When will people stop buying Cali's?

[soulstyledevon]

Good luck to you Davey. I guess you only live once.

It wouldn't be for me. I would have bought secondhand or built my own to my budget. Actually been there and done it.
A £50k van will end up costing way north of £60k once interest is added

 

[Amarillo]

I am crazy. I am buying a Beach on a VW finance deal. It's the only way we could afford to get one and still have the children at home to enjoy it with us! We saved up £10000 (which took a fair while and was very hard when we don't have much left at the end of the month).
Would love to be rich enough to buy outright or afford loan payments on the whole amount but I'm not. Of course it's cheaper to pay upfront or have a loan with a lower rate but sometimes it is the monthly payment that is king.

The cheapest way to finance such a purchase may well be to remortgage your home. Our mortgage rate is 1.38% (1.13% plus base rate). An increase in the loan of £40,000 over the 15 remaining years would cost us about £246 per month (variable dependent on the Bank of England Base Rate), a total repayment of £44,280.

 

[daveyboydanger]

The cheapest way to finance such a purchase may well be to remortgage your home. Our mortgage rate is 1.38% (1.13% plus base rate). An increase in the loan of £40,000 over the 15 remaining years would cost us about £246 per month (variable dependent on the Bank of England Base Rate), a total repayment of £44,280.

I suppose it all depends on what deal you strike at the start too. With interest added we still won't reach list price on the money we eventually pay out (and even more so with prices rising almost weekly!).
Don't think we can get another £40k on the mortgage unfortunately.

 

[soulstyledevon]

The cheapest way to finance such a purchase may well be to remortgage your home. Our mortgage rate is 1.38% (1.13% plus base rate). An increase in the loan of £40,000 over the 15 remaining years would cost us about £246 per month (variable dependent on the Bank of England Base Rate), a total repayment of £44,280.

Your probably right. But then it's 15 years to pay back a vehicle...???
We changed the term of our mortgage 2 years ago from 15 years to 5 and will save around £80k of interest. It's quite staggering really and what I would class as a serious sum of money. But as stated in another thread £73k for a California. That's eye watering and some ways very disappointing.
The people's vehicle it is mostly definitely not

 

[GrannyJen]

I will replace my cali as long as I want to.

Want is the operative word.

I bought Albert part exchange with a 2 y/old X3 and the depreciation on the newer, more expensive Albert in the last three years is less than the depreciation would have been on the X3 had I decided to keep it.

If I sold Albert then I would have to replace him with something, probably a reverse of when I bought him, a nice fat, expensive 4WD that costs in terms of capital outlay a lot less but in terms of depreciation a lot more.

However I must admit that with my current love affair with Albert then parting could be a long way off and the replacement could well be a 4WD Zimmer frame (sadly manual as no DSG available)

 

[Shaun]

People will stop buying them when a better/cheaper alternative comes along.
At the moment there are plenty of cheaper alternatives but none of them as good as or better the Cali .

 

[motacyclist]

Oh how very true that is, it infuriated me when I got mine, they never were able to solve the wet knees problem when it rained.

That's part of the charm of owning a Mog!

 

[Amarillo]

I suppose it all depends on what deal you strike at the start too.

Yes - highly significant. We ordered a van to our spec to be used as a demonstrator vehicle in exchange for a 14% discount. With VAT at 20%, we are paying 3.2% above the ex-VAT price.

Don't think we can get another £40k on the mortgage unfortunately.

That would rule out that option, then.

it's 15 years to pay back a vehicle...???

I wouldn't look at it that way. You are exchanging a chunk of your home for a motor vehicle, and then buying back the chunk of your home. The motor vehicle would be fully owned by you from the outset.

We changed the term of our mortgage 2 years ago from 15 years to 5 and will save around £80k of interest.

It is quite staggering the amount of money that can be saved with good financial management. We keep just under £20,000 in our joint current account which had been paying 3% interest on balances of up to £20,000 (now cut to 1.5%) with an account charge of £60 per year. I have a current account which gives me travel insurance and AA cover, including HomeStart, with no account fee so long as I keep my balance above £4,000.

Those three benefits are tax free, and must be worth in excess of £1,000 of gross pay per annum.

 

[ArunAlec]

Yes - highly significant. We ordered a van to our spec to be used as a demonstrator vehicle in exchange for a 14% discount. With VAT at 20%, we are paying 3.2% above the ex-VAT price.



That would rule out that option, then.



I wouldn't look at it that way. You are exchanging a chunk of your home for a motor vehicle, and then buying back the chunk of your home. The motor vehicle would be fully owned by you from the outset.



It is quite staggering the amount of money that can be saved with good financial management. We keep just under £20,000 in our joint current account which had been paying 3% interest on balances of up to £20,000 (now cut to 1.5%) with an account charge of £60 per year. I have a current account which gives me travel insurance and AA cover, including HomeStart, with no account fee so long as I keep my balance above £4,000.

Those three benefits are tax free, and must be worth in excess of £1,000 of gross pay per annum.

I agree, as well as the two deals you mention there are some high returns available through Peer to Peer lending. The rates for easy access start at around 2% and go up from there depending on the level of risk. Given the awful interest offered by high street banks and the growth of P2P I reckon they are well worth considering.

 

[Amarillo]

The rates for easy access start at around 2% and go up from there depending on the level of risk.

Far too risky for me. Not much different in investing in Lamelegs running in the 1.45 at Kempton Park.

 

[andyinluton]

I am crazy. I am buying a Beach on a VW finance deal. It's the only way we could afford to get one and still have the children at home to enjoy it with us! We saved up £10000 (which took a fair while and was very hard when we don't have much left at the end of the month).
Would love to be rich enough to buy outright or afford loan payments on the whole amount but I'm not. Of course it's cheaper to pay upfront or have a loan with a lower rate but sometimes it is the monthly payment that is king.

Totally agree, If you've got kids you need it now to enjoy it with them whilst you still can - no point missing holidays with the kids now just so you can have a van in the future.
At the rate that the list price is going up, any interest saving made by paying cash in say 4 years times instead of finance now will have been wiped out by the new higher purchase price. In the meantime you would have missed out on 4 years use.

 

[MrP]

I am crazy. I am buying a Beach on a VW finance deal. It's the only way we could afford to get one and still have the children at home to enjoy it with us! We saved up £10000 (which took a fair while and was very hard when we don't have much left at the end of the month).
Would love to be rich enough to buy outright or afford loan payments on the whole amount but I'm not. Of course it's cheaper to pay upfront or have a loan with a lower rate but sometimes it is the monthly payment that is king.

Go for it! There are cheaper ways to finance but it does not suit all people. I always like to apply "pigeon" maths and on this basis and looking at the VW Beach basic example:
The total cost over 3 years is £40802. Based on the fact the van should be worth around £30000 (guess) at that point that is £10802 depreciation. Over 3 years that is £300 per month which is less cost of ownership than a new Golf or Qashquai. Need I say more.

 

[Paul Morris]

People didn't stop paying insane money for houses.......

Most young people can no longer afford houses. its my age group that keep the market moving and that just down to luck.

 

[Days out]

Go for it! There are cheaper ways to finance but it does not suit all people. I always like to apply "pigeon" maths and on this basis and looking at the VW Beach basic example:
The total cost over 3 years is £40802. Based on the fact the van should be worth around £30000 (guess) at that point that is £10802 depreciation. Over 3 years that is £300 per month which is less cost of ownership than a new Golf or Qashquai. Need I say more.

Agree! Now divide the £300 by the number of mini breaks you can have (campsite fees are usually between £15-30 per night - compared to a bed and breakfast or hotel at at least £100 plus a dinner etc) and by my "man maths" you are in credit! Plus you can't buy back the time you have spent with your kids not sitting in front of a tele but having fun outside an meeting other kids etc...

 

[MattBW]

I stopped buying them as soon as I had one.