And people that do NEED a car don't NEED an expensive one, £500, if not less, will get you a reliable car, it won't be new or necessarily pretty, but it will do, I had a 306 HDi that cost a whopping £175, it needed taxing but it was reliable and very tidy!
How do you pay for your car?
- Thread starter Bromhead
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And people that do NEED a car don't NEED an expensive one, £500, if not less, will get you a reliable car, it won't be new or necessarily pretty, but it will do, I had a 306 HDi that cost a whopping £175, it needed taxing but it was reliable and very tidy!
Soldato
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yup, i used to have a suzuki swift, was given it! i just bought them a few beers after!
its still running now, i give it to the in laws when i stopped driving! its never had a problem!
Soldato
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There are people who love cars, have a decent income and car afford to finance what they want to drive.
Its not a crime.
Its not a crime.
Soldato
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i just dont understand why people dont just save up for it then? unless its 0% (and the car isnt over priced to start off with) i just dont see the benefit other than "oh, ive got the car now, but its not actually mine, and i could be paying money for the next x amount of years, even after this car is worth less than what i have to pay on the car"
Most of my mates who have had finance have regretted it. im sure it works for some though, else it wouldn't be available, or so popular, probably my ignorance as ive literally only briefly looked into the idea.
Some people receive car allowances, and stipulate cars no older than four years for example.
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I can't imagine finance on a 3k car being competitive unless they made it back on the price of the car? Finance on a 3k car is often a distress purchase (I said often, not saying it was for you) so there is little incentive to offer competitive finance on cheap cars. You can see the same thing in the personal loan market, rates for more than 7.5k are almost always better than sub 5k. Otherwise there just isn't enough money in it for the lender so what's the point in them offering small sums at low rates?
I get the point for the more expensive metal (though its not really 'barely any different, unless is a subsidised deal on something new there are few places offering finance on competitively priced used cars that has a lower interest rate than your savings are earning!) but a 3k car on finance when you had the cash?
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Including mortgage? Well done sir, I am jealous.
On topic and I tend to purchase half the car in cash and the rest normally a bank loan, although at the cheaper end of the cars I've owned I'll do fully cash. My last five main cars have all come in at around £20K and half of that in a bank loan has attracted a decent interest rates for the last 10 years.
Interesting to see all the replies, I'm genuinally surprised, I thought the majority would have said finance. Unless the finance people are lurking somewhere else on the forum.
As I said in the first post, I've only paid cash so far but it's been for inexpensive cars. My next I'm looking at for next year will be another 316i, but with the ballpark figure of 3k. I'll be paying cash again as I can't justify finance.
As I said in the first post, I've only paid cash so far but it's been for inexpensive cars. My next I'm looking at for next year will be another 316i, but with the ballpark figure of 3k. I'll be paying cash again as I can't justify finance.
Cash.
Cars are a luxury, you do not NEED a car that costs what one would need finance to achieve. All my cars except my second have been cash. I highly regret using finance on the one car I did finance. For the sake of a few months I could have just saved the money and bought outright.
Cars are a luxury, you do not NEED a car that costs what one would need finance to achieve. All my cars except my second have been cash. I highly regret using finance on the one car I did finance. For the sake of a few months I could have just saved the money and bought outright.
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Caporegime
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Last car was combinations of part-ex and bank loan at something daft like 5% APR.
Soldato
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I bought my 307 ten years ago on 0% finance, with a trade in and a lump put down towards the car it cost me £200 per month for 3 years....I hated every minute of it and couldn't wait for it to finish.
I still have the car as my daily commute, I would love to change it now but the thought of finance is not too enticing. So I have been saving since November, it's a had slog but will be worth it in the end.
I still have the car as my daily commute, I would love to change it now but the thought of finance is not too enticing. So I have been saving since November, it's a had slog but will be worth it in the end.
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Soldato
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Cash.
Soldato
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Aaaah, that might make a little bit more sense, but still you can pick up cheap cars under 3 years I would imagine?
Soldato
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As long as you can make the payments i dont see the issue. Of course you get people being hoodwinked into terrible finance deals and you get people trying to bat above their weight by financing cars that they otherwise couldnt afford and yes, these people can be criticised but i dont really see what is wrong with saying "I want this car now" and the price to pay to get it now is the interest on the repayments. If you weigh that up and still want the car then go for it i say.