financing a 45k car
Discussion
never done the finance bit before,but i feel the want for a gt2 and although i do have the money to purchase outright i would rather leave that money doing what its doing at the moment
i dont know the first thing about it,if i was to put say 30% down what options would i have?? a straight repayment thing? or pay the 30% and so much and a balloon at the end of a period?
do these products exist for a 10yr old car?
any advice??
i dont know the first thing about it,if i was to put say 30% down what options would i have?? a straight repayment thing? or pay the 30% and so much and a balloon at the end of a period?
do these products exist for a 10yr old car?
any advice??
darronwall said:
never done the finance bit before,but i feel the want for a gt2 and although i do have the money to purchase outright i would rather leave that money doing what its doing at the moment
i dont know the first thing about it,if i was to put say 30% down what options would i have?? a straight repayment thing? or pay the 30% and so much and a balloon at the end of a period?
do these products exist for a 10yr old car?
any advice??
I think finance on a toy is crazy (unless it's a cheap manufacturer supported deal). If you must then speak to the dealer with the Porsche, they will have a business manager who can help compare against a bank loan.i dont know the first thing about it,if i was to put say 30% down what options would i have?? a straight repayment thing? or pay the 30% and so much and a balloon at the end of a period?
do these products exist for a 10yr old car?
any advice??
(sorry if this sounds snotty)
Edited by DocArbathnot on Friday 24th May 21:57
I'm currently saving up the old fashioned way for my toy, a similar but slightly less lunacy model.
I actually 'hire' our main car which is great for the family every day un-attached hand me back ownership I desire, however I'd despair at the thought of 45k financed & sitting on the driveway for an occasional thrill.
If for example you can make your savings work harder than you can borrow for then its a no brainer.
I actually 'hire' our main car which is great for the family every day un-attached hand me back ownership I desire, however I'd despair at the thought of 45k financed & sitting on the driveway for an occasional thrill.
If for example you can make your savings work harder than you can borrow for then its a no brainer.
Why do these threads about car finance always go the same way?
OP asks for information on what sorts of products are available........people post in response that finance is the worst thing you could ever do and should save and pay cash for what they want in 10 years time rather than use finance.............OP goes away uninformed and no better off....
OP asks for information on what sorts of products are available........people post in response that finance is the worst thing you could ever do and should save and pay cash for what they want in 10 years time rather than use finance.............OP goes away uninformed and no better off....
Sarnie said:
Why do these threads about car finance always go the same way?
OP asks for information on what sorts of products are available........people post in response that finance is the worst thing you could ever do and should save and pay cash for what they want in 10 years time rather than use finance.............OP goes away uninformed and no better off....
Because you always pay some kind of a charge to borrow someone else's money, I guess, and that irks some people. It would normally irk me too, but interest rates are so crap at the moment that frankly you might as well spend it whilst you're still alive.OP asks for information on what sorts of products are available........people post in response that finance is the worst thing you could ever do and should save and pay cash for what they want in 10 years time rather than use finance.............OP goes away uninformed and no better off....
Anyway, here you go, OP:
https://www.moneyadviceservice.org.uk/en/articles/...
and there's plenty more where that came from:
https://www.google.co.uk/#gs_rn=14&gs_ri=psy-a...
N Dentressangle said:
Sarnie said:
Why do these threads about car finance always go the same way?
OP asks for information on what sorts of products are available........people post in response that finance is the worst thing you could ever do and should save and pay cash for what they want in 10 years time rather than use finance.............OP goes away uninformed and no better off....
Because you always pay some kind of a charge to borrow someone else's money, I guess, and that irks some people. It would normally irk me too, but interest rates are so crap at the moment that frankly you might as well spend it whilst you're still alive.OP asks for information on what sorts of products are available........people post in response that finance is the worst thing you could ever do and should save and pay cash for what they want in 10 years time rather than use finance.............OP goes away uninformed and no better off....
Anyway, here you go, OP:
https://www.moneyadviceservice.org.uk/en/articles/...
and there's plenty more where that came from:
https://www.google.co.uk/#gs_rn=14&gs_ri=psy-a...
to the op, finance is now getting increasingly difficult on the older cars, i'm assuming you're talking of a 996 gt2? the reason you see these cars sitting for months & sometimes years unsold at dealers is that people simply cannot get finance for them any more.
if you're interested in creative financing there are other ways however. borrowing against your mortgage is one very simple way (if you have an understanding other half) but you must be very strict about paying it back.
for example you can borrow extra for "a kitchen extension" & then set up a 5 year over payment plan that means you don't end up paying for your car for the next 20 years.
the other thing is to look at what your money is doing in the first place. you say you want to keep it where it is but is it doing what it's doing best?
i'm in a position where i want to keep a large chunk of my cash liquid for business expansion but after speaking to the bank i can agree a large overdraft facility & the option to borrow as much as i have saved for a relaitively low fee-certainly less than it would cost to finance a sports car these days.
Edited by LaurasOtherHalf on Saturday 25th May 10:02
The past 6 year I have been investing for the future and for the past 14 month I have been saving for my toy to buy it cash which takes time if its for something special. However, to the OP, the vast majority of metal on the road is financed, even the cheap motors. Also, there are a lot of buyers that think its crazy to put heaps of money down or buying outright on something that will depreciate. It's all down to wanting it now or if you can wait and your personal financial set up. IMO, a car is only a waste of money if its only being used at the weekend, be it however your buying it.
NorthernBoy said:
Because telling people to avoid finance if you can is a genuinely good idea, and people are keen to help out.
Is that what the OP asked for?My point is that car finance and the different products available to people, is a minefield. People come here asking for specific product advice on how they work and expected costs etc and end up will a moral dressing down because they aren't in a position to pay for a car in full, in cash, without concern.
Without going through a full financial break down with the OP or any other poster, it's impossible for you to say whether finance is a "good idea" or not.
People come on here and get information on pensions, ISA's and mortgages without judgement but car finance seems to be an area where the PH masses come out to berate anyone not paying for a car in cash. Ultimately, all thats doing is lining the pockets of people like Oracle, as people approach them without a clue about what to expect or what is available to them.
Edited by Sarnie on Tuesday 28th May 00:11
Finance is not necessarily a bad thing...nor is it necessarily more expensive than using savings...unless im missing something from quick man maths...E.g. Mum bought a 56 plate Mercedes SLK bought 5 years ago at £18000 cash, now worth £8000...cost £10,000 over 5 years in depreciation....or c.£200 a month. If Financed the car would have been £300 a month, with £3000 deposit. Still now worth £8000, minus the deposit you originally had means you've got £5000 in it that you never had to start with as a result of paying £100 a month more out than £200 pm lost in depreciation from a cash purchase. £5000 borrowed over 5 yrs would equate to the extra £100 p/m though. I make that pretty evens overall...£18000 out, worth £8000 now...still there is no way I'd like to see £18000 go out of the bank...I wouldn't miss £300 a month though.
Your also not factoring opportunity cost on the £18k,
That could be in an ISA earning a few percent, which makes the finance option even cheaper relative to cash purchase.
Now make that a Stocks and Shares ISA and over the last few years you might have had a free car
Doesn't always work that way though. But good example and good point.
That could be in an ISA earning a few percent, which makes the finance option even cheaper relative to cash purchase.
Now make that a Stocks and Shares ISA and over the last few years you might have had a free car
Doesn't always work that way though. But good example and good point.
OP, finance should be easily available on that car over 48 or 60 months on a fixed rate, regulated finance agreement at a competitive rate. There will be companies who will offer a balloon payment on the car if you wish but at the age you'll pay a premium on the rate (the top lenders won't look at a balloon on the car). I provide finance and happy to give examples if you're interested, feel free to PM me
To get a deal from a broker the car must be maximum 10 years old at the END of the agreement in order to structure the deal with a balloon payment. So for a 996 GT2 you're already going to be looking at one that is 10 years old and therefore unlikely to get one with a balloon payment. If you went for a 997 GT2 then you will be able to get an agreement with a balloon at the end, sometimes making a more expensive car cheaper on the monthly payments (although a sizeable amount deferred 2, 3 or 4 years down the line).
You can really put in anything from about 10% - 60% deposit and then look to fund the rest over a 2, 3, 4 or 5 year period. Because there will be no balloon payment, at the end of the agreement you will owe nothing and the car will be 100% yours. You will find approx 7% APR is about right from a broker, although you may be able to get to around 6%. Generally a straight forward hire purchase deal like this is cheaper than either a HP with balloon or PCP agreement because you are not offsetting a large sum until the end of the agreement, therefore less risk and can be cheaper.
Also note that generally a car finance agreement is better than a bank loan as you are covered by a number of clauses whereby the finance company could intervene if you have problems with the car and hassle the dealer on your behalf.
Additionally, a car finance agreement is better than a bank loan as the interest is not 'front loaded'. For instance, on a bank loan of say £35,000 you would pay at a guess around £7,000 interest. So on day one of the agreement, you owe £42,000. If you decide to sell the car in a months time and you've made one repayment of £800, then your settlement figure will be £41,200.
On a proper finance agreement, the interest is not front loaded, so on the £35,000 borrowed and with one payment of £800, your settlement figure is likely to be about £34,700. It just means that you have more options when you need to get out of the car and more protection across the agreement, although you will probably pay for that with a slightly higher interest rate as bank loans can be had for around 4-5%.
I've always been an advocate of car finance provided it's done correctly and why waste all that time saving up when you can have it now. You're either putting the money into a savings account for 4 years or paying back the agreement for 4 years - either way you will owe nothing in 4 years time, but you've had all the pleasure of ownership and driving it!
Edited by leemanning on Tuesday 28th May 15:44
Gassing Station | Finance | Top of Page | What's New | My Stuff