Just after some advice on this; normally I'll put some capital in and borrow the rest via a personal loan. I'm doing this with a car I'm due to collect on Friday, a Mercedes C43 Estate. Is there a "good" level of LTV when buying?
I was planning on putting down around 60% and borrowing the rest via a personal loan at 2.9%, but thought as interest rates are so low is it better to put down less and borrow more? The loan is only ~£500 to £700 over a 3 or 4 year term so I wouldn't pay for it outright.
I had a look online at a basic car depreciation calculator and it gave me the following numbers based on my inputs with a purchase price of £30,000:
Final vehicle value
£18,044
Est. Forecourt Price
£19,800
Total depreciation amount
£11,956 (39.9 percent)
Average monthly depreciation
£249
Ownership length
4 years
https://www.themoneycalculator.com/vehicle-finance/calculators/car-depreciation-calculator/
No idea how accurate this is (based on medium depreciation) but the monthly payment is more than the average monthly depreciation so I would expect some equity in the car on top of the initial deposit. Any advice would be useful, cheers!
I was planning on putting down around 60% and borrowing the rest via a personal loan at 2.9%, but thought as interest rates are so low is it better to put down less and borrow more? The loan is only ~£500 to £700 over a 3 or 4 year term so I wouldn't pay for it outright.
I had a look online at a basic car depreciation calculator and it gave me the following numbers based on my inputs with a purchase price of £30,000:
Final vehicle value
£18,044
Est. Forecourt Price
£19,800
Total depreciation amount
£11,956 (39.9 percent)
Average monthly depreciation
£249
Ownership length
4 years
https://www.themoneycalculator.com/vehicle-finance/calculators/car-depreciation-calculator/
No idea how accurate this is (based on medium depreciation) but the monthly payment is more than the average monthly depreciation so I would expect some equity in the car on top of the initial deposit. Any advice would be useful, cheers!