finance: am i stupid?

[SmartTowelGS401]

http://www.pistonheads.com/sales/1715905.htm

So here's an aston martin, it costs 40k to buy, which is the bottom end of the price range it seems.

The "finance example" from the seller of the car states:

47 monthly payments of £770 = £36190

plus deposit of £3000 = £39190.

So its cheaper to buy the car on finance? Am I missing something? It talks about a "Final non guaranteed residual value of £13,650.00," is that a balloon payment you have to make if you want to keep the car? Or is it already yours and that's just what they estimate its worth? Is this "finance example" a load of rubbish? Or am I stupid?

[J500ANT]

The £13k is payable if you want to keep the car, or else hand it back. And in actual fact it might not even be a case of hand it back, the use of non guaranteed implies if its worth less than £13k you pay that too.

Edited by J500ANT on Thursday 10th June 20:22

[Somnophore]

I'm sure it's illegal to sell things cheaper on finance

[kentmotorcompany]

Sounds like a bargain.

You should buy it before someone else does.

[russy01]

That is one crap website, they wouldnt get a penny of my money! But an R8 for 699 a month sounds tempting!!

[skyslimit]

If you have to wonder if you can afford it, then you can't afford it.

Endex.

[SmartTowelGS401]

I wasn't so much wondering if I could afford it, I wasn't even considering it, I just like perving at the classifieds and was confused!

As explained, that IS a balloon payment, which makes sense, so I was moderately stupid.

Things could be worse

[MondeoMan1981]

Also need to run the car and pay for any fixes, consumables etc too remember...

[russy01]

skyslimit said:

If you have to wonder if you can afford it, then you can't afford it.

Endex.

Who / what is this aimed at?

[SmartTowelGS401]

Thinking about it, that's 10k a year for 4 years, and then it's gone, assuming they're only worth 14k in four years, (in which case, I will certainly be purchasing one outright in four years time I think!!!) but still, if you were that way inclined towards cars on finance, then it seems tempting! Not for me, but you can see why people are in debt!

[Huff]

skyslimit said:

If you have to wonder if you can afford it, then you can't afford it.
Endex.

+1. And a bump so the OP checks that 'cheap' £40K Aston won't actually cost £52K to keep...

[skyslimit]

russy01 said:

skyslimit said:

If you have to wonder if you can afford it, then you can't afford it.

Endex.

Who / what is this aimed at?

Right now, pretty much the L'oreal (Copyright Soovy I believe) population that is 'bankrupt UK' is who thats aimed at.

All that road rage and bitterness right now thats out there, I can't help think is because 99% of the population is one pay packet away from being royally fked in the arse, because of the insane attitude to credit - actually, no, it's a credit to no man, lets call it what it is, DEBT, and see if that changes the perception a little - in this country. We really are a nation of want it all now, spoiled bhes.

But then, I'd rather drive a £7000 car paid for cash, than a £50,000 one on some form of credit. I've done the HP thing many years ago, and never, ever again. Not as long as I have a hole in my arse will I have debt for anything other than a house, and even then, it'd need to be one special motherfking house to have me the banks, 'pay back twice what you borrow' bh.

DO I give a flying fk that I drive the oldest and cheapest car in my peer group? Not one iota. I'm not ticked up to the eyeballs crapping it about losing it all, like a lot of the people I see everyday around me. The sense of freedom that gives is immense. I breath deeper because of it.

st, I don't even have my money in a bank.

Decent safe, encased in a concrete plynth. Only way to go.

No one knows what I'm worth. No one is looking over my shoulder. No one is stealing a cut from my cash for losing chunks of it on the markets every year, then telling me with a smile I was lucky as I lost 25% and not 35% like the market trackers did. Eat my st sandwich. Be a good investor. Pay this tax. Pay his wages for being a losing prick.

fk.

That.

Chap.

Oh, and no government is coming to take away my gold (not that I have any CMD) for 'national interests' like they did in the USA at the outbreak of WW2, were the st to hit the fan again.

Keep your debt society. I don't want it, and I don't need it.

'Debt is the slavery of the free man.' Google that bad boy, and see who said it. It's even truer today than it was all those years ago.

Sorry, rant over.

[pilchardthecat]

skyslimit said:

grrrr argh aaaaarggh garrrr grrrrrr yaaaaaaaaa ggrrrrrrrrrrrrrrr!!!!!!!!

You've been spending too much time on www.housepricecrash.co.uk

(That's not to say i don't agree with you)

[skyslimit]

pilchardthecat said:

skyslimit said:

grrrr argh aaaaarggh garrrr grrrrrr yaaaaaaaaa ggrrrrrrrrrrrrrrr!!!!!!!!

You've been spending too much time on www.housepricecrash.co.uk

(That's not to say i don't agree with you)

not a viewer of that site, just my feelings are based on the way I was brought up. I strayed from the path I described years ago, and it bit me in the hole.

Now, I do it the way all my rich relatives do. And it works for me.

[russy01]

Wow, skysthelimit that's some post. Agree with you mind.

Kid at my old college (17yrs old), who works at the petrol station. Just taken delivery of a brand new fiesta, cost 13k!!! Allll on finance!!!! Whyyyy! The next 4yrs paying back probably 17k!!!!

[The Lukas]

I'm glad I didn't take out that loan to buy that car now. I took a much smaller one and bought a bike, much happier but keep thinking "I could afford to up the payments and get a better bike or a faster car (I'm really into my TVRs at the moment but this thread has brought me again to my senses! But I think keeping money in a safe at home is something I've yet to consider!

In fact I'm going to pay that damn loan off asap

[pilchardthecat]

skyslimit said:

pilchardthecat said:

skyslimit said:

grrrr argh aaaaarggh garrrr grrrrrr yaaaaaaaaa ggrrrrrrrrrrrrrrr!!!!!!!!

You've been spending too much time on www.housepricecrash.co.uk

(That's not to say i don't agree with you)

not a viewer of that site, just my feelings are based on the way I was brought up. I strayed from the path I described years ago, and it bit me in the hole.

Now, I do it the way all my rich relatives do. And it works for me.

The problem is the frugal used to be the majority, and the reckless got burned.

Now the feckless over-indebted are in the majority, and the system is leaning over to prop them up.

[itz_baseline]

skyslimit said:

st, I don't even have my money in a bank.

Decent safe, encased in a concrete plynth. Only way to go.

You don't want to make the most of your money by getting interest on it? Strange.

Spread it around so you have no more than £50k in each bank and you are fine.

[skyslimit]

itz_baseline said:

skyslimit said:

st, I don't even have my money in a bank.

Decent safe, encased in a concrete plynth. Only way to go.

You don't want to make the most of your money by getting interest on it? Strange.

Spread it around so you have no more than £50k in each bank and you are fine.

have you seen what banks give as interest! Oh, and lets not forget the tax I pay on my 'interest'

Then the hassle from the banks wanting to sell me any old ste because they know I have money.

Lets not forget the stress and worry of banks going down, where you need to wait on the government giving you it back.

Anyways, who says its all in stering

Nothanks mate. I'm happy as it is. Cheers though.

Edited by skyslimit on Friday 11th June 09:25

[stuckmojo]

skyslimit said:

russy01 said:

skyslimit said:

If you have to wonder if you can afford it, then you can't afford it.

Endex.

Who / what is this aimed at?

Right now, pretty much the L'oreal (Copyright Soovy I believe) population that is 'bankrupt UK' is who thats aimed at.

All that road rage and bitterness right now thats out there, I can't help think is because 99% of the population is one pay packet away from being royally fked in the arse, because of the insane attitude to credit - actually, no, it's a credit to no man, lets call it what it is, DEBT, and see if that changes the perception a little - in this country. We really are a nation of want it all now, spoiled bhes.

But then, I'd rather drive a £7000 car paid for cash, than a £50,000 one on some form of credit. I've done the HP thing many years ago, and never, ever again. Not as long as I have a hole in my arse will I have debt for anything other than a house, and even then, it'd need to be one special motherfking house to have me the banks, 'pay back twice what you borrow' bh.

DO I give a flying fk that I drive the oldest and cheapest car in my peer group? Not one iota. I'm not ticked up to the eyeballs crapping it about losing it all, like a lot of the people I see everyday around me. The sense of freedom that gives is immense. I breath deeper because of it.

st, I don't even have my money in a bank.

Decent safe, encased in a concrete plynth. Only way to go.

No one knows what I'm worth. No one is looking over my shoulder. No one is stealing a cut from my cash for losing chunks of it on the markets every year, then telling me with a smile I was lucky as I lost 25% and not 35% like the market trackers did. Eat my st sandwich. Be a good investor. Pay this tax. Pay his wages for being a losing prick.

fk.

That.

Chap.

Oh, and no government is coming to take away my gold (not that I have any CMD) for 'national interests' like they did in the USA at the outbreak of WW2, were the st to hit the fan again.

Keep your debt society. I don't want it, and I don't need it.

'Debt is the slavery of the free man.' Google that bad boy, and see who said it. It's even truer today than it was all those years ago.

Sorry, rant over.

+10 that is one fantastic rant and I totally agree with your view. The attitude towards debt has completely screwed this country and ripped its principles apart. The Gordon Brown "debt is wealth" mantra will haunt us for generations. Especially those whom overstretched themselves to buy overpriced houses which won't last as long as the mortgages on them.

I too prefer to drive a 7k car bought in cash. No brainer.