Colin
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Registered: 4th Apr 02
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I think 50/50 (cash /finance) is perfect when buying a car.
Im getting either a 997 or a E92 V8 next (18 months time).
I'll probably stick down 15-20k and borrow the same over 4yrs to keep the payments low.
Payments will be 300-400 quid a month but I'll be earning 4k a month so its not a problem.
I dont see anything wrong with that!? It would be daft to stick down 30-40k (which I wont have anyway). Sure if I was buying a car around 4-5k i'd pay it off outright.
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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I saw you earlier Davey in the car park near Kings Meadow.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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quote:
Originally posted by DaveyLC
quote:
Originally posted by MarkM
Mostly low value cars as I suspected.
Yes but they are mine and I dont owe a penny.. I could go and get £60k worth of car on finance but it wouldnt be mine would it.. It might LOOK like I've got more money but whats the point? Its like these people who have a two bedroom semi and a brand new range rover parked outside.. Priorities anyone?
After 3-4 years of finance the car would be yours. Also, although not technically your for those 3-4 years if you make the payments you have the benefit of its use.
Do you rent or have you bought your house outright?
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by John
The impreza wasn't 6k either was it, it was cheap because it had been crashed.
Nope but thats its value.. 
I make cars an investment not a money pit.
I ended up making £800 on the Corsa as it owed me £800 and I sold it for £1,600.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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quote:
Originally posted by John
The impreza wasn't 6k either was it, it was cheap because it had been crashed.
They are all 6+ years old as well, what if you want to drive about in something new.
Not having 10k+ cash sitting in the bank in no way means you can't afford it.
Can people buying 65k porsches with a bit of finance not afford it?
I bet I earn a hell of a lot more than Davey Boy. But because he owns a few low value cars outright he is better off than me.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by MarkM
After 3-4 years of finance the car would be yours. Also, although not technically your for those 3-4 years if you make the payments you have the benefit of its use.
Do you rent or have you bought your house outright?
Mortgage, but the house is worth more than I paid now.
But the car would be worth considerably less than you paid for it.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by MarkM
I bet I earn a hell of a lot more than Davey Boy. But because he owns a few low value cars outright he is better off than me.
Put it this way Mark, if you earn more than me you shouldnt even be thinking about finance.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by Ojc
I saw you earlier Davey in the car park near Kings Meadow.
I doubt it as I work in Bucks?
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John
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Registered: 30th Jun 03
User status: Offline
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There's no point arguing with Davey tbh, he's got some unbelievably stupid 'opinions', like GSI bumpers aren't oem.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
User status: Offline
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quote:
Originally posted by Colin
I think 50/50 (cash /finance) is perfect when buying a car.
Im getting either a 997 or a E92 V8 next (18 months time).
I'll probably stick down 15-20k and borrow the same over 4yrs to keep the payments low.
Payments will be 300-400 quid a month but I'll be earning 4k a month so its not a problem.
I dont see anything wrong with that!? It would be daft to stick down 30-40k (which I wont have anyway). Sure if I was buying a car around 4-5k i'd pay it off outright.
Agree on everything you say.
I will be doing something similar.
Also if I had 30-40k to put down I wouldn't as that amount could be invested to bring a return which would go a long way to matching the probable APR on the finance. The amount is then sat there for a rainy day.
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Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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quote:
Originally posted by DaveyLC
quote:
Originally posted by Ojc
I saw you earlier Davey in the car park near Kings Meadow.
I doubt it as I work in Bucks?
Have you sold the Corsa then? It was deffo the Corsa, it doesn't have fog lights. I would imagine it will still be there when I leave.
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DaveyLC
Member
Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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Where did 30-40k come from? You were talking about a Signum? LMAO!
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DaveyLC
Member
Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by Ojc
quote:
Originally posted by DaveyLC
quote:
Originally posted by Ojc
I saw you earlier Davey in the car park near Kings Meadow.
I doubt it as I work in Bucks?
Have you sold the Corsa then? It was deffo the Corsa, it doesn't have fog lights. I would imagine it will still be there when I leave.
Yeah sold it a couple of months ago 
FWD is not for me!
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MarkM
Member
Registered: 11th Apr 01
Location: Liverpool
User status: Offline
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quote:
Originally posted by DaveyLC
quote:
Originally posted by MarkM
After 3-4 years of finance the car would be yours. Also, although not technically your for those 3-4 years if you make the payments you have the benefit of its use.
Do you rent or have you bought your house outright?
Mortgage, but the house is worth more than I paid now.
But the car would be worth considerably less than you paid for it.
But over the term of the mortgage how much more will you have paid for it based on its purchase price?
The house being worth more only comes into play if you sell it. You then have to buy another which should have similary gone up in value.
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John
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Registered: 30th Jun 03
User status: Offline
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You can't afford a house unless you pay it cash imo.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by MarkM
The house being worth more only comes into play if you sell it. You then have to buy another which should have similary gone up in value.
But the idea is its an investment for when you are old and you can downsize.. Because you are going to get fuck all from the state so you better start saving now my friend.
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John
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Registered: 30th Jun 03
User status: Offline
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That's such flawed logic.
Work all your life to get a big house to sell it when you retire, wtf is the point in that.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by John
That's such flawed logic.
Work all your life to get a big house to sell it when you retire, wtf is the point in that.
You can have a comfortable life when you retire, how else are you going to live? On buttons?
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mwg
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Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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I'm in debt on my car but sod it I can afford to quite comfortably make the payments, still have a life go out, buy most crap I want and save money for a rainy day.
TBH even if I'd had the 20k+ sat in the bank to buy the car outright with I'd of still gone the finance route. I dont see any reason to own the car outright, that would mean paying the full amount & I have no intention of paying the balloon payment at the end of my contract
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Colin
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Registered: 4th Apr 02
User status: Offline
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People with money can generally invest at a hgher rate than they can borrow (current times excluded) I remember my old man saying he (& he's hardly wealthy but has done ok) could borrow at 5-6% and invest money at 7-8%....something along those lines.
Theres no point buying an expensive car for cash if you can make money on your nest egg.
What do you think millionaires do? Walk into Bentley with a suitcase full of cash....do they fuck they'll be financed on on some PCP/lease plan!!
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John
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Registered: 30th Jun 03
User status: Offline
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No, if you earned so much money and were so smart with it you'd have it invested elsewhere for retiring.
Will I tweet work until whatever age to sell my house to get by.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by Colin
What do you think millionaires do? Walk into Bentley with a suitcase full of cash....do they fuck they'll be financed on on some PCP/lease plan!!
But they've got a couple of million in the bank earning fuck loads of interest so its interest paying interest My mate is worth £1.5 mil and his house is on tick merely because his savings pay for his mortgage and give him an income.
But when you DONT have the money then dont spend it I say.
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Colin
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Registered: 4th Apr 02
User status: Offline
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1.5M in the bank and is mortgaged......where is the sense in that??
Unles sof course his house is £3M?
Mortgage is the route of all evil, you pay back thousands on what you borrow. Ive just sold one, and in 4.5yrs I hardley paid back any of the value it was all sodding interest. Im going to get mine blitzed asap. Still gonna have a nice car on the drive tho
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DaveyLC
Member
Registered: 8th Oct 08
Location: Berkshire
User status: Offline
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quote:
Originally posted by Colin
1.5M in the bank and is mortgaged......where is the sense in that??
Unles sof course his house is £3M?
Mortgage is the route of all evil, you pay back thousands on what you borrow. Ive just sold one, and in 4.5yrs I hardley paid back any of the value it was all sodding interest. Im going to get mine blitzed asap. Still gonna have a nice car on the drive tho
£350k house (8 years ago).
over £1.5m in the bank..
He gets a higher rate of saving with the extra money, and his income and out goings are relative (interest rate dependant) it actually works out better for him in the long run.. There is also a portion of interest skimmed off for the final settle ment.
[Edited on 01-09-2009 by DaveyLC]
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Colin
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Registered: 4th Apr 02
User status: Offline
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I always thought it was in the best interest to get the mortgage put to bed as soon as possible, but obviously he must have some financial expert with bigger idea's.
Everyone in my team at work & they all earn 60k+ have got one accounts and swear by them. Some of them have several houses aswell!!
Its what i'll be going for when my fixed deals up.
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