"Cash" car buying dead?
Discussion
Is private / cash car buying over a certain threshold (say £20K) as good as dead?
Over 80% of new cars are bought on finance. Used car dealers advertise their finance more than the actual price of the car.
Wondering where that leaves private ads on PH where the seller obviously can't offer finance as part of a deal.
Does anyone still plough cash into a car, or are we all financing everything?
Over 80% of new cars are bought on finance. Used car dealers advertise their finance more than the actual price of the car.
Wondering where that leaves private ads on PH where the seller obviously can't offer finance as part of a deal.
Does anyone still plough cash into a car, or are we all financing everything?
t loads of money for a car then hand it back.I 8 a 4RE said:
Is private / cash car buying over a certain threshold (say £20K) as good as dead?
Over 80% of new cars are bought on finance. Used car dealers advertise their finance more than the actual price of the car.
Wondering where that leaves private ads on PH where the seller obviously can't offer finance as part of a deal.
Does anyone still plough cash into a car, or are we all financing everything?
I still buy cars usually using a personal loan from a financial institute rather than PCP etc as I always buy used and get better interest rates, I know it's not exactly what your referring to but it explains how people may buy cars over £20k on private salesOver 80% of new cars are bought on finance. Used car dealers advertise their finance more than the actual price of the car.
Wondering where that leaves private ads on PH where the seller obviously can't offer finance as part of a deal.
Does anyone still plough cash into a car, or are we all financing everything?
No it's not dead but with the incentives to take finance (dealer contributions/services etc) being offered what a lot of people do is take the incentives & then use their cash to pay off the finance within 14-90 days so they keep all the incentives, you still haggle over the price but just use your cash in a different way.
I'd be surprised if there was ever a time when anything but a tiny proportion of cars costing £20k+ (or the olden days equivalent), were brought without any sort of finance. It's pretty much a year's take-home pay for somebody on an average salary. I know we're going to hell in a PCP'd handcart due to the amount of debt people are racking up these days, but not many people will ever have had that sort of cash lying about and been willing to blow it all on a car.
I 8 a 4RE said:
Is private / cash car buying over a certain threshold (say £20K) as good as dead?
Over 80% of new cars are bought on finance. Used car dealers advertise their finance more than the actual price of the car.
Wondering where that leaves private ads on PH where the seller obviously can't offer finance as part of a deal.
Does anyone still plough cash into a car, or are we all financing everything?
Why would you care what other people do?Over 80% of new cars are bought on finance. Used car dealers advertise their finance more than the actual price of the car.
Wondering where that leaves private ads on PH where the seller obviously can't offer finance as part of a deal.
Does anyone still plough cash into a car, or are we all financing everything?
Roger Irrelevant said:
I'd be surprised if there was ever a time when anything but a tiny proportion of cars costing £20k+ (or the olden days equivalent), were brought without any sort of finance. It's pretty much a year's take-home pay for somebody on an average salary. I know we're going to hell in a PCP'd handcart due to the amount of debt people are racking up these days, but not many people will ever have had that sort of cash lying about and been willing to blow it all on a car.
Last three cars, over a span of 31 years, were all bought cash and all new. Bought with cash saved up over 10 years or so.Roger Irrelevant said:
I'd be surprised if there was ever a time when anything but a tiny proportion of cars costing £20k+ (or the olden days equivalent), were brought without any sort of finance. It's pretty much a year's take-home pay for somebody on an average salary. I know we're going to hell in a PCP'd handcart due to the amount of debt people are racking up these days, but not many people will ever have had that sort of cash lying about and been willing to blow it all on a car.
People on average salaries tend not to buy £20k cars at all, £10k would be pushing it outside the PH bubble.Dr Jekyll said:
People on average salaries tend not to buy £20k cars at all, £10k would be pushing it outside the PH bubble.
I thought PHers were mostly well-built company directors! 
I bought a pre-registered car in 2008 on my debit card for just short of 22K - mind you the interest-free car loan from my employer and the car allowance did help!
Ever since getting made redundant in 1992 and having to take my one and only company car back I made a point of avoiding company cars - PITA!
I'm much more comfortable owning what I have.
Pica-Pica said:
Roger Irrelevant said:
I'd be surprised if there was ever a time when anything but a tiny proportion of cars costing £20k+ (or the olden days equivalent), were brought without any sort of finance. It's pretty much a year's take-home pay for somebody on an average salary. I know we're going to hell in a PCP'd handcart due to the amount of debt people are racking up these days, but not many people will ever have had that sort of cash lying about and been willing to blow it all on a car.
Last three cars, over a span of 31 years, were all bought cash and all new. Bought with cash saved up over 10 years or so.Last 4 cars have been leased (PCH)
You really need to ask yourself why would I (or anyone) put cash into something that will depreciate quicker than it will cost as a lease hire over the period I plan to keep it for.
You’re essentially getting the same car & end result of having the car for a term but due to the buying power of the financier you are getting into it considerably cheaper.
I could cash buy, I choose not to. So yeah cash is dead on new - for me / for now at least.
Now if I was buying a second hand car car, something older, or maybe done it’s depreciating I’d probably buy cash. But even that’s debatable when you can get a personal loan for 2.8%.
Used car PCP car f.off, anyone thinking 12% on a used deal is decent whatever way it’s dressed up is needing their head examined.
You really need to ask yourself why would I (or anyone) put cash into something that will depreciate quicker than it will cost as a lease hire over the period I plan to keep it for.
You’re essentially getting the same car & end result of having the car for a term but due to the buying power of the financier you are getting into it considerably cheaper.
I could cash buy, I choose not to. So yeah cash is dead on new - for me / for now at least.
Now if I was buying a second hand car car, something older, or maybe done it’s depreciating I’d probably buy cash. But even that’s debatable when you can get a personal loan for 2.8%.
Used car PCP car f.off, anyone thinking 12% on a used deal is decent whatever way it’s dressed up is needing their head examined.
Edited by Edible Roadkill on Thursday 25th April 09:28
Edible Roadkill said:
Last 4 cars have been leased (PCH)
Why would I put cash into something that will depreciate quicker than I can pay it off as a lease hire over the period I plan to keep it for.
That depends on what you buy. I bought a new Macan GTS in May 2018 for £62k, and I was offered £57k for it against another motor last week. Find me a deal where I could have financed/leased that for 12 months at £5k. Why would I put cash into something that will depreciate quicker than I can pay it off as a lease hire over the period I plan to keep it for.
Have purchased a 20k car in physical cash before, but that was quite a number of years ago. I sold it for physical cash too... about 10k. I have also purchased a 50k car in "virtual cash", aka bank transfer.
These days though, I don't ever really want to spend more than 5k on a car, "cash" or not. they just get trashed and I can't bring myself to spend the money on them anymore.
I would say that selling anything more than 2/3k these days is difficult, no one has any money anymore. and those that do, would rather put 3k down on a new car and pay £150 a month for a brand new car with a warranty.
These days though, I don't ever really want to spend more than 5k on a car, "cash" or not. they just get trashed and I can't bring myself to spend the money on them anymore.
I would say that selling anything more than 2/3k these days is difficult, no one has any money anymore. and those that do, would rather put 3k down on a new car and pay £150 a month for a brand new car with a warranty.
PMacanGTS said:
Edible Roadkill said:
Last 4 cars have been leased (PCH)
Why would I put cash into something that will depreciate quicker than I can pay it off as a lease hire over the period I plan to keep it for.
That depends on what you buy. I bought a new Macan GTS in May 2018 for £62k, and I was offered £57k for it against another motor last week. Find me a deal where I could have financed/leased that for 12 months at £5k. Why would I put cash into something that will depreciate quicker than I can pay it off as a lease hire over the period I plan to keep it for.
Macan’s have held value very well. Probably nothing repeatable to that in its class though!?
Certainly the premium SUV I have on lease now could not be bought for anywhere near the leasing costs.
Maybe I’ve just had my fingers (wallet) burned in the past too many times on buying new so I’m quite heavily against it.
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