Buying a car that is subject to a finance agreement?
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Soldato
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Maz said:
Cash cow means it needs loads of repairs or running costs you cant afford.
Im looking to buy a car now, ive got an offer in princible at a rate of 4% via my bank. If i do this i can buy what ever car i want whether it be private, off a forecourt or new knowing i own the car and can do what ever i want with it, whether it be selling it or part exchanging it without having the hassle of paying fees to close the finance, and i get the lowest rate available. If i was to go to a someone like Black Horse Finance (UK's biggest car finance folks) the lowest i would get is 5.6% and i wouldnt own the car till its paid for. I wouldnt be able to buy privately so ill be paying top dollar for the car!
Loans > Finance
Maz said:
'Holds Value'? Show me a new car that holds value.
As great advice said - people who can't get a decent unsecured loan.
I'll tell you what's so great about car ownership:
I can take my car off the road, put in a new axle, new 'box and engine, quadruple the power and have a laugh.
*n
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
penski said:
Hmm... Find that a bit harsh.. I brought my car on HP, but not because I can't get a bank loan. Halifax at the time wanted 8.2%, I got mine from Honda at 7.2%. Was a while ago, and rates have now dropped..
Ok, I guess it is harder for me to sell, but TBH if push comes to shove, if I needed to sell up to pay the loan off, I only need to make 6 more payments and I can hand it back and walk away. If I loose my job, I might not be able to afford advertisment of the car etc, so with HP I've got an easy way out..
Swings - and - round-a-bouts perhaps?
MrMoon said:
Superb.. Can't beat that IMO. New car every three years as well. No MOT for you, one saving..!!
HP, PCP Loans etc.. if you want a decent car, and can't pay outright, but can afford the payments each month, then I can't see a problem with it.. But that is IMO.
Caporegime
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This 0% is great but......
A: If you paid outright the manufacturer will have your money sat in the bank, earning them, more money....
B: If you pay on finance you pay interest because you can't afford to do "A" so they don't get interest on your money.
C: If the dealer offers 0% on a car over 3 years you don't think Mazda are going to take the Finance hit for you, no that would be far too nice, it will be built into the price of the car.
The bottom line is if you walk into a dealership with a big bag of hard cash, your in a much better position to get a discount its the bottom line figure your interested in, how much the car is actually going to cost you.
Owning a car outright is great, its yours you can do as you please, if you loose your job tomorrow no-one can take it away from you, i would never get dealer finance, i would stump for a bank loan, but only if i had to.
A: If you paid outright the manufacturer will have your money sat in the bank, earning them, more money....
B: If you pay on finance you pay interest because you can't afford to do "A" so they don't get interest on your money.
C: If the dealer offers 0% on a car over 3 years you don't think Mazda are going to take the Finance hit for you, no that would be far too nice, it will be built into the price of the car.
The bottom line is if you walk into a dealership with a big bag of hard cash, your in a much better position to get a discount its the bottom line figure your interested in, how much the car is actually going to cost you.
Owning a car outright is great, its yours you can do as you please, if you loose your job tomorrow no-one can take it away from you, i would never get dealer finance, i would stump for a bank loan, but only if i had to.
im trying to flog my car privately at the moment, not that i've had any interest in it 
but the first thing i did was take out an unsecured personal loan to pay off the peugeot finance company so that it was 'mine' before i put it up for sale!
but the first thing i did was take out an unsecured personal loan to pay off the peugeot finance company so that it was 'mine' before i put it up for sale!
atomiser said:im trying to flog my car privately at the moment, not that i've had any interest in it
Ditto, you can sell it when the finance is still on it - but this puts potential buyers off (as this thread proves). Which is why I've just done the same as you.
Ok, so I'll lose a few hundred in interest but I'm prepared to do that if it means I can get shut of it quicker.
Soldato
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Firestar_3x said:
Not sure what you mean mate? if your getting dealer finance your in a better position to get the car at a better price because they are making money on the finance deal too. Long gone are the days where cash gets you a better deal tbh.
atomiser = bad year to sell a car mate, but if the price is right it will fly out
Caporegime
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Total price would be the total price of the car + finance costs, fair enough if you sign up to some finance package the dealer may say you can have the car for 20k then add the finance ontop of that so once you figure out your actual repayment over 3 years the total cost will be say 24k for the car, I'm talking total price for everything not just how much he offers you the car for without factoring in the total repayment costs.
If you go in with cash the dealer may offer your the car for 21k and that's the best he can do cause he won't be making any money off the finance, but the total cost is still less for cash.
If you get me, not a good explanation I know
If you go in with cash the dealer may offer your the car for 21k and that's the best he can do cause he won't be making any money off the finance, but the total cost is still less for cash.
If you get me, not a good explanation I know
I got a cracking deal on mine got basically sat nav built in for free, yeah its financed at 0% and there is a final payment if I want to keep the car or I can chop it in for a new one after 3 years or just give it back and walk away, I have financed my last few cars this way, works for me no MOT, and still under warranty for the length you have the car, and usually need 1 or 2 services in the 3 years for example my C3 has only needed services every 2 years as I only do like 10K a year
penski said:
Average car payments for what I sell are normall £150 - £200.
I know if I lost my job I'd be able to continue to pay that for quite a while.
You can buy insurance should the worst happen though, so if you lose your life, get a critical illness off work due to accident or sickness or unemployment this insurance actually pays your monthly payment.
Soldato
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No need for insurance against that if you own the car. Another reason why owning is better than not 
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Well, all sorted. The chap is going to pay off the finance first, get a confirmation fax from the credit company, do me a HPI check and then ill pay him direct.
Just need to sell my Megane Coupé now!
Cheers,
Matt
Just need to sell my Megane Coupé now!
Cheers,
Matt