Performance parts paid on drip
Discussion
Weekendrebuild said:
This wasn’t a rant about cars on hpi , it was about the amount of people interested in the pay monthly performance parts . I just found it odd that if you couldn’t afford to buy it , you would deem it so important as to get into debt for. What happened to saving up and enjoying the purchase
It works a bit like this:Someone can save up £100 a month for 2 years and at the end of it but a thing they can enjoy for £2400.
Or they can pay someone £110 a month to have the same thing today. It means that they pay MORE for the thing, but maybe they feel like an additional 2 years of enjoyment is worth £240.
That's how loans work. I hope this little lesson has been useful.
There's loads of companies jumping on the Consumer Credit bandwagon. From getting teens and twenties in debt with Klarna, Zip, Clearpay etc. National tyres use Payment Assist if you are in a pickle and needs some tyres/servicing etc. The joke is that they might sell a tyre for £100 cash, but use Payment Assist and it's at full retail price which could be £200: https://www.payment-assist.co.uk/
Normal credit is competitive and saturated so companies are looking at other options.
Normal credit is competitive and saturated so companies are looking at other options.
crofty1984 said:
It works a bit like this:
Someone can save up £100 a month for 2 years and at the end of it but a thing they can enjoy for £2400.
Or they can pay someone £110 a month to have the same thing today. It means that they pay MORE for the thing, but maybe they feel like an additional 2 years of enjoyment is worth £240.
That's how loans work. I hope this little lesson has been useful.
Someone can save up £100 a month for 2 years and at the end of it but a thing they can enjoy for £2400.
Or they can pay someone £110 a month to have the same thing today. It means that they pay MORE for the thing, but maybe they feel like an additional 2 years of enjoyment is worth £240.
That's how loans work. I hope this little lesson has been useful.
Thank you my witty friend , but it was more the mentality that people have now, Rather than the actual workings of the finance . But thank you for that pre school example
This has been around for years... I bought some wheels on 0% finance a few years back, it's just saving in reverse in that instance.
People pay stupid money these days for phone and Sky TV contracts and no one blinks an eye, if you want to pay £50 a month for an expensive car part for 24 months instead, how is it doing any harm?
A decent set of JDM aftermarket wheels costs in excess of £1200, that's a lot of ready cash to just have hanging around...I can see the sense in spreading the cost for the sake of a few quid extra.
At least you own the product at the end of it, unlike leasing/renting an entire car for £XXX a month then just handing it back.
That said, I'm past the days/point where I would use finance for this sort of stuff, but there's clearly a market for it.
People pay stupid money these days for phone and Sky TV contracts and no one blinks an eye, if you want to pay £50 a month for an expensive car part for 24 months instead, how is it doing any harm?
A decent set of JDM aftermarket wheels costs in excess of £1200, that's a lot of ready cash to just have hanging around...I can see the sense in spreading the cost for the sake of a few quid extra.
At least you own the product at the end of it, unlike leasing/renting an entire car for £XXX a month then just handing it back.
That said, I'm past the days/point where I would use finance for this sort of stuff, but there's clearly a market for it.
Weekendrebuild said:
Thank you my witty friend , but it was more the mentality that people have now, Rather than the actual workings of the finance . But thank you for that pre school example
The different mentalities around finance exist because there are different finance options. The short term approach and consumer approach is just get the thing now because why not and pay what is affordable.Other people who may or may not be more savvy and who can probably afford the item outright several times over, will evaluate the finance option for what it is and weigh up the different circumstances and scenarios.
This is not much different to playing the zero percent credit card game which thousands of people did for years until they started charging balance transfer fees. You could pay the minimum and keep moving the balance every couple of years all the while whilst putting the actual amount aside earning interest. This way you keep the cash liquid. If you were more adventurous then you could invest it as tie it in.
The same goes for leases. What is the cheapest way to get the new car you want. If there is a good deal and good support behind a particular model then often it is cheaper over the long term to lease it rather than buy it. You also don't then have the issue of having to sell it on later. All this lease because you can't buy it is bulls
t. I could have bought my lease car outright and a more expensive model at that but I got a good deal on a car that suited for the time I wanted it for. At the moment there is nothing on a lease deal that works out for me right now so I will simply buy outright if there isn't a deal to be had. I have 2 other cars owned outright. I couldn't lease them even if I wanted to as they no longer make them! Weekendrebuild said:
Why because i choose to buy what I want ? There’s Nothing wrong with being old school. Likewise it’s upto ones self if they wish to drown in personal debt for an induction kit
If, as you say, it's up to someone if they choose to go that route, why do you call it "ridiculous" in your OP.You either live and let live, or have an issue with it... which is it?
Weekendrebuild said:
Why because i choose to buy what I want ? There’s Nothing wrong with being old school. Likewise it’s upto ones self if they wish to drown in personal debt for an induction kit
Buying on finance is still buying. Ffs you don’t half come across as a conceited prick. Thales said:
Weekendrebuild said:
Why because i choose to buy what I want ? There’s Nothing wrong with being old school. Likewise it’s upto ones self if they wish to drown in personal debt for an induction kit
Not everyone is as well off as you may be.That’s not my point at all . I can see car finance ,washing machines etc etc the usual mundane stuff as absolutely fine . If your not in the position to buy or it works for you then great . But Regardless of your financial position in life I don’t see how you justify car mods on tick ? If you can’t afford £145 (example on the thread) on a mod, is it wise to pay in instalments ? I think not personally .
Weekendrebuild said:
That’s not my point at all . I can see car finance ,washing machines etc etc the usual mundane stuff as absolutely fine . If your not in the position to buy or it works for you then great . But Regardless of your financial position in life I don’t see how you justify car mods on tick ? If you can’t afford £145 (example on the thread) on a mod, is it wise to pay in instalments ? I think not personally .
What about buying it on a credit card? What about buying it on a credit card and not even paying the full balance off each month. Believe it or not there are people out there who do this with their essentials like food and clothes. Should they do without? Weekendrebuild said:
That’s not my point at all . I can see car finance ,washing machines etc etc the usual mundane stuff as absolutely fine . If your not in the position to buy or it works for you then great . But Regardless of your financial position in life I don’t see how you justify car mods on tick ? If you can’t afford £145 (example on the thread) on a mod, is it wise to pay in instalments ? I think not personally .
You do know that Paypal credit offers 0% finance right?Some people would just rather spread the cost, and most car modifications don't come cheap... Wheels £1000+, induction kit £500, suspension £1000+ etc etc
I personally don't see how people justify a £60 a month phone contract or owning a brand new car on finance for some eye watering amount a month, but each to their own... I don''t go starting threads about it on here.
People like to spend money on what they like to spend it on, and there are various flexible ways to do that to fit within your income and lifestyle.
Weekendrebuild said:
That’s not my point at all . I can see car finance ,washing machines etc etc the usual mundane stuff as absolutely fine . If your not in the position to buy or it works for you then great . But Regardless of your financial position in life I don’t see how you justify car mods on tick ? If you can’t afford £145 (example on the thread) on a mod, is it wise to pay in instalments ? I think not personally .
Society has moved on from buying in full to monthly payments. To manufacturers it's a godsend to trap their customers.It's just not cars. Look at casual eating restaurants and their collapse; building - leased; monthly fees to management company; brand from z-celeb - rented; cutlery - rented; linen - rented, furniture - rented; decor - rented. Meanwhile Middle Easterners & Asians looking on in awe at the f
kwittery and being able to snap up freeholds.
I wonder if those so critical of consumers buying using credit whether needed or not realise that the people and businesses they are outright purchasing their air filter, washing machine, TV, car lease or whatever probably have credit with their suppliers.
Just like consumers many businesses will have severe cashflow issues if they have all their cash tied up in stock. Or sometimes it is beneficial to buy in bulk and use a credit facility. Credit in itself isn't evil.
Just like consumers many businesses will have severe cashflow issues if they have all their cash tied up in stock. Or sometimes it is beneficial to buy in bulk and use a credit facility. Credit in itself isn't evil.
Weekendrebuild said:
That’s not my point at all . I can see car finance ,washing machines etc etc the usual mundane stuff as absolutely fine . If your not in the position to buy or it works for you then great . But Regardless of your financial position in life I don’t see how you justify car mods on tick ? If you can’t afford £145 (example on the thread) on a mod, is it wise to pay in instalments ? I think not personally .
If it is 0% then what difference does it make? £145 is still £145.
Personally if there is 0% on offer i WILL use it. I would rather pay for this from income than wealth, that is just me and my way of looking at the world. It is not right or wrong.
I am not overly worried by debt, never have been, never will be.
Edited by nikaiyo2 on Tuesday 25th February 09:29
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