Tank Slap - Motorcycle Forum

duke63 wrote:Diesel cars and vehicles to have a £12.50 per day charge to enter many towns and cities by 2019. Set to be announced in Parliament this week. That's on top of any existing congestion charge.

That's annoying. I don't suppose it's going to do much for the residual value of my old Vito either.

Another two reasons for having driverless cars - no riding the brakes and no rubber necking an accident, even though it's been cleared up and all that's left is a recovery truck loading up a car

Is it a blanket on all diesel cars? I thought it was on the older diesels? (I'm assuming cars with no DPF?)

Probably find out the exact details when it's announced.

Currently it's for older diesels only. Euro 6 variants are OK. For the time being anyway.

Cav wrote:Is it a blanket on all diesel cars? I thought it was on the older diesels? (I'm assuming cars with no DPF?)

A lot of diesels with DPF's are affected. Its only Euro6 compliant diesels that are ok. Thats only the last couple(ish) of years.

Mine has a DPF and is now 9 years old - DPF has been around for a lot longer than that.

I have 2 diesels both 2012 year and have dpf. I have no idea what euro number they are and care less but will the arse fall out of the residual value?

Not fair if it does and the government persuaded us in to diesels in the first place.


Surely any charge cannot effect previous purchases before they rolled out the next set of stealth tax.

Much depends on the type of vehicle i suspect. Any sporty diesel should not see its value fall to much but i suspect your average diesel saloon car will.

My cars have been purchased on PCP for some years now. This is the first time that the residual value of the car doesn't come close to the value of the finance outstanding. Its not a big issue for me as once the finance is paid off to a point i can return the car to the finance company with no come back on me.

There have however been a few articles recently predicting that car PCPs may cause the next financial crisis as there are concerns in the finance industry that deals are being agreed by the dealers that don't cover the cost of the vehicle and the number of defaults on PCPs is rising.

As most of you know I work with heavy plant and there have rumblings about emissions for a while now, to the point where a couple of years back I advised my oldest lad not to buy diesel because something like this was on cards.
For a change he listened and bought petrol, but in 5-10yrs petrol will be getting the same treatment, there sadly isn't a safe option save for electric that I can see, even hybrids will be killed off in time. This is just the first painful step I think.

I always pay cash Duke. I m too old to learn new tricks and have no idea what pcp even is buddy. I save up for stuff and buy it when times allow so no worries on residual value with a finance company tbh. My concern is, will the car effectively be worth penny's come 2019 and this new ruling? If so may I need to chop in now and buy something else and cut my losses.

Deegee wrote:As most of you know I work with heavy plant and there have rumblings about emissions for a while now, to the point where a couple of years back I advised my oldest lad not to buy diesel because something like this was on cards.
For a change he listened and bought petrol, but in 5-10yrs petrol will be getting the same treatment, there sadly isn't a safe option save for electric that I can see, even hybrids will be killed off in time. This is just the first painful step I think.

I cried when I read your post Deegee my old mate

Being an old dinosaur myself I love things that are fuelled by dinosaur poo and make primeval noise''s when I step on the loud pedal

PCP is effectively leasing it with an option to buy at the end of it.

If i was buying a car for pleasure than i would do it differently as i would want to run it for a number of years but since this is just a tool for work for me then this works best in my circumstances.. There is no way personally i would want to sink £30k into a car in one go that is used mostly for work.

Deegee wrote:As most of you know I work with heavy plant and there have rumblings about emissions for a while now, to the point where a couple of years back I advised my oldest lad not to buy diesel because something like this was on cards.
For a change he listened and bought petrol, but in 5-10yrs petrol will be getting the same treatment, there sadly isn't a safe option save for electric that I can see, even hybrids will be killed off in time. This is just the first painful step I think.

You are definitely correct. All research development work for the future in the car industry is focused solely on electric cars that drive themselves.

I have no idea how Porsche and Ferrari et al (and probably most of the bike industry) see their long term future but it is indeed the future, like it or not.

duke63 wrote:PCP is effectively leasing it with an option to buy at the end of it.

If i was buying a car for pleasure than i would do it differently as i would want to run it for a number of years but since this is just a tool for work for me then this works best in my circumstances.. There is no way personally i would want to sink £30k into a car in one go that is used mostly for work.

As an Accountant maybe I need your advise Duke

The next one i have agreed o buy may well be my last in this way.

Then i want that Porsche. I keep reminding the wife that in a rash alcohol-induced moment of sexually induced contentment, she promised to buy me one with the lump sum from her pension.

duke63 wrote:Much depends on the type of vehicle i suspect. Any sporty diesel should not see its value fall to much but i suspect your average diesel saloon car will.

My cars have been purchased on PCP for some years now. This is the first time that the residual value of the car doesn't come close to the value of the finance outstanding. Its not a big issue for me as once the finance is paid off to a point i can return the car to the finance company with no come back on me.

There have however been a few articles recently predicting that car PCPs may cause the next financial crisis as there are concerns in the finance industry that deals are being agreed by the dealers that don't cover the cost of the vehicle and the number of defaults on PCPs is rising.

I've been doing some reading on this also. Take a look at some of the articles regarding car leasing and financing in the states. It's terrifying.

Subprime PCP and car finance is the next bursting bubble, however car finance is based on depreciated assets that are constantly being replaced. At least the housing finance bubble left useful assets behind when it went bang in 2007 / 8

I've always bought my cars cash, however with residuals dropping i'm considering changing that view.

PCP is the only thing propping up these car companies now. The western world is heading towards another financial bang. Very few lessons have been learnt from 2008 as credit is still propping up the world.

If i was in charge credit would be gradually phased out and tightly controlled. People cannot be trusted generally to live within their means, which is the only way for a long and sustained stable economy.

The western world has too much disposable income presently, so they don't want to look or care. Most of it based on credit.

The problem is though that a catastrophic collapse in car sales would have a massive impact on the world economy. The car industry is a very big part of that world conk my so the recession is caused could be horrendous. On the more positive side us that car finance is only a small compared to housing finance and is also only a short term loan.

From a buyers perspective the plus to a PCP is if the secondhand values increase during the term of the loan, then the buyer wins but if the market collapses then only the finance company loses as the guaranteed value covers the buyers losses. More and more manufacturers are pushing customers towards pure lease hire though.

Cookie totally agree on every point except the last

If a persons disposable income is credit based then they don't actually have disposable income.

All being said I ve always bought everything cash as don't like paying interest. IMO you only have credit once in your life, the first time you ever take it. After that your just paying interest on buying goods before you can afford them which is actually decreasing your wealth.

That being said are you chaps advising against this policy on cars and bike purchases ?

"conk"

There isn't the same right answer for everyone, Blade. If I didn't do quite so many miles then I don't think it would work for me. With a PCP you are effectively paying for the depreciation and the cost is fixed. I don't ever have to pay repair bills as the car is always under warranty so I know exactly what it will cost me. I may end up better off if prices increase but I won't be worse off as I can just give the car back at the end of the term and any loss is their problem.

The secret is to wait till the interest rate is low on the car you want, never put a large deposit down and negotiate the monthly repayments as low as possible. Dealers are happier bargaining as they get commission on the finance too.