How did you pay for your new car?
Poll: How did you pay for your new car?
Total Members Polled: 163
Discussion
What with all the 'finance' snobs out there at the moment what the actual figures are for how people are paying for new cars these days. This doesn't include company or business purchases.
If your current car was bought new, how did you pay?
I suspect that it is the current trend to use other peoples money and in my case, it was cheaper to lease than to buy.
If your current car was bought new, how did you pay?
I suspect that it is the current trend to use other peoples money and in my case, it was cheaper to lease than to buy.
Ziplobb said:
pay cash for everything and dont have it if we can't afford it - only thing I owe money on is the house and land and they are not making that anymore.
Ooh go on, I'll bite!The dividend on the BP or Rolls Royce shares that I could have sold back in November to pay cash for my car more than covers the interest. Not to mention the c12% capital appreciation on those shares since November if I chose to sell them now.
I have a monthly car payment about the same as my gas & electric bill, but my house (and the land - space for a goat! ) is all paid for thanks.
- House prices can go up or down, and your monthly payment may vary considerably during the term of your loan
I am genuinely surprised by this result. It seems everyone I talk to use terms like “it’s only £300 per month”, or, “I swapped A for B and it only cost me an extra £100 per month”. I had thought most cars were now bought with costly finance - on a rapidly depreciating asset.
Having recently been thrust into buying a new car, the first thing you tend to be shown when looking at a manufacturer’s website are some numbers based on £X00 per month with a sub clause saying assuming deposit of £Yk and final value after 36 months of £Zk
When you look closer you eventually see “based on an APR of just under 6%”, which is high compared to any rates you get on cash in the bank.
My insurance wrote off my previous car when I accidentally hydrolocked it in a puddle, but having negotiated a decent discount on purchase, the cost over 5 years plus was about £158 per month. Having negotiated another decent discount on the replacement car, I had to stomp up another £8k on top of the insurance payment.
Surely it is the buying and selling prices that are relevant rather than what the cost per month could be in any financial scenario.
Having recently been thrust into buying a new car, the first thing you tend to be shown when looking at a manufacturer’s website are some numbers based on £X00 per month with a sub clause saying assuming deposit of £Yk and final value after 36 months of £Zk
When you look closer you eventually see “based on an APR of just under 6%”, which is high compared to any rates you get on cash in the bank.
My insurance wrote off my previous car when I accidentally hydrolocked it in a puddle, but having negotiated a decent discount on purchase, the cost over 5 years plus was about £158 per month. Having negotiated another decent discount on the replacement car, I had to stomp up another £8k on top of the insurance payment.
Surely it is the buying and selling prices that are relevant rather than what the cost per month could be in any financial scenario.
The key word is "new", as in brand new. I wonder how many respondents have actually read the OP's post where it states brand new and are just responding about the last new-to-them car they bought.
Of course it's entirely possible that the PH demographic really is that "considerably richer than yow" compared to the rest of the UK car buying world where 88% of new, privately registered cars are bought with some sort of finance product be it PCP, PCH or just a boggo loan
Of course it's entirely possible that the PH demographic really is that "considerably richer than yow" compared to the rest of the UK car buying world where 88% of new, privately registered cars are bought with some sort of finance product be it PCP, PCH or just a boggo loan
Sorry I'm confused as to why PCP has been put together with bank loan when they are two entirely different things that do not hold even the same profiles as one another.
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.
A PCP typically requires a balloon final payment and the ultimate quality of the deal relates to the equity paid in the car until the final month of the lease arrangement. You don't own the car, you have mileage limits and you're paying the same (or more) monthlies on a PCP to a bank loan but are still liable for a final chunk of money if you actually want to keep the thing.
I'm not trying to poo poo PCP, but to categorise it in the same as a bank loan for a car purchase is nonsense.
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.
A PCP typically requires a balloon final payment and the ultimate quality of the deal relates to the equity paid in the car until the final month of the lease arrangement. You don't own the car, you have mileage limits and you're paying the same (or more) monthlies on a PCP to a bank loan but are still liable for a final chunk of money if you actually want to keep the thing.
I'm not trying to poo poo PCP, but to categorise it in the same as a bank loan for a car purchase is nonsense.
DoubleD said:
There are a lot of people who buy brand new cars with cash if this survey is to be believed.
...which would go against real world statistics on new car purchases.Either
- We have a disproportionately high amount of cash rich car enthusiasts here - not beyond the realms of possibility i guess?
- The title says "How do you pay for your new car" which doesnt necessarily mean "brand new", however the first paragraph asks "how people are paying for new cars these days" which is different so i think some people are putting cash for "new to them" cars.
charltjr said:
The key word is "new", as in brand new. I wonder how many respondents have actually read the OP's post where it states brand new and are just responding about the last new-to-them car they bought.
Of course it's entirely possible that the PH demographic really is that "considerably richer than yow" compared to the rest of the UK car buying world where 88% of new, privately registered cars are bought with some sort of finance product be it PCP, PCH or just a boggo loan
+1Of course it's entirely possible that the PH demographic really is that "considerably richer than yow" compared to the rest of the UK car buying world where 88% of new, privately registered cars are bought with some sort of finance product be it PCP, PCH or just a boggo loan
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