whats the best way to buy ? cash hp finance?
Discussion
I'm in a similar situation and I'm gonna use the readies.
It's a buyers market and if you're a cash buyer you hold all the aces.
With £70k you could get a discounted Spyder or top spec coupe but I doubt you would get such a great deal with a financed deal, plus you are losing more money on top with the depreciation.
Alternatively a lease option would be good so you don't lose any money on the depreciation but you never 'own' the car.
Everyone's different. I'd prefer to own my own house and have a decent car (with no HP) and very little in the bank than have a massive bank balance!
Happy hunting!
It's a buyers market and if you're a cash buyer you hold all the aces.
With £70k you could get a discounted Spyder or top spec coupe but I doubt you would get such a great deal with a financed deal, plus you are losing more money on top with the depreciation.
Alternatively a lease option would be good so you don't lose any money on the depreciation but you never 'own' the car.
Everyone's different. I'd prefer to own my own house and have a decent car (with no HP) and very little in the bank than have a massive bank balance!
Happy hunting!
Witchbreed said:
With £70k you could get a discounted Spyder or top spec coupe but I doubt you would get such a great deal with a financed deal, plus you are losing more money on top with the depreciation.
Delaers aren't allowed to offer preferential offers to cash buyers; and in almost every case a dealer would preffer a buyer to be using their finance, rather than cash, as it is an extra source of income for them.Money costs are very cheap at the moment, so I would suggest you put the money in your bank for a rainy day, and get the best deal you can on financing the car. You can always pay it off if you start to feel uncomfortable with the monthly burden, but I would suggest that £70k cash can work a lot better for you eslewhere.
matc said:
Delaers aren't allowed to offer preferential offers to cash buyers; and in almost every case a dealer would preffer a buyer to be using their finance, rather than cash, as it is an extra source of income for them.
Money costs are very cheap at the moment, so I would suggest you put the money in your bank for a rainy day, and get the best deal you can on financing the car. You can always pay it off if you start to feel uncomfortable with the monthly burden, but I would suggest that £70k cash can work a lot better for you eslewhere.
I didn't specify 'dealer' but since you brought it up I can't see one turning down a cash buyer. The private sellers will be selling due to individual circumstances and if they are desperate you might get a better deal than you think. Money costs are very cheap at the moment, so I would suggest you put the money in your bank for a rainy day, and get the best deal you can on financing the car. You can always pay it off if you start to feel uncomfortable with the monthly burden, but I would suggest that £70k cash can work a lot better for you eslewhere.
matc said:
I would suggest you put the money in your bank for a rainy day
In the current climate that is the last place you would find my money! It's safer under the mattress than in the bank. However, I did mention everyone is different. Like the buffoon who sold her flat (rather than rent it out) stuck it in the bank (an unnamed Icelandic one) and has since now lost it. This is Pistonheads and not Newsnight so I hope that the OP gets as much bang for his buck; be it using finance, a loan, a rich widow or indeed cold hard cash. Go for it!
Hmmmm, buy on finance and pay interest at 6%ish and get 1-2% in a bank on your money, and suffer depreciation as well.
Buy it with cash, get the best deal from someone who is looking to sell now and enjoy the car, only worrying about depreciation and no interest payments.
I know which I'd do...........sorry....did
Just got back from driving mine on this lovely sunny day, don't care about the depreciation and knowing it's mine makes it even better.
PS I think the best time to buy will be end of Jan/early Feb ........ If you can't wait till things really start to bite at the end of next year.
Buy it with cash, get the best deal from someone who is looking to sell now and enjoy the car, only worrying about depreciation and no interest payments.
I know which I'd do...........sorry....did
Just got back from driving mine on this lovely sunny day, don't care about the depreciation and knowing it's mine makes it even better.
PS I think the best time to buy will be end of Jan/early Feb ........ If you can't wait till things really start to bite at the end of next year.
matc said:
Delaers aren't allowed to offer preferential offers to cash buyers
Really, says who ?? If you are holding cash and have nothing to trade in you have never been in a stronger position. Put your bid in on the car leave your number and wait for the phone to ring. It is the first time in a while that someone who has bothered to save some cash has the upper hand; in my opinion it is the only good thing to come out of this mess. Witchbreed said:
Like the buffoon who sold her flat (rather than rent it out) stuck it in the bank (an unnamed Icelandic one) and has since now lost it.
As far as I know nobody lost money in any of the Icelandic banks that were U.K based and regulated, only those that were based offshore.Funny that someone who tried to sell her flat before the rush, get into cash ready for the downturn should be called a "buffoon ". Sign of the times I suppose. Maybe she should of signed up for a Zonda on finance, given it the large, spunked her money then handed it back when she lost her job or interest rates went up.
lsb said:
Funny that someone who tried to sell her flat before the rush, get into cash ready for the downturn should be called a "buffoon ". Sign of the times I suppose. Maybe she should of signed up for a Zonda on finance, given it the large, spunked her money then handed it back when she lost her job or interest rates went up.
Was that a sarcastic response? If you want to have a dig then grow some and have one. Your thinly veiled 'attack' is neither here nor there. For starters, the flat/apartment market has been in decline for last couple of years so the 'buffoon' missed the boat and probably made a loss when she sold the property anyway! I was merely highlighting that putting your trust in the banking system isn't as safe as people think. I've invested my money in property (as many on here have done) and gained from it. I'm sure there's a few 'buffoons' on here that get a hard-on when they look how many zeroes are on their bank balance but I'm not one of them! Why give the bank manager your money so he can make money on it?
Your post adds nothing to the OP's question unless you are the aforementioned 'buffoon' of course!
Don't think I've ever said 'buffoon' that many times!
If you fully finance it, £70k will cost you approx £700pcm. If you can use £70k to make more than £8.5k pa then you'll have the car for whatever effort it costs to use the £70k, plus you'll also have the £70k. My only regret with financing my 430 is that I put £10k down on it. Now that really WAS a waste of cash.
If you buy it with cash you can virtually guarantee that if you sell it at a later date you will get less than £70k back.
Therefore the question (and really the only question) is, can you use the £70k effectively enough to make financing sensible?
If you buy it with cash you can virtually guarantee that if you sell it at a later date you will get less than £70k back.
Therefore the question (and really the only question) is, can you use the £70k effectively enough to make financing sensible?
robinredbrest said:
Do you think things are going to get worse then!?
Personally I think prices will stop falling as sharply over the summer from March onwards. But unless there is light at the end of the tunnel there are some who will need to raise cash at the end of next year.So yes, personally I think things will get worse next year.
selmahoos said:
If you fully finance it, £70k will cost you approx £700pcm. If you can use £70k to make more than £8.5k pa then you'll have the car for whatever effort it costs to use the £70k, plus you'll also have the £70k. My only regret with financing my 430 is that I put £10k down on it. Now that really WAS a waste of cash.
If you buy it with cash you can virtually guarantee that if you sell it at a later date you will get less than £70k back.
Therefore the question (and really the only question) is, can you use the £70k effectively enough to make financing sensible?
Come on then, where would you put that £70k (or any other amount of money) to get it working for you in the current economic climate? Would it require expert knowledge of the property market? That would count me out. This isn't 2004, so I assume it's only the professionals making money in this market.If you buy it with cash you can virtually guarantee that if you sell it at a later date you will get less than £70k back.
Therefore the question (and really the only question) is, can you use the £70k effectively enough to make financing sensible?
Interest on balances is dire at the moment, but I can't think of any easy place to put money where the return would negate the interest paid on a loan.
Witchbreed said:
Was that a sarcastic response? If you want to have a dig then grow some and have one. Your thinly veiled 'attack' is neither here nor there. For starters, the flat/apartment market has been in decline for last couple of years so the 'buffoon' missed the boat and probably made a loss when she sold the property anyway!
I was merely highlighting that putting your trust in the banking system isn't as safe as people think. I've invested my money in property (as many on here have done) and gained from it. I'm sure there's a few 'buffoons' on here that get a hard-on when they look how many zeroes are on their bank balance but I'm not one of them! Why give the bank manager your money so he can make money on it?
Your post adds nothing to the OP's question unless you are the aforementioned 'buffoon' of course!
Don't think I've ever said 'buffoon' that many times!
What an interesting response,ever thought of becoming a financial advisor ?I was merely highlighting that putting your trust in the banking system isn't as safe as people think. I've invested my money in property (as many on here have done) and gained from it. I'm sure there's a few 'buffoons' on here that get a hard-on when they look how many zeroes are on their bank balance but I'm not one of them! Why give the bank manager your money so he can make money on it?
Your post adds nothing to the OP's question unless you are the aforementioned 'buffoon' of course!
Don't think I've ever said 'buffoon' that many times!
Firstly I do not know you so have no need to attack you.
Where I live flats peaked in late 2007. You seem to take pleasure in speculating that this lady lost money. Unless she bought very late in the market cycle I doubt that.Maybe she bought 15 years ago and made a killing. To be honest it makes no odds to me either way.
Where do you suggest our money goes if not the banks ??
If no one saves with a bank where does the bank get the money to give to its mortgage customers ??
If there is no mortgage money available who will buy your property from you when you want to sell it ??
Or...... will the buyer have cash ?? Where do they keep it under the bed ? Or in the bank.
Whichever way you cut it we are all involved in the banking system, like it or not. They go down we go down.
Is it totally safe ? No.
Is it all we have? Yes.
Does it help giving flippant remarks about Icelandic banks going bust ? No
If the banking system fails the least of our worries will be the lack of finance houses offering deals on cars.
Re read your second post and tell me where your factual,helpful advise is because I cannot see it.
Edited by lsb on Monday 29th December 22:26
The op would also be well advised to think about an arbitrary £10k pa set-aside to run his new p&j (including petrol at 15mpg) assuming it ain't to be a garage queen.
A £70k machine won't likely carry much warranty, and a bit of decent use combined with our crap roads could very quickly devour what's left of 10 large after road tax, insurance, fuel, servicing and a couple of tyres have been paid for.
A £70k machine won't likely carry much warranty, and a bit of decent use combined with our crap roads could very quickly devour what's left of 10 large after road tax, insurance, fuel, servicing and a couple of tyres have been paid for.
matc said:
Witchbreed said:
With £70k you could get a discounted Spyder or top spec coupe but I doubt you would get such a great deal with a financed deal, plus you are losing more money on top with the depreciation.
Delaers aren't allowed to offer preferential offers to cash buyers; and in almost every case a dealer would preffer a buyer to be using their finance, rather than cash, as it is an extra source of income for them.Money costs are very cheap at the moment, so I would suggest you put the money in your bank for a rainy day, and get the best deal you can on financing the car. You can always pay it off if you start to feel uncomfortable with the monthly burden, but I would suggest that £70k cash can work a lot better for you eslewhere.
Until rates really come down to reflect the low Bank of England rate use your cash.
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