AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
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I was brought up to save for everything I wanted, fuck I'd be dead by now as a homeowner if I didn't have debt  I'm probably about 13k in debt apart from my mortgage. Such is life.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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i'm 156.5k in debt according to marty, might aswell jump off a bridge tonight
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Tom
Member
Registered: 3rd Apr 02
Location: Wirral, Merseyside
User status: Offline
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quote:
Originally posted by Hammer
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.
 So is it just straight finance (i.e a loan) rather than HP etc? What car have you got btw?!
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Hammer
Member
Registered: 11th Feb 04
User status: Offline
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Yeah just dealership offered finance. 350Z, anywhere in 14.3 minutes.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by A2H GO
I still don't get how this works. In total that comes to £28k for a £28k car, that would make the finance 0%?
Plus the final payment.
There are three main parts to the arragement:
Deposit - 10% in this case
Deprecitation - this is what the people who set up the deal think the car will lose in the time you have it
Final payment - this is what the car is worth after that many years, typically 40% sometimes more if the car is a safer bet. BMW/Audi generally do OK.
Sometimes the final payment is called 'guaranteed future value' or something like that which gives the impression that you will certainly have a car worth that much, which makes people think it's good idea. When in reality you have to keep the car in good condition and under the miles which they stipulate, so its highly likely the car would have been worth that anyway on the open market.
You don't finance this part and it's still a debt to you at the end - which is why you can give the car back at no cost - because its value is exactly equal to what you owe.
So the payments are only against the depreciation segment, hence typically lower than HP.
Very very roughly indeed a 36 month PCP will have the same payments as a 60 month HP or more typically a HP car will break even after 36 months with nil deposit.
In this case the total cost to own the car is 2802 + 48 x 420 + 9381.97 = 32343.97
With HP you would instead be borrowing 25218 so the payments would be comparable over 60mo and you would probably break even between years 3 and 4, with the additional benefit that you're not contractually tied in to mileage. Although you would be accruing interest on the 9k which you don't under PCP.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by A2H GO
PCP always worrys the hell out of me.
in in the long run you [don't] want to be spending £400 a month on a car, you have nothing to show for it and so have to scrape some money together to buy a shitter.
Same with any finance deal though - if you commit to a £20k loan you have to pay off the £20k.
After 12 months you'd have paid off £5000 but the car will have depreciated by more so you're negative to sell it.
The only way to commit to buying a car and not be unable to get out of the deal is to pay it off faster than it depreciates, which on a new car would typically mean £1000+ pm for the first few months and less after that. The depreciation over time slows down but the payments are typically linear, which is why they intersect at around 3-4 years.
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John
Member
Registered: 30th Jun 03
User status: Offline
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Decent sized deposit(relative to the car) and finance over no longer than 3 years has always seen me well.
I never normally make it past 6 months though.
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Jambo
Member
Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
User status: Offline
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YOu sound worse than me John
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A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by John
Decent sized deposit(on 2-3 year old cars) and finance over no longer than 3 years has always seen me well.
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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quote:
Originally posted by Ian
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.
date on the below post please ian? A few years ago I guess, when interest rates were high before mny tracker dropped to a couple %? I am currently in credit on my mortgage, which was taken out to buy a house that I made money on, like my post above states
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John
Member
Registered: 30th Jun 03
User status: Offline
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Interest rates for first time buyers are still high, 7.2% is a bad rate unless the post date was 20 years ago.
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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quote:
Originally posted by John
Interest rates for first time buyers are still high, 7.2% is a bad rate unless the post date was 20 years ago.
the rate wasnt high 4 years ago, given the house was not habitable at the time and it was flexible with no start up fees or repayment fees , ie i payed the balance off with no early repayment fees, so the actual rate was only a part of the bigger picture thank you
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Rick Draper
Member
Registered: 10th Feb 01
Location: Cheshire
User status: Offline
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Well sorry to bump a old thread here but I ordered it. Great APR and the right deal for me IMHO.
Will get the usual bollocks spouters but then thats life.
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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great stuff - when do you get it
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Rick Draper
Member
Registered: 10th Feb 01
Location: Cheshire
User status: Offline
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quote:
Originally posted by whitter45
great stuff - when do you get it
Get a delivery date tomorrow as the salesman I use is off today. Cannot wait now, looking forward to the fuel economy of a diesel again
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deanwatts16
Member
Registered: 17th Nov 09
Location: Kent
User status: Offline
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You getting rid of the Astra now then? Or that already gone
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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So cs is a bunch of fakers really.
Next you will all admit that your modified corsas from back in the day were all loans and credit cards.
And here was me feeling all poor and jealous, now I know the truth, I feel sorry for you guys.
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Rick Draper
Member
Registered: 10th Feb 01
Location: Cheshire
User status: Offline
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quote:
Originally posted by deanwatts16
You getting rid of the Astra now then? Or that already gone
Putting it up for sale shortly. Still running well.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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quote:
Originally posted by 3CorsaMeal
So cs is a bunch of fakers really.
Next you will all admit that your modified corsas from back in the day were all loans and credit cards.
And here was me feeling all poor and jealous, now I know the truth, I feel sorry for you guys.
It can hardly be a bad thing considering most CS users are driving nice cars and you're in an old Escort & Corolla
Used correctly finance, loans & credit cards are the way to live nowadays, aslong as you are sensible about it
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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Corolla
I'm saving up for a lego house tbh
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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That was iPhone autocorrect :-(
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3CorsaMeal
Member
Registered: 11th Apr 02
User status: Offline
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you know your cars special if an iphone has never heard of it 
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Corsa_Sport21
Member
Registered: 13th Apr 08
Location: Leven, Fife. Drives : 205 GTi
User status: Offline
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Bought and paid for here. No credit cards or over-drafts. Whats mine is mine.
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Nath
Member
Registered: 3rd Apr 02
Location: MK
User status: Offline
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I leave my dealings with my portfolio manager.
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Ben J
Member
Registered: 31st Jan 05
Location: Cheshire
User status: Offline
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I've never had a car on finance.
All paid for up front.
Not knocking it though.
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