Who is actually able to buy a new car these days ? Is a crash coming ? | 4K

Who is really able to purchase a brand-new these days? An easy concern however a tricky answer. We have seen a substantial increase in new and truck prices over the last couple of years coupled with an increase in rate of interest are we now about to see a reset of the marketplace?


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29 responses to “Who is actually able to buy a new car these days ? Is a crash coming ? | 4K”

  1. Garry Matthews Avatar
    Garry Matthews

    Another great subject Pete, have to agree with all you comntents. Have to say the used car market is already seeing price increase and some of the small cars have increased byb 80% or so. I have not bought new for at least 20+ years

  2. Russell Clark Avatar
    Russell Clark

    Hi Pete. Great video for which the subject, a work colleague and I were only talking about earlier this week! I think a current family car for “the people” is the Dacia Jogger. Would love to see you review the Jogger, especially the hybrid version and hear your thoughts, along with PCP figures for the vehicle 👍🏻

  3. David Foster Avatar
    David Foster

    Agree with what you said, looking at some of the stock around at the dealers it’s definitely starting to bite, car insurance also becoming crazy, tough times ahead for car manufacturers and dealers, especially with the EV vehicles.

  4. Phil Cliffe Avatar
    Phil Cliffe

    Great discussion, I’ve always paid cash. Choose something that I really wanted so I’m happy to live with it for a good while whilst saving for the next. The problem is that people see cars like their phone which spoils it for petrol heads. I’m now waiting for the re-balance before I buy my next one.

  5. peterC12221 Avatar

    Great video Pete. As per usual really balanced. Totally agree! It’s simply not sustainable

  6. ||||upjidasoid Avatar

    The problem with most cars is they are a depreciating asset. And paying more for that is counter intuitive. Car companies love you hiring a car for 3/4 years of course. But the problem is now the cost of even monthly’s will soon be shocking for a normal car. However the EV situation sis even worse and it now looks like several legacy companies will pull out of EV’s altogether. Crazy times.

    1. Safian Younas Avatar
      Safian Younas

      I drive an Ev and it’s the worse decision I have ever made. The charging infrastructure is so bad in the country , I am struggling to find chargers. I live in London but still charging infrastructure is no where near ready to switch to EV.

    2. 15Bit Avatar

      @Safian Younas I’m very happy with my EV, have no problems travelling long distances, and it’s still worth 70% of what i paid for it 3 years ago. But i live in Norway….

  7. Mark Rathbone Avatar
    Mark Rathbone

    Hi Pete, I use the same philosophy of buying a nearly new car and letting the previous owner take the hit on depreciation, however I was in a Volvo dealer recently and was told that the difference between a new and nearly new is now very small indeed due to the current crazy new and used market . I appreciate you don’t do reviews on old bangers but I would be interested to see some reviews on nearly new cars as I believe a lot of people would be interested – well I would anyway!

    1. Lemming1970 Avatar

      That’s a short term thing due to supply and demand. Many cars where actually dearer to buy second hand as you had 12months+ wait if you wanted a new one. I’ve just waited 14 months for a Kia EV6.

    2. Marc Solloway Avatar
      Marc Solloway

      That’s been the case for a while, I was looking for a nearly new A3 5 years ago and ended up getting 20% off the list price with car wow, brand new and spec’d it myself, buying something 1-2 years old was almost the same price!

  8. venger manu Avatar
    venger manu

    Enjoyed this video Pete. I’m the same age as you and like you am fortunate enough that I could probably afford the monthly payments on most cars up to £80k but, like you, just don’t want to spend that sort of money any more on a car. I think also my circumstances have changed in the last few years i.e. I get to work from home much more so don’t have to commute as much, so don’t need a car as much as I used to. My current situation, have a 4 year old Audi A3 TDi which I had on a PCP and fully expected to renew contract although decided in the end just to pay off the balloon payment (car value had gone up a lot during Covid years so renewing it would have been costly anyway) and plan to keep it for a very long time. Enjoy the no monthly payments too much but I expect when it starts to rust or fall to bits I may change my mind 😉

    1. macker Avatar

      Really agree with your comment, particularly around WFH having had an impact too. I feel since 2020 cars have become a means to an end, rather than something you buy and cherish. And while no hater of EV’s, they are more like appliances / white goods and are definitely out of reach for the average person if they were paying in full with their own money.

  9. Lee Pilkington Avatar
    Lee Pilkington

    I think downgrading will become common. One of my neighbours has dropped to a Golf R from a Taycan, another from a Velar to an A3. I buy new and swap every three years but have changed direction mainly because I don’t think ICE cars have really moved on and the extra cost seems to have little value – I am keeping my 2019 M4 and 2020 Mini Cooper S, both less than 20,000 miles. Interestingly I saw an offer at BMW with a finance package which mirrored the one for my M4….but it was for an X1! Cheap money has fuelled all this and it’s gone. Dealers will need to either discount or underwrite lower finance costs.

  10. Chris Clokey Avatar
    Chris Clokey

    Completely agree with you, the interest rates available over the last 10 years or so have made PCP deals viable. Now that APR rates are through the roof, I think a lot of people going to change their car will be very shocked at the cost to move into a similar vehicle. I have around 18 months left on my PCP, for the first time ever I will pay the balloon and keep the car. This is not purely down to the cost to change, I genuinely love the car and its held its value very well. And honestly, even if it’s affordable I won’t pay 10% or more for financing a new car .

    1. Ian Robinson Avatar
      Ian Robinson

      I’m in a similar situation , 2 years left , prices are unlikely to drop in that time , interest rates might but if they don’t then I will likely pay the ballon payment and keep the car. You can maybe sustain it if it’s price rises OR interest rates but you can’t when you get both together . Cars are silly money for something fairly average. A few years ago they were probably to cheap , now they are to expensive. Something or someone will need to give.

    2. 69BODIE69 Avatar

      I’m in exactly same situation come March 2024, Balloon will be £7500 on my BMW Msport which I am paying £315 a month, So until APR Drops or Car prices Drop I’ll have to Stick with the BM for foreseeable…… Haven’t even mention the ridicules rise in Insurance as well

    3. Gary Simpson Avatar
      Gary Simpson

      Several comments on the 911UK forum recently of well specified new (registered & unregistered) 992’s in Porsche dealerships. These cars will have been ordered 9-10 months ago with the customer intending to finance them on Porsche PCP. By the time the car arrived the PCP deals have become unaffordable & customers have had to revise their options & walked away.

  11. Nathan Williams Avatar
    Nathan Williams

    As always, great video Pete and much food for thought. I’m on PCP for a Porsche GT4, and thinking after 12 months of handing it in and just going out and buying a used Porsche outright for half the money.


    Great video Pete. Like you I have typically bought nearly new cars (perhaps 6-12 months old with say 3-5k on the clock) and have found that I lost very little that way. My M135i (N55) cost me £23,500 and I traded it in for £17,000 around 3 years later, so £6,500 in depreciation (around 9% per annum). I then actually bought a new car (my 2nd new car purchase if you ignore a couple of company cars I had), a BMW M340i. This was a showroom car, marked up at £53,500, but I got it for £42,500 in November 2019. I sold that in July 2022 for £37,500 (just under 3 years later), with a £5k depreciation (around 4% per annum). I ran a Fiesta ST until the December and then bought a Model 3 outright through my business. Now I had to buy new to get the 100% capital tax saving, but saved 19% in tax straight away, it costs practically nothing to run and I will just run it for a good few years. The reason for my ramblings is I suppose that people just have to take into account the best option for their personal situation. I’ve had PCP work, using HP or a personal loan and down payment and also buying outright. I probably wouldn’t buy new (unless I could get a great deal) if I wasn’t buying through a company.

  13. Alasdair Wilson Avatar
    Alasdair Wilson

    You make some very good points there.I have bought a couple of new cars in the past but couldn’t do it now.My current car is on a pcp and my plan is to make the final payment and keep the car for a few years as I really like it.A few people I know are now moving over to personal lease rather than the traditional finance deals.The initial outlay is a lot smaller and the monthly price is comparable.

  14. reinmansmith Avatar

    Agree 100% with everything you’ve said. It’s PCP deals that have warped the market where people don’t look at the list price they just look at the monthly payment. That of course effectively locks them into changing their cars every 2/3/4yrs …. never understand how that is good for the planet but that’s another story!! …..I’m like you and like to buy low mileage cars where someone else has taken the initial hit driving the car out of the showroom and then keep them for a fairly long time. The only new cars I’ve bought are my wife’s Fiat Pandas (great little cars by the way) where, for example, the first one I bought as a pre-registered car with 11mls on the clock for £6k when the list was £7.5k. My thinking was that I’d lost more money than that in depreciation on cars like Range Rovers, so I could effectively throw it away in a few years and it had only cost me £6k. As it was we had that first one for 5yrs did 80,000mls and the dealer gave me £2.5k trade in against another one. We did that 4 times in total between 2006 and 2021, but of course now, all manufacturers are no longer selling these these cheaper cars that keep their value because they are cheap to run reliable transport…. There’s a reason why Harry Metcalf’s wife still drivers her Fiat Panda, they just are the ultimate cheap runaround 😮

  15. Mark B Avatar
    Mark B

    Totally agree Pete, I’ve long thought that PCP traps people into a never ending regime and now that interest rates are increasing dramatically, I believe the system will crash. People have had enough but for most the choice is simply removed. I was toying with the idea my next car will be new (as in just released) but that’s most likely unobtainium now.

  16. Rod Matheson Avatar
    Rod Matheson

    Great chat Ped and a really valuable outlook from your experiences. I, like you, have never bought a brand new car, for the simple fact of the depreciation. I have always bought used and never had an issue, I like to own my cars, they are mine and part of me. Classics are my thing as i have no interest in putting myself in debt upto my eyeballs. This country is so bad for its throw away culture, you go to alot of European countries and people are still driving around in 20-30 year old cars. This is because a car is a big purchase and looked after. Britain has lost that now and no matter what the government say about the environment, our throw away culture isn’t helping at all. This is just being exacerbated by the ULEZ zones. I had a 10 year old £500 Citroën ZX for my first car, bought and paid for, not the younger generation are hopping into new or nearly new cars on PCP and stuck with the payments for the foreseeable future without actually realising what they are signing up for. I would rather look after and maintain an older car that I own rather than astronomical payments for a car I never own!

  17. Rich Fixes Cars Avatar
    Rich Fixes Cars

    Good to hear you have some feeling for reality.
    I’d be interested to see a comparison of PCH leasing versus PCP and bank loan. Compared also to buying a 3 year old car and paying for repairs because its out of warranty.

  18. Senna 1993 Avatar
    Senna 1993

    Am glad someone has brought this very important observation up. I have been talking to many people I know about just this. For years I have always known the average price of new & used cars & to see how much the even smallest city cars are now is crazy. Just a few years ago a top end Audi A7 , A8 etc where around 40 to 50 k depending on options etc but you see like Q8s Etrons well over 100k. It’s crazy. In this weeks Autocar there is a good article on new car prices. Also in last months Octane there was a very scary article on new Euro 7 specs & what the future holds for cars for example geo fencing speed control. Thanks for video. 👍

    1. Petrol Ped Avatar
      Petrol Ped

      Glad you enjoyed it 👍

  19. Joyous Avatar

    Completely agree, wild prices and APR rates. I think you also see a lot of people getting company perks to buy cars either allowances or options, like people in my family have. I’m content running older cars like my 2010 MiTo which I got in a very nice spec with lots of extras, low milage for less than 3k. Thats reasonable to me. I’m not sure I could even stomach £300 on a car and very few cars come close to that price on PCP. As much as I love them, like you say theres just other priorities.

  20. Tony Ireland Avatar
    Tony Ireland

    You are spot on about the cost of car ownership mentality.My ex wife recently “bought” a newish Audi A5.When I politely asked her how much it was she said £350 a month.I said but how much was it ? She said I don’t know….(It would have been about £32,000)It’s only £350 a month !.

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