Car Finance vs. Credit Card Payment

[rockits]

No! Section 75 protection only applies to credit cards.

Good to know...thanks

 

[alfatwo]

I only ever pay cash for my cars.. paying on the knock which ever way you want to call it is eventually only going to cause problems..

Blagging it on a contract for the first few months of say a 3 year 45K deal then doing a runner..

I blame the dealer's, who suck in the punters who in reality haven't got a pot to p*ss in!

Dave


Dave

 

[dem maser]

If you have equity in the house then remortgaging is the way to go.....mortgages are low......interest rate is 2.5% with some lenders

 

[alfatwo]

If you have equity in the house then remortgaging is the way to go.....mortgages are low......interest rate is 2.5% with some lenders

Once you start that Dem, your defiantly on the slippery slope to nowhere!

Dave

 

[D Walker]

Once you start that Dem, your defiantly on the slippery slope to nowhere!

Dave

absolutely +1 !!

 

[zagatoes30]

I won't buy a car on debt but have no issue paying for part of it on credit card, and then paying it straight off, just for the protection you get.

 

[Contigo]

I buy a classic with cash and new cars on pcp. Rent a depreciating asset and all that.

 

[Felonious Crud]

If you have equity in the house then remortgaging is the way to go.....mortgages are low......interest rate is 2.5% with some lenders

Only if your mortgage has the same term to run as a personal loan. The former is maybe 15/25 years whilst the latter is 3 to 4 years. Multiply the interest across over 5x the term and taking equity out of your house to buy a car is madness.

How you buy cars is a matter of how much return you can get on your money if you do something else with it. I know people who finance cars even when they have the cash because they'd rather invest the cash in an appreciating asset and finance the depreciating one. God only knows if it makes sense or not!

 

[Wack61]

I buy a classic with cash and new cars on pcp. Rent a depreciating asset and all that.

Renting is fine as long as you can afford to fix or pay it if they're not happy with the condition on return, many many people have been caught out because of damage or mileage charges with no money to pay the bill.

It's kids I feel sorry for, a girl I read about had a minor bump, couldn't claim because she was paying gazillions for insurance so got it "fixed" by a mate, they spotted it ,because she hadn't had it repaired by an approved body shop they refused to take it back and sent her the bill for the value of the car

 

[MrPea]

Well, having started this discussion (which is good) because I wanted to check I'd be able to have extra purchase protection if I paid something using a credit card, I just ended up buying privately, so completely in cash.

 

[miket]

If you have equity in the house then remortgaging is the way to go.....mortgages are low......interest rate is 2.5% with some lenders

Personal loans are currently available from 2.8%

 

[Felonious Crud]

Personal loans are currently available from 2.8%

I'm guessing, though, that more often than not the actual loan is offered at a higher rate than that advertised. Those cheap ones are only available to people who don't need to borrow a few grand.

PCP deals are sold at a lower interest rate because they carry lower risk for the lender as they're secured against the car until (I think) 50% of the loan amount has been paid off. That's also why credit checks are so weak / non-existent.