many people made the mistake of pcp, then kept upgrading their cars after 2 or 3 years with negative equity. You want a new car? Just lease it, low down payment, hand it back in 2 or 3 years. Or, buy a used one. PCP is a scam.
Hi Joe, very interesting video. I work for a very large car finance company where I’m fairly senior. I think it’s interesting to hear about the rise in arrears and Hostile Terminations, as I haven’t noticed the same trend in our business, which leads me to think this is much more of a sub-prime problem, and makes me fear we’ll get to a similar position of the mortgage crashes of 2008/9
I think honestly a lot of these sub prime lenders are running the risk of being Icarus, the FCA with their New Consumer Duty has cracked down hard on how finance companies treat vulnerable customers, and indeed ensuring that customers who shouldn’t be financed aren’t.
I'm surprised that lenders are still chasing after poor and marginal credit consumers.
I sat on a committee (back in 2013) as a lay-man for a revolving credit, zero % consumer credit provider when they went for FCA approval and had to review debt recovery strategies, loan contracts, affordability calculations etc for TCF and KYC compliance. I saw the stats - we made more money on zero % and revolving credit from certain people.They belonged mostly in D and E socio-economic classification, basically poorly educated and lowest income households. We had enough data to identify generations of people from the same household.
We changed our lending guidelines and made sure that POS staff understood and communicated this to the punters. We even had the info pack approved by the Plain English Campaign.
If you need a example of the public buying stuff who can't actually afford it go to your large car superstores and see the inventory of BMW Audi Mercedes etc on their forecourts
Worryingly premium brands now being sold for budget car values as they've been repo'd or returned early
A lot of used car finance is 14% plus cost of new cars is insane £37-40k for a golf GTI
Good well timed video and great commonsense.
My 20 year old diesel estate car cost £700 six years ago. Still going strong, 50mpg average. £115 a year, or £2.15 a week. What's not to like.
I said this would happen.. People continued to buy things they didn’t need with money they didn’t have and now they’re paying the price for it
It's called living beyond your means.
My friends emigrated to Canada 10yrs ago. Every time they come back to visit they are gobsmacked at how new all the cars are compared to Canada. A "Keeping up with the Joneses" dose of envy cured by assumed cheap finance beyond their means are the first ones to crumble. I will buy a prestige ride for cheap in 2025.
Rather have my lovely 22 year old E46 330 than a boring EV or SUV 😂
Cars are ridiculously expensive there’s a huge gap between what people are earning and the price of new cars it was never as big as this
Very good post, Joe. You have the credibility and experience to comment and the combo of UK and US content is a clever way to broaden your appeal. FWIW I agree that we have a problem. Credit has been readily available for products that can be very expensive to maintain and it only needs one big bill to derail a customer. Looking at some of the faults you have cured on JLR products, these could easily kill the product for a customer who takes the main dealer fix or, worse, uses their back street garage to bodge a repair. Customers seem obsessed with image over substance, borrowing 20k to drive something that does the same job as a much cheaper car that they might have had to put a bigger deposit into. I wish you well because you do seem to start them off with a reliable product - many others are just flipping problems for profit.
Good video. This is all a sign of wider and deeper probs in the economies of the developed world. PS Mr G4 looked like a pokemon in a suit.
There is also a prroblem which is been covered up in the MOTORCYCLE TRADE. Dealers full with very low milage under 2 year old bikes. There is no market for these £ 8/ 10000 bikes. Far too many stitched up on Finance Deals and Variations of PCPs. A area manager for a leading finance provider said they are watching it very carefully.
Thanks for that information.Good video 🎉
Have I've been facing difficulties from increased insurance premiums? No, my insurance premium has not increased. How about from the interest rate? No because I have not financed my car, I bought it outright. I just know I can't afford an Audi or a Tesla or maybe an Ioniq 5 and I just bought the car I can afford, a Hyundai i30. It really is not that difficult. If you can't buy it outright, you can't really afford it. If you can only "afford" your payment for 5 years or more, you can't really afford it.
Nice compact video. Personally I’m always a cash buyer & try to only buy cars that will appreciate, definitely not depreciate. I do the same with everything because I want it to be mine & as cheaply as possible.
Very good point. People are hurting 🙏
Great video Joe
I drive a 16 year old Saab Aero. I love it and, since I paid the £3000 7 years ago for it, it's hardly cost me anything in repairs. But, more importantly, it's what I can afford.
I am a full-time and I know the financial world is very very unstable right now in the UK and the cars i had that I've had got repossessed no fault of mine but because I become to ill and the company behind all when bust and I am still today paying off a little bits and pieces because of their fault. But I don't even have a pot to piss in the time when you are very illen disabled and companies trying to take advantage. The way things are looking at the moment the society we're living in it's gonna be a lot more problems very shortly because o a p and the disabled and the infirm will have nothing when the government's finished i'm wearing money are we going is trying to keep warm this winter and trying to keep food in the cupboards
6:07 "Sub-prime borrowers" is quite a euphemism.
I did pcp on 2 cars and paid both off it can be done, you have to have the right mindset and ignore what the dealerships want you to do. Buying on finance can be cheaper than the alternatives I could have purchased, efficiency and insurance on old banger VW polos, etc was way higher than the cost of getting an new VW UP. I have a MK7 Golf now, 110K miles and I hope to run into the ground and pay for my next car in cash.
The problem now is people are so hard pressed they wont be able to afford these repo's, This will make 2010 on stuff more valuable. Remember this is all been done on purpose by governments across the globe. All the Best.
Spot on. The economy is being changed from a share holder to stake holder one.
I passed my driving test in 1986 I was only 19 and took a small loan to buy my first car, then a couple of years later I upgraded and borrowed a bit more. Then I was made redundant and I felt so financially exposed. I never took out another loan again, I buy my car for cash. The only I had since was a mortgage. Very liberating to not owe money, as you never know what is going to happen in the future etc.
Need to get lizard lick towing back on.
People living Champagne lifestyle on Lemonade Money. A lot of VTs coming via Santander, it can be the excessive interest in PCP deals. VT can have a sting in the tail though 😮
what's VT? voluntary termination?
@@eddthirty4065
Yes
I had a seat leon fr e hybrid cost me 300£ a month, so i saved up got an audi A3 8P1 2.0tfsi quattro for 6k, ive since spent that on it fixing problems
I've had the same car i bought in 1998. Still runs and drives and has done over 300,000 kms. Just as safe as a new car as it passes a stricter test than the UK mots. I don't think i will bother buying another one if this conks out. As I'm 61 and retired and living in Gibraltar. In all my car driving years. I have never bought a car out of a showroom dealership, nor sold ot or part ex it. Just used it until it is literally unable to pass the spanish test. This one has all the things new cars have. And as its older. A bigger engine than what you get in them now built when cars where built to last. Not just to be used for 3 years and thrown away.
Loads of people doing VT because the price was so high 2 years ago. I worked for a large used/new dealer.. we were told to encourage customers to do a VT, because you can offer better rates on new cars
car deals are all the same… once that new car smell has gone all you can smell is car payments and interest