Is car finance the way to go now?
Discussion
To be honest, it would take too long for me to comprehensively debunk the nonsense you've written in those two posts. Once your undertones of "dirty foreign money" and "immigration" come to the fore, it's obvious that your agenda is somewhat different. You might find more like-minded views in the Daily Mail comments section...
This thread has gone way off topic, but I'll contribute anyway.
I'm 30, and I feel that a line was draw in the sand a few years after I was born that divides myself from 'the youth of today'. Out of college I nabbed an apprenticeship at a multinational aerospace firm, I worked my way up, moved into a specialist role, and am doing pretty well for myself. I lived at home until I was 26, as I was saving for a house. I bought my first house at 26, and a few months ago my wife & I moved into our 2nd house, now at the age of 30 we live in a 4bed detached that will be our home for the next 10-15yrs. I feel that for someone just 4-5yrs behind me in life, this is no longer possible.
My brother is 27, he rents a flat with his mate, he earns around the average wage for the midlands, in this current situation he's never getting on the property ladder, prices are rising faster than he can save a deposit. He's got to move back in with my parents, and accept that he'll be there for another 3-4yrs before he can buy, so he'll be buying his starter home say 2yrs after I managed to buy my 2nd home. My sister is 24, she's at uni studying animal behaviour, or something, and wants to be a zoo keeper. In my eyes the only way she'll ever get onto the property ladder is with the bank of mum and dad (that she's been living off since she was 16, but that's another story).
My parents weren't well off when they were younger, but at the age of 24 they managed to buy their first house, my dad was a mechanical fitter and my mum worked part time as a receptionist, 2 people in that line of work these days would have no chance, but they understood they couldn't have what they wanted from day 1. My mum went from a receptionist at 24, to a company director of a private healthcare firm in her mid 50's, their sacrifice early on reaped it rewards later in life, the problem is 'the youth of today' want this success instantly (pop culture has a lot to answer for, watching the rich & famous be rich & famous has never been so easy).
To get back on track, I got my car on PCP, its a Focus ST. With the discounts available on Fords buying new was only around £500 more than buying one a year old, and was significantly cheaper than leasing. End
Edit - I was also the last year at my firm to get on the final salary pension scheme.
I'm 30, and I feel that a line was draw in the sand a few years after I was born that divides myself from 'the youth of today'. Out of college I nabbed an apprenticeship at a multinational aerospace firm, I worked my way up, moved into a specialist role, and am doing pretty well for myself. I lived at home until I was 26, as I was saving for a house. I bought my first house at 26, and a few months ago my wife & I moved into our 2nd house, now at the age of 30 we live in a 4bed detached that will be our home for the next 10-15yrs. I feel that for someone just 4-5yrs behind me in life, this is no longer possible.
My brother is 27, he rents a flat with his mate, he earns around the average wage for the midlands, in this current situation he's never getting on the property ladder, prices are rising faster than he can save a deposit. He's got to move back in with my parents, and accept that he'll be there for another 3-4yrs before he can buy, so he'll be buying his starter home say 2yrs after I managed to buy my 2nd home. My sister is 24, she's at uni studying animal behaviour, or something, and wants to be a zoo keeper. In my eyes the only way she'll ever get onto the property ladder is with the bank of mum and dad (that she's been living off since she was 16, but that's another story).
My parents weren't well off when they were younger, but at the age of 24 they managed to buy their first house, my dad was a mechanical fitter and my mum worked part time as a receptionist, 2 people in that line of work these days would have no chance, but they understood they couldn't have what they wanted from day 1. My mum went from a receptionist at 24, to a company director of a private healthcare firm in her mid 50's, their sacrifice early on reaped it rewards later in life, the problem is 'the youth of today' want this success instantly (pop culture has a lot to answer for, watching the rich & famous be rich & famous has never been so easy).
To get back on track, I got my car on PCP, its a Focus ST. With the discounts available on Fords buying new was only around £500 more than buying one a year old, and was significantly cheaper than leasing. End
Edit - I was also the last year at my firm to get on the final salary pension scheme.
Edited by skinnyman on Thursday 15th September 12:41
skinnyman said:
This thread has gone way off topic, but I'll contribute anyway.
I'm 30, and I feel that a line was draw in the sand a few years after I was born that divides myself from 'the youth of today'. Out of college I nabbed an apprenticeship at a multinational aerospace firm, I worked my way up, moved into a specialist role, and am doing pretty well for myself. I lived at home until I was 26, as I was saving for a house. I bought my first house at 26, and a few months ago my wife & I moved into our 2nd house, now at the age of 30 we live in a 4bed detached that will be our home for the next 10-15yrs. I feel that for someone just 4-5yrs behind me in life, this is no longer possible.
My brother is 27, he rents a flat with his mate, he earns around the average wage for the midlands, in this current situation he's never getting on the property ladder, prices are rising faster than he can save a deposit. He's got to move back in with my parents, and accept that he'll be there for another 3-4yrs before he can buy, so he'll be buying his starter home say 2yrs after I managed to buy my 2nd home. My sister is 24, she's at uni studying animal behaviour, or something, and wants to be a zoo keeper. In my eyes the only way she'll ever get onto the property ladder is with the bank of mum and dad (that she's been living off since she was 16, but that's another story).
My parents weren't well off when they were younger, but at the age of 24 they managed to buy their first house, my dad was a mechanical fitter and my mum worked part time as a receptionist, 2 people in that line of work these days would have no chance, but they understood they couldn't have what they wanted from day 1. My mum went from a receptionist at 24, to a company director of a private healthcare firm in her mid 50's, their sacrifice early on reaped it rewards later in life, the problem is 'the youth of today' want this success instantly (pop culture has a lot to answer for, watching the rich & famous be rich & famous has never been so easy).
To get back on track, I got my car on PCP, its a Focus ST. With the discounts available on Fords buying new was only around £500 more than buying one a year old, and was significantly cheaper than leasing. End
Edit - I was also the last year at my firm to get on the final salary pension scheme.
Its not impossible, I'm the same age as your brother and earn, give or take, the average salary for where I work, not where I live whilst my girlfriend is a nursery school practitioner so not mega bucks.I'm 30, and I feel that a line was draw in the sand a few years after I was born that divides myself from 'the youth of today'. Out of college I nabbed an apprenticeship at a multinational aerospace firm, I worked my way up, moved into a specialist role, and am doing pretty well for myself. I lived at home until I was 26, as I was saving for a house. I bought my first house at 26, and a few months ago my wife & I moved into our 2nd house, now at the age of 30 we live in a 4bed detached that will be our home for the next 10-15yrs. I feel that for someone just 4-5yrs behind me in life, this is no longer possible.
My brother is 27, he rents a flat with his mate, he earns around the average wage for the midlands, in this current situation he's never getting on the property ladder, prices are rising faster than he can save a deposit. He's got to move back in with my parents, and accept that he'll be there for another 3-4yrs before he can buy, so he'll be buying his starter home say 2yrs after I managed to buy my 2nd home. My sister is 24, she's at uni studying animal behaviour, or something, and wants to be a zoo keeper. In my eyes the only way she'll ever get onto the property ladder is with the bank of mum and dad (that she's been living off since she was 16, but that's another story).
My parents weren't well off when they were younger, but at the age of 24 they managed to buy their first house, my dad was a mechanical fitter and my mum worked part time as a receptionist, 2 people in that line of work these days would have no chance, but they understood they couldn't have what they wanted from day 1. My mum went from a receptionist at 24, to a company director of a private healthcare firm in her mid 50's, their sacrifice early on reaped it rewards later in life, the problem is 'the youth of today' want this success instantly (pop culture has a lot to answer for, watching the rich & famous be rich & famous has never been so easy).
To get back on track, I got my car on PCP, its a Focus ST. With the discounts available on Fords buying new was only around £500 more than buying one a year old, and was significantly cheaper than leasing. End
Edit - I was also the last year at my firm to get on the final salary pension scheme.
Edited by skinnyman on Thursday 15th September 12:41
I bought my first flat at 24 with a mid-£20k's salary and have recently upgraded to another, within Zone 3, so not cheap. Like you we'll be in a L/T home in ~3 years, although likely a semi in a decent area. Amongst my friendship group I'm not alone, 1/3 have bought their own homes whilst the rest live in house-shares owing to personal preference/single life/travel with work.
If we can do it most can with some effort, it all comes down to how you live. I only spend ~£500pm month to month on everything (ex-housing costs), everything else is repaying debt and will in turn be invested in my ISA when debts are fully repaid. Also not being stupid means this debt costs me next to nothing (blended ~0.3% APR) hence I've got the equivalent of my annual salary. We don't want for things either, both have cars (although both bought used) and I have a motorbike to commute in addition (saves cost). There are a number of people I know that do live at home and thus don't manage their outgoings.
Houses have never been more affordable, provided there are 2 people in work. Mortgage costs have seldom been lower in real terms, the only stumbling block is the deposit, which even for the average home (~£12k for 5-10% for a starter home) isn't that hard to come by, being financially prudent meant I had the capacity to put it on my credit card, interest free, 3 years ago, even without that we could save £500-£800 pm between us - a year or 2 to save a deposit.
People have to realise that to get on you may have to live with parents to save, you will spend longer saving if living in your own vs. a house share....its priorities....As you say people complaining are often lefties that want everything without effort/sacrifice. Even my parents generation found it hard at first, you've got to push yourself and then it becomes easier over time
I do concede I'll be working until I drop, beyond house downsize/ISA investments and would actually prefer to do so as I enjoy work (relationship/property based) and it keeps your mind sharp.
Can someone advise on the best form of financing to go for a £100k-ish car over 4 years. I ideally would like to keep the payments as low as possible and don't mind a balloon payment, or option to give the car back etc.
I really don't mind ownership vs leasing etc as this will be a weekend toy. Any suggestions or experiences are welcomed. Thanks
I really don't mind ownership vs leasing etc as this will be a weekend toy. Any suggestions or experiences are welcomed. Thanks
JiggyJaggy said:
Can someone advise on the best form of financing to go for a £100k-ish car over 4 years. I ideally would like to keep the payments as low as possible and don't mind a balloon payment, or option to give the car back etc.
I really don't mind ownership vs leasing etc as this will be a weekend toy. Any suggestions or experiences are welcomed. Thanks
All you've actually said there is "I want any 100K car, and I want to pay as little for it as possible" - which isn't that much help.I really don't mind ownership vs leasing etc as this will be a weekend toy. Any suggestions or experiences are welcomed. Thanks
For lowest monthly payments, don't finance, just buy the car outright. Or steal it.
Otherwise... Lease: Worthwhile lease deals on 100K cars are rare. Usually "the deal" is more important than the exact car. Really good deals were available last year on Audi S8's (which are heading to 100K), but they're not many people's idea of a weekend toy.
PCP: Almost certainly best, but shop around for a decent APR. Put down the biggest deposit you can!
Bank Loan: 100K loan on a car likely to be either difficult, or at a ridiculous APR. Possibly worth getting a 25K loan for a larger PCP deposit (at maybe 3.4% APR, compared to 7% APR on PCP)??
Appreciated. I will look into this. I am not willing to tie up £100k cash in a toy which I used infrequently, hence happy to finance and justify a smaller % income every month towards using what I enjoy in life
Ideally I want to switch toys every 6 months and I'm wondering what people find is the easiest ways to accomplish this with the minimum of fuss (involving financing of course).
Ideally I want to switch toys every 6 months and I'm wondering what people find is the easiest ways to accomplish this with the minimum of fuss (involving financing of course).
JiggyJaggy said:
Appreciated. I will look into this. I am not willing to tie up £100k cash in a toy which I used infrequently, hence happy to finance and justify a smaller % income every month towards using what I enjoy in life
Ideally I want to switch toys every 6 months and I'm wondering what people find is the easiest ways to accomplish this with the minimum of fuss (involving financing of course).
That makes sense, but remember that with PCP the full value of the car appears as an outstanding loan on your credit file, so your 'credit' is tied up regardless. Ideally I want to switch toys every 6 months and I'm wondering what people find is the easiest ways to accomplish this with the minimum of fuss (involving financing of course).
Changing every 6 months on PCP is possible but probably horrendously expensive. First 6 months depreciation will be crippling, so while your PCP contract allows you to 'exit' you'll be paying through the nose to do so.
Have you considered something like supercar hire or P1 Club instead? Might be a better way of getting into a range of interesting machinery until you decide on something longer-term...
silentbrown said:
All you've actually said there is "I want any 100K car, and I want to pay as little for it as possible" - which isn't that much help.
For lowest monthly payments, don't finance, just buy the car outright. Or steal it.
Otherwise... Lease: Worthwhile lease deals on 100K cars are rare. Usually "the deal" is more important than the exact car. Really good deals were available last year on Audi S8's (which are heading to 100K), but they're not many people's idea of a weekend toy.
PCP: Almost certainly best, but shop around for a decent APR. Put down the biggest deposit you can!
Bank Loan: 100K loan on a car likely to be either difficult, or at a ridiculous APR. Possibly worth getting a 25K loan for a larger PCP deposit (at maybe 3.4% APR, compared to 7% APR on PCP)??
I'm a bit confused by the advice to put down a large a deposit as possible. Obviously on a car that is going to depreciate very slowly if at all (Cayman GT4 for example) then that makes a lot of sense as you'll get your deposit back at the end plus some additional equity from the payments made over the term. However with something that depreciates very quickly like a Merc SL then you'll likely lose all of that deposit and the payments made? Whenever I have had the dealer tweak the quote based on deposit (granted for cars cheaper than £100k) it has never worked out that for £x added to the deposit I will save more than £x on the payments over the term, it has always been less than £x, so is it different for PCP at £100k+?For lowest monthly payments, don't finance, just buy the car outright. Or steal it.
Otherwise... Lease: Worthwhile lease deals on 100K cars are rare. Usually "the deal" is more important than the exact car. Really good deals were available last year on Audi S8's (which are heading to 100K), but they're not many people's idea of a weekend toy.
PCP: Almost certainly best, but shop around for a decent APR. Put down the biggest deposit you can!
Bank Loan: 100K loan on a car likely to be either difficult, or at a ridiculous APR. Possibly worth getting a 25K loan for a larger PCP deposit (at maybe 3.4% APR, compared to 7% APR on PCP)??
tankplanker said:
'm a bit confused by the advice to put down a large a deposit as possible. Obviously on a car that is going to depreciate very slowly if at all (Cayman GT4 for example) then that makes a lot of sense as you'll get your deposit back at the end plus some additional equity from the payments made over the term. However with something that depreciates very quickly like a Merc SL then you'll likely lose all of that deposit and the payments made? Whenever I have had the dealer tweak the quote based on deposit (granted for cars cheaper than £100k) it has never worked out that for £x added to the deposit I will save more than £x on the payments over the term, it has always been less than £x, so is it different for PCP at £100k+?
It's nothing to do with depreciation, GFV or 'equity'. It's purely to do with interest on a loan. Every extra pound of deposit is one less pound you're borrowing, so one less you're paying interest on. The actual final value of the car is identical, because the car doesn't know or care how you're paying for it. A dealer might alter the interest rates or offer a different 'Guaranteed' FV depending on the size of the loan, but remember they really want you to have the largest monthly payment you can afford. If interest rate and GFV are unchanged, then assuming interest rate is > 0 a larger deposit WILL work our cheaper. Try it here, for example. https://www.audi.co.uk/explore-models/finance-calc...
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