Cars are going to be the next bubble

[Bluebina]

I’ve been forced by my firm to sell my car and buy a newer one.

I have been looking at relatively new second hand cars but the depreciation on them is often the same if not more than I can get a brand new lease for.

For example I looked at a 1-2 year old golf that I anticipate the depreciation to be circa £130 a month if bought from a dealer. For the similar price I can lease a brand new good specced Kia for 2 years, wear and tear costs and very minimal service costs.

Cars have never in my opinion been cheaper and when you can buy preregistered cars for circa 40% of the RRP, surely this is undermining the used car market.

I don’t know what the outcome will be, but something surely will give?

As to people spending too much of their money on leasing fancy cars, I think it might lead more people into financial difficulties in the future, and could cause a bit of a bubble?

A lot of young pwople complain that they can't get on the housing ladder but they lease two new Mercedes?