Astra v Focus.

Inactive

vansboy wrote: »

In fact, it's win win situation for all.

Only problem is, you don't own the vehicle, and therefore have no equity in it.

I know that it suits some people's requirements, it wouldn't mine.

vansboy

Inactive wrote: »

Only problem is, you don't own the vehicle, and therefore have no equity in it.

I know that it suits some people's requirements, it wouldn't mine.

But if you were happy with the value it was available for, at the end of the plan, you could always opt to buy it - then you've only financed the depreciation part of the purchase price, which you would have had, anyway!

VB

AdrianHi

Have to agree the concept of "owning" the vehicle is irrelavant in the end.
You take possession of a vehicle, sooner or later it leaves your possession, it will have cost you X amount while you had the use of it. What difference does it make if you leased, PCP or paid with cash so long as X was as low as it could have been and affordable.
Only issue with a car you don't own is you cannot always modify it, depends on whether thats an issue for you or not.

Idiophreak

vansboy wrote: »

But if you were happy with the value it was available for, at the end of the plan, you could always opt to buy it - then you've only financed the depreciation part of the purchase price, which you would have had, anyway!

Quite agree with this, I was always against these schemes, but thinking about it, I paid a loan for 3 years, on (for simplicity's sake, here) a car for £10k.

My sister bought a car for £10k on a 3 year "option" scheme, or whatever they are.

Hers cost half the amount per month.

At the end of the 3 years, I was left with what? A car worth £5k, maybe.

She's left with a car she can have for £5k if she wants or a couple of other options - so it really doesn't make a lot of difference either way...

Inactive

All fair comment, however I only ever pay cash for any car that I buy on the basis that any finance involved cost's extra in the end, call me old fashioned, but I would not be happy " owning " a car that was not my property.

To each his / her own I guess.

AdrianHi

If you feel the need to "own" the car to be happy about it, fair enough. It's a lot of money which ever way you do it, no point in spending it in a way that your not happy with.
Yes a finance charge is usually higher than the "finance charge" that comes from lost interest on savings tied up in a car, but what if paying that finance charge gave you access to a car which all round had a lower total cost of ownership, even with the finance charge.... you would do it then wouldn't you?

Personally I look at the cars as and average monthly expense over the period I'm going to use it and work out if that fits inside my monthly budget. I want to know I can afford to replace the car with something of a standard I will be happy with when it's time to change again.

cyclonebri1

Inactive wrote: »

All fair comment, however I only ever pay cash for any car that I buy on the basis that any finance involved cost's extra in the end, call me old fashioned, but I would not be happy " owning " a car that was not my property.

To each his / her own I guess.

My old man used say; "get all these cars off the road that aren't paid for and we'd have no traffic jams!"

I think he had a point;)

vansboy

cyclonebri1 wrote: »

My old man used say; "get all these cars off the road that aren't paid for and we'd have no traffic jams!"

I think he had a point;)

Sort of opposite to that one, my yard man, Terry, an old boy who was the verrrrry best guy whoever worked for me, whenever ewe went to pick up vehicles from auction, he'd always say that if all the cars & vans in the compounds were ever to be on the road at once, we REALLY would have some traffic problems!!:rotfl:

VB

Hintza

I notice this thread is gett ing off topic now.

Anyway to continue the theme, will cars ever be sold in the same way again? If they are will they not potentially be a (relatively speaking) a lot more expensive?

Has the bubble burst in the car market? Finance will be a lot more expensive. Folk look at these interest rates at 5%-7% just now and think they are much the same as before but when you look at waht you receive on savings it is a huge very expensive difference.

Reading sone of Harvey's post he is implying prices are rising again in the second hand market, I just wonder if this is a bit of a dead cat bounce.

Prices of new cars are going to rise with the lower £ but will folk be able/willing to afford them? Or will folk be pushing up the price of second hand cars?

I think this will be fascinating to watch how this pans out and where we will be in 2, 5 and 10 years time.

Lemonade_Pockets

I don't think it will change that much. I think the € is gonna take a hit in the near future which should stem a lot of the price increases.
Finance is still there and the rates haven't changed a huge amount from what they were 2yrs ago, its a little harder to get so the chucky duffers won't be able to go out and buy £20k cars anymore but Joe bloggs should be ok.

Also to add the idea of having Equity in a depreciating assest is daft. As is suggesting you don't incurr any costs by paying cash.

I've mentioned it a few times recently but economists have some thing called oppurtunity cost: i.e. if you spend money on something (opportunity), what could that same money of earned invested or spent elsewhere (cost).

E.g. The cost of plowing £20k into a car, is whatever you could've saved by reducing your morgatage, adding to your pension, investing it elsewhere. This might not always outweight the cost of finance but in a lot of cases it will.