How do you pay for your car?

Trifid said:
My previous cars have been cash purchases. I'd personally be tempted to go for a long term car lease like the Puegeot Just Add Fuel deal but on a decent car like a BMW, where insurance, tax, servicing etc is all included in the deal. I'm not fussed about the owning part of a car.
Click to expand...

This is a rapidly growing market at the moment, especially amongst younger drivers. Lots of people would like a new car every 2-3 years, with no desire to ever hold on to the car they have at the end of the term leasing is viable, it bring monthly payments right down and you simply get a new car at the end of the term. PCP is of course another option and has rapidly grown in the past 7 years, it just provides you with a range of end of term solutions.

The thing with saving is that it means you go without for the first part of your saving, it could take a year or two to get the capital you need to get the car you want or you can simply work out what you're able to save each month and rather than save it use it on finance. Not to mention that with inflation your monthly payment will reduce, rather than what you were saving reduce.

If you're good with your personal finances then there is no issue with finance, yes you pay a little bit more due to APR but that little bit more gets you what you want right away, rather than in 2 or 3 years. Imagine if mortgages didn't exist, you'd have to live with you parents for 25 years before you could buy the house you want, (although obviously house values go up, car values down, but I think the core point of why finance isn't a bad thing still shows through).
 
Last edited:
Blackhawk47 said:
Finance PCP + 20% cash deposit.

You would have to mad to buy any new car with just cash. It makes no sense whats so ever and sometimes getting finance (even if you settle a month later) is cheaper because of the dealer contributions/incentives.
Click to expand...

Really?

What finance deal do you have?

Looking on the Audi UK website for an A1 the APR is 6.4%. There are no savings accounts that come anywhere near that amount

Just to illustrate:

Audi A1 OTR - £16,660

Finance - Cost over 3 years = £1,921.85

Cash purchase - Loss of interest over 3 years = £1,043.94

"You would have to mad to buy any new car with just cash" U FAIL
 
Last edited:
Also if you go with a PCP thingy you often get free maintenence/service chucked in. A mate recently got an Alfa on finance, he got £2k of the deposit thrown in for nothing.
 
First and second car were both bought cash, next car is also going to be cash as I don't fancy having to pay off finance every month and the possibility of something needing to be repaired/replaced on the car at the same time.
 
Our little 107 is financed (hp), the 330 was bought cash - then again its 10 years old you'd have to be mad to take out a loan /finance if you could get it
 
2% flat is still pretty decent, but these days I've seen a lot of manufacturers offer under 3% APR on new car purchases.
 
Ah sorry it was 2% APR over three years I think it was, but I've a feeling it was actually less than that, but I don't have the paperwork anymore to check.
 
rossk26 said:
Really?

What finance deal do you have?

Looking on the Audi UK website for an A1 the APR is 6.4%. There are no savings accounts that come anywhere near that amount

Just to illustrate:

Audi A1 OTR - £16,660

Finance - Cost over 3 years = £1,921.85

Cash purchase - Loss of interest over 3 years = £1,043.94

"You would have to mad to buy any new car with just cash" U FAIL
Click to expand...

I am not going to debat this again, I've already given details of the deal somewhere else on this forum and I am not going to do so again. Firstly the OTR was like £15600 or there abouts when I got mine, and shock as the deal on the website is not the same as when I got mine 1 year and a half ago.

Also at the time, it made more sense buying a new A1 as a used A1 worked out more expensive (when on finance), plus the car had only just been released so there wasn't much available used in the first place.

Already been banned for 'driving an A1' so lets leave it at that. And not for one second am I recommending people go to carcraft and buy 10 year Clio's for £14k on a 7 year finance dealer.

screenshot20130518at194.png

**** off Jane.
 
Chris1712 said:
Cash up until now, but considering bank loan + cash for next one. I just can't be bothered waiting any longer to have the money in my pocket. If I can put what I'd normally save every month into a repayment for something I really want and get it now instead of 2 years, I don't see why not? My man maths is slowly convincing me, been very anti-finance until now.
Click to expand...

Pretty much this. Having said that I think I'll only 'finance' if the car is valued north of ~£15k.

My biggest dilemma isn't that total amount I want to spend, it's finding a car that offers great value whilst ticking a lot of boxes.
 
Last edited:
Raymond Lin said:
Saw a new Z4 yesterday in town with 2.99% APR with £3k deposit yesterday. I was almost tempted.
Click to expand...

Its to tempt people into buying brand new because they suffer horrific depreciation in the first year. You can get a 35is at 2.9% APR with £8k dealer contribution.
 
Paid for mine part cash part p/x and part bank loan. Hgf on the mg kind of forced my hand to get the newer car earlier than planned and the bank loan was the only way to facilitate it. The way i see it is I pay a little more for the privilege of owning the car early which doesn't really bother me.
 
Anyway - current car was a cash purchase. I would happily use part cash part finance (well, bank loan) in the future if the circumstances dictated, mind.

I'd like to think I wouldn't then tell the internet that 'cash is dumb' though. I'd finance if I didn't have the cash, if I could spare the cash I'd use that. I'd always want to use a sizeable deposit though, not keen on finance with a very small deposit.
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom