baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by Pop
Baza - would you consider finance if you had the money sat in your account to pay for the car outright? It might sound crazy but many finance flat rates are very similar to those of an ISA, even in today's economic climate. It means you have the financial security of having your money still accessible should you need it eg. Boiler breaking etc and you have the added benefits that come with financing a vehicle eg. The rule of halves and thirds.
[Edited on 24-06-2012 by Pop]
No I'd never consider finance at all . I understand what your saying but IMO it's better to be debt free than have money sat in bank but a big debt over my head .I know I may sound abit black and White but that's my views that just boil down to saving
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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im not having a dig at you baza btw with my replies.
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Ian W
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Registered: 8th Nov 03
Location: Wirral, Merseyside
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Where does this "if you don't save up the cash, you can't afford it" idea come from people are throwing around?
As Nic say's, most people in a decent job can afford £150 a month to run a decent newish car. Should they be saving up £8k/9K to buy one so they can pay cash?
By this working out unless you own your house outright you are living a lie as you can't really afford it.
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by DaveyLC
the only reason to have a more expensive one is for 1) self gratification or 2) to impress others..
Or - and I'm just sticking the oar in here - the more expensive one might be less hassle. I don't buy the new car business case because you're paying less tax or its under warranty, because you take the depreciation hit but there must be examples out there of spending slightly more on a car and lowering the TCO, even after you've integrated the interest to borrow.
Certainly two camps in this thread, the have it nows and the loans are evils, I'm in the maths corner, do it before deciding on your position.
I'm in both - I have a car on finance and I have a car bought outright. The one on finance has depreciated far more and costs me loads just so I can pose about in the sunshine. The one bought outright is a bag of shit and breaks all the time. Fortunately for me I'm going to bodge it on the cheap but not everyone is in that position.
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Pop
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Registered: 8th May 03
Location: Reading
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quote:
Originally posted by baza31
quote:
Originally posted by Pop
Baza - would you consider finance if you had the money sat in your account to pay for the car outright? It might sound crazy but many finance flat rates are very similar to those of an ISA, even in today's economic climate. It means you have the financial security of having your money still accessible should you need it eg. Boiler breaking etc and you have the added benefits that come with financing a vehicle eg. The rule of halves and thirds.
[Edited on 24-06-2012 by Pop]
No I'd never consider finance at all . I understand what your saying but IMO it's better to be debt free than have money sat in bank but a big debt over my head .I know I may sound abit black and White but that's my views that just boil down to saving
I respect your views but I think you a naive about this. In the example above you could potentially be better of financing. In the example it wouldn't be having a big debt over your head as you would have the money sat in you bank to clear it if you wanted. Why top up your own savings if you can use someone elses money for very little cost to yourself?
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by Nic Barnes
quote:
Originally posted by baza31
quote:
Originally posted by Nic Barnes
quote:
Originally posted by baza31
Ever heard of the term living within your means? If you can't afford something which if you have to borrow you can't don't buy it. When you can afford it do buy it . Only difference is patience , which 99% of the time people in non compulsory debt don't have any
thats wrong completely. living within your means to afford finance on a new average priced car, which could then reliably get you to a job, which earns you money is far more beneficial than buying an old piece of shit and not being able to earn the money as the car is fucked.
i really wish, and i mean really, i earned 10% of the average wages people on this website "claim" they do ffs. id be fuckin loaded wiping my arse with copies of harry potter books.
How do you work that out? What does an expensive car do compared to a cheap affordable car? Just because it's cheap it doesn't just not take you to work. If it's a necessity like I've said then fair enough but 99% it's impatience .
reliability. the few single parents that live where i do with children, well, tbh, if you tell me that a 12 plate car for £149 quid a month is as good as a 500 quid citron bx, and as reliable and as safe for their children commuting to school and work from a village, to earn a living to pay for kids house and shite associated with life is a bad move instead of an old knackered car, both of which are affordable within the persons means btw. can you actually say it makes sense? or keeping that cash for emergencies and easily affording the 149 quid a month is really a stupid idea? i disagree, its the right move. just not one you type on the internet perhaps.
Single parents have nothing to do with it. ALL cars cost money to run .what happens when car at 149 a month starts needing new pads and disks? Parts that warranty doesn't cover . Then said 'single parent' needs to find 149 + repair costs . A cheap car will go as long as a car at 149 a month . End of day cars cost money, if you can't afford to maintain and run one don't have one.
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taylorboosh
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Registered: 3rd Apr 07
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So many bullshitters on here its unreal...
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baza31
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Registered: 19th Apr 03
Location: yorkshire
User status: Offline
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quote:
Originally posted by Pop
quote:
Originally posted by baza31
quote:
Originally posted by Pop
Baza - would you consider finance if you had the money sat in your account to pay for the car outright? It might sound crazy but many finance flat rates are very similar to those of an ISA, even in today's economic climate. It means you have the financial security of having your money still accessible should you need it eg. Boiler breaking etc and you have the added benefits that come with financing a vehicle eg. The rule of halves and thirds.
[Edited on 24-06-2012 by Pop]
No I'd never consider finance at all . I understand what your saying but IMO it's better to be debt free than have money sat in bank but a big debt over my head .I know I may sound abit black and White but that's my views that just boil down to saving
I respect your views but I think you a naive about this. In the example above you could potentially be better of financing. In the example it wouldn't be having a big debt over your head as you would have the money sat in you bank to clear it if you wanted. Why top up your own savings if you can use someone elses money for very little cost to yourself?
Because why pay someone else money when it's not needed ? Your prolonging the inevitable . If you have the money there is even less reason to get finance . The only time I think it would be ok is if 1) it was claimed against tax therefore technically it's wrote off against profit or it was your job ie driving instructor etc
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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i disagree with you completely baza on this. real world away from the internet, I've had cheap cars, they've cost me a lot to fix and maintain and i do that myself. most people couldn't, so it would cost more. its not financially advisable for people who need a car, could afford to buy an old shitter, or pay 150 a month to buy the old shitter. not even remotely sensible.
weridly, can't be fucked to work it out, but I'm better off financially to get a loan to buy my bmw even though it wasn't much money than i was to pay it in one go. costs me money to remove from my savings, then by the time that cash has also earned the interest in that period of time, I'm fractionally better off. go figure.
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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Ok well am not here to argue . Also am not saying what anyone should do . Its purely my opinion . Like I sId in my first comment it's upto individual on what they want to do with their brass
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by john-d
So many bullshitters on here its unreal...
Who's that aimed at
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taylorboosh
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Registered: 3rd Apr 07
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Not a single problem with getting a loan. Id rather pay £500 more to get a car I want now rather than save 4 years
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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there are times when taking a loan out makes more sense than impossible suffering on saving up. i know thats hard for the internet to understand from your mansions where slaves type on the keyboard the words your mouths speak.
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Sunz
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Registered: 12th Jan 07
Location: SE England
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quote:
Originally posted by Nic Barnes
there are times when taking a loan out makes more sense than impossible suffering on saving up. i know thats hard for the internet to understand from your mansions where slaves type on the keyboard the words your mouths speak.
Sanctimoniousness buffoon ! All most Nic Boris de Pfeffel Johnson !
I'm guessing the OP will buy a vehicle from a dealer with warranty. 
Harry hill needs to cover this topic.
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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Ok sunzynation
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James
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Registered: 1st Jun 02
Location: Surrey
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Not read the whole thread but wanted to add a couple of opinions:
I don't see an issue with people getting finance who can comfortably cover the repayments, it's just a way of getting a new car now instead of waiting while you save up. The premium you pay for having the car now is just the interest you pay on the loan.
The situation I describe above is completely different to someone getting a car on finance because in reality they can't afford it but will somehow try and scrape together the cash to cover the repayments, then end up in the shit.
Also, the argument of getting finance when you have cash in the bank is valid. I always like to have £5k - £10k in the bank for emergencies. I'd rather have slightly more finance and some cash behind me. Again, the premium you pay for that is the additional interest on the extra finance. For example my boiler died and I had to fork out £3k for a new one. I bet the finance rate the boiler company offered me would have been a lot higher than the one I could have got by adding that £3k onto car finance and keeping the cash in the bank. You also have a cushion to cover any periods of unemployment with cash in the bank as well.
[Edited on 25-06-2012 by James]
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taylorboosh
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Registered: 3rd Apr 07
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quote:
Originally posted by baza31
quote:
Originally posted by john-d
So many bullshitters on here its unreal...
Who's that aimed at
In general
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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You guys who are all standing up for credit are just walking into the hands of the fat cats. Easy credit is a recent phenomenon and it's responsible for the down fall of capitalism. People used to be ashamed of credit!
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by Ian W
Where does this "if you don't save up the cash, you can't afford it" idea come from people are throwing around?
As Nic say's, most people in a decent job can afford £150 a month to run a decent newish car. Should they be saving up £8k/9K to buy one so they can pay cash?
By this working out unless you own your house outright you are living a lie as you can't really afford it.
And the new car on finance has no running costs? Of course it bloody does and you'd have already wanked a grand down it just rolling off the forecourt.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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Why don't we have a debate about why smoking is good for you and how asbestos makes for a good mattress filler.
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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Statistically proven David newer cars cost far far less to run and maintain than older cheaper cars. Your comment is completely void from any reasoning.
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taylorboosh
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Registered: 3rd Apr 07
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its very rare i agree with nic...
why save say £300 a month for 3 years to have a £10k car when i can have the car now and pay £300 a month for 3 years... stupid imo
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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Interest + depreciation < older car maintenance
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John
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Registered: 30th Jun 03
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I'd buy my cars outright if I stole a load of money from family members.
I'd also buy my cars outright if I had a box full of fake rolex's, 20k in the bank and a driveway full of crashed damaged cars.
Unfortunately I don't have 20k sitting in the bank, so unless I want to save up for a long time, I can get a nice car now, and comfortably afford the monthly payments.
I could go out and buy a crash damaged or crap car cash, does that mean I'm more able to afford it?
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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You guys must think dealerships are charities.. How do you think they make their money because they definitely dont make it on the cars.
They make their money on Finance deals, servicing costs, specified extras and gap insurance.
I'd like to see you guy find one single example where a 3 year old car bought outright is a worse deal than a brand new car on PCP, HP or a Loan.
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