Cars are going to be the next bubble

[Allez Allez Allez]

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?

If you lease a car then be prepared to lease cars for the rest of your life.

I buy a car from new, keep it for 12 years and have 9 years of not having to pay any loan fees or anything else. Never understand why people change perfectly good cars just because they are a bit old, or have as many as 40,000 miles on the clock. My Golf, bought in 2006. 14 years old, 178,000 on the clock. I finished paying for it in 2009. Yes, it is starting to rattle, yes it has knocks and dents, but it gets me from a to b. Drove around Europe in it last August.