Soldato
- Joined
- 28 Nov 2008
- Posts
- 8,725
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- UK
Yes, but not much more
How did you pay for your car?
- Thread starter stoke1863
- Start date
Yus.
Although I have absolutely no problem with people that use credit as long as it is sensible and well managed. I considered partially funding mine using credit but the figures weren't that convincing and I ended up buying private and having to move quickly.
Some of the quotes in here from some people claiming buying cars on credit is stupid, you don't own the car blah blah sounds like a very childish view of the world.
I mainly buy sh*tters so they are all cash baby.
Where i messed up in the past is to go for the long loan with low payments and have the load outlast the car.... bad idea.
That was a fair few years ago mind.
It amazes me the number of people I know that can "afford" to have a nice car but don't even have carpet on their stairs.
Where i messed up in the past is to go for the long loan with low payments and have the load outlast the car.... bad idea.
That was a fair few years ago mind.
It amazes me the number of people I know that can "afford" to have a nice car but don't even have carpet on their stairs.
Pretty much my point really and not one I haven't made before. As the value of the car rises the reality is that peoples ability to pay cash for a car will greatly reduce as other things will take priority. People feel it's important to 'invest' and own a highly depreciating asset is somewhat odd. It is a means to an end luxury and should be viewed as such.
If i was it would be ace, will dancing girls, lots of poles and free beer, with its own race track, darts/snooker room and big gates to keep the poor out of my land!!!
Caporegime
- Joined
- 11 Mar 2005
- Posts
- 32,250
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- Leafy Cheshire
First two with bankers draft (Saxo £5300 and Clio £7200), third and fourth with my debit card (MX-5 £7800 and Passat £3600 iirc).
Also looking to pay for my next one with my debit card.
Also looking to pay for my next one with my debit card.
paid it back quickly though, I'm just impatientWhat i fail to understand are people who own property, and yet use unsecured bank loans, when a home-owner fee free loan is a much cheaper and generally deeper source of funding. I have a couple of outstanding home owner loans (second claims on a single property if you will), and they are tracking at a couple of points above base.
This is the only way i would ever fund a car nowadays. At the current rates a tracker funding a car purchase at £20k would cost you under £50/month in interest payments. Drive the car for a bit, sell it on, then either buy another one keeping the £50/month going and making up the difference, or pay off the title claim.
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I think the latter in the majority of cases. People assume that finance = massive repayments through your dealer on a car which was overpriced in the first place.
Home owner loan is better than cash really, you stomach a mere £50/month or so in interest payments for a £20k drawdown, that's less than a tv subscription.
Buy sensibly and you keep everything to a minimum, and end up driving a very nice car for less than a lot of people will pay to their local friendly ford dealer for their mondeo diesel.
So after 25 years of making payments you'd have a car that's worth nothing AND still owe the original amount back to the lender. How is that better than cash?
I've been saving £200 a month for the last 14 years, which has given me enough to buy a new car (as above) and have enough left over to start saving for its replacement (in another 10-15 years time).
I already have enough debt with the mortgage as it is, I don't want any more.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
I think his point is that you put the cash back into the mortgage when you sell the car.
As fox has pointed out, you have missed the point. You dont leave the secondary claim there, you dont even take it out on a repayment basis.
The fact you have been saving £200/month for FOURTEEN YEARS proves my point that people are misguided, you are one of them. Thats a ludicrous time period, and frankly if you can only afford to save £200 per month and buy a car every 14 years, then its my opinion that new cars are not for you. You would be far better buying a quality used car for a few grand.