How did you pay for your car?

Mr^B said:
Which I'll own outright.

Without owing anyone anything for it.
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I took a personal loan, but I owned the car outright, the loan was nothing to do with it.

I owed somebody for a personal loan - just as I currently owe somebody for my mortgage.

Do you have a mortgage?
 
Mr^B said:
So what everyone appears to be saying is that getting a loan is cheaper than not getting a loan?

Is that correct?
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No, people are saying that if you need to save for 14 years, the cost of getting a loan is far, far, far outweighed by the benefits of not having to drive around in a crap car for 14 years.
 
In the time you have been saving and on the basis you are buying a new car, you could have got a 0% finance agreement from the Regie as they have been doing them for years.
 
[TW]Fox;16467697 said:
No, people are saying that if you need to save for 14 years, the cost of getting a loan is far, far, far outweighed by the benefits of not having to drive around in a crap car for 14 years.
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That's fair enough then, but far removed from my original point which was meant to be that it's cheaper to wait and save, than to get a loan and not wait.

Of course if you want a car NOW without waiting or saving, then yes always try and get the cheapest loan which is usually going to be something around a secured loan on a property.

Apologies for any confusion and/or me being slow. It's Friday.

:)
 
Housey said:
In the time you have been saving and on the basis you are buying a new car, you could have got a 0% finance agreement from the Regie as they have been doing them for years.
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Nothing really interested me car-wise until this year.

:(

Otherwise, yes I would have done that. 0% finance is a no-brainer.
 
Usually some form of car finance with a balloon payment but this time it's pure lease. Until November and I'll probably opt for pure lease again. If only I could decide what the car should be.
 
I think what people forget is that many companies today actually sell finance as their primary business. DFS is a good example, try and walk into one of their shops and get a discount on a something they sell for 0%, you wont as they can't. They are interested in selling you finance in reality and give away some wood, cotton and fluff for free with your finance agreement like many white good companies.
 
Mr^B said:
Perhaps if someone could have explained it like that in the first place we'd have arrived at the result sooner.

:)
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Did you not think of buying nearly new, you've just spunked all your hard work up the wall buying new, nearly new would have saved you a few grand and probably made financing a nearly new car cheaper than the route you chose....just a thought....
 
Jez said:
Your logic astounds me. You said yourself that this money is being drawn from an offset mortgage account?

In the case that this is true;

1) You are doing exactly what i said to do any way, you are drawing money from a mortgage account.

In the case that this is not true, and you had that (£20k?) sitting in a saver;

1) You have lost out on the fact that this capital has undoubtedly been earning less than it would have being paid into your mortgage account.

2) You have now spent the money on the renault. This money COULD have been paid into the mortgage account, instead of to Mr Renault. The net cost is THE SAME as if you had simply not bothered, paid into your mortgage account as and when, as any sane person should do, and has now later drawn the cash back down.


The TOTAL net cost to have avoided ANY wait whatsoever, let alone 14 years, would be approx £50/month at current rates - less than a tv subscription.
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Mr^B did you see my last post? This combined with Housey's point regarding nearly new would probably put you at break even point. Yes the car wouldnt be new, but you wouldnt have had to wait for it, and your car will be used the moment you drive it anyway.
 
I got mine for my 21st birthday. So I can't get on my high horse yet but there is now no excuse to get finance for my next car. It is a few years old now so time to start saving.

I would consider finance if I had an old banger but I am happy with what I have for now and plan to have money by the time this is getting old.
 
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Jez said:
Mr^B did you see my last post? This combined with Housey's point regarding nearly new would probably put you at break even point. Yes the car wouldnt be new, but you wouldnt have had to wait for it, and your car will be used the moment you drive it anyway.
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hmm, yeah good point.

:)
 
Housey said:
Did you not think of buying nearly new, you've just spunked all your hard work up the wall buying new, nearly new would have saved you a few grand and probably made financing a nearly new car cheaper than the route you chose....just a thought....
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Of course I could have got "more car" if I'd bought nearly new, but I didn't want "nearly new", much like other people don't want to wait.

:)
 
Mr^B said:
Of course I could have got "more car" if I'd bought nearly new, but I didn't want "nearly new", much like other people don't want to wait.

:)
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One hopes not but tomorrow a bus may run you over. In my mind you should perhaps spend less time planning for what might be and more time enjoying what is, purely based on your logic in this thread. Take it from someone who is well into middle age not waiting to reach it.
 
Housey said:
One hopes not but tomorrow a bus may run you over. In my mind you should perhaps spend less time planning for what might be and more time enjoying what is, purely based on your logic in this thread. Take it from someone who is well into middle age not waiting to reach it.
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Don't worry, I have been spending money on other things besides cars!

Cars aren't of that great importance to me, I enjoy driving - yes - but see a car as primarily a means of A-B relocation. And although people might mock a 1996 Megane, it's a 2.0 16v Coupe, which is still in reasonable condition as I've looked after it well. I have another car (a Xsara Picasso) to transport the family around the place.

It's not as if I am depriving myself of anything, it's only £200 a month - I put more than double that into my pension fund anyway. Does the "getting hit by a bus" rule apply to saving for retirement as well?
 
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