Best way to pay for an expensive car.

Just pay for it any which way suits you, if you have the cash sitting in the bank (unless it's on a massive interest rate) it's always going to work out cheaper in the long run to pay out of savings than taking a loan or PCP finance deal
 
If you have the cash then it makes sense to use that, caveat being if you can't guarantee a better return on the money than the best interest rate you can find to finance it another way.

There was a time where one of the most commonly rolled out philosophy here was how it was stupid to spend cash on a depreciating asset. Which I agree with but not when the alternative is to pay that same depreciation plus interest on the drip.

Maybe I'm too much of a simpleton to understand the Warren Buffet levels of financial expertise at play with that philosophy... But I'm a simpleton without any debt so that suits me!
 
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lordrobs said:
There was a time where one of the most commonly rolled out philosophy here was how it was stupid to spend cash on a depreciating asset. Which I agree with but not when the alternative is to pay that same depreciation plus interest on the drip.
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This was always amusing. The idea that not buying a depreciating asset but instead getting someone else to buy it and then charge you for the depreciation and the cost of capital somehow meant you avoided depreciation :D
 
I purchased my GR86 in September with 20k down and the rest on a bank loan. Rates are absolutely diabolical and I am on 6.1% for a little over 13k. I am overpaying so should have it paid off in the next 18 months so will not pay that much in interest but I wanted the car so meh.

My other cars have appreciated so it kind of offsets everything anyway. Even though second hand GR86's are still being advertised over list anyway so if anything were to happen to me and I had to sell the car I would still be in positive equity.
 
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Terminal_Boy said:
It is. The downside is, that unless you’re filthy rich, you’re getting old by the time you ditch the mortgage.
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OT but after getting back into work after redundancy the first thing I did was spend every penny we had clearing the mortgage. We had enough left in the bank to clear that months bills plus a few hundred quid.

The idea that the roof over our heads was at the mercy of someone else's business plan suddenly didn't feel like a particularly nice position to be in. Honestly, best decision I ever made and the subsequent shift in attitude towards risk, plus a little luck, meant that 5 years later we bought a new house without having to get mortgaged up again.

Funnily enough both my wife and I are pretty frugal people so it will be our son who see's the financial benefit but we're fine with that.
 
OldKitMan said:
Pay the deposit on a Credit Card for Section 75 protection. The remainder of the balance will be down to what you have in savings and what rate of interest you can get on a loan. I've seen PCP/HP deals from dealers that are 10%+ APR, that's not great when you can get a bank loan for 6%'ish % at the moment.

Unless it's a great price and 0% finance then I usually go bank loan. Some people will take dealer finance to get a discount and then pay it off via other means within 14 days to not pay any interest on the dealer finance and retain the discount.
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Section 75 does not apply above 30,000
 
You're getting over 5.2% in high-interest savings accounts right now. If you can borrow for around the same, or a little over I'd be tempted to do that. I think unsecured bank loans are around 6.7% just now but you'll usually only get £25k unsecured. It's nice to be liquid (have a bit of cash) and be in a position to move on opportunities should they present themselves.

For example, maybe someone needs money quickly and presents you with the opportunity to buy a 20k watch for 13-14k - it's nice having the funds to do that.

If I were you I'd probably pay half cash and half through a bank loan. Keep 25k in the bank in an easy to access account with the highest rate you can.
 
mk1_salami said:
For example, maybe someone needs money quickly and presents you with the opportunity to buy a 20k watch for 13-14k - it's nice having the funds to do that.
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It's times like this I realise I run in very different circles to many OCUK forum members :cry:

Even in that hypothetical situation though, if over 5 years, that loan for the sake of keeping your options open has cost you over £1800.
 
MissChief said:
It should be noted it is currently a TERRIBLE time to buy a premium car. Dealers have unsold stock often for months that they paid handsomely for at the beginning of the year that they just cannot shift. Many are refusing to reduce their prices as some will actually be selling at a loss so the cars just sit and sit for months.

OP grab the unofficial AT google chrome extension and you can see historical prices and how long the car has been listed for. If a car has been sitting since before even October absolutely hammer them for a huge discount.
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Concersely as can be seen by adding the history app to autotrader, many of these high end cars which have been at deals for months have £10k+ from their prices. Some dealers havent moved granted, just avoid them
 
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