How do you pay for your car?
- Thread starter Bromhead
- Start date
You could afford it in the future after saving though, that's the whole point of finance.
Caporegime
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I think the point of finance is to sell people stuff they can't afford now.
Maybe, but if you can afford the repayments and are happy to pay a charge for being provided with a service, (the lending of money in this case) then I fail to see the problem?
Saved up £2.5k working part-time for my first car. Second car I financed because I'd came out of uni with no savings and wanted a nice, well built hatchback for the motorway commute and visiting clients. I've still got a couple of years left on the repayments now.
Providing the repayments were low enough in comparison to my salary, I'd chose to go down the finance route again.
Providing the repayments were low enough in comparison to my salary, I'd chose to go down the finance route again.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Well I'm currently trying to decide which way to go myself! I can buy a Honda Civic with cash but a swift sport with a small bank loan! Decisions
Honda Civic, it's not as if a Swift Sport is something thats sufficiently better than a Honda Civic so as to justify borrowing for.
A pretty bold statement to dismiss all cash purchases out of hand like that, to make "no sense whats so ever" [sic] there would have to be no potential reasons why people might consider it, even if overall it was still a bad idea. Whereas I can see a few:
-Simplicity i.e. you just pay them the money, no faffing about with finance applications
-Depending on the franchise/dealer you may not always be able to get a good loan rate
-Fewer outstanding debts which may influence mortgage applications etc
Personally I have a more balanced view... i.e. I think people should assess all the options and choose the one that makes the most sense for them. In some cases that would mean paying cash, in other cases (e.g. cheaper finance deal they can get as returns on investments elsewhere) that would mean finance.
^ ^ This
And kid yourself that you're not paying an inflated screen price to cover that "interest free" deal....
Caporegime
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I think you missed the point there.
Man of Honour
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Bit of a thread revival, but currently weighing up my options. My current SLK probably only has 1-2 good years left. I will hold onto her as long as I can though.
1. Save up as much cash as I can and pick up an SLK55 second hand. Might take out a small loan to make up the difference.
2. Pick up a brand new SLK on finance, but would probably be an SLK 200 or so.
Decisions, decisions.
1. Save up as much cash as I can and pick up an SLK55 second hand. Might take out a small loan to make up the difference.
2. Pick up a brand new SLK on finance, but would probably be an SLK 200 or so.
Decisions, decisions.
Do you just want something that looks the part or do you like some real performance? That would pretty much answer it for me
Man of Honour
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I opt for finance to free up my cash for essentials/emergencies.
Money in my current account is always available, whereas finance/loans take time, and can often be refused - especially when you need them the most. If you are worried about job security, consider the many types of insurance for that eventuality.
Ultimately, there are so many variables, the mind boggles...
Dealerships get more commission on finance agreements. This can leave them more pliable in the negotiation stages and doing favours after the sale (freebies and so forth).
Of course, a whole new discussion is created when we consider new car (first-time owner) versus second-hand car and you must contemplate reliability, warranty, parts and inconvenience of off-the-road periods. It is up to you the buyer.
Money in my current account is always available, whereas finance/loans take time, and can often be refused - especially when you need them the most. If you are worried about job security, consider the many types of insurance for that eventuality.
Ultimately, there are so many variables, the mind boggles...
Dealerships get more commission on finance agreements. This can leave them more pliable in the negotiation stages and doing favours after the sale (freebies and so forth).
Of course, a whole new discussion is created when we consider new car (first-time owner) versus second-hand car and you must contemplate reliability, warranty, parts and inconvenience of off-the-road periods. It is up to you the buyer.