Has the increased cost of living had an impact on your automotive buying plans???

superatticman · May 10, 2022

Was just wondering whether the fact the majority of us seem to have less disposable income has affected your short or longer term automotive buying plans? I usually change every 4 years or so but for a number of reasons am not preparing for any change at all come January 2023. Unable to really acquire any substantial savings being one reason, having a Lexus GS (in spite of its age) with only 50k on and full dealer SH being another. A motor trader who I met at one of Dad's freemasons do'd told me I'd be absolutely mad to sell a reliable GS in the current climate. Was pondering a move to a GS hybrid but I simply can't justify it for that 'newer car feeling'.

Anyone else in a similar situation?

Malc · May 10, 2022

44 minutes ago, superatticman said:

I simply can't justify it for that 'newer car feeling'.

10 years young Lexus just ain't old tbh ...... and the brand new car feeling vanishes quite rapidly you know !

I used to be a car dealer ( and other things too ) and could rarely understand why anyone in their right mind would be p/ex'ing a perfectly good car for another good car from my forecourt ........ but I never refused their personal ambitions to " upgrade " and give me some money

My last 22 years has been with a Ls400 . the first one a Mk1 I couldn't sell from my forecourt in a petrol time crisis it seemed ........ so I used it and never changed from a Ls400 ...... this one I've had for 11 years and now on 238k miles ........... and I've driven very very many marques in my time

With Lexus you have the opportunity to keep with comparative low cost long term ownership staying with what you have

Forget the " upgrading " to a later model car . it's usually expensive and totally pointless . especially in straitened times if you're there right now :wink3:

Malc

superatticman · May 10, 2022

To be honest, you can give your current car a bit of the 'new car' feeling by giving it a good exterior polish and interior valet. Leather restore the seats etc.

Get the rims refurbed, touch up any chips, scratches etc. Maybe even get a few bits sprayed properly. When its time, a decent set of tyres can help with road noise etc.

Spock66 · May 10, 2022

3 hours ago, superatticman said:

Was just wondering whether the fact the majority of us seem to have less disposable income has affected your short or longer term automotive buying plans?

I suspect a Lexus forum is not the most accurate barometer of individual economic health / wealth 😉

Regardless of income I tend to purchase nearly new used (let someone else take the initial depreciation hit) and then run the car until I start to loose confidence in it's reliability and maintenance costs increase. The attraction of Lexus was long term reliability and the Relax warranty.

rayaans · May 10, 2022

I think im in a more fortunate situation that most.

I could change cars now but Im waiting for the new RX to come out.

I realise bills have gone up and can see more money going out of our accounts but not to the extent that I would change my spending habits or lifestyle. My utility bill seems to have jumped the most out of all my spending in terms of percentage. Its gone from £200 to £600 a month.

The pandemic seems to have actually boosted my investments and income as I did a lot of investing and things I wouldnt normally get time to do during the middle of it which has offset everything else

Malc · May 10, 2022

26 minutes ago, Spock66 said:

The attraction of Lexus was long term reliability and the Relax warranty.

.......... an oxymoron maybe ..... :wink3:

1 minute ago, rayaans said:

Its gone from £200 to £600 a month.

I'm thinking when PooTin vanishes, quite soon hopefully from what I think we're witnessing these past days, and global sense prevails, the oil and gaz selling nations, including the new to be accepted Russia with a " normal " and acceptable non-tyrannical war-mongering Regime in place . we will evidence a significant drop in the " panic " price of these fuels ....... especially as there's going to be some sort of inevitable huge slowdown in manufacturing Chinese consumption with the now desperately sad and rampant covid they're experiencing

Whatever ........ I shan't be locking in to any new deals come my energy supply contract renewal date of 18th May :unsure:

Malc

rayaans · May 10, 2022

3 minutes ago, Malc said:

.......... an oxymoron maybe .....

I'm thinking when PooTin vanishes, quite soon hopefully from what I think we're witnessing these past days, and global sense prevails, the oil and gaz selling nations, including the new to be accepted Russia with a " normal " and acceptable non-tyrannical war-mongering Regime in place . we will evidence a significant drop in the " panic " price of these fuels ....... especially as there's going to be some sort of inevitable huge slowdown in manufacturing Chinese consumption with the now desperately sad and rampant covid they're experiencing

Whatever ........ I shan't be locking in to any new deals come my energy supply contract renewal date of 18th May

Malc

I got caught out. Went with utility point who went bust and then got transferred to a standard tariff with EDF.

Having said that I've probably saved quite a chunk compared to just remaining on standard tariff over the past 10 years so it's probably broken even 🤣

superatticman · May 10, 2022

1 hour ago, Spock66 said:

I suspect a Lexus forum is not the most accurate barometer of individual economic health / wealth 😉

Regardless of income I tend to purchase nearly new used (let someone else take the initial depreciation hit) and then run the car until I start to loose confidence in it's reliability and maintenance costs increase. The attraction of Lexus was long term reliability and the Relax warranty.

Yes....ownership is probably fairly 'middle class' in general but quite often those in that bracket can have some pretty heavy overheads too.

That's a sound tactic. A Lexus shouldn't really need any major repairs until the 100k mark. At least. Of course 50-100k things like suspension bits might need replacing due to potholes, humps etc. Consumables such as tyres, pads, discs are going to be required throughout the cars lifecycle.

MartinH · May 10, 2022

9 hours ago, superatticman said:

Lexus GS (in spite of its age) with only 50k on and full dealer SH being another

If you change your mind, give me a shout!

Rabbers · May 11, 2022

Mostly on the basis of a desire to maintain the frequency to which I had become accustomed with company cars before I retired, I have tended to buy a new car every three or four years. That I am not planning to buy a new car at the present time has less to do with increasing prices and costs and the uncertain economic climate than my unwillingness to move away from Lexus despite the current absence in the range of any model that realistically takes my fancy. Having long ago become loyal to the Lexus brand for all the usual quality-, reliability- and service-based reasons, evidenced by my repeat-purchases of all generations of the IS since launch, I believed - and still believe - that I had finally found my perfect car when I bought my first RC300h in 2016. In fact, I was so happy with it that I didn't hesitate to buy the facelifted model in 2019, figuring that I would almost certainly remain an enthusiastic customer for whatever evolution of the car would emerge in the future. Then, to my surprise, Lexus not only discontinued the RC but also the IS, a return to which I might have considered an acceptable if not a wholly satisfactory size-based alternative. I have looked quite closely at the ES and the new NX, but the large size of the former and the high price of a fully-loaded version of the latter are the main obstacles inclining me to stick with my RC in the foreseeable future.

NemesisUK · May 11, 2022

I could have written that response Renato! My views exactly :thumbsup:

superatticman · May 11, 2022

3 hours ago, NemesisUK said:

I could have written that response Renato! My views exactly

I think the theme is definitely stick rather than twist!!!!

hockeyedwards · May 11, 2022

I have never bought a new car, the Mrs who has been driving for far less time than me has had 2 of her 3 cars be from new 😛

I see that the current climate comes with opportunities as well as drawbacks, I'll never give up on car dreams (LFA!), maybe modify the strategy or move the timeline a bit, but never deterred! I think a big factor is money management and use of financial tools.

I live off a spreadsheet personally, maybe a bit strict for some, but I am very much a control freak, love to know what is coming in and what is going out, always base plans off 'worse case scenarios' and then know what is afforable and living within means, with the odd splurge here and there as rewards for being a good boy 😆

I completely realise the current climate has impacted everyone in different ways and a few close friends have been hit harder than the rest of us, but I still think that a reassessment of how they use/ save money would ease the strain, but as always, it can be a tricky subject to talk about.

I also echo the comments regarding Lexus, I'll wait it out for now and see what comes around, not that I think the F or LS are going anywhere, the NX might become the newer shape once used prices start to come in or maybe an RZ (a shock to those knwoing my EV thoughts and comments of late) 😛

Shahpor · May 11, 2022

@hockeyedwards given your current car collection, I would love to pick your brains on your money management strategy 🙂

wharfhouse · May 11, 2022

13 hours ago, Rabbers said:

Mostly on the basis of a desire to maintain the frequency to which I had become accustomed with company cars before I retired, I have tended to buy a new car every three or four years. That I am not planning to buy a new car at the present time has less to do with increasing prices and costs and the uncertain economic climate than my unwillingness to move away from Lexus despite the current absence in the range of any model that realistically takes my fancy. Having long ago become loyal to the Lexus brand for all the usual quality-, reliability- and service-based reasons, evidenced by my repeat-purchases of all generations of the IS since launch, I believed - and still believe - that I had finally found my perfect car when I bought my first RC300h in 2016. In fact, I was so happy with it that I didn't hesitate to buy the facelifted model in 2019, figuring that I would almost certainly remain an enthusiastic customer for whatever evolution of the car would emerge in the future. Then, to my surprise, Lexus not only discontinued the RC but also the IS, a return to which I might have considered an acceptable if not a wholly satisfactory size-based alternative. I have looked quite closely at the ES and the new NX, but the large size of the former and the high price of a fully-loaded version of the latter are the main obstacles inclining me to stick with my RC in the foreseeable future.

I'm exactly the same but with my IS 300h - would have most likely changed it by now for the new IS that UK/Europe decided not to bring here... Have done 118K in mine now but drives like new and so seriously thinking about running it until it gives any major issues and see how the whole zero emission thing plays out and we know more before jumping to anything else.

Linas.P · May 11, 2022

In short - no.

What has impacted my car buying/selling plans was semiconductor shortage, which delayed manufacturing of new cars and I guess demand was lower as well because of pandemic. Les new cars, less depreciation on used ones and as result used car prices became little bit stupid at times. I literally sold my last car for more than I bought it few years back.

The car price just being higher does not concern me to be honest, what concerns me is that I don't know how long it is going to last i.e. I would hate to buy the car now say for £20k and 6 month later for some reason there happens to be bust and all the prices halves making my car £10k. In short I don't like making big decision like car purchase in times when market is volatile and unpredictable.

So was it increased cost of living - I would say no, it is not like increased cost of living means that I can't afford the car I want anymore, I just may need to pay little bit more. But the car prices not dropping as much as I would expect does affect my buying - like for example I expected RC-F to be under 20k now (they were selling as low as £24k 4 years ago!), likewise LC500 maybe in low 30s... Again I remember I test drove LC500 just at the start of pandemic and it was mint 2 years old car with 16k miles for £42k, now it would be closer to £60k and it would be nearly 5 years old. I guess in some way increased price of cars could be considered "higher cost of living", but again the price is not an issue in my opinion, what is the issue for me is that I am afraid depreciation got frozen for some time, but it may catch-up at some point and I just see some cars like a bit overpriced asset which may burst one day. Not being able to predict and calculate depreciation is what impact me the most.

hockeyedwards · May 12, 2022

12 hours ago, Shahpor said:

@hockeyedwards given your current car collection, I would love to pick your brains on your money management strategy 🙂

Live and die by the spreadsheet! 😛 If you can account for all ingoing/ outgoing money, you can sit back and look at a distance at where savings could be made, are you getting the best deals for your luxuries, do you need said luxuries etc Also, quite simply, make your money work or if the offer is good, make someone elses do work for you! If it is sitting in the bank accumulating a naff % then you might as well just go spend it. Has to be invested, there are so many ways to do so but I don't tell people where - it is all a risk and blindly following someone is a bad strategy. Talk to financial advisors, investment companies etc. Small to mid size are best, they tend to make a % off your gains so it is in their interest to advise correctly and safely, rather than just take an upfront fee, pocket it and then not give two poops about your actual investment 🙂

Malc · May 12, 2022

10 minutes ago, hockeyedwards said:

Talk to financial advisors,

I'm waiting for the day I can have a chat over a coffee with Warren Buffet .... just to see where I've been going wrong ...... can't leave it too long tho' eh ! :wink3:

Reading the other day his daughter convinced him to change his car, an upgrade, so he bought one 4 years old ......... so Adam, he's telling you to " stick " I'm sure . me too and I don't have his wisdom either ...... think Warren's old car might have been 16 years old or summat

Malc

superatticman · May 12, 2022

2 hours ago, hockeyedwards said:

Live and die by the spreadsheet! 😛 If you can account for all ingoing/ outgoing money, you can sit back and look at a distance at where savings could be made, are you getting the best deals for your luxuries, do you need said luxuries etc Also, quite simply, make your money work or if the offer is good, make someone elses do work for you! If it is sitting in the bank accumulating a naff % then you might as well just go spend it. Has to be invested, there are so many ways to do so but I don't tell people where - it is all a risk and blindly following someone is a bad strategy. Talk to financial advisors, investment companies etc. Small to mid size are best, they tend to make a % off your gains so it is in their interest to advise correctly and safely, rather than just take an upfront fee, pocket it and then not give two poops about your actual investment 🙂

Agree with this. Some relatively basic maths and spreadsheet administration can give you a very accurate picture of where you are financially and where you could be depending on in/outgoings.

I worked out recently what I would have saved had I kept my superb old 1999 Honda Accord 3.0 V6 that I swapped for an E60 in 2014. It would have been on around 160,000 miles now but I'd suggest with dealer maintenance it would have still been running as of the day I sold it. I know it was still running like a dream with its new owner at 120k

In short I'd have saved £23k in new car costs. Would have saved around £3000 in repairs that the E60's flawed engineering lumbered me with. Probably would have cost me another £1500 over the Lexus in repairs though. Stuff like alternator would have been vulnerable. Lets also stick in £500 for body touch ups at that age and mileage. The Honda was heavier on fuel than either though by around £500 a year so lets make that £4000 extra.

Insurance, tax and bog standard servicing etc there really wasn't much in it.

I made it approx £20k saving. Enough to buy.....growing up that would have been a deposit on a house, but nowadays? I suppose I could have nearly bought late GS Hybrid.

However...I've loved running my GS250 and will continue to do so.

Rabbers · May 12, 2022

2 hours ago, Malc said:

I'm waiting for the day I can have a chat over a coffee with Warren Buffet ....

Mr Buffett is not only a great investor but also a considerable wit (or maybe he just has good speechwriters). My favourite quote from him is: “Some things just take time. You can’t produce a baby in one month by getting nine women pregnant”.

Alan305 · May 12, 2022

Fully agree with nearly new. Of our six only two have been new. Before the explosion of second hand prices there were some real bargains.

Our one year old LS430 on 7,000 miles with £17k off

Our one year old GS300h on 1,500 miles with £15k off list.

Malc · May 12, 2022

2 hours ago, superatticman said:

my superb old 1999 Honda Accord 3.0 V6

and this today would be quite a rare sort after beast with some useful value too methinks :yes:

Malc

Spacewagon52 · May 12, 2022

There are many variables to consider at present. The main factor being your disposable income – i.e. money left after paying home bills and food. For some an extra £400 a month on bills is not that painful, to others it is a fortune. Deciding on when to change your car is, again, a decision based on several factors.

One of my neighbours prioritises a new motorcycle every two years over decorating and maintaining the family home to a reasonable standard (in my view). Most people on the forum love cars and motoring, so a car might be a higher priority compared with Joe public. I agree that the “new” car feel soon wears off. Linas says ,“Not being able to predict and calculate depreciation is what impact me the most.” This would only apply if you changed your car regularly. Depreciation significantly reduces the longer you keep a vehicle. Many on here own older Lexus cars and can afford to run them due to good reliability. Would I consider running a 1998 4 litre Jag – no way! Second hand prices, at present, are ridiculous as far as I am concerned but if your car is written off you have no choice but to buy another. I agree, with Spock99 (Andrew), when a car becomes unreliable then that would be the time to change. In the nearly 7 years I have owned my LS400 it has not depreciated. Yes, I have had expense on consumables, but that is with any car.

I will probably stick with my present cars.

I agree with Linas and Malc, that the volatility in the car market is uncertain right now but it will settle down in the future. The big uncertainty is deciding on the fuel to run your next purchase. - diesel/petrol/hybrid/plug-in hybrid/electric ?

Have I opened another can of worms?

Linas.P · May 12, 2022

1 hour ago, Spacewagon52 said:

Linas says ,“Not being able to predict and calculate depreciation is what impact me the most.” This would only apply if you changed your car regularly.

The big uncertainty is deciding on the fuel to run your next purchase. - diesel/petrol/hybrid/plug-in hybrid/electric ?

I guess we need to define "regularly", for some it is every 2 years, for others it is every 14 years 🙂

It is as well more important if you buying nearly new cars - obviously if the car is 15 years old and already depreciated 90%, then whatever depreciation will hit you will be few £ and not thousands, and then you can change them every month it won't matter anyway. However, on nearly new car it car easily be 15% a year and when this comes of the cost of £40k this could hurt. My main point was that - now it is much harder to estimate depreciation than before, because all new cars since ~2018 have not followed "normal" depreciation and are now worth like 30% more than they should have been considering historic trends. And that is what makes me afraid to buy into more expensive car, I am afraid that it would drop by 30% in single year.

So far I was very lucky - I bought RC200t expecting it to keep for at least 5 years and I was calculating that it will depreciate from £15.5k I paid to ~£10k in 5 years, which was reasonable estimate at the time. It was amazing deal for 2.5 years old car and I could see getting 10k for 7 years old Lexus. Problem was I immediately hated it and I felt like I will be losing loads of money if I would have sold it right away... so I kept it and I was just fortunate that market exploded and I ended-up selling it for £19k two years later. But that is exactly what I am afraid of when looking at it from opposite perspective - I don't want to be that guy who purchases car which is "worth £13k" for £19k, "because that is market price now". Again - I am maybe little bit weird, but for me it does not matter how much things cost, what matters is to "never pay more than they are worth" and I just can't see how 5 years old car now can be worth more than 2.5 years old car 2.5 years ago. I think "something is up" with the market and I think it will reset at some point, definitely don't want to buy just before it does, but sadly I don't know when it will happen. That is how I ended up with broken IS250 from auction... and potentially as well looking to buy BMW E24... but classic cars prices are stupid as well nowadays.

One thing which I hope is not "uncertain" is that nobody is looking to buy diesel now, it would be very unwise decision. What it makes particularly easy for me is that I can't charge the car, so electric and mostly plug-in are out of the question straight away. So I am left with petrol or hybrid.

Moleman · May 12, 2022

4 minutes ago, Linas.P said:

One thing which I hope is not "uncertain" is that nobody is looking to buy diesel now, it would be very unwise decision. What it makes particularly easy for me is that I can't charge the car, so electric and mostly plug-in are out of the question straight away. So I am left with petrol or hybrid.

I am amazed how many new very pricey diesels I see around, people still seem to be buying them, (perhaps they are fleet cars).

Agree currently petrol or hybrid seem the more sensible choices.