Keeping the RAV for now

[Yugguy1970]

So we have cancelled the Corolla order.  Not at all because the Corolla is bad, but because we realised that for what we are paying a month for the RAV, it's an absolute bargain, cos we got it last year when interest rates were very low.  While our daughter is still at home/university the RAV makes sense, we are off to Anglesey next August, taking one of her friends and it will just swallow all the luggage and give us a comfy drive there.

The missus is not going Yaris Cross, she likes how nimble and nippy the Yaris is, but we are rolling into another same spec for 20 quid less a month.  Toyota honoured the interest rates that we signed up on a few weeks ago before they went sky high.

I also found out something interesting.    If you have ordered a new car with Toyota, even if your current deal ends before the car comes, they will extend the current deal for up to 12 months.  So I have 24 months left on the RAV, but effectively 36 if I need them.

Apparantly Toyota will keep the Corolla hatch I ordered as a demonstrator so they are happy.  I thought they'd be annoyed at the cancellation but they're not.  Probably blowing smoke but they say we are in their "core" customers. 🤣  I'm thinking yeah that's because we spend money with you.

[ernieb]

Sounds like a reasoned and well thought through conclusion. My guess is that the dealer would be happy to have stock in the show room they are difficult to come by.

[Yugguy1970]

It's also cos just over a year ago the list price of my RAV design was 35k, it's now almost 40k and so if I wanted a to order a new RAV now it's 65 quid a month more than I'm paying.  

[Saxacat]

The increase in prices for cars is scary. I'm halfway through my 3 year lease deal on the RAV (sadly, no longer in a position to buy a car). Recently, while idly looking at the leasing site, I was shocked to see that the same spec RAV on the same deal I currently have would be over £70 a month more, well out of my price range. Unless things change drastically over the next 12 months, I'll be going way downmarket on my next car ☹️

[ernieb]

When I bought ours it was on the basis that we’d keep it for 5 years. Looking at what’s going on and unless things change for the better I can see us keeping this for longer. I took out a 5 year service plan coupled with the rolling service based warranty extension to 10 years would probably make it still very viable.

[Sealiedog]

Interesting about extending the current deal. I bought mine on 2 years 0% that finishes next April. I'll have to find out if they'll extend that if I order a car a few months before it ends.

[bunnyrabbit03]

2 hours ago, Saxacat said:

The increase in prices for cars is scary. I'm halfway through my 3 year lease deal on the RAV (sadly, no longer in a position to buy a car). Recently, while idly looking at the leasing site, I was shocked to see that the same spec RAV on the same deal I currently have would be over £70 a month more, well out of my price range. Unless things change drastically over the next 12 months, I'll be going way downmarket on my next car ☹️

Yes, scary indeed. For example, VW's PCP interest rates are now between 9.2% and 10.5%. Which explains why used car prices are still holding up well. 

[Yugguy1970]

1 hour ago, Sealiedog said:

Interesting about extending the current deal. I bought mine on 2 years 0% that finishes next April. I'll have to find out if they'll extend that if I order a car a few months before it ends.

Yep it was the branch finance manager that told me this.

We were lucky, we got 1.9% on the Yaris renewal and now they are like 9%.  So it makes sense to hang on to the RAV for at least 2 years and hope they come down again, or I will be downsizing too as the prices are mad.

[bunnyrabbit03]

1 hour ago, Yugguy1970 said:

Yep it was the branch finance manager that told me this.

We were lucky, we got 1.9% on the Yaris renewal and now they are like 9%.  So it makes sense to hang on to the RAV for at least 2 years and hope they come down again, or I will be downsizing too as the prices are mad.

Toyota use to be competitive in terms of the APR to compensate for the slightly higher prices due to the hybrid system. Not anymore 🥲

[Flatcoat]

1 hour ago, bunnyrabbit03 said:

Toyota use to be competitive in terms of the APR to compensate for the slightly higher prices due to the hybrid system. Not anymore 🥲

I am not sure that was the reason however irrespective of that, They don’t need to given supply chain issues and it gives dealers additional commission income to help compensate for slowing sales. We bought our RAV on 1.9% finance which at the time was much lower than most competitors/ especially VW group. We very briefly toyed with the idea of buying an Aygo cross last month, the high finance rates in part stopped the idea. However looking ahead it is likely in 2-3 years time (or less) interest rates will be on the slide and there will be cheap car finance as manufacturers subsidise purchases to keep sales going as we come out of recession. Hopefully that will be around the time we are replacing the RAV…… 

[Yugguy1970]

Yeah that's my thoughts.  Both our cars are on 1.9% so we'll keep them as long as we can.

[Mojo1010]

Sensible decision at the high interest rate now of 9.9%. I ordered the Yaris excel on 1.9% a couple of months ago. If it was this high rate I would not have ordered and stay put with my MK3 Yaris. 

In the UK as well as Europe, finances are being squeeze with cost of living, so I don't understand the high interest. This will only slow down orders dramatically. Only the high earners will be able to afford such hikes. 

[NASY]

Adrian thanks for the optimism, out of recession in 2 to 3 years time would be excellent news. I thought payback for Covid would take a lot longer than that but I'd rather take what you think and feel better about it.

[Mojo1010]

It's going to be difficult indeed, COVID I guesstimate would take 20 years to pay off and now this cost of living? Well it's very gloomy indeed.

Hey ho I'm just going enjoy when my new Yaris MK4 excel come next year and deal with things as it come? 😞

[Cyker]

1 hour ago, Mojo1010 said:

Sensible decision at the high interest rate now of 9.9%. I ordered the Yaris excel on 1.9% a couple of months ago. If it was this high rate I would not have ordered and stay put with my MK3 Yaris. 

In the UK as well as Europe, finances are being squeeze with cost of living, so I don't understand the high interest. This will only slow down orders dramatically. Only the high earners will be able to afford such hikes. 

I do wonder if they are doing it on purpose for that reason - I figure it's a win-win scenario - They don't have the production capacity to keep up with orders, so this will reduce their orders while increasing the income on those that do get sold to off-set the loss from reduced orders.

 

[Yugguy1970]

Tbh with prices the way they are and with the 10 year warranty I'd look at an approved used.   It's one way of getting a higher spec model than I could afford new.

[Cyker]

The Approved Used ones aren't exactly cheap either tho'...!  

[Mojo1010]

18 months old approved Yaris excel is the same price as a new one I ordered. I normally buy used from 2 years old +, this time new because of this as well my mk3 Yaris cost more now than I paid for it almost 4.5 years ago.

This gives me a buffer to absorbed the increase in new car prices. Also had enough of my current MK3 😄 as it doesn't do a good job driving regular medium distances. 

[ColinB]

I have another 2.5 years on my RAV4 PCP agreement, after which I was thinking of changing to a Yaris Cross (or Corolla Cross if they're sold here by then). With new cars now costing so much more (my Excel has increased by £4k since I bought mine) and higher interest rates I might end up paying off the GFV and keeping it for a few more years and my wife can keep her low mileage IQ for longer, rather than going down to one car.

[Cyker]

I'm definitely keeping my Mk4; I can't see a better car for me being produced any time soon. Unless some government smeg head messes up my plan again (I'm looking at you KHAAAAN!), I still intend for my next car to be an EV; The problem is my needs for a car are the worst case scenario for an EV - Small AND long-ranged. At the moment they are pretty much the opposite - mostly massive and short-ranged  

So I'm in for a long wait I suspect!

 

[Yugguy1970]

Volvo are supposed to be bringing out a small but decent range vehicle to try and get the gen x market but maybe if you ask nice they'll let you have one too 😁

[Rhymes with Paris]

Just now, Yugguy1970 said:

Volvo are supposed to be bringing out a small but decent range vehicle to try and get the gen x market but maybe if you ask nice they'll let you have one too 😁

Can boomers buy these too?

[Cyker]

Volvo make small cars?? Or is this Volvo small like "A Small Mountain"...?  

[ernieb]

I'd also like to eventually transition to a small/medium EV sized car with a good range but I think it will not happen until the Battery technology makes a big step forward in terms of charge density and/or recharge speed.