John
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Registered: 30th Jun 03
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Would depend on whether you might need the lump sum at any point over the 3 years or not and probably various other factors.
Most people would love to have the cash to put down but the cost of interest on the finance outweighs saving up for 3 years instead.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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Examples?
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by John
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?
you talk some serious shite
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John
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Registered: 30th Jun 03
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Examples. Really easy one, you pay 20k cash for the car, leaving you with nothing in the bank. You need 15k a year later, you don't have it.
Buy the car on finance, you have that 15k when you need it, you are just paying interest on the loan to have that option.
You don't even deserve a response baza.
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Nick-S
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Registered: 3rd Mar 04
Location: Leigh. Drives: RS Megane 230 F1 Team R26
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My car cost me 12k almost 2 years ago.
I bought it with 4k from selling my old car and 9k from a loan from tesco that cost me £270 a month for 3 years. (Think its around 7%apr)
Don't see why people say finance is evil. Im pritty dam happy with it. I didn't have 12 cash to spunk on the car i wanted. I can comfortable afford the repayments with plenty left over so i think i made the right choice.
[Edited on 25-06-2012 by Nick-S]
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Tom
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Registered: 3rd Apr 02
Location: Wirral, Merseyside
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quote:
Originally posted by A2H GO
Even if I had the money in the bank that I'd saved for a long time, I wouldn't buy a car outright. I'd still have a low interest loan and have the money sitting in the bank.
Exectly how I see it, I nearly have enough to buy the car I want but I'm gonna get a loan as I like to be backed up by savings. The only time the savings are getting properley touched is when there's enough for a house deposit.
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ed
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Registered: 10th Sep 03
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Always outlay the smallest amount of money possible at a time and figure out what's going to cost you more in the long run. If you've got £15k in the bank then spending it outright on a car will definitely cost you more than buying a £15k car on 0% finance or some other lease deal over say 3 years.
Also, paying £250 a month into a loan account is the same as paying £250 into a savings account, it's just you get the car now rather than in three years.
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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I explained before davelc, it worked out slightly cheaper for me to get a small loan to buy my 330d than to suffer charges for taking money out my savings then over the same period the interest that money would earn is greater at 4.2% than the loan which is 9% over same period. Really not a hard one that is it.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by John
Examples. Really easy one, you pay 20k cash for the car, leaving you with nothing in the bank. You need 15k a year later, you don't have it.
Buy the car on finance, you have that 15k when you need it, you are just paying interest on the loan to have that option.
You don't even deserve a response baza.
What difference does the money make being in the bank or not? The money you WOULD have paid on the loan you can use to build your savings back up. And if you sell the car after one or two years again you put that money back into your savings.
My point is WHY spend £20k on a car if thats all of your savings down the pisser? Why not just spend what you can afford that way you are comfortable.
People look at new cars and think "Oh look I just put down £3k and then pay £300/month for four years, oh what a bargain"
But thats more than £17k, you can write off almost quarter of that just driving it off the forecourt and you've still ot the service it, replace the tyres, brakes etc. etc.
The alternative would have been to buy one thats 2-3 years old and save thousands.
I'd love a Rangey Vogue and I could walk into a Lancaster dealership tomorrow and roll out in a Vogue on tick but that would just be stupid.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by Nic Barnes
I explained before davelc, it worked out slightly cheaper for me to get a small loan to buy my 330d than to suffer charges for taking money out my savings then over the same period the interest that money would earn is greater at 4.2% than the loan which is 9% over same period. Really not a hard one that is it.
Oh bollocks.. Theres nothing to be earned on savings, if you had the money you would have used it.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by ed
Always outlay the smallest amount of money possible at a time and figure out what's going to cost you more in the long run. If you've got £15k in the bank then spending it outright on a car will definitely cost you more than buying a £15k car on 0% finance or some other lease deal over say 3 years.
Also, paying £250 a month into a loan account is the same as paying £250 into a savings account, it's just you get the car now rather than in three years.
So you think these main dealers are charities? How do you think they make money?
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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I think Davey has confused people who get finance with those who can't afford.
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John
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Registered: 30th Jun 03
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Not sure what part you don't understand Davey, it's really really simple, I now give up.
Stupid people taking loans out on cars that will be worthless in 2 months time doesn't mean that the loan is a problem, it means that the people can't count.
If you can add up some numbers there's nothing wrong with an affordable loan.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by A2H GO
I think Davey has confused people who get finance with those who can't afford.
Well that depends on your definition of afford... If I havent got the money to buy something then I cant afford it.
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Tom
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Registered: 3rd Apr 02
Location: Wirral, Merseyside
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quote:
Originally posted by DaveyLC
Yes it is, so 'spreading the payment' is a fools game. Most people simply need a lesson in patience and self control.
Whilst others just need to get with the times. It's all very commendable saving and paying with cash etc, but it's not always practical. Just because you've taken finance for a car doesn't mean you're showing off either  I'm getting a car as I want something more reliable and safer than what I have at the moment, an unsecured loan will give me the flexibility I need.
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Sam
Moderator
Premium Member
Registered: 24th Dec 99
Location: West Midlands
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Those of you who think finance is a bad idea - I'm just wondering, do any of you run a business?
If so, do you apply that same argument to running your business also (i.e. save not borrow)?
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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quote:
Originally posted by DaveyLC
quote:
Originally posted by A2H GO
I think Davey has confused people who get finance with those who can't afford.
Well that depends on your definition of afford... If I havent got the money to buy something then I cant afford it.
Good luck with living at home for the rest of your life then.
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ed
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Registered: 10th Sep 03
User status: Offline
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quote:
Originally posted by DaveyLC
quote:
Originally posted by ed
Always outlay the smallest amount of money possible at a time and figure out what's going to cost you more in the long run. If you've got £15k in the bank then spending it outright on a car will definitely cost you more than buying a £15k car on 0% finance or some other lease deal over say 3 years.
Also, paying £250 a month into a loan account is the same as paying £250 into a savings account, it's just you get the car now rather than in three years.
So you think these main dealers are charities? How do you think they make money?
By taking your money in return for goods; that's fairly obvious.
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taylorboosh
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Registered: 3rd Apr 07
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Davey is making himself look an arse tbh...
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ed
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Registered: 10th Sep 03
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Agreed, I don't see where I said car dealers are charities either. I said do the maths and figure out what's going to cost you less in the long run.
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Nic Barnes
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Registered: 5th Apr 04
Location: nowhere near ginger people
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quote:
Originally posted by DaveyLC
quote:
Originally posted by Nic Barnes
I explained before davelc, it worked out slightly cheaper for me to get a small loan to buy my 330d than to suffer charges for taking money out my savings then over the same period the interest that money would earn is greater at 4.2% than the loan which is 9% over same period. Really not a hard one that is it.
Oh bollocks.. Theres nothing to be earned on savings, if you had the money you would have used it.
I have the money. Charges to remove money from my savings account, plus interest rate is higher than on the loan. Maths, it's a cut and shut deal. Last sentence is in terms you should understand.
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Ian W
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Registered: 8th Nov 03
Location: Wirral, Merseyside
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quote:
Originally posted by A2H GO
I think Davey has confused people who get finance with those who can't afford.
Exactly, people don't seem to be able to see the difference in this thread.
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taylorboosh
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Registered: 3rd Apr 07
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Lol nic
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by DaveyLC
Interest + depreciation < older car maintenance
my fiesta costs me £132 a month on finance over 2 years.
i bought my puma for £2000.
the puma died, after i had spent £300 fixing it. so that's £2300 there.
most people would've probably scrapped it and got back £150 or there abouts, so that's £150 back in their pocket after shelling out £2300 to buy and maintain the car.
the fiesta would cost £3168 over the 2 years, only £868 more than the puma. it requires no MOT so that's a £100 saving at least, no need to pay for any problems that arise as it's covered by warranty and you get to drive around in a nice new car rather than a 10 year old one.
quite simple really. obviously the fiestas slow but for someone with no interest in cars it's good peace of mind motoring.
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Tom G
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Registered: 4th Aug 08
Location: Cheshire
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