Clubjazz - Honda Jazz & HR-V Forums
Other Hondas & General Topics => Off Topic (Non-Honda) => Topic started by: Jocko on March 07, 2019, 03:46:51 PM
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The news is full of tales of woe regarding new car sales. I have covered a fair mileage this month, town, city and highway, and I have yet to see a 19 registration plate. Normally by now I would have seen two or three. I am peculiar in that when cars pass me on dual carriageways I always look at the number plates. My wife finds it strange when I announce "Oh, that's an appropriate number plate" or some other comment. But I have never had the opportunity to announce, "Look, there is a new reg"!
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I haven't seen a 19 plate yet either. Still think there is a big hangover from the diesel situation with people hanging on to old diesels given poor trade-in values.
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I've just spent a few days driving up and down the major routes around Essex & Herts, I saw loads around there but they're thinner on the ground where I live in Norfolk.
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Bought my last ever new car in 1990. A white Astra 1.6GL.
Company cars since then until I left my last job in 2013. I take the cash option now and have bought nearly new ever since. But my next few cars will most likely be lease. I am not planning on owning a car whilst the propulsion technology is evolving so quickly.
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Slightly off topic, but still related to new car sales, what are members opinions regarding Purchase v PCP?
My current Jazz will be 3 years old in September and I am debating the pros and cons of Purchase V PCP
Leaving aside for moment whether you have the cash on hand to purchase a car, it seems to me that PCP is in the long run more expensive and of course at the end of the plan, you are virtually locked in to having to continue, or pay a relatively large final figure to own the car, or hand the car back!
Surely, if the necessary funds to purchase are not available then an unsecured personal loan would be be a cheaper option and of course at the end of the loan period, you still have a car.
What do other members think?
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I agree. My current and previous two cars were both purchased using a car specific personal loan from Halifax. It is, for me, a very effective mechanism as I don't want to be facing high ballon payments or extending loans. It is very much akin to the old HP.
However, as I say above, next time around I will be looking for a lease type of deal and will have no intention of keeping the car at the end so will be looking to optimise the payments to match the value I see in having the use of the vehicle, rather than assume any resale value in the vehicle at the end of the period. Not sure I am being clear but car ownership right now seems to be a bad idea as resale values are plummeting. I do get that this will also be reflecting in the cost of leasing, so that is likely to rise.
My problem is that most of the time I need a small car to do short journeys. But once or twice a month I need a larger car (three dogs) to do a 100-150 mile journey. And a couple of times a year we go on car based holiday in the UK. I think when I retire (maybe 2 years away) I will most likely be down one dog and will probably just lease something small again and rent a large car for the annual holidays.
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My step daughter leased her car, and on the breakup of her marriage she had to buy out his share of the house. To get a mortgage she had to hand the car back, and the penalty payment was horrendous. It would have bought her a reasonable secondhand car, for getting her by (luckily her father was able to loan her a car). She had also exceeded her mileage, and, though not by a lot, the cost per mile over added a hefty bill too.
She bought her next car!
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My step daughter leased her car, and on the breakup of her marriage she had to buy out his share of the house. To get a mortgage she had to hand the car back, and the penalty payment was horrendous. It would have bought her a reasonable secondhand car, for getting her by (luckily her father was able to loan her a car). She had also exceeded her mileage, and, though not by a lot, the cost per mile over added a hefty bill too.
She bought her next car!
car leasing used to be a company car thing because it had tax benefits, but for a normal person :(
It seems like a good deal to get a new car for quite a low monthly payment often with VED and servicing thrown in, but if you include a decent annual mileage up front the cost goes up, so some people put in a lower mileage to save money and then get hit with excess mileage charge at the end. Car companies like PCP because it locks people into their cars.
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Car companies like PCP because it locks people into their cars.
Yes - so much so that we got our 2014 Jazz, Honda gave us £500 to take the 0% APR PCP! Salesman told us that Honda wants people on PCPs as it's then very easy to move them into a new car towards the end of the deal.
Sure enough, salesman called near the end and told us we could have a new car for a similar monthly payment. What he wouldn't tell me was what the GFV on the new deal was. He seemed baffled by the question - he said no-one ever pays it, they move to a new car.
I will say there are some decent looking lease (as in Personal Contract Hire) deals around on Jazz. I think it's a psychological thing - if you pay cash for a car it's done and you can forget it. On PCP or PCH it feels like a lot of money going out every month - but the car is depreciating that much anyway, you're just kidding yourself if you don't think about it.
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Back on topic. Not seen one in Dorset yet.
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I think it's a psychological thing - if you pay cash for a car it's done and you can forget it. On PCP or PCH it feels like a lot of money going out every month - but the car is depreciating that much anyway, you're just kidding yourself if you don't think about it.
This is my view. I think it is a simple case of dong the maths, allowing for depreciation and resale hassle on an outright purchase.
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After another 80 miles of mainly dual carriageway driving I finally spotted a 19 plate. A shiny grey Nissan Leaf. They are normally easy to spot, the brand new cars. The are unrealistically clean and "sharp".