How do you finance your cars?

Company motor so costs are minimal compared to all the other methods you've mentioned:

£45 a month tax
£55 a month private fuel

Both of which come off my monthly paycheck.
 
Finance is always a contentious issue. Some people find it a taboo subject and feel that it makes them less, I dunno, something if they admit they didnt have the cash to buy the car they own and therefore borrowed it. This is ridiculous really - its nothing to be ashamed of. The situation is basically as NickXX has put it. Using a loan or similar to top your savings up to get a car a year or so early is nothing to be ashamed of and nothing to have people look down on you for.

The problem with finance is when you get people who don't have ANY money and barely any spare money at the end of the month rushing out to finance something flash which they cannnot really afford to finance let alone buy outright.
 
loan and lease for my two current cars 15K and 28K value
the car before was cash.. only 650 quid though...

always'd financed loan, PCP whatever works at the time, value for money etc (,bar that one ^,)



bullit
 
[TW]Fox;21377270 said:
Careful what you wish for there.

The original owner of your 530i probably financed it..
Click to expand...

Cheque ;)

[TW]Fox;21377291 said:
The problem with finance is when you get people who don't have ANY money and barely any spare money at the end of the month rushing out to finance something flash which they cannnot really afford to finance let alone buy outright.
Click to expand...


This, this is my problem tbh.
 
I always finance with a cash deposit to suit my needs.

Wouldn't want my cash tied up in a car, there's much better uses I can put it to.
 
pepsilol said:
Cheque ;)




This, this is my problem tbh.
Click to expand...


Applies to everything in life really - some people are not so sensible with money and just want what they see to be a must have. Cars, big tv's, holidays on credit cards, borrowing money for the deposit for a house etc etc.

As with any sort of loan, as long as the person doing the borrowing knows and is happy with the terms, can afford to pay and doesn't leave themselves in a position where should circumstances change they're stuck then it doesn't hurt imo, keeps the world turning infact.
 
I buy a new car from carcraft each year completely on finance. Paid £12999 for a 04 clio last year. It's a good deal - what could possibly go wrong.










:p

EDIT: Seriously though, I got my audi on the finance deal they had on. Basically I put as much as I could afford into the deposit, and now have monthly repayments for 24 months then the old balloon payment at the end if I want to keep it - which I plan to do. It was a fairly decent deal all round, 3 years warranty (extended warranty available after this) and 5 years service plan included.

The funny thing is after working out how much a used vs new a1 would be. A new a1 worked out cheaper and better value for money. :confused:

Strange how these things work. :o
 
Last edited:
As long as you get a brilliant deal from the gents at webuyanycar.com to change it you'll be laughing!

I heard you can just lump the remaining finance on top and maybe get yourself a polo for a year or so, £400 a month sound fair?
 
Paid cash for all my cars so far but was happily considering finance options on my latest purchase.

Anything more than 5% APR on finance puts me off though. I always find it easier to look at the total repayment amount versus the purchase price (baring in mind over what period it is).
 
I buy my cars outright. The only loans I will alloy myself are the mortgage and, on a few occasions, a small loan for various investments.

This is why, now that I have kids, I have very old cars. But I'm happier with an older car than a burden around my neck.
 
paid for my civic outright.
paid for my fiesta st before that with a small loan from family coupled with my savings

depends what situation I am in financially at the time.

I would only consider finance on something with warranty for the duration of the period of ownership or a warranty that was greater than the repayment term
 
always buy outright and pay with cash. I have only brought 3 cars in all my years of driving.. the most expensive being £1750.
 
pepsilol said:
I never got my head around the finance on cars.

Isn't it always best just to buy outright?

Not trolling with the next bit but if you have to finance a car does it not mean that you can't actually afford the car? Aka you can only afford it by going via finance?
Click to expand...

I'm just going to paste my reply from a very similar thread a week ago so you can look at this from another viewpoint; as it stands that's a very naive one!

There is nothing wrong with credit if it's used sensibly. I paid cash for almost all of my cars, even my new Porsches but right now I can get a loan at 1.9% and put the money I would have spent into a CD earning 7%. It makes far more sense to net 5% on my money than to put 100% down on a car and lose the interest from it.

Better still, as I've done recently I can buy property to rent and net 40-50% per year with an appreciating asset.

That said, I don't advocate 100% loans at all and I still usually recommend at least putting the depreciation down as a deposit. Personally the equity in my trades tends to be worth 70%+ of the new car anyway.

To quantify my above response, I've paid cash for every car recently, even the 911/Cayman S/F430. When I sold the M3 to get into the GT-R, I had an opportunity to buy an investment property cash, something I can make about $15k a year off in rent and $20k per year in equity minimum due to the ludicrously low price I got the place for ($45k short sale, it's worth $90k even now). I decided to stick $20k on finance for the GT-R simply because I'd rather have the cash readily available for buying the property outright.
 
Hades said:
I buy my cars outright. The only loans I will alloy myself are the mortgage and, on a few occasions, a small loan for various investments.

This is why, now that I have kids, I have very old cars. But I'm happier with an older car than a burden around my neck.
Click to expand...


Very much my take on things - I will take a loan on something that I have the money for if it makes sense/cash not easily accessible etc.

I even struggled with the idea of a mortgage as a huge debt until after I'd bought my first flat.

I'm trying to convince myself that I will buy a weekend car after selling our current house (I have tentative approval already :) ) but cant see me spending lots of money on something thats effectively just a fun waste of cash.
 
pepsilol said:
If he can definitely afford it then he should have 60k for the car.

If you need finance surely you can't afford it..

So essentially he can afford the finance package?
Click to expand...

Finance is basically reverse saving for impatient people, instead of say putting away £X a week for 6 months and buying something you buy it now and pay back that money over 6 months (with a bit of interest as payment for the service). In both cases you can afford to spend the money but the finance option gets you your reward faster for a risk.
 
You must log in or register to reply here.
Back
Top Bottom