I thought we'd concluded that people finance because they are all super astute financial bods who make more money from their money so they buy everything on finance so they can save their money for the important job of making more money to spend later on making more money.
Poll: Do you actually own your car?
- Thread starter /\ndy
- Start date
Soldato
I think the conclusion has to be that it depends on your situation.
Personally I could buy a nice used car outright but need the cash in February. I choose to lease provided I find a good deal so that I can have relatively trouble free motoring. I don't think it's a case of keeping up with the neighbours (as honestly they all have nicer motors and I expect earn less than me, although are 5-10 years older).
Personally I could buy a nice used car outright but need the cash in February. I choose to lease provided I find a good deal so that I can have relatively trouble free motoring. I don't think it's a case of keeping up with the neighbours (as honestly they all have nicer motors and I expect earn less than me, although are 5-10 years older).
Thanks for the additional information on your financial and career status
You sound like my brother in law!
Soldato
Currently own both. Both were bought outright like all my previous cars.
I will be getting a personal loan to upgrade from the X5 though early 2019. The interest on doing so is 1/3 per month of what I pay for the X5 warranty so getting a newer car with 2 years warranty left on it already makes sense.
I will be getting a personal loan to upgrade from the X5 though early 2019. The interest on doing so is 1/3 per month of what I pay for the X5 warranty so getting a newer car with 2 years warranty left on it already makes sense.
Soldato
Haha, sorry, the point I was (badly) trying to make was that they are probably closer to being mortgage free.Thanks for the additional information on your financial and career status
You sound like my brother in law!
I was just pulling your leg
These threads always seem to end up polarising people when it comes to finances. It really doesn't matter though, people have different ideas when it comes to money, doesn't necessarily make them right or wrong though.
I'm an odd ball when it comes to finances and I'll fully admit it. I hate financial overheads which is why I cleared my mortgage at 35, have a £5/mth phone contract, don't have Sky/Netflix/NowTV and drive a car worth £3k tops. I also accept that if everyone was like me our economy would probably be in a right old state!
Science n maths
Nope, leased Golf R. I'm moving house soon which is really close to the train station, so apart from the occasional blast in the evenings, it's a complete waste of money. It's going back in May though, at which point I'll be buying something cheap to do the shopping in, and go fishing.
Associate
In my near 30 years of driving, i have only ever owned 1 car and that was for about 2 weeks.
Having said that, i have pretty much never been without a car. I have been lucky enough to have always had employment and always had an employer that supplies a car. Some of which have supplied me a car on the Friday before my first day of work on the Monday.
Having said that, i have pretty much never been without a car. I have been lucky enough to have always had employment and always had an employer that supplies a car. Some of which have supplied me a car on the Friday before my first day of work on the Monday.
Think about paying it off outright but I like seeing that extra cash in my bank account
This is one of the problems I have - I like seeing it in my bank too much.
Soldato
Yes own all mine no finance and can't see myself financing anything in the future. Don't feel right with financing cars anymore
Man of Honour
I own all mine and the wife's is on finance....
Told her it's so I can keep a track of all her costs....
I live a dangerous life
Told her it's so I can keep a track of all her costs....
I live a dangerous life
Associate
Normally always owned mine but having sunk all my cash into a house recently, and then got very tired of continually fixing my previous alfa which was a lemon even by alfa standards, i decided sod it and went PCP on the Skoda for the trouble free life. I will eventually clear it with a loan when i finally decide if i want to keep it or not (got some career choices to make which may make the decision for me). So whilst probably not the most cost effective way of doing things I am enjoying having a car that works and has all the modern creature comforts.
Associate
- Joined
- 21 May 2010
- Posts
- 550
After working in the industry for 15 years my 2p
*a newer car is almost always a better buy than an older one ie new golf is better than old 3 series
*finance with a 40%+ residual over 3 yrs+ is normally better than buying cash assuming its less than 6% APR
*Hatchbacks may seem expensive for what they are but generally hold money better than anything else
*SUV's are money pits in general
*heavily discounted 1 year old/prereg saloon can make a good cash purchase
*sports cars heavily depend on the economy doing well
*main dealer cars are normally better but do examine the history
*supermarket cars can be good but a lot are horrible ex lease rubbish - again history is key
*history is even more important for anything prestige - the more prestige the more important
*ex rental cars can be good, but equally could have had a lot of paint
*often a 1 year old used car bought for cash can work out more expensive than a financed new car if changed within 4 years
*main dealer/decent specialist service history is important - consistency is most important ie has the same dealer looked after it - the best cars have the same stamps in the book
*anything performance or high pressure engine is more likely to have issues
*in general people who buy what they want rather than what is "a good deal" do better, the only exception to this is those that insist on factory ordering to their spec - ie if you really want a jag over a merc get a jag with a deal, don't buy a cheap factory order merc
*new models always seem expensive but usually do very well come resale
*a newer car is almost always a better buy than an older one ie new golf is better than old 3 series
*finance with a 40%+ residual over 3 yrs+ is normally better than buying cash assuming its less than 6% APR
*Hatchbacks may seem expensive for what they are but generally hold money better than anything else
*SUV's are money pits in general
*heavily discounted 1 year old/prereg saloon can make a good cash purchase
*sports cars heavily depend on the economy doing well
*main dealer cars are normally better but do examine the history
*supermarket cars can be good but a lot are horrible ex lease rubbish - again history is key
*history is even more important for anything prestige - the more prestige the more important
*ex rental cars can be good, but equally could have had a lot of paint
*often a 1 year old used car bought for cash can work out more expensive than a financed new car if changed within 4 years
*main dealer/decent specialist service history is important - consistency is most important ie has the same dealer looked after it - the best cars have the same stamps in the book
*anything performance or high pressure engine is more likely to have issues
*in general people who buy what they want rather than what is "a good deal" do better, the only exception to this is those that insist on factory ordering to their spec - ie if you really want a jag over a merc get a jag with a deal, don't buy a cheap factory order merc
*new models always seem expensive but usually do very well come resale
Have you got any examples to illustrate this?
Associate
- Joined
- 21 May 2010
- Posts
- 550
Yes the most striking one was from several years ago when the Scirocco was new and I had a customer who was comparing it to a Merc CLC. They were amazed that with their £2k deposit the scirocco was going to be £400pcm as merc had quoted them £195pcm, the deal they were offered on a merc CLC was £5k Deposit from Merc £2k from them and then a 4yr PCP at 10.9% APR with an £18k final payment for a £26k car. That example is pretty extreme but on that basis you would have to be mad to actually purchase any Merc CLC with actual money. In general the depreciation risk is too great to justify a cash purchase if the residual offered is above 40%.