How do most people pay for cars?

[Chicane-UK]

Been wondering about this for years and I think Pistonheads is a pretty good place to ask it. How do most of you pay for your cars - do you save up and buy outright, do you lease or do you just get pure finance?

Historically I've had a few loans to buy second hand cars, but my most recent car (Corrado VR6) I saved up to buy outright which was a nice feeling. However I do always look at newer cars and look at the various finance deals and think how nice it'd be to have something brand new or a year old. And I know I could afford the monthly repayments no problems. But curiosity just has me wondering how most people actually pay for the cars they drive. Looking at just how many new cars are on the road, I get the feeling that the vast majority of these are financed / leased....

Cheers.

[Liquid Knight]

Work, save and pay cash. No point in taking out a loan for a car because the interest and depreciation would be like buying two cars in the end.

[anonymous-user]

I always buy outright, I really hate debt so avoid it at all cost.

I like not having to worry about repayments each month and the a money I would loose in depreciation.

[AaronGS]

I have always saved up and baught using cash. Lately I too have been looking around and wondering about getting a newer car! I look at finance deals and just cannot bear the thought of the wasted money either.

[MrLou]

Liquid Knight said:

Work, save and pay cash. No point in taking out a loan for a car because the interest and depreciation would be like buying two cars in the end.

The topic is 'How do most people pay for cars?'.

I doubt most people save and pay cash as it's not easy to save up that kind of money.

PCP, HP, unsecured loans and lease deals must account for the majority of purchases.

Of course it depends on how much the car costs, I guess straight cash purchases would be pretty common for £5k and under.

Edited by MrLou on Sunday 29th August 17:01

[sinizter]

Cash for my last one (it's only my 2nd car, the first one was a hand-me-down that had been round the family).

Possibly PCP or lease for my next one as the majority of my miles will be business related, allowing me to claim back that proportion of total expense. Which means that more available capital will stay in my bank account - or in reality used to invest in my business.

[T84]

I hate getting finance too, but I don't like driving around in an old stter, so I'm tempted to get a bank loan, at least then you own the car.

[GarryA]

I have an offset mortgage and money in my account works out at making me 8%, so if I can borrow from the bank at less than that, thats what I'll do.

[r1ch]

Most people have loans or finance imo.

Not pistonheads on though, everyone pays cash.

[otolith]

Liquid Knight said:

Work, save and pay cash. No point in taking out a loan for a car because the interest and depreciation would be like buying two cars in the end.

Cars don't depreciate if you save up for them? Cool!

[volumeone]

I take a personal loan for about 50-70% of the car and pay the rest in cash.

[Jonty355]

Always paid cash, apart from the 355, that was just a big fat cheque! But always saved up for cars before buying.... always bought second hand too! Let someone else suffer cronic depreciation!

[Jasandjules]

Depends.

I've bought a car which wasn't much more than the value of the one I'd just sold so I paid the difference in cash.

I've bought cars where I've put down half in cash and got a car loan for the other half (my first Chimaera was well over 20k and I didn't have that in cash).

Then the Passat was bought purely via a loan.

[snuffle]

I tend to save up and when I get bored with saving I go looking for a car.
Only vehicle I ever bought brand new was a Yamaha R1, I dont think I could ever be tempted into
buying a new car, as I wouldnt want to suffer the depreciation.
This is probably why my newest car is nearly 10 years old.

[Rodimus]

musclecarmad said:

Everyone on PH buys their cars cash, everyone is loaded and no one borrows anything - even for their property

Joking aside, it's a mixture of everything for most people, private loan, lease, hire purchase, PCP, borrow off parents, take out more on the mortgage, take money out of the business etc.

I know i'll get flamed for this and being a hypocrite but I actually do buy my cars cash as I don't like the feeling of 'what if' when it comes to finance etc.

Same here. I prefer paying cash then financing.

[briers]

Save up and buy with cash

Dont like the idea of interest and depreciation.


Pay everything off at once usually.


Important to note: i never buy new either. Despite the fact i'm going to loose about 10k on my current car. As long as you can afford it...

Edited by briers on Sunday 29th August 17:14

[Bodo]

otolith said:

Liquid Knight said:

Work, save and pay cash. No point in taking out a loan for a car because the interest and depreciation would be like buying two cars in the end.

Cars don't depreciate if you save up for them? Cool!

But only if you work for it; otherwise they will depreciate. This is a common problem to lottery winners. And pensioners.

Edited by Bodo on Sunday 29th August 17:14

[Pints]

As un-PH as it sounds, I tend to take loans despite having enough in the bank to buy outright. It's probably not the most sensible financial option but I have a phobia about having reserve funds for rainy days.

Stems from situations when I was a lad. Just a mindset really. If I could get over it I'd clear car debts tomorrow.

[Jasandjules]

briers said:

Dont like the idea of interest and depreciation.

The car will still depreciate at the same rate as it would have done whether you bought her on finance or cash.

[Gibo993]

Cash de cash cash cash, hate loans, I'm suprised how many do pay in cash I thought a lot would be finance