Best wat to finance new car??

King_Nothing

Advocating renting a car as one of the better ways to save money when getting a new car?? :S

Best way is always gonna be cash up front, or cash deposit, and 0% on the rest if you want a cash float, if what you're going for is a brand new out of the wrapper car.

Cars aren't saving schemes, so throwing so much weight about, about depreciation, doesn't really do much justice. I got my last car for £12.5k, as soon as I bought it, that was a few thousand of it's value at resale, do I care, no, I'm keeping the car for a long time, If i was so bothered about depreciation, I would of just bought a lower value car to beging with, and would of stuck the rest of the money in a savings acount.

If you have to go the finance route, it's always best to see if a loan etc. would give you better value, obviously.

pwllbwdr

pgilc1 wrote: »

lots of stuff

Yeah but you're inconsistent. You talk positively in (a) at a manufacturer offering a large bung to encourage finance on a vehicle. Yet at (e) you negatively say you are wary of 0% finance deals because they are offered by manufacturers to shift cars which aren't selling well. The two points are comparable and a manufacturer is probably going to consider similar points when making either offer.

motorguy

pwllbwdr wrote: »

Yeah but you're inconsistent. You talk positively in (a) at a manufacturer offering a large bung to encourage finance on a vehicle. Yet at (e) you negatively say you are wary of 0% finance deals because they are offered by manufacturers to shift cars which aren't selling well. The two points are comparable and a manufacturer is probably going to consider similar points when making either offer.

You're right i said be wary of 0% finance offers. I think you should also be wary of large payments by the manufacturer into finance deals. Those should be used as an indicator of a cars value in the marketplace.

However if you otherwise want the vehicle then it may well be better to take the deal.

The Mercedes deal in question was on their behemoth 4x4 the GL420CDI. Now if you otherwise had cash to buy one, you'd have been losing out, because you could have otherwise got a £12,000 cash incentive to use the finance facility. Mercedes didnt want to discount the car because that impacts the residuals, so it was a win win.

All i am saying is be open minded as to how you pay for a car. It may well be better to buy with cash, but equally it may well be better to buy via finance. Its best to look at ALL the options not just assume that cash is best.

Would you not agree?

motorguy

sheslookinhot wrote: »

best way to fund a car purchase is Cash or adding to a low rate mortgage.

anewman

Save up and pay in full ALWAYS. So if you can save up £0 then you can't buy a car, £500 you can afford a £500 car - and there are some rather reasonable £500 cars about if you look hard and know what to look for, and while you own that car you can carry on saving the money you'd have been paying on finance to get a better car. Keep saving then maybe £1000, £2000, or if you're a careful saver you might be able to stick together £18k in a few years and get something nice brand new. Won't you feel happy going into the show room and paying in full in cash instead of being screwed over by some car salesman in a suit who gets commission for selling you finance?!

Why oh why do people always pay thousands upon thousands of pounds to finance companies to buy a car they otherwise wouldn't be able to afford. Especially when cars can be had so cheap?! Why should people really care what other people think of the car they drive, so long as it goes from A to B and is reasonably reliable? I really cannot understand why someone would go out and get a £6k car on finance, which then costs them £8k+ in the long run when they could have saved the £6k and bought outright. The amount some people pay on finance they could have a different car every 2 months (disposing of the ending up with a lemon mythology).

The only things i can think you really need to take out credit for is a mortgage to buy a house, or a loan to study.

motorguy

anewman wrote: »

Save up and pay in full ALWAYS. So if you can save up £0 then you can't buy a car, £500 you can afford a £500 car - and there are some rather reasonable £500 cars about if you look hard and know what to look for, and while you own that car you can carry on saving the money you'd have been paying on finance to get a better car. Keep saving then maybe £1000, £2000, or if you're a careful saver you might be able to stick together £18k in a few years and get something nice brand new. Won't you feel happy going into the show room and paying in full in cash instead of being screwed over by some car salesman in a suit who gets commission for selling you finance?!

Why oh why do people always pay thousands upon thousands of pounds to finance companies to buy a car they otherwise wouldn't be able to afford. Especially when cars can be had so cheap?! Why should people really care what other people think of the car they drive, so long as it goes from A to B and is reasonably reliable? I really cannot understand why someone would go out and get a £6k car on finance, which then costs them £8k+ in the long run when they could have saved the £6k and bought outright. The amount some people pay on finance they could have a different car every 2 months (disposing of the ending up with a lemon mythology).

The only things i can think you really need to take out credit for is a mortgage to buy a house, or a loan to study.

motorguy

anewman wrote: »

Save up and pay in full ALWAYS. So if you can save up £0 then you can't buy a car, £500 you can afford a £500 car - and there are some rather reasonable £500 cars about if you look hard and know what to look for, and while you own that car you can carry on saving the money you'd have been paying on finance to get a better car. Keep saving then maybe £1000, £2000, or if you're a careful saver you might be able to stick together £18k in a few years and get something nice brand new. Won't you feel happy going into the show room and paying in full in cash instead of being screwed over by some car salesman in a suit who gets commission for selling you finance?!

Why oh why do people always pay thousands upon thousands of pounds to finance companies to buy a car they otherwise wouldn't be able to afford. Especially when cars can be had so cheap?! Why should people really care what other people think of the car they drive, so long as it goes from A to B and is reasonably reliable? I really cannot understand why someone would go out and get a £6k car on finance, which then costs them £8k+ in the long run when they could have saved the £6k and bought outright. The amount some people pay on finance they could have a different car every 2 months (disposing of the ending up with a lemon mythology).

The only things i can think you really need to take out credit for is a mortgage to buy a house, or a loan to study.

Really, really, really?

So putting £6K of your hard earned into a car thats going to return you £3K in three years time is a good idea?

Would you not agree spending £200 a month and keeping your £6K in the bank is a better idea?

Frankly, i dont really give a !!!!, but its the whole 'holier than thou because i buy a £1000 car for cash instead of financing something better' attitude that cracks me up :rotfl:

LandyAndy

I don't see a problem with buying on finance providing the repayments are well within what you can afford.

The only advice I'd offer re finance is to match the finance period to less than your expected period of ownership.

Inactive

anewman wrote: »

Save up and pay in full ALWAYS. So if you can save up £0 then you can't buy a car, £500 you can afford a £500 car - and there are some rather reasonable £500 cars about if you look hard and know what to look for, and while you own that car you can carry on saving the money you'd have been paying on finance to get a better car. Keep saving then maybe £1000, £2000, or if you're a careful saver you might be able to stick together £18k in a few years and get something nice brand new. Won't you feel happy going into the show room and paying in full in cash instead of being screwed over by some car salesman in a suit who gets commission for selling you finance?!

Why oh why do people always pay thousands upon thousands of pounds to finance companies to buy a car they otherwise wouldn't be able to afford. Especially when cars can be had so cheap?! Why should people really care what other people think of the car they drive, so long as it goes from A to B and is reasonably reliable? I really cannot understand why someone would go out and get a £6k car on finance, which then costs them £8k+ in the long run when they could have saved the £6k and bought outright. The amount some people pay on finance they could have a different car every 2 months (disposing of the ending up with a lemon mythology).

The only things i can think you really need to take out credit for is a mortgage to buy a house, or a loan to study.

Well said, I agree 100%...:T

I have seen the outcome of people buying things on HP etc. and then falling on hard times, we get numerous posts on MSE of such people.

Very sad.

I never buy anything that I cannot afford to buy outright.

I enjoy the peace of mind that brings.

motorguy

Inactive wrote: »

Well said, I agree 100%...:T

I have seen the outcome of people buying things on HP etc. and then falling on hard times, we get numerous posts on MSE of such people.

Very sad.

And what about the 99.9% of people who have a successful finance experience?

Inactive wrote: »

I never buy anything that I cannot afford to buy outright.

I enjoy the peace of mind that brings.

Did you buy your house for cash then?