Financing your car purchase

[Ayahuasca]

northandy said:

Gizmo! said:

Say you've got £200 spare per month. Do you put that in a bank every month and after four years, spend £10000 on a car?

Or do you get a loan, pay it off at £200/month over four years and have the car now?

To me it's a no-brainer.

Exactly, your a long time dead. Lifes to short.

You are a long time retired on a meagre (for most people) pension too.

Buying a car on finance is like smoking, drinking or eating cream cakes.

[skodamanpat]

Ayahuasca said:

You are a long time retired on a meagre (for most people) pension too.

By that arguement you would never buy a new anything but you would have very happy beneficiaries.

Edited by skodamanpat on Sunday 7th November 11:38

[Wacky Racer]

markcoznottz said:

lets be honest,finance is ok as long as you can afford to pay it. Simple as. Thats why PAYE salary is king.

Until you lose your job......

[Martin Keene]

Wills2 said:

Martin Keene said:

Gizmo! said:

Say you've got £200 spare per month. Do you put that in a bank every month and after four years, spend £10000 on a car?

Or do you get a loan, pay it off at £200/month over four years and have the car now?

To me it's a no-brainer.

Exactly. There is hardly any difference. Yes, ok, you'll pay some interest, but so what.

ETA: That's with personal loans. Not a fan of dealer finance. Purely because I'm sure there are better deals with personal loans.

Edited by Martin Keene on Saturday 6th November 20:24

Mercedes are doing finance on CL's at 1% APR go see if your bank manager will match that.

Great. Maybe I should have said for me personal loans are better because I don't buy brand new cars and therefore the finance on a used car is dearer than a personal loan.

Is that better?

[Wills2]

Martin Keene said:

Wills2 said:

Martin Keene said:

Gizmo! said:

Say you've got £200 spare per month. Do you put that in a bank every month and after four years, spend £10000 on a car?

Or do you get a loan, pay it off at £200/month over four years and have the car now?

To me it's a no-brainer.

Exactly. There is hardly any difference. Yes, ok, you'll pay some interest, but so what.

ETA: That's with personal loans. Not a fan of dealer finance. Purely because I'm sure there are better deals with personal loans.

Edited by Martin Keene on Saturday 6th November 20:24

Mercedes are doing finance on CL's at 1% APR go see if your bank manager will match that.

Great. Maybe I should have said for me personal loans are better because I don't buy brand new cars and therefore the finance on a used car is dearer than a personal loan.

Is that better?

Much better.

[northandy]

Ayahuasca said:

northandy said:

Gizmo! said:

Say you've got £200 spare per month. Do you put that in a bank every month and after four years, spend £10000 on a car?

Or do you get a loan, pay it off at £200/month over four years and have the car now?

To me it's a no-brainer.

Exactly, your a long time dead. Lifes to short.

You are a long time retired on a meagre (for most people) pension too.

Buying a car on finance is like smoking, drinking or eating cream cakes.

Saving for retirement and car finance are not mutually exclusive. It is possible to do both.

I think the point you are trying to make is that it could be argued that people financing cars, are generally more carefree with finances in general and therefore aren't considering the future. But that is not always the case.

[twoblacklines]

Always bought cars with just cash, but once i get into the property game, that cash will be needed elsewhere so will be buying either on credit, or leasing, or bank loan.

But then you get to the point where you can put £275k down on a rolls royce in cash but think that could buy you two 7 bedroom houses to let out so you dont ever buy a great car ?

[T84]

I think a lot of problems are due to people going car budget = income - outgoings rather than car budget = (income - outgoings) - money to put into savings.

[RV8]

I suppose the way I look at it; if you have £10k to spare (which I don't) and spend it all to buy a £10k car if the engine blows up you would have a rather expensive ornament sat on the drive until it was repaired at great expense. If in the mean-time you need to get your hands on some money quickly you would be in trouble, if however you loaned £5k and had £5k spare you could have the work done and if necessary sell the car afterwards and maximize your chances of seeing some of that money back.

Personally I wouldn't want to add a car to the mortgage, although I can see that if you could afford £200 a month for a car-loan you could just stick the amount on you mortgage and overpay by £200 every month until the amount for the car has been wiped off benefitting from the lower rate. Plus, as already mentioned, if you have an offset mortgage with savings bringing down the amount of interest you pay on the substantially larger loan you have on your house then the interest would be hit on the house if you took a chunk out of savings away for a new car, so in effect you'd be paying the greater sum of interest over the lost saving on your mortgage every month.

[daemon]

T84 said:

Oh fantastic, we've not had this thread for at least 3 days.

+1

And its always handy to reference some dick who got himself into finance problems, as opposed to the hundreds of thousands who dont.

[Engineer1]

T84 said:

I think a lot of problems are due to people going car budget = income - outgoings rather than car budget = (income - outgoings) - money to put into savings.

Either is valid depending on where you are in your career with regard to pay and pension or saving cycle.

[CWH]

Merlot said:

twoblacklines said:

.

But then you get to the point where you can put £275k down on a rolls royce in cash but think that could buy you two 7 bedroom houses to let out so you dont ever buy a great car ?

Two 7 bed houses for £275k? That barely gets you one two-bedder down here!

I'm guessing he's talking about £275,000 buying two 7 bedroom houses starting from scratch, building them.
If not he must live in Beirut.

[daemon]

CWH said:

Merlot said:

twoblacklines said:

.

But then you get to the point where you can put £275k down on a rolls royce in cash but think that could buy you two 7 bedroom houses to let out so you dont ever buy a great car ?

Two 7 bed houses for £275k? That barely gets you one two-bedder down here!

I'm guessing he's talking about £275,000 buying two 7 bedroom houses starting from scratch, building them.
If not he must live in Beirut.

And about 10 years too late to the property market too.

[Zod]

CWH said:

Merlot said:

twoblacklines said:

.

But then you get to the point where you can put £275k down on a rolls royce in cash but think that could buy you two 7 bedroom houses to let out so you dont ever buy a great car ?

Two 7 bed houses for £275k? That barely gets you one two-bedder down here!

I'm guessing he's talking about £275,000 buying two 7 bedroom houses starting from scratch, building them.
If not he must live in Beirut.

There are some very nice houses in Beirut in districts like Achrafieh, the cost of which would blow your mind.

[Wills2]

Zod said:

CWH said:

Merlot said:

twoblacklines said:

.

But then you get to the point where you can put £275k down on a rolls royce in cash but think that could buy you two 7 bedroom houses to let out so you dont ever buy a great car ?

Two 7 bed houses for £275k? That barely gets you one two-bedder down here!

I'm guessing he's talking about £275,000 buying two 7 bedroom houses starting from scratch, building them.
If not he must live in Beirut.

There are some very nice houses in Beirut in districts like Achrafieh, the cost of which would blow your mind.

This bad boy is $2 million

[anonymous-user]

OP, you say you bought a car with the proceeds of an ENDOWMENT, what, one of those risky investment plans where thousands paid money in regularly over a long period of time only to find they got less back at the end?

Is financing a car any crazier than that, at least you get something tangible along the way.

Edited by anonymous-user on Sunday 7th November 19:59

[twoblacklines]

Merlot said:

twoblacklines said:

.

But then you get to the point where you can put £275k down on a rolls royce in cash but think that could buy you two 7 bedroom houses to let out so you dont ever buy a great car ?

Two 7 bed houses for £275k? That barely gets you one two-bedder down here!

http://www.rightmove.co.uk/property-for-sale/property-17073156.html