I just been looking at one about 1 hour agoBuy a Mini Cooper s
Black cooper S (Year 2003)
35000miles
£4999
But 5k for 11year old car puts me off..
Get finance or pay cash for a new car ??
- Thread starter chaparral
- Start date
Black cooper S (Year 2003)
35000miles
£4999
But 5k for 11year old car puts me off..
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Perhaps because you don't 'double your losses' at all, a bizarre view which only really highlights that you don't really understand the market.
My FZ1 bike finance was 2% but that was only because it was brandnew
Payed it by putting down £3660 cash and £3500 on finance over 2years
(FZ1 cost was £7160)
Soldato
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What's wrong with buying a car that you can afford ?
[TW]Fox;25601833 said:
An even bizarrer response despite your well known market acumen. Really disappointed in you Fox - I expected better.
Please explain how a car's value does not depreciate along with not having to pay interest..... I need to understand the 'market' you're speaking of.
The only case for HP that I can see is for business use where those costs can be accounted for.
Soldato
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I bought a 52 plate on 72k for £4k last year and apart from a few bits and bobs covered by warranty it's been awesome.
The interest from savings is hardly worth shouting about. The cost of interest on a loan is hardly worth worrying about if you get a good deal (much greater expenses with car ownership).
One might want a more modern car for reliability (or perceived), manufacturer backed warranty, fuel economy, creature comforts.
One might get pleasure from owning a more modern car, or a car they want to own.
Surely it's like buying a house which you can't afford, hence getting a mortgage.. ?
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Exactly!
Soldato
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Jeeee..... Really ? Seriously cannot believe how you guys value cars.
For me it's a consumable expense. If this is how most people feel then I see why there are so many ****s on the road.
But how many years do you want to keep a car to call it a "consumable expense"?
Interestingly my dad used to do finance for BMW, he met someone who is wealthy (house is roughly £3m) and he was buying a couple of cars let's say £120k in total. If you have a house like he does, I don't believe that you can't afford to pay cash on a couple of cars. There must be some reason he opted for the finance option...he bought from my old man on at least two occasions so was only keeping the cars a few years. I do wonder what his thought process was behind opting for finance in his situation.
Why buy a house for 100k and pay 100k of interest when you could just buy the house outright and buy a house for 200k once you saved up enough..
I see nothing wrong with having a loan for 5k, you're paying what £500 of interest? It's not exactly breaking the bank, the car will probably lose more in depreciation as soon as you buy it
A lot of people finance as its easier for them to manage their own finances that way.
Similar to say a mobile phone contract or monthly insurance. Yes it costs a bit more, but the monthly outgoings are easy to manage for them.
Furthermore, by financing a car, it can offset some risk. Finance does offer further protection I believe.
Just saying these can be other reasons why.
Similar to say a mobile phone contract or monthly insurance. Yes it costs a bit more, but the monthly outgoings are easy to manage for them.
Furthermore, by financing a car, it can offset some risk. Finance does offer further protection I believe.
Just saying these can be other reasons why.
How does paying interest on top of depreciation 'double' your loss? It doesn't do anything of the sort, the loss through depreciation will usually massively outstrip the loss through interest payments.
Say you buy a £10k car over 5 years which you sell for £3k.
Loss through depreciation: £7k
Cost of finance @ 7%: £1.8k
Last time I checked, adding £1.8k to £7k does not 'double' your costs.
On paper, yes.
But 0% finance is almost always funded out of the margin in the car you'd have been able to haggle off if you were not taking 0% anyway.
Max time I would get finance over would be 2 years..
I would never get a 4 or 5 year loan for just a car that crazy..
I had 3 year finance for cars more then once when I was younger and that was to long..
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It depends. If the interest rate is low and you have equity in the car (i.e. it's worth more than the finance settlement amount), then 10 years no worse than 1 year - other than a reasonable borrowing cost.
Finance obviously isn't an issue at that end of the spectrum, I would imagine he can use the £120k to make more money in the finance term.
Finance is an issue when you finance a £30k car when you earn £25k a year.
There is a difference between finance on something you can't afford and finance on something you could buy outright in cash.
Unfortunatly most people go out and finance a £25k 1.0 Polo worth £7k after 3 years when they earn £15k a year.
Soldato
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Got to laugh at those comparing car finance to a mortgage.
A car depreciates heavily year on year. A house does not.
They are completely different types of purchases and are really not comparable.
Car finance in itself is not a bad thing. In reality there are significant percentage of young adults (say 18-30) who are showing off their fancy car that they don't yet own, plunging deeper and deeper into debt.
Personally I have never used car finance but may do one day. It can make perfect sense if you need a car but have not got the cash yet.
What is retarded is those who buy brand new cars over 5+ years when they don't earn much, or even worse slapping it onto the mortgage.
This. Nothing on this planet is free. In the same way DFS offered me interest free credit over 5 years for a sofa, when the sofa was very overpriced to begin with!
A car depreciates heavily year on year. A house does not.
They are completely different types of purchases and are really not comparable.
Car finance in itself is not a bad thing. In reality there are significant percentage of young adults (say 18-30) who are showing off their fancy car that they don't yet own, plunging deeper and deeper into debt.
Personally I have never used car finance but may do one day. It can make perfect sense if you need a car but have not got the cash yet.
What is retarded is those who buy brand new cars over 5+ years when they don't earn much, or even worse slapping it onto the mortgage.
[TW]Fox;25602492 said:
This. Nothing on this planet is free. In the same way DFS offered me interest free credit over 5 years for a sofa, when the sofa was very overpriced to begin with!
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Taking a finance option (at a main dealer, at least) will afford you better haggling options. Stuff like warranty and servicing chucked in, greater part-ex value, greater discount on the purchase car.
Taking a cash option on a new car will net you virtually nil. The dealers get kickbacks from finance contracts and get nothing extra from cash sales, apart from the standard commission.
With the advent and now, proliferation of finance in our culture, prices have increased to represent that more cars are now more affordable to the average salary. My current car was (prior to haggling and discounts) £41,000. This alone blows people's mind as they are old-fashioned in their viewpoint.
How long would it take someone to save up £41k? Quite some time i'd wager - and by the time they'd saved that, inflation would have set in and that same vehicle (or it's predecessor) would be £50-60k(?), so hence still be unaffordable.
I've ranted previously on similar topics, but i've paid less in finance than colleagues and mates have by paying cash for a vehicle that needed maintenance and wear/tear work done to the vehicles (+ warranty + servicing).
Some people with the old-fashioned 'got to own what you own' viewpoint cannot also seem to reason that it is possible to use a vehicle or product without fully owning it. Vehicle wise, this lets you hand it back at the end of a term (or midway through as I often do - voluntary termination, at no cost).
Perhaps this is the advent of the 'disposable generation', but that is the way society is. Pay monthly for a new, safe, enjoyable and economical vehicle without (hopefully) any hassle with the freedom to change vehicles every 2-3 years, or pay in a lump sum for a older used vehicle which you will have to keep for a long time to get into 'cash saved' territory (unless it is particularly rare).
Finally - you can always take a dealership's finance offer, haggle like mad, agree to it and sign it. Then pay the deal off afterwards with cash. This is the best way to make a saving. Often you may have to wait 30days to do so, or as some have done, reject the vehicle in the cooling-off period, then offer to pay for full in cash, using the agreed price as their cash sum.
Taking a cash option on a new car will net you virtually nil. The dealers get kickbacks from finance contracts and get nothing extra from cash sales, apart from the standard commission.
With the advent and now, proliferation of finance in our culture, prices have increased to represent that more cars are now more affordable to the average salary. My current car was (prior to haggling and discounts) £41,000. This alone blows people's mind as they are old-fashioned in their viewpoint.
How long would it take someone to save up £41k? Quite some time i'd wager - and by the time they'd saved that, inflation would have set in and that same vehicle (or it's predecessor) would be £50-60k(?), so hence still be unaffordable.
I've ranted previously on similar topics, but i've paid less in finance than colleagues and mates have by paying cash for a vehicle that needed maintenance and wear/tear work done to the vehicles (+ warranty + servicing).
Some people with the old-fashioned 'got to own what you own' viewpoint cannot also seem to reason that it is possible to use a vehicle or product without fully owning it. Vehicle wise, this lets you hand it back at the end of a term (or midway through as I often do - voluntary termination, at no cost).
Perhaps this is the advent of the 'disposable generation', but that is the way society is. Pay monthly for a new, safe, enjoyable and economical vehicle without (hopefully) any hassle with the freedom to change vehicles every 2-3 years, or pay in a lump sum for a older used vehicle which you will have to keep for a long time to get into 'cash saved' territory (unless it is particularly rare).
Finally - you can always take a dealership's finance offer, haggle like mad, agree to it and sign it. Then pay the deal off afterwards with cash. This is the best way to make a saving. Often you may have to wait 30days to do so, or as some have done, reject the vehicle in the cooling-off period, then offer to pay for full in cash, using the agreed price as their cash sum.
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