Car Finance / Purchasing Help

[Spleen Sauce]

Yea because everything he's said so far shouts 'i want a 350bhp SUV with a 3 litre Turbo' right?

He’s looking at spending £50k on an SUV. So yes, why not have the best one?

 

[~Divine~Wind~]

Skoda, Seat, Cupra, VW

All pretty much the same car with a different skirt on

carwow and DTD are your friends have a look and stick some enquiries in mate

 

[radderfire]

My wife and I are looking to buy a car and we've found one we like (a pretty looking specced out Audi Q3 - I only mention for depreciation reasons). The new list price is just over £50k, so let's just call it £50k. We don't have £50k lying around, but a finance purchase of sorts would be affordable.

Choose a cheaper car that you can afford to buy outright.

 

[Nitefly]

Choose a cheaper car that you can afford to buy outright.

That is an option but not my preferred one. I’d much rather have a better car and pay an affordable monthly payment with relatively nominal interest.

 

[flea.rider]

pcp .. is basically rental .. for most as they will never make that last payment .. and in a few yrs more the second hand market will be overflowing .. so your car will be worth even less .. well thats my point of view

 

[Deleted User 298457]

pcp .. is basically rental .. for most as they will never make that last payment .. and in a few yrs more the second hand market will be overflowing .. so your car will be worth even less .. well thats my point of view

Except for the critical fact it isn't rental as you have the right to buy at any point. And you're right, most people do not make the final payment because they are happy to drive a brand new motor every 3 years for a fixed monthly cost - and I'd say the vast majority need no tyres and definitely need no MOT.

The residual value on a PCP is agreed upfront. So even if the market is overflowing and economy has crashed and the world is ending, there is a guaranteed buy back price where you just hand the keys in.

 

[sigma]

If you’re not a car person I’m surprised you’re happy to burn £20-30k in depreciation. Isn’t a personal loan and buying a 2 year old car the better option?

 

[Deleted User 298457]

If you’re not a car person I’m surprised you’re happy to burn £20k in depreciation. Isn’t a personal loan and buying a 2 year old car the better option?

I'd wager 90% of PCP's are bought by "not car people". Unsure what your point is. Do "not car people" not deserve nice new cars if they can afford the affordable repayments?

 

[sigma]

I'd wager 90% of PCP's are bought by "not car people". Unsure what your point is. Do "not car people" not deserve nice new cars if they can afford the affordable repayments?

Who said anything about deserving?

 

[sigma]

Since when does ‘everyone else does it’ seem like good way to justify £20-30k loss in something you don’t have much interest in?

 

[Deleted User 298457]

Since when does ‘everyone else does it’ seem like good way to justify £20-30k loss in something you don’t have much interest in?

I'm not sure are any "car people" who get that turned on about a mild hybrid crossover. Who else is buying these things other than "non-car people"

 

[Nitefly]

Just to add to the ongoing comments, ultimately any expensive / premium car is a complete luxury and any purchase like this on finance or otherwise is just going to be down to personal assessments of affordability, value and enjoyment. Whilst I’m not a car enthusiast, I don’t think you need to be to enjoy the ‘easy enjoyment’ of a luxury car. The appeal is pretty much universal, just like buying a bigger house, and then it’s an assessment of value and worth, as mentioned.

I am obviously willing to burn money on some luxury with this purchase, however it’s made.

@Fox after another visit to the showroom we’re now looking at the Q5s. Thanks for the steer!

 

[sigma]

I guess my point was you could buy the same car for less of a loss but having said that, someone has to eventually buy a new car to enable the rest of us to buy second hand and it sounds like you’re happy to do this

 

[Bickaxe]

In regards to the final payment, depreciation etc... it all depends on the market.
At the moment, 2nd hand cars that are 1-3 yrs old are not depreciating as much as people expect as the new car market has so many delays.
I've just part-ex'd mine for a lot more than I was expecting after only a year of owning it (from new) to get something I want because of this.

You're happy with a quote so go with what makes you happy. A dealer will always give you more than the final balloon payment as its an incentive to start the PCP loop all over again.

 

[HangTime]

I don’t think you need to be to enjoy the ‘easy enjoyment’ of a luxury car. The appeal is pretty much universal, just like buying a bigger house!

This is often overlooked, and in fact you could make an argument that non-enthusiasts are more likely to be swayed by luxury, because an impractical, uneconomical car with an 'incredible engine' might convince some car enthusiasts but not the non-enthusiasts, because they need lots of boxes ticked to be impressed not just one or two.

To use an analogy relevant to these forums, a PC enthusiast might be really impressed with a budget build with incredible overclocking potential spliced together with components from a mix of sources, that would mean little to a non-enthusiasts. However, an ultra high end machine with top end everything, flashy peripherals etc might be tempting to the non-enthusiasts, even if to the enthusiast it looks poor value.

 

[Rroff]

When you can get a Tiguan R-Line for a lot less than 50K new and the R for under 50K if you want some decent performance the Q3 would be a hard sell for me - the RS Q8 another matter but that is another price bracket again.

 

[[TW]Fox]

the R-Line for under 50K if you want some decent performance

Isn't R Line a trim level adding new bumpers and seats? It has little to do with performance.

 

[Rroff]

Isn't R Line a trim level adding new bumpers and seats? It has little to do with performance.

Uh I somehow typed those the wrong way around.

 

[sigma]

This is often overlooked, and in fact you could make an argument that non-enthusiasts are more likely to be swayed by luxury, because an impractical, uneconomical car with an 'incredible engine' might convince some car enthusiasts but not the non-enthusiasts, because they need lots of boxes ticked to be impressed not just one or two.

To use an analogy relevant to these forums, a PC enthusiast might be really impressed with a budget build with incredible overclocking potential spliced together with components from a mix of sources, that would mean little to a non-enthusiasts. However, an ultra high end machine with top end everything, flashy peripherals etc might be tempting to the non-enthusiasts, even if to the enthusiast it looks poor value.

You’re both arguing against a point that nobody made.

An analogy to my point is a non-gamer wanting the latest graphics card when there is someone else selling the exact same card that’s a year old but still in warranty and is 20% cheaper.

 

[Deleted User 298457]

You’re both arguing against a point that nobody made.

An analogy to my point is a non-gamer wanting the latest graphics card when there is someone else selling the exact same card that’s a year old but still in warranty and is 20% cheaper.

A 20% saving typically isn't enough to offset a much higher interest rate on the finance agreement and offset any 'new' dealer discounts.

Also in your analogy, graphics cards don't have consumables nor suffer from conventional "wear and tear". A year old car will have a years worth of mileage on the tyres, clutch, interior, blah.

At this point I am not even what point you are making - that second hand stuff is cheaper? Not many folk have 40k cash that they are willing to blow on a car - many folk are willing to blow 500 quid a month for 48 months though, to hedge their risk and not tie all their free cash flow up. Yes it is more expensive in the long run but having cash on hand is also critical.