Cars - Most are financed?

Well a number of reasons.
What if you lost your job?
What if something else came up which meant diverting money to?
Why pay 7.9% on the £30k when you could pay it off in 1 go?

If I had £30k in the bank I wouldn't buy a £30k car. I would buy one for less.

He would be paying 2.9% on the 30k, hardly much. He would also retain access to the funds on demand.
 
How would he retain access to those funds when he will be needing those funds to make his monthly repayments?

He's just managed to save £30,000. He'd put the same into repayments as he had been saving prior to the loan, plus the tiny amount of interest.
 
Well a number of reasons.
What if you lost your job?
What if something else came up which meant diverting money to?
Why pay 7.9% on the £30k when you could pay it off in 1 go?

If I had £30k in the bank I wouldn't buy a £30k car. I would buy one for less.

You could afford the car, yes, that's a given but if it meant making cut backs on other things and living life on a pittance then no, you cant afford it.

Well if you lost your job then the car loan would be the least of your worries, I think the mortgage would be more important.

As to why pay 7.9% when you could pay it off in one go. That would be because when offsetting the £30k in savings against your mortgage, you will only pay the 5% interest on £220k instead of the full £250k mortgage which makes the car loan a cheaper option (not a large amount mind but it is a saving).

I dont know about anyone else but when I save money, I do so with a surplus after I leave myself with enough disposable income to make my life comfortable. I certainly wouldnt be saving if I then had to live on a pitance.
 
Well a number of reasons.
What if you lost your job?
What if something else came up which meant diverting money to?
Why pay 7.9% on the £30k when you could pay it off in 1 go?

That's actually the reverse of my logic. Weird.

I'd have the loan and keep my £30k, that way if I lose my job I've got £30k in the bank which is a year at minimum outgoings.
 
My bike is on finance, doesnt bother me, as it got me the bike I wanted at the earliest I wanted, and it is 0%, so I'm not paying anything extra, so I have money free for other stuff. Only thing I've lost out on is depreciation, which was obvious.
 
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