Probably a silly question, but how much does the average driver pay each month on car fiance?

[Mike 2121]

And do people with cars on hp and leasing still have to pay for their own repairs?

 

Can't find a simple answer in google lol 

[FROSTYBALLS]

6 minutes ago, Mike 2121 said:

And do people with cars on hp and leasing still have to pay for their own repairs?

Usually yes.

[Hybrid21]

As Mike says usually yes, unless it's a warranty repair.

[Hybrid21]

Car finance payments vary too much to comment.

It should be that you pay each month what you can comfortably afford, but unfortunately that's not always the case ☹️

[TonyHSD]

£0 monthly payments since 2018 and couldn’t be happier 👌

No matter what car you have or in what house you live, there are only two different types , your really own - paid off and the financing ones- rent, mortgage. There is nothing better than owning something without need to pay someone every month. The best of Toyota ownership comes after you finish paying for your new car and keep it for many more years afterwards. You will enjoy relatively recent car 3-5 years old,  owned and taken care by yourself, same car, same power, efficiency, reliability, drivability but no monthly payments. Plus after the manufacturer warranty expires, if you understand cars and have a driveway you can easily maintain the car by yourself and save tons of ££££ without worry about visiting dealer or other garages, like older days. 🏁👍

[Hybrid21]

Couldn't agree more Tony, well said 👍

[Eddie G]

22 minutes ago, TonyHSD said:

£0 monthly payments since 2018 and couldn’t be happier 👌

No matter what car you have or in what house you live, there are only two different types , your really own - paid off and the financing ones- rent, mortgage. There is nothing better than owning something without need to pay someone every month. The best of Toyota ownership comes after you finish paying for your new car and keep it for many more years afterwards. You will enjoy relatively recent car 3-5 years old,  owned and taken care by yourself, same car, same power, efficiency, reliability, drivability but no monthly payments. Plus after the manufacturer warranty expires, if you understand cars and have a driveway you can easily maintain the car by yourself and save tons of ££££ without worry about visiting dealer or other garages, like older days. 🏁👍

The beauty of Toyota, otherwise may as well get a Ford or whatever and replace every 3 years in a never ending cycle of payments and never owning your car.

[flash22]

Never had a bike/car on HP/Lease/PCP

Lease/PCP has always seemed like dead money to me, as you don't own the asset - if it all goes wrong, and you lose your income you're stuffed, 

 

At least if you own the car, you can still be mobile and pick up what ever work is available

[Roy124]

Flash, to a point, but that would apply to any form of HP.  You only own it if you pay for it.  If you can't make the payments then it would have to be handed back.  You might get some equity back though. 

As a retiree I have a regular income and can factor in the repayments.  I think I could afford a BZ4X though I am perfectly happy with the Yaris Cross in both capability and size. 

[mcntosh]

I’m just a couple of months away from my last HP payment and hoping for a few years of being off the finance treadmill.

As regards servicing and repairs,my HP agreement says that the car must be kept in good condition. 

[Bper]

23 minutes ago, Roy124 said:

Flash, to a point, but that would apply to any form of HP.  You only own it if you pay for it.  If you can't make the payments then it would have to be handed back.  You might get some equity back though. 

As a retiree I have a regular income and can factor in the repayments.  I think I could afford a BZ4X though I am perfectly happy with the Yaris Cross in both capability and size. 

Hi Roy,

Often wondered is it possible to finance a car on a state pension or is this a mixture of state and private that would allow someone to do this. 🤔

[mcntosh]

To answer the question in the title, the average finance payment is £300-£400 per month:

https://cardealermagazine.co.uk/publish/average-monthly-car-finance-payments-revealed-as-research-reveals-cash-still-popular-among-buyers/218942

 

[Cyker]

You need to check the terms of the scheme you're on.

Hire-purchase and PCP, usually by default you are responsible for maintaining and insuring the car etc.

However, some kinds of car lease I've heard of are all-in, so you just pay the monthly, and servicing (And sometimes insurance and breakdown!) is included. The monthlies on those will be higher than the other sort tho'.

I'd looked at stuff like that before as it can potentially be cheaper in real terms than buying outright, depending on how you look at the numbers (lies, damned lies and statistics etc.), but for high-milers like me it's rarely cheaper as you get heavily penalized by all these schemes for doing high miles.

I mentioned in another thread that Toyota are apparently throwing a lot of money at their dealers to get people on Finance schemes - I was offered a new fully loaded Excel at a slightly lower monthly rate than what I'm currently on, which was impressive given the interest on the new contract is much higher than my current one (0%!), but since the new ones are objectively worse than mine that was always going to be a hard sell for them (I told them get a HUD, 360 degree camera and heated wheel+seats back on the table and we'll talk, so I'm stating it now I'm taking full credit if these things come to the Mk4  )

 

[Mojo1010]

The Yaris mk4 excel with HUD & JBL  before April this year was about 250 p/m over 42m interest free (1600 initial payment) then a balloon payment at the end which I don't remember if wanted to own outright (pcp).

At the time I was debating MK4 Yaris and 2.0 corolla. 

[Auris James]

I have driven old Volvo 240,740, 940 estates since passing my test in 1999. For me I actually couldn't afford £300 a month. I actually don't believe in debt. No Direct Debits, no phone contract, no overdraft facility. Self employed in property maintenance. If I buy a new item I save up. Recently a washer dryer. 

I live on a narrowboat and so outgoings are around 4k per year. For 10 years saved up and bought a 2015 Toyota Auris Hybrid TS 3 years ago. 

The old Volvos I have found to be so reliable, easy to maintain. No big bills and generally go through an MOT or ball joint or drop link. Currently have a 1996 Volvo 940, on 208,000 miles. Bought for £250 5 years ago with MOT.

Hybrid, like the efficiency, zero tax. An A to B car. Like the colour. 

James. 

[Cyker]

23 minutes ago, Mojo1010 said:

The Yaris mk4 excel with HUD & JBL  before April this year was about 250 p/m over 42m interest free (1600 initial payment) then a balloon payment at the end which I don't remember if wanted to own outright (pcp).

At the time I was debating MK4 Yaris and 2.0 corolla. 

Yeah I front-loaded it to get it down to just over 200; The new one would have been just under 200 under similar terms, with the Toyota contributions, which I thought was impressive since the finance is higher and the car costs more!!

The thing is I'd been saving for an EV so long I could have bought it outright, but the salesman literally wouldn't let me, practically forcing me to go PCP. (Now I know why...! Toyota must have been fronting a lot of cash to their dealers all along to get people onto finance, which is likely where the discount I thought I'd haggled out of them came from!! Wish I'd known how it worked back then as I'm sure I could have gotten more off, but c'est la vie!)

I only caved because I was already fed up with the whole buying process, and as it was 0% I wasn't loosing anything (Just wish I knew how much they were gaining  )

The balloon payment will be the unpaid remainder of the value of the car, unless they agree to an extension.

 

[Roy124]

Cyker, the perfect solution is take 0% interest and bank the balance. 

To take a simple plan.  Bank £1,000 at instant access saving.  Bank a second on a 1 year no access higher rate.  Possibly a third year at best. 

[Cyker]

That's what I did!  

My plan was somewhat ruined by the fact interest rates are basically rock bottom on savings accounts (And still are, which is funny since the base rate has gone up... it's funny how they cut them so quick but aren't raising them as fast... bit like fuel prices!)

 

[forkingabout]

The CBP for my C-HR is currently rocking a 0.8% interest rate in a savings account 🤣

I did get the 0% finance rate from Toyota over 3 years.

[Roy124]

Cyker, Premium Bonds 3% and some bank 1 year rates similar. 

[Mike 2121]

👍👍🙂🙂

[Cyker]

14 hours ago, Roy124 said:

Cyker, Premium Bonds 3% and some bank 1 year rates similar. 

I had looked but I'd only seen such rates at banks I'd never heard of and only for limited amounts which put me off.

With premium bonds, the 3% isn't 'true' due to the lottery system it operates on, and if you're a generally unlucky person like me it isn't very appealing. I remember in the past I worked out I'd need at least 20-25k with them to realistically get back anything at all, otherwise the money will just sit there, and since they reduced the probability and prize pool a few years ago I suspect that minimum figure will be even higher!

It was an easier decision when ISAs still had a 5% interest rate!! (It's funny as I swear in the 80s/90s my current account had a higher interest rate than most savings accounts currently do! Why'd that all change??)

[AisinW]

In my opinion, 5-6 years old car with 60k miles is ideal because we still have about 5 more years warranty and it is still relatively new as long as the previous owner can show the maintenance book.  If your car is still relatively new, I would still do regular maintenance to keep the 3 yearas warranty.  After that, DIY is better for me because I do not need Relax-warranty.  Most parts that failed during 10 years are actually not covered (clutch, brake pads, rubber parts, shocks, struts, stabilizer links, etc.) 

[Puglet]

We've always been in the 'save up and buy' camp, but that did change slightly when we got our used main dealer Peugeot 108 few years ago, handily they had 0% HP on offer which meant my sister could afford a newer/better model car. So she still paid a healthy deposit/% of car price with very affordable monthly payments now paid off. We did ask the cash price for the car and saving over the HP offer was pretty small, so stuck with the HP offer and factoring in the dealer warranty made it a pretty good deal.

[mcntosh]

1 hour ago, AisinW said:

Most parts that failed during 10 years are actually not covered (clutch, brake pads, rubber parts, shocks, struts, stabilizer links, etc.) 

This has been my experience over the past four years. Car will be 9 years old in March and currently has 60K on the clock. I get it serviced by the dealer to keep the Relax warranty. The parts that have need replaced so far have all been wear and tear items which aren’t covered.

And yes, I realise I’m paying more for servicing so I can have a warranty on the car make which is least likely to ever need it. I’m one of life’s worriers.

Come March 2024, I may change to cheaper servicing or even chance some DIY. The  hybrid services on offer locally (currently just Halfords and Kwikfit) aren’t actually that much cheaper than Toyota’s. Toyota’s at least has the advantage of the Battery warranty. Otherwise, you’re basically paying extra for an inspection, which you could probably do yourself.