Buying a £20,000 car (loan)
- Thread starter DannyW
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Soldato
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So paying 360 a month as loan payments towards a car (which he will own at the end and have an asset to sell towards the next car) is stupid but paying 299 a month to rent a car isn't? Wut.
That crossed my mind too, I'd rather the extra outlay but own an asset at the end of it.
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How will he own it at the end...
He's already said he's going to take a 20k loan out over 5 years - keep the car for 3 years and then look at topping up the loan with another 10k and buy another car!
Yes, if he was to keep the car for the full period of the loan after 5 years it'd be his but from reading his intentions he's not going to be doing that!!
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![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Well he'll own it on day 1 as it's not secured on the car.
Which is an entirely separate decision and transaction and isn't really part of the initial lease versus buy appraisal.
You don't have enough information on residual etc to accurately make the claims you are making.
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[TW]Fox;30348413 said:
And what claims am I making?
Does he not say in his initial post...
"Found a 20 grand loan for £360 a month over 60 months paying back just over £21600
I would probably be looking to buy a 335d x drive, but I wouldn't want to keep it 5 years, probably 2-3 years max"
So he's having a loan over 60 months and planning on keeping the car 24/36 months. He'll therefore still owe a large chunk on the loan/car and looking at swapping the car for another and adding another 10k to the amount. Until he fully pays off the loan he won't really own the car will he?
I already said in my last post
"Yes, if he was to keep the car for the full period of the loan after 5 years it'd be his but from reading his intentions he's not going to be doing that!!"
So I've already acknowledged he might eventually own the car but only if he keeps it long enough and pays the loan back.
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[TW]Fox;30348438 said:
I don't think I have judged it have I?
I mentioned the deals offered on PCP as an alternative option.
I don't know where I'm meant to of said its stupid to pay £360 per month as Skillmister is making out?
I'm fully aware if he plans on keeping the car the term of the loan (5 years) then he'll own the car at the end of that period.
I'm also aware he'll eventually get to the stage whereby the cars worth more than he owes on the loan but he's not going to get in either of those positions if he's got a 5 year loan and keeps the car 2 or even 3 years which he's said is what he plans to do!
I'm not saying for one second either method is stupid I can see the merits of both PCP and buying a car
He owns the car at the beginning of the period, not the end. So his cost is simply purchase price minus residual value plus cost of capital (plus cost of warranty if applicable).
On a used 335 this will be less than the PCP on a new 140i.
His plans to change later or borrow more etc are a red herring.
On a used 335 this will be less than the PCP on a new 140i.
His plans to change later or borrow more etc are a red herring.
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[TW]Fox;30348539 said:
You can word it however you wish, but the fact is he's taking a 20k loan to purchase a car, yes he will then own the car to do whatever he wishes however he will still have to pay back £20k at some point.
I'd look at it as £360 loan / £40 warranty per month = £400
£299 for a new 140i
If after 3 years, so the 335D is now 6/7 years old, its still worth £10k+ then he may have some equity in the car. If he parts ex's the 335D and gets 10k he's on about adding 10k to top up the loan which we can presume will stay around the same cost per month and pretty much start the process again. Until the time comes he keeps the car long enough that the loan is paid in full and he's left with say an 8/9 year old car. Obviously we have to make a presumption on how much a 6/7 year old 335D will be worth.
I did a similar thing a few years ago £22k for an R32 Golf - kept it 18 months got fed up with paying for it. Sold it private and ended up being short on the loan so ended up with no car and clearing the loan with a bit of extra cash and had to start again.
Despite the thread title I am still tempted to lease one
My reasons are:
The warranty
The 2017 has a slightly better spec in standard M sport trim then a 2014/2015 one. (LED lights for a start)
Either way it's still going to cost me around £10,000 in my ownership, weather it be in leasing costs or depreciation
Plus If I own it there is the extra servicing costs and road tax. I know tax is cheap on these but I've heard the government are looking to tax diesels a lot more come 2017
I called in at my local bmw dealer and enquired about PCP, which from the main dealer was around £30 per month more then personal leasing
My reasons are:
The warranty
The 2017 has a slightly better spec in standard M sport trim then a 2014/2015 one. (LED lights for a start)
Either way it's still going to cost me around £10,000 in my ownership, weather it be in leasing costs or depreciation
Plus If I own it there is the extra servicing costs and road tax. I know tax is cheap on these but I've heard the government are looking to tax diesels a lot more come 2017
I called in at my local bmw dealer and enquired about PCP, which from the main dealer was around £30 per month more then personal leasing
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Its worth dropping that TRL bloke an e-mail mate.
He works at Heathrow BMW so should be able to get you an x-drive version of whatever you're after although it'll obviously up the monthly price.
We got my wifes BMW from the local dealership which was 6 months old (come from someone from BMW head office?) and spec'd with absolutely everything however we pay quite a lot more than what TRL has quoted for a brand new similar car...unfortunately I was a few months too late finding out about his offers!!
He works at Heathrow BMW so should be able to get you an x-drive version of whatever you're after although it'll obviously up the monthly price.
We got my wifes BMW from the local dealership which was 6 months old (come from someone from BMW head office?) and spec'd with absolutely everything however we pay quite a lot more than what TRL has quoted for a brand new similar car...unfortunately I was a few months too late finding out about his offers!!
I will do, Thanks
Incorrect.