Be honest please.

outrun

outrun

Member
Messages
5,017
I agree that using a personal loan is wiser however they usually “only” go to 25k unless you secure on another asset which I wouldn’t do unless I had to. Interest on pcp or lease purchase is around 6% from a decent broker, far less than the 9.9 standard at thieving dealers. 0% is never truly that as the commission is paid to the finance supplier by the dealership in lieu of commission earned by the charging of interest. In effect that cost is passed on by a higher purchase price than you could negotiate on an interest bearing deal.
 
D Walker

D Walker

Member
Messages
9,827
Before I bought the wife her present A1; (used) we looked at one at a dealer, young guy asked if I wanted the finance, I said no, I just want a good price on the car and it’s a done deal, he went off to see the exec!! Not grown up enough to do the deal, anyway he comes back with these figures, whereby a put a deposit down, paid for 48 months and then still owed for half the value.after I’ve all ready paid for 9/10; so I said, when you walked out, you only needed to come back and say £500 off, a full tank and taxed, and you sold a car, now you have nothing..with that I got up and walked out, wife followed 2 minutes later, he confided the exec had told him to push the finance....roll on 6 month, identical car, 1000 cheaper, got 500 off, new rear discs and pads, and VW dealer were very happy with the cash....
 
Wanderer

Wanderer

Member
Messages
5,791
I remember p/x’ing my Ceilca Liftback for what was advertised as an Alfa 33 Green Cloverleaf. I was fairly Alfa ignorant at the time but after a while after we’d talked trade in and cash, I noticed it was only a Gold Cloverleaf.

So I spoke up and told the salesboy and he said if I don’t take he’ll get the sack. So dumb knob’ed that I was I believed him and actually paid to get a car I didn’t want.

And it was the worst car I ever owned....
 
Chrisb2015

Chrisb2015

Member
Messages
540
outrun said:
I agree that using a personal loan is wiser however they usually “only” go to 25k unless you secure on another asset which I wouldn’t do unless I had to. Interest on pcp or lease purchase is around 6% from a decent broker, far less than the 9.9 standard at thieving dealers. 0% is never truly that as the commission is paid to the finance supplier by the dealership in lieu of commission earned by the charging of interest. In effect that cost is passed on by a higher purchase price than you could negotiate on an interest bearing deal.
Click to expand...
Exactly this and comparing regulated vs personal loan isn’t apples vs apples.
 
lifes2short

lifes2short

Member
Messages
5,833
D Walker said:
Before I bought the wife her present A1; (used) we looked at one at a dealer, young guy asked if I wanted the finance, I said no, I just want a good price on the car and it’s a done deal, he went off to see the exec!! Not grown up enough to do the deal, anyway he comes back with these figures, whereby a put a deposit down, paid for 48 months and then still owed for half the value.after I’ve all ready paid for 9/10; so I said, when you walked out, you only needed to come back and say £500 off, a full tank and taxed, and you sold a car, now you have nothing..with that I got up and walked out, wife followed 2 minutes later, he confided the exec had told him to push the finance....roll on 6 month, identical car, 1000 cheaper, got 500 off, new rear discs and pads, and VW dealer were very happy with the cash....
Click to expand...

sounds familiar, must say I have a short fuse when it comes to dealing with some new car sales staff, they seem to always want to push you in a different direction and some are simply far too pushy or just don't care. I do appreciate that at the end of the day they are sales staff and have got all sorts of monthly targets to achieve for their bosses, however, I always look beyond all the smiley faces and endless offers of tea/coffee and if I cant get what I'm looking for I'm off to anther dealer that will do a deal that suits me.
 
iainw

iainw

Member
Messages
3,386
outrun said:
You'd need to put more then 30k into an M5 to have equity. It will lose 30k in the first 6 months easily. You'd need to be crazy to buy a new one without at least a 20% discount.

I always finance high value cars and buy lower value ones. I once lost £40k on a 996 turbo that I bought and swore not to tie up the money in a depreciating asset again. I try to put in a good deposit, a sum that I am willing to "lose" over my ownership period but hope not to. That way, as Adam said above, you have some equity in the car and are unlikely to ever be in negative equity. So, if circumstances change, I can get out without it costing me any further money. I also want the monthlies to be low enough that I don't begrudge owning the expensive car that I don't drive as much as I should. If the payment coming out have a heavy impact on the rest of your life, it's probably not the best place to be spending that money.
Click to expand...
I agree with this 100%
 
FF1078

FF1078

Member
Messages
1,123
So the moral of the story is it's not cheaper to buy a car on finance as someone is making money from you not paying in a lump sum?
Even if you buy it using a personal loan your still paying the bank interest, I know the car is depreciating as fast as my car is but I own my car, the bank owns some of yours.
Each to their own but this thread hasn't changed the way I'll do things in the future.
Thanks guys for all your input.

Nick
 
Felonious Crud

Felonious Crud

Administrator
Staff member
Messages
21,180
If I had £1m in cash I'd buy a £100k car with cash.
If I had £200k in cash I'd buy a £100k car on finance.
If I didn't have a pot to pi55 in and needed a car I'd like to think I'd get a banger with the price of the deposit a dealer would want for a £99/month! PCP deal.
 
Wanderer

Wanderer

Member
Messages
5,791
Felonious Crud said:
If I had £1m in cash I'd buy a £100k car with cash.
If I had £200k in cash I'd buy a £100k car on finance.
If I didn't have a pot to pi55 in and needed a car I'd like to think I'd get a banger with the price of the deposit a dealer would want for a £99/month! PCP deal.
Click to expand...
When I was plotless I bought an Alfa 164 Lusso Auto, £100, H reg, couldn’t afford to service it or look after it, lasted 4/5 years, just took the hit on the petrol, my own personal austerity to climb out of recession! This was 2001-2005 ish. Seems longer ago than that....
 
FF1078

FF1078

Member
Messages
1,123
Felonious Crud said:
If I had £1m in cash I'd buy a £100k car with cash.
If I had £200k in cash I'd buy a £100k car on finance.
If I didn't have a pot to pi55 in and needed a car I'd like to think I'd get a banger with the price of the deposit a dealer would want for a £99/month! PCP deal.
Click to expand...
If I had £200k I'd buy 2 houses and rent them out. I'd then wait until the mortgages where paid off. Sell one and buy a £100k car and pay for the fuel with the rent from the other.
 
Contigo

Contigo

Sponsor
Messages
18,376
FF1078 said:
If I had £200k I'd buy 2 houses and rent them out. I'd then wait until the mortgages where paid off. Sell one and buy a £100k car and pay for the fuel with the rent from the other.
Click to expand...

Be a long wait. 25 years on the rent money you'd get on a £100k house. Life's too short to wait for what if's, Buy spend, **** it!
 
rockits

rockits

Member
Messages
9,172
I'll be having my first beer of the day with the boys @ 5.30am at Stansted. Good luck with the interview
 
D Walker

D Walker

Member
Messages
9,827
rockits said:
I'll be having my first beer of the day with the boys @ 5.30am at Stansted. Good luck with the interview
Click to expand...

Enjoy your trip mate, tbh not sure I want the job, but lets see, means working away again, but the money is stupid.....
 
hoyin

hoyin

Member
Messages
1,842
When I couldn’t afford a car. I didn’t buy one.

Didn’t buy my first car until after I was married.

I have no issue with people leasing cars or financing them. As you said if they are using that cash to generate other income somewhere else.

I guess the problem is that 99% of people aren’t doing that. The majority are spending well beyond their means in attempt to feel satisfied as they see all the flashy people posting photos on Instagram and want what they supposedly have.

Which half the time isn’t really what they have. I for one don’t believe that the majority of the world is happier than I am no matter how rubbish my day.


Sent from my iPhone using Tapatalk
 
You must log in or register to reply here.