Car finance

[Dr Jekyll]

Motor trade representative on Today programme now making some valid points about the car trade but when discussing the benefits of PCP came out with the old' why would you invest your own money in a depreciating asset?'

[bogie]

Naturally...the car trade wants you to rent a new car on PCP every 3 years....throughout your lifetime. Why buy something, own it and stop paying monthly payments ...what a silly idea ?

[DonkeyApple]

We have reached the point in society where even the vendors of retail debt have no comprehension as to what it is they are actually selling.

It's just a monthly number where a consumer makes a decision as to whether it looks pretty or not.

[CaptainSlow]

I always buy cash, I don't even ask for a discount.

[DonkeyApple]

CaptainSlow said:

I always buy cash, I don't even ask for a discount.

I hope you drop a brace of £50s on the salesman on the way out, saying 'treat yourself sweetcheeks'.

[CaptainSlow]

DonkeyApple said:

CaptainSlow said:

I always buy cash, I don't even ask for a discount.

I hope you drop a brace of £50s on the salesman on the way out, saying 'treat yourself sweetcheeks'.

Only after I've driven past the dealership that didn't offer me bean to cup coffee so they can see what they missed out on.

[PlayFair]

for example if you had 10k and needed a new car - would it not be best to get the car on finance - invest the 10k in business - after the 3 years have doubled your money - paid the car off and still have 10k left?

[CaptainSlow]

PlayFair said:

for example if you had 10k and needed a new car - would it not be best to get the car on finance - invest the 10k in business - after the 3 years have doubled your money - paid the car off and still have 10k left?

No, lease a car with a £1k deposit. Put the remaining £9k on red in Las Vegas. Keep on winning until you reach £100k and then cancel the lease, buy a classic 911 and then sell it with a large gain. Then invest the gain in Lottery tickets (Euro Millions), win about £70M and then retire to Monaco and buy a Ferrari.

[DonkeyApple]

CaptainSlow said:

DonkeyApple said:

CaptainSlow said:

I always buy cash, I don't even ask for a discount.

I hope you drop a brace of £50s on the salesman on the way out, saying 'treat yourself sweetcheeks'.

Only after I've driven past the dealership that didn't offer me bean to cup coffee so they can see what they missed out on.

Ah, of course. Now, in terms of etiquette, when walking into the dealership disguised as a peasant does one still use a Tesco bag for the cash or should it now be Aldi? Or has the 5p charge made supermarket bags an emblem of the cash rich. I just don't know anymore!!!

[DonkeyApple]

PlayFair said:

for example if you had 10k and needed a new car - would it not be best to get the car on finance - invest the 10k in business - after the 3 years have doubled your money - paid the car off and still have 10k left?

In technical terms, debt doesn't work like that as the risk rates between the pair of vehicles are miles apart. I.e. to attempt to make greater returns than the interest rate requires huge risk so not comparable.

Logically, if you could generate a greater return for the same risk or even a marginal increase in risk then no one would need debt in the first instance. For example, if your £10k can be invested to give you easily £10k return then you wouldn't need to borrow to buy a £10k car. In fact, you wouldn't ever buy a £10k car as you'd compound your returns on the initial £10k investment and have Warren Buffet as your personal bh to drive you everywhere.

The 'I can get a better return with my cash' argument is pure man maths promoted by the debt vending industry to cater for the 'I want it now but haven't the cash yet' consumer market.

[Sheepshanks]

PlayFair said:

for example if you had 10k and needed a new car - would it not be best to get the car on finance - invest the 10k in business - after the 3 years have doubled your money - paid the car off and still have 10k left?

Absolutely that would be best, yes.

[CaptainSensib1e]

PlayFair said:

for example if you had 10k and needed a new car - would it not be best to get the car on finance - invest the 10k in business - after the 3 years have doubled your money - paid the car off and still have 10k left?

Please can you tell me which business will double my money every three years risk free? Thanks.

[Roger Irrelevant]

CaptainSensib1e said:

Please can you tell me which business will double my money every three years risk free? Thanks.

Er...this is Pistonheads man - doesn't everybody here have several businesses in which they can invest to make a sure-fire triple-digit return in just a few years? The only question you should need to ask is in which of your portfolio of businesses are you going to invest?

[GG89]

PlayFair said:

for example if you had 10k and needed a new car - would it not be best to get the car on finance - invest the 10k in business - after the 3 years have doubled your money - paid the car off and still have 10k left?

In lala land yes, where everyone is a top businessman, or should that be pistonheads land.