finance finance finance
Discussion
Sooooo been looking at financing my next car and I know a lot of it comes down to what you can afford.
I was looking at a 4 year old 335i, 50k for £17k. On a £500 down deposit it was £430 a month over 3 years. This was a pcp.
Looking today, for those sort of payments I could get a much newer car like a brand new golf gti.
Both had different interest rates but what I'm confused about is there a rule as such when hp is better than lp or pcp based on the value, age, mileage of a car?
I was looking at a 4 year old 335i, 50k for £17k. On a £500 down deposit it was £430 a month over 3 years. This was a pcp.
Looking today, for those sort of payments I could get a much newer car like a brand new golf gti.
Both had different interest rates but what I'm confused about is there a rule as such when hp is better than lp or pcp based on the value, age, mileage of a car?
I wouldn't entertain a PCP on a used car, it will be 7 years old with a GMFV due!
Interest rates are going to be best on a new car as the rate is supported by the manufacturer, my advise would be put the highest possible mileage to reduce the GMFV so you can be in a strong equity position at the end of the agreemen.
Interest rates are going to be best on a new car as the rate is supported by the manufacturer, my advise would be put the highest possible mileage to reduce the GMFV so you can be in a strong equity position at the end of the agreemen.
Derbyshire BS are doing a 5.4% rate on loans between £10K & £15K, is that not going to be a cheaper option (plus as mentioned above, not secured on the car and no record of outstanding finance, so less hassle to sell later)? It's £451/month with no balloon payment at the end.
Edited by xRIEx on Friday 21st December 23:03
Zippee said:
TBH for not a lot more each month you could just go out and get a personal loan so nothing secured on the car, no mileage limits or final payments etc and likely cheaper interest rates.
What this man said. You actually own a physical asset then. Buy wisely and you'll be fine! Hard cash is not as powerful a haggling tool as it once was. In fact you'll get more response if you take their finance as the salesman is normally on a commission for the finance, gap insurance and other extras as well as the car.
On the face of it it looks as though you get a better deal but in reality you have to include the interest
On the face of it it looks as though you get a better deal but in reality you have to include the interest
Lucky13 said:
Or you could lease a brand new AMG C63 for similar money. PCPs on used vehicles don't make much sense as others have said.
Do a bit of research on personal contract hire or lease if you're not too fussed about owning the car at the end.
Iv heard theres good deals about for c63's as th've built too many? Dunno if any truth in this! Think somebody mentioned £500 per month. Which aint bad considering what you get! Do a bit of research on personal contract hire or lease if you're not too fussed about owning the car at the end.
lewisf182 said:
Iv heard theres good deals about for c63's as th've built too many? Dunno if any truth in this! Think somebody mentioned £500 per month. Which aint bad considering what you get!
For a C63 coupe directly from Merc....£5995 initial payment
£599 monthly payment (x36)
£29025 final payment (if you want to keep it)
Edited by jsc15 on Saturday 22 December 01:17
BMW3s6 said:
Not everyone is a powerfully built company director at PH though
Exactly, why save up 20 to 30k and lump it in a car. To most that amount of savings would be an impossible task and if they did save such amount most would buy a house.Whole reason for finance, is I get a car allowance each month and I can buy what I like.
Shotgun Jon said:
What this man said. You actually own a physical asset then. Buy wisely and you'll be fine!
Great owning a depreciating physical asset with the money attached you directly, lose your job miss the payments go bankrupt and lose your house.Easier having the money attached to the asset and if anything goes wrong they come and take that asset away and pay it off.
Many times the banks arent cheaper, just similar, sometimes the manufacturers are cheaper on finance rates especially when buying new.
jsc15 said:
For a C63 coupe directly from Merc....
£5995 initial payment
£599 monthly payment (x36)
£29025 final payment (if you want to keep it)
And that is your idea of a good deal? 600 quid a month after a 6 grand deposit????? For a car you cant use properly in the UK, with s£5995 initial payment
£599 monthly payment (x36)
£29025 final payment (if you want to keep it)
Edited by jsc15 on Saturday 22 December 01:17
t suspension for the UK and with an mpg that will cripple you with UK petrol prices.Id laugh my tits off at anybody I could flog that to! You would have to be the world's biggest tit.
DJRC said:
And that is your idea of a good deal? 600 quid a month after a 6 grand deposit????? For a car you cant use properly in the UK, with st suspension for the UK and with an mpg that will cripple you with UK petrol prices.
Id laugh my tits off at anybody I could flog that to! You would have to be the world's biggest tit.
Look at the numbers, 600quid a month after 6k in for a 60K+ plus car, do the maths it is actually quite a good deal.t suspension for the UK and with an mpg that will cripple you with UK petrol prices.Id laugh my tits off at anybody I could flog that to! You would have to be the world's biggest tit.
But then again if you would rather cycle or buy a VW up for fun then this car clearly wouldnt be of interest to you.
And to the arguments about never financing a depreciating asset - you do realise that even if a car is paid for in cash it's still liable to depreciate don't you?
A 15k loan over say, 3 years would be circa £450 a month with total interest around the £1300 mark. Over a year thats an extra £400 pa to have the car now rather than wait 3 years saving up pretty much the same amount in your bank account so not really any worse off. This is even more the case for a fun car as you splash a lot more than £400pa down the boozer and have jack all to show for that other than the occasional sore head.
I agree there are some cars finance just doesn't work on and people need to be absolutely sure the repayments are from pure disposable income but if you're sensible theres nothing at all wrong with finance.
A 15k loan over say, 3 years would be circa £450 a month with total interest around the £1300 mark. Over a year thats an extra £400 pa to have the car now rather than wait 3 years saving up pretty much the same amount in your bank account so not really any worse off. This is even more the case for a fun car as you splash a lot more than £400pa down the boozer and have jack all to show for that other than the occasional sore head.
I agree there are some cars finance just doesn't work on and people need to be absolutely sure the repayments are from pure disposable income but if you're sensible theres nothing at all wrong with finance.
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