How did you pay for your new car?
Poll: How did you pay for your new car?
Total Members Polled: 163
Discussion
Only ever had one brand new car, which I did pay cash for, but that was only because I had a windfall burning a hole in my bank account. I wish I'd been smarter and looked at similar cars 1-3 years old, but I wanted a factory new car once in my life so I thought why not.
All my other cars have been second hand, all of which I have paid cash for as well (with the exception of my Exige all have been in the 5-7k region). I had one car when I was younger that I paid 50% cash 50% finance, but that was only because I went to buy a car with a set budget in my pocket (5k) and spotted an Impreza WRX which was twice my budget. The salesman did his thing and I walked out with an Impreza and a monthly payment
All my other cars have been second hand, all of which I have paid cash for as well (with the exception of my Exige all have been in the 5-7k region). I had one car when I was younger that I paid 50% cash 50% finance, but that was only because I went to buy a car with a set budget in my pocket (5k) and spotted an Impreza WRX which was twice my budget. The salesman did his thing and I walked out with an Impreza and a monthly payment
For me it depends. My TVR was an outright purchase, albeit a few years ago now.
My current Grand Cherokee was a PCP deal with max deposit and paid off 1 year into the 4 year finance deal, albeit I also ensure I got a cracking deal on it.
Nothing at all wrong with finance when used sensibly and well within your personal affordability limits. The never finance a depreciating asset mantra than a number of people spout on here is crap. A car will depreciate no matter how you pay for it, in fact some PCP deals can even work out better value. The only cost in addition to depreciation a finance person will entail is interest. Get the right finance deal/loan and this can be minimal, just ensure you can afford the payments. In fact the interest can also be offset versus other uses for money in investments for example.
The ones that do annoy me are those that finance themselves to the hilt to have the latest bling wagon on their drive but then can't even afford to fill it with fuel.
My current Grand Cherokee was a PCP deal with max deposit and paid off 1 year into the 4 year finance deal, albeit I also ensure I got a cracking deal on it.
Nothing at all wrong with finance when used sensibly and well within your personal affordability limits. The never finance a depreciating asset mantra than a number of people spout on here is crap. A car will depreciate no matter how you pay for it, in fact some PCP deals can even work out better value. The only cost in addition to depreciation a finance person will entail is interest. Get the right finance deal/loan and this can be minimal, just ensure you can afford the payments. In fact the interest can also be offset versus other uses for money in investments for example.
The ones that do annoy me are those that finance themselves to the hilt to have the latest bling wagon on their drive but then can't even afford to fill it with fuel.
Zippee said:
The ones that do annoy me are those that finance themselves to the hilt to have the latest bling wagon on their drive but then can't even afford to fill it with fuel.
This. As an accountant, I find it terrifying the number of people that take up these deals to have the latest 116d, A180, A1 etc. on finance deals that they actually have no idea on- many I've known don't even know what the total amount they actually pay on them until you get a calculator out for them. Back in my day, when you were 18-21 years old you drove a banger and you owned it outright or owed your Dad, not these mad lease deals on shiny German cars you can barely afford to put petrol in.
I've never bought a brand new car, of the cars I have purchased typically the more expensive ones have been a combination of cash + bank loan and the cheaper ones cash. Some of the PCP and loan deals I've seen have been tempting though and if I were to get a brand new car (not that I ever expect to be able to afford a car I would want brand new) then I'd probably look at these methods as I've seen a number of examples where the 3 year lease cost would be less than the depreciation
pb8g09 said:
A bank loan is not secured against the car so can be paid off long after the car has gone. Unless you have a crap credit rating, the APR on a bank loan is also much lower. I will pay £250 a month for a £17k bank loan over 5 years for a vehicle that I own and can drive as many miles as I wish.
I largely agree with the points in your post.But please could you let me have details of the lender who will lend me £17k and allow me to repay it in full by 60 payments of £250?
Wooda80 said:
pb8g09 said:
A bank loan is not secured against the car so can be paid off long after the car has gone. Unless you have a crap credit rating, the APR on a bank loan is also much lower. I will pay £250 a month for a £17k bank loan over 5 years for a vehicle that I own and can drive as many miles as I wish.
I largely agree with the points in your post.But please could you let me have details of the lender who will lend me £17k and allow me to repay it in full by 60 payments of £250?
Well, the car I had in mind when answering was the brand new in March car that we took delivery of. Agreed on the semantics - I'm fully aware that PCH means I'm definitely not in the process of buying the thing.
M-i-L gave us the other car we have on the drive as she's stopped driving. So, yeah, I'm dominating the drive with that one, it's all fully paid-up, you wouldn't catch me financing a depreciating asset, no siree etc etc. ;-p
M-i-L gave us the other car we have on the drive as she's stopped driving. So, yeah, I'm dominating the drive with that one, it's all fully paid-up, you wouldn't catch me financing a depreciating asset, no siree etc etc. ;-p
russy01 said:
Completely flawed poll, nowhere near enough detail in the answers or question.
I think the OP is referring to buying a Brand New Car - at which point Id imagine the vast majority would vote PCP.
Id scrap this thread and start again, but make it a bit clearer.
I agreeI think the OP is referring to buying a Brand New Car - at which point Id imagine the vast majority would vote PCP.
Id scrap this thread and start again, but make it a bit clearer.
Stipulate brand new car only purchase and how did you predominantly finance it?
=> PCP
=> HP
=> Bank Loan
=> Other Loan
=> Cash
Or what variation?
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