A2H GO
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Registered: 14th Sep 04
Location: Stoke
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quote:
Originally posted by Rick Draper
quote:
Originally posted by A2H GO
quote:
Originally posted by Rick Draper
quote:
Originally posted by Jambo
quote:
Originally posted by Rick Draper
Car i am looking at is £28020 OTR fully specked up and around £400-£440 PM using BMW Select.
Large deposit? Thats a good monthly for such an expensive car.
£440 is with a 10% deposit and a 4 year deal 12k miles a year with a view to trade it in after 3 years.
Based on current 123d's I'd guess it would be worth £14-15k in 3 years....I'm also guessing your final payment will be around £12-13k leaving you with having spent £16k, no car and £1800 less in your pocket than your initial £2800 deposit in 3 years from now.
Rather you than me.
[Edited on 22-11-2011 by A2H GO]
If at the end of the agreement i want it it will be £8k otherwise if its valued at £15k i then have £7k worth of equity in the car to use as a deposit on another car.
In that case its not such a 'bad' deal...seems a bit strange though that you'd only be paying £26k including interest and everything for a £28k car (should you decide to buy it at the end). Something doesn't quite add up there.
[Edited on 22-11-2011 by A2H GO]
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John
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Registered: 30th Jun 03
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That doesn't make sense, even the £440 is only 29k so either the 28k RRP isn't the actual cost and it's say a 25k car for 29k or something just doesn't add up, otherwise everyone would do it.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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Car- Finance.net calculator also confirms, as guessed a £12.5k final payment and thats on a car thats £2k cheaper.
http://www.car-finance.net/new-cars/view/39481
[Edited on 22-11-2011 by A2H GO]
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Russ
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Registered: 14th Mar 04
Location: Armchair
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quote:
Originally posted by Hammer
quote:
Originally posted by Russ
do you get a car a the end of it Hammer
Hope so mate, I would be furious otherwise 
mug
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Russ
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Registered: 14th Mar 04
Location: Armchair
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quote:
Originally posted by Rick Draper
I can afford to walk in and pay for it outright. After 3 years my car will be worth £8-£10k so i have just lost £18k. I fail to see the difference?
in that case, buy a 3 year old version of the car you want
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Rick Draper
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Registered: 10th Feb 01
Location: Cheshire
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quote:
Originally posted by John
That doesn't make sense, even the £440 is only 29k so either the 28k RRP isn't the actual cost and it's say a 25k car for 29k or something just doesn't add up, otherwise everyone would do it.
Its based on a 4 year lease deal, trading in after 3 years, £2802 deposit, £28020 car value, £440 pm and a final payment of £9381.97 if i wanted the car at the end.
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John
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Registered: 30th Jun 03
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I'd missed the deposit out and used the 8k from above.
They figures add another 4k on so it does add up.
Looks exactly the same as normal finance except you can hand it back after 4 years.
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M2RTY
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Registered: 25th May 01
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if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
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Graham88
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Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
Whilst I completely see what you mean as I am kinda the same, based on that opinion you will never move out as I doubt you'd be able to buy the house outright?
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
User status: Offline
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
Hope you don't ever want to own your own home or start a business 
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
enjoy living under the same roof as your parents for the rest of you life then
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John
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Registered: 30th Jun 03
User status: Offline
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Finance means you can hav stuff now instead of saving up, doesn't mean you can't afford it, just means you get it sooner. That's a different discussion than pcp vs normal finance.
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Hammer
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Registered: 11th Feb 04
User status: Offline
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
Hello mate, welcome to life.
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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quote:
Originally posted by Graham88
quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
Whilst I completely see what you mean as I am kinda the same, based on that opinion you will never move out as I doubt you'd be able to buy the house outright?
i have my own house and dont owe a mortgage on it, but that has nothing to do with it. A mortgage should see you make money based on the assumption prices rise
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Tom
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Registered: 3rd Apr 02
Location: Wirral, Merseyside
User status: Offline
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quote:
Originally posted by Hammer
10.5k car - 2.5k down, 8k financed over 3 years £270 a month.
That's what I done, whatever that works out at.
Who's the finance with hammer and what kind of deal is it, a loan or something else?
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Hammer
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Registered: 11th Feb 04
User status: Offline
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quote:
Originally posted by Tom
quote:
Originally posted by Hammer
10.5k car - 2.5k down, 8k financed over 3 years £270 a month.
That's what I done, whatever that works out at.
Who's the finance with hammer and what kind of deal is it, a loan or something else?
Carlyle Finance through Arnold Clark mate. Not sure what the % rate is but it's a good deal anyway.
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whitter45
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Registered: 15th Nov 02
Location: Norton
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
then you would never live
How are people going to buy a house etc - its ok if you can afford a house outright but its very few and far between
You have to accpet you will live in debt. By how much is another debate.
[Edited on 23-11-2011 by whitter45]
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SetH
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Registered: 15th Jul 01
User status: Offline
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Nope, am just buying cars with a value that I can afford to pay outright at the moment.
my 03 STi was on finance and when I was unexpectedly made redundant with only 2 Months pay it caused me serious issues.
Too much economic uncertainty at the moment for me to commit to any form of car finance/leasing right now. Although in the future I would consider PCP and can clearly see the benefits.
I am quite happy to drive around in an 8 year old Motor right now and not see my bank account being raped for £400 + each month in addition to running costs.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
quote:
Originally posted by M2RTY
I currently have an outstanding mortgage of £70500 on which I am paying 7.2% interest
I wouldn't sleep either if I'd agreed that.
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mwg
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Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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So does have a mortgage or not? Cos he claims above that he doesn't?
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mwg
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Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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quote:
Originally posted by Hammer
quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
Hello mate, welcome to life.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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No idea, I'm sure he'll correct me about the house the mortgage is on being in profit because he did it up. There's threads on here about it.
I just don't like this 'I've got no debt' bollocks when in fact that's what makes the world go round.
Can't speak for the guy buying the £30k BM for £30k and giving it back, not sure that's the best idea, but yeah debt is evil don't every do it mmmkay.
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ed
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Registered: 10th Sep 03
User status: Offline
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quote:
Originally posted by M2RTY
if you cant afford it, dont buy it. thats how i was brought up. I cant sleep when i owe money and never will
If you can afford the deposit and the monthly payments then surely you can afford it 
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chr15barn3s
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Registered: 5th Oct 03
Location: Farnborough
User status: Offline
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My Scirocco is financed although over 5 years I own it at the end. Costs me £400 a month though but it worked out cheaper than a PCP with a balloon. I could sell it now and have about 4k in my pocked after paying off the remaining finance. If I had the cash I probably still would have done it this way.
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A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by Rick Draper
Its based on a 4 year lease deal, trading in after 3 years, £2802 deposit, £28020 car value, £440 pm and a final payment of £9381.97 if i wanted the car at the end.
I still don't get how this works. In total that comes to £28k for a £28k car, that would make the finance 0%?
Even on a low interest rate I'd expect to be paying back around £31k in total....
If they're the figures its not a bad deal but bear in mind it works out at £777 a month.
[Edited on 23-11-2011 by A2H GO]
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