Best way of funding a car?
Discussion
In short, i've spent ages looking for a 330d with the right age, mileage and spec.
After a lot of looking, i've found one, at a smidge under £17k.
Now i can afford that outright, but don't want to spend that outright, as i initially set my budget at 12k(ish) with a nudge up to £14k max for a perfect spec. (I found one at 14.4k and it sold before i looked at it).
Anyway, what ways you finance the car? Bank loan? Pay it all of in one hit? Finance? Not bother and keep looking for something in budget?
If it matters, it's from a company called carbase. Never heard of them and the car is 200+ miles away, so not a BMW dealer.
After a lot of looking, i've found one, at a smidge under £17k.
Now i can afford that outright, but don't want to spend that outright, as i initially set my budget at 12k(ish) with a nudge up to £14k max for a perfect spec. (I found one at 14.4k and it sold before i looked at it).
Anyway, what ways you finance the car? Bank loan? Pay it all of in one hit? Finance? Not bother and keep looking for something in budget?
If it matters, it's from a company called carbase. Never heard of them and the car is 200+ miles away, so not a BMW dealer.
Depends, as a rule of thumb a bank loan is usually better due to an early payment return for a small fund etc.
If the finance deal includes a servicing package or similar it way well work out betetr, it depends on the % and the deal.
If you can afford it outright, just buy it. It costs more to borrow than to save
If the finance deal includes a servicing package or similar it way well work out betetr, it depends on the % and the deal.
If you can afford it outright, just buy it. It costs more to borrow than to save
LHD said:
wackojacko said:
LHD said:
wackojacko said:
It costs more to borrow than to save
Not always...A reliable 5% isn't going to be easy to secure with relatively little risk, My only other thoughts may be interest if you have a sum of money that you can get an equivelant or greater % back on even if it is tied up for a long time perhaps ?
wackojacko said:
LHD said:
wackojacko said:
LHD said:
wackojacko said:
It costs more to borrow than to save
Not always...A reliable 5% isn't going to be easy to secure with relatively little risk, My only other thoughts may be interest if you have a sum of money that you can get an equivelant or greater % back on even if it is tied up for a long time perhaps ?
I prefer to pay cash personally for one reason. If things go sideways, I have no run rate on the car, no repayments, so I do not worry about the debt service. When I was very young I got into too much debt and it was a life lesson. So, its really driven by fear rather than judgement TBH.
philmots said:
Can't comment on the finance side of things..
But if you're looking at the blue car in Bristol I can't help but think that at that money you should hold out for a LCI car which IIRC were released around that age.. Plus, blue is never the most popular colour.
I don't mind the blue. It beats resale grey.But if you're looking at the blue car in Bristol I can't help but think that at that money you should hold out for a LCI car which IIRC were released around that age.. Plus, blue is never the most popular colour.
I agree with the LCI, but the cheapest LCI ive found is even more £££ again
Only buy what you can afford to pay for in cash, that way you will sleep easier at nights. However (as long as you do have the cash) if someone is willing to give you interest free credit for the same price as the cash price then that is they way to go. If you have to pay interest and it is a luxury item rather than a neccessity then you shouldnt be buying it IMHO. (If only Messeurs Brown and Balls had followed that line....)
veryRS said:
Only buy what you can afford to pay for in cash, that way you will sleep easier at nights. However (as long as you do have the cash) if someone is willing to give you interest free credit for the same price as the cash price then that is they way to go. If you have to pay interest and it is a luxury item rather than a neccessity then you shouldnt be buying it IMHO. (If only Messeurs Brown and Balls had followed that line....)
Not this. If you can afford it per month you can afford it....forget all this pay cash b
ks...this whole forum is full of advice like this....blaming the country's ills on people who have high ticket luxury goods on finance. If i had a million quid in the bank i would not pay £30000 for a car in cash, or even buy a house cash....on a car or house you only pay interest for 3 to 25 years....once you take it out of the bank it is gone forever....a lifetime of compound interest lost.The country would be screwed if everyone saved up and bought things cash...there would be no demand for anything and the economy would sink. It is precisely the evolution of hire purchase, mail order,buy now pay later that was responsible for the emergence of the economies of GB and the USA and them becoming the worlds preeminent capitalist super powers. "If you have to pay interest then it is a luxury item"... better not ever buy a house either then!
Wafflesmk2 said:
ali4390 said:
Do we have to have another one of these threads again? They all end in the same way!!
What way is that?Remember you'll have 75% equity in the BMW, it's a lovely car and one you've held out for. The repayments on a 3 year bank loan of £4k should be little in the scheme of things, and you should be able to pay it off no problem.
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