Balling
Premium Member
Registered: 7th Apr 04
Location: Denmark
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quote:
Originally posted by James
Affordability is subjective. There's pretty much three groups:
1) Those that have enough cash to buy a car outright, but choose to finance it as they would rather keep the money in the bank or invested.
2) Those that don't have enough cash to buy a car outright but can easily cover the repayments and want a brand new car.
3) Those that don't have enough cash to buy the car outright and don't really have enough to cover the repayments, but want a brand new car.
I would only say that the third group can't afford it.
This seems pretty spot on to me.
As long as you steer clear of negative equity, I see absolutely no issues with financing a car.
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tom130691
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Registered: 13th Sep 08
Location: Daventry
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Im happy to finance a new car and have looked in to it,
I just dont like all the contract hire ones about now where its yours for 3 years then a 10k payment, for example,
much rather 5 years no bulk payment,
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3CorsaMeal
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Registered: 11th Apr 02
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Its great because you can go out one week and decide i fancy a £25k car as well as my corrado (for example)
You just fill a few bits out and pay each month. A bit worried about 3-5yrs down the line, but who really cares, might die in 7yrs time so may as well experience a new car now.
Its blue btw
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John
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Registered: 30th Jun 03
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You can just hand the PCP ones back at the end too. The benefit is (completely depending on what car you buy) that the GMFV should hopefully be less than the car is actually worth. This leaves you with a deposit for the next one.
On a straight lease they may or may not let you buy it at the end an you've got no idea at what price.
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
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I have just leased a car, never bought a brand new one (although Mrs Jambo did) and I have always owned second hand cars that ive either owned outright or with some finance on (loan)
The worst one I ever had was owning a £15k car outright. Just didnt work for me, all money tied up in something that depreciates. To me it just doesnt make sense.
I think when it comes to buying a car, its as simple as combining your needs and wants, vs the money available to you at the time.
I would 100% lease again, but thats not to say I wouldn't look at the second hand market or buy a nearly new car either. Entirely depends on your situation and needs.
I was originally looking for PCP and ended up leasing as it was so much cheaper on the car I got and the miles I do. Plus I really have little interest in owning it, predictable and manageble costs where key this time and it has proven to be brilliant. I shopped around high and low, ended up getting my lease car including servicing for £fuck all a month. The only sting was the deposit.
People forgot sometimes when looking at a lease car/PCP/Nearly new on the cost savings on fuel, tax and insurance as well as servicing MOTs, tyres, brakes etc.. It all adds up.
Only thing I have to pay for on my car is tyres, and given the low miles I cover very unlikely to even have to spend out on that. So for me, this time it was the best option.
People get a bee in their bonnet about finance and leasing, all very strange.
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VrsTurbo
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Registered: 8th Jun 10
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I know a few people that lease and then clock the cars so they don't have to pay the excess mileage charge. I'm not talking about small numbers either 10-20k
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John
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Registered: 30th Jun 03
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That puts them into the can't afford it camp surely?
The extra mileage is relatively cheap compared to being a criminal surely?
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VrsTurbo
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Registered: 8th Jun 10
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Most of them run a business so can afford it. But it's easy to do saves money so they see it as why not. I bet it so common with leasing.
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Wrighty_1988
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Registered: 30th Jun 06
Location: South Yorkshire
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Im a big fan and like to spread the word to people at work looking to get a new car. I myself have got a corsa vxr on a 3+23 9k a year and its 160 a month, for no hassle motoring ill pay that any day. Like the fact that you get tax included and posted out to you.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by ed
Houses and cars aren't really comparable. Cars massively depreciate, houses (hopefully) don't.
You don't get any return when you rent though, so your argument doesn't add up.
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John
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Registered: 30th Jun 03
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quote:
Originally posted by VrsTurbo
Most of them run a business so can afford it. But it's easy to do saves money so they see it as why not. I bet it so common with leasing.
I don't see how it can be that common.
It has to be serviced properly as a lease, you would have to know exactly how many miles you were doing in advance so you could clock it by the correct amount at each service, which will be 2 or 3 times over the lease, instead of paying maybe an extra k or 2 over 3 years.
Doesn't make any sense using my calculator, especially if business is reliant on it.
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Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
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Not a chance I'd tie myself to a car for X period. I buy cars, whack 5-10k miles on them, then sell them for the same or sometimes more 6months on.
[Edited on 24-04-2014 by Brett]
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John
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Registered: 30th Jun 03
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I'm like that as well Brett, been pretty lucky with most purchases, although not particularly expensive to begin with, have managed to have something for a few months and not lose any money.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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What if the engine went bang on that 5-10k car, Brett? And what would happen if you had no space/time/knowledge to fix it?
Thats where finance\leasing comes in.
Doesn't mean everyone who takes that particular route is the anti-Christ.
Also, this doesn't apply to everyone, but I have noticed that whenever someone in work gets a nice new motor on finance, others get all jealous over it and start making silly comments.
Pretty pathetic really.
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Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
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I don't care for what ifs tbh. Treat cars right, they treat you right.
With regard to your point, that's where warranties come in btw. Anyone can get one if they're bothered.
Each to their own I say. Got no probs with financing/lease, just not suitable for me
[Edited on 24-04-2014 by Brett]
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Ben G
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Registered: 12th Jan 07
Location: Essex
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A warranty which costs extra, whereas it's all included in the price of the new car.
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3CorsaMeal
Member
Registered: 11th Apr 02
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Hope nothing goes wrong with a new car tbh. If it does i'll go ape shit about it
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Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
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quote:
Originally posted by Ben G
A warranty which costs extra, whereas it's all included in the price of the new car.
 ok
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carl123uk
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Registered: 24th Oct 05
Location: Nuneaton
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Wheres the best places to look for leasing deals?
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by Brett
quote:
Originally posted by Ben G
A warranty which costs extra, whereas it's all included in the price of the new car.
ok
Whats the laughing smiley for? I'm merely stating a fact which you didn't include in your post.
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Jambo
Member
Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
User status: Offline
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quote:
Originally posted by carl123uk
Wheres the best places to look for leasing deals?
http://www.contracthireandleasing.com
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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quote:
Originally posted by Ben G
quote:
Originally posted by pow
Not for me, I hate the thought of owing on a car (or anything other than a house really) I'll probably never buy a new car again though, will buy nearly new/used. I live by the can't afford it can't have it mantra... But I'm not going to talk anyone down who does it... Unless they are loving way outside their means!
That argument never works pow. Especially when you bought a house 
Hypocrite.
It does work, I hate buying anything on finance - making monthly payments for something. A house is 1. an appreciating asset and 2. it's very hard to buy a house with cash relatively.
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Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
User status: Offline
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quote:
Originally posted by Ben G
quote:
Originally posted by Brett
quote:
Originally posted by Ben G
A warranty which costs extra, whereas it's all included in the price of the new car.
ok
Whats the laughing smiley for? I'm merely stating a fact which you didn't include in your post.
Because it's just typical you tbh Also saying its included in the price has a hint of hilarity for me. You'd fucking hope so.
I'm not really prepared to go down this road of discussion with you tbh, seems idiotic. However long and short, what you said, implying finance/lease is the road of trouble free motoring, although is one option, isn't the only one and by a million miles not the cheapest. You asked what I'd do if the car went bang, well if I was worried I'd have bought a warranty, or heaven forbid I would've got the car from the dealer with warranty, because that'd be ok 'because its included in the price' 
Not sure why you're sweaty sights are set on me anyway. Like I said, I've got no problem with finance/lease, certainly don't think anyone is 'the anti-christ' for doing it. Whatever pulls your plonker, go for it.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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New cars no matter how you finance them are never going to be the most cost efficient way of owning a car.
I'm glad PCP/Lease deals exist though, otherwise there'd be no one to take the hit before I buy them.
[Edited on 24-04-2014 by A2H GO]
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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quote:
Originally posted by John
You can just hand the PCP ones back at the end too. The benefit is (completely depending on what car you buy) that the GMFV should hopefully be less than the car is actually worth. This leaves you with a deposit for the next one.
On the contrary though that deposit you have is essentially a savings account that you have had the luxury to pay interest on as it only means you have over paid in payments on the car to start with. Ideally you want a final value that is identical or higher (admittedly not easy) to that of the expected market value. Depending on the car in question, sometimes this is easy but at least this way your monthly payments are reduced and worse case if you hand the car back you aren't leaving the dealer/finance company with the opportunity to make more money.
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