Best wat to finance new car??

eschaton

pgilc1 wrote: »

You said above

So surely if you lost your job, you'll have finance payments anyway until the car is paid off - whats the difference?

Also, did the 0% finance in this case not allow you to buy a car that you otherwise couldnt afford - did you not tell us on the previous page thats why you are so against people taking out finance?

I would take the money out of the bank each month and pay the loan payment until the loan was paid off.

I bought a car that I could easily afford. But why give up the take it or leave it option of 0% over 4 years?

Bit silly is it not?

The balance that was financed is currently earning me 3.75% tax free, well not all of it, only £12,000 which will give me £450 a year for nothing. Rest of the money is earning a lower rate.

pgilc1 wrote: »

Its the contradictions in your posts that surprise me.

Correct me if i'm wrong here, but you bought a Peugeot 308 at £25,500, financing £14,000 of that on 0% finance?

But you think you got a 'great deal' because you got 0% finance? :eek:

Also, you told us on the first page that people who have to use finance 'obviously cant afford it' but you had to finance £14,200 to buy your car?? What does that tell us if we apply your rules?

Unfortunately you're a prime example of being sucked in by a 0% finance deal.

I don't remember saying anywhere that I got a great deal because I got 0% finance. I did get 0% finance despite Peugeot no longer advertising, with the money earning interest it would be stupidity not to take it.

And going by your other drivel, where does the "i can't afford it" bit come into play when the £14,200 is sitting in the bank with the rest of the savings?

If 0% finance was not on offer then there would have been no need to finance the car.

As for depreciation you go on about - since when did people buy cars as an investment? :rotfl:

Last time I borrowed for a car was £6000 in 1998 over 2 years. It was at 0% but I didn't actually have the money so had to borrow it. After that the other 6 cars I have bought haven't been on finance until now.

Don't have money = don't buy.



pgilc1 - :T

motorguy

eschaton wrote: »

I would take the money out of the bank each month and pay the loan payment until the loan was paid off.

I bought a car that I could easily afford. But why give up the take it or leave it option of 0% over 4 years?

Bit silly is it not?

The balance that was financed is currently earning me 3.75% tax free, well not all of it, only £12,000 which will give me £450 a year for nothing. Rest of the money is earning a lower rate.



I don't remember saying anywhere that I got a great deal because I got 0% finance. I did get 0% finance despite Peugeot no longer advertising, with the money earning interest it would be stupidity not to take it.

And going by your other drivel, where does the "i can't afford it" bit come into play when the £14,200 is sitting in the bank with the rest of the savings?

If 0% finance was not on offer then there would have been no need to finance the car.

As for depreciation you go on about - since when did people buy cars as an investment? :rotfl:

Last time I borrowed for a car was £6000 in 1998 over 2 years. It was at 0% but I didn't actually have the money so had to borrow it. After that the other 6 cars I have bought haven't been on finance until now.

Don't have money = don't buy.



pgilc1 - :T

It surprises me that you say you have the remaining £14,200 in the bank because in one of your other threads you say the finance company would be safe enough with your car as you would always owe less than it was worth. Odd thing to say IF you actually have the £14,200 in the bank i'd have said 'the finance company will be safe enough as i have the cash in the bank to clear the loan if needs be'. Of course we now only have your word otherwise - as opposed to what you actually have said previously.

Also was the deal not with just 25% deposit, so it seems very odd you didnt just finance the minimum to make even more money on your savings? Again that doesnt really stack up compared to what you're trying to tell us now.

BUT, ultimately, as i said, its hard to take seriously someones opinion on finance who happily spends £25,000 on something that depreciates as heavily as a 308 Peugeot. Its a bit like saving money with one hand, only to toss it down the toilet with the other.

How does it feel to have already lost that £10,000 deposit you put down? :eek:

eschaton

pgilc1 wrote: »

It surprises me that you say you have the remaining £14,200 in the bank because in one of your other threads you say the finance company would be safe enough with your car as you would always owe less than it was worth. Odd thing to say IF you actually have the £14,200 in the bank i'd have said 'the finance company will be safe enough as i have the cash in the bank to clear the loan if needs be'. Of course we now only have your word otherwise - as opposed to what you actually have said previously.

Also was the deal not with just 25% deposit, so it seems very odd you didnt just finance the minimum to make even more money on your savings? Again that doesnt really stack up compared to what you're trying to tell us now.

BUT, ultimately, as i said, its hard to take seriously someones opinion on finance who happily spends £25,000 on something that depreciates as heavily as a 308 Peugeot. Its a bit like saving money with one hand, only to toss it down the toilet with the other.

How does it feel to have already lost that £10,000 deposit you put down? :eek:

No interest in trying to justify myself to you, could prove but why would I want to prove anything to you :rotfl:

Deposit was 25% but if your trade in is worth £11,300 then the 25% doesn't add up does it?

Also £12k of the financed amount is actually with a family member offset against their mortgage for a decent return. Still got more than enough in my own accounts to repay as I'm sure you will suggest they might do a runner with my money :rotfl:

eschaton

Oh yeah, happy to have lost the £10k, it's a small amount compared to what I have lost on cars

motorguy

eschaton wrote: »

No interest in trying to justify myself to you, could prove but why would I want to prove anything to you :rotfl:

Deposit was 25% but if your trade in is worth £11,300 then the 25% doesn't add up does it?

Also £12k of the financed amount is actually with a family member offset against their mortgage for a decent return. Still got more than enough in my own accounts to repay as I'm sure you will suggest they might do a runner with my money :rotfl:

So £11300 + £14200 = £25,500.

You GAVE FULL LIST PRICE FOR A PEUGEOT??? D'oh!! :eek:

You ever heard the term 'penny wise and pound foolish'? :rotfl:

Inactive

pgilc1 wrote: »

:

You ever heard the term 'penny wise and pound foolish'? :rotfl:

Nor did you it seems, you are happy to pay the banks/finance houses interest that you don't need to pay.

motorguy

Inactive wrote: »

Nor did you it seems, you are happy to pay the banks/finance houses interest that you don't need to pay.

i am happy to pay the interest - i have no issue with that. I have my car outgoings wrapped up into a monthly payment. I negotiated a £4000 discount on the car and got the dealer to match the very best online rate i could find, meaning i'm paying £1000 in interest overall on the balance financed. OR i could have paid list price of £20,500, got £1500 discount and got interested free credit 'saving' £1000. So who got the better deal, the customer who went in and the interest free credit deal or me?

Our peugeot buying friend has very much taken a 'better than you' approach to people using finance when

(a) he paid full list price for an already overpriced Peugeot 308 at £25,500. The value of it just 6 months later is approx £15,500.

(b) he implied in other posts that he didnt have the cash available to buy the car outright - he is now of course saying otherwise for the purpose of not looking (even more) foolish

(c) he reconciles using 0% finance as 'ok' when clearly it is used by manufacturers to prop up sales, and is paid for indirectly by the customer. The fact he paid full list price supports this. 0% finance or other incentives are not necesarrily a bad thing, as long as you understand the implications.

(d) for someone who perports to be so 'canny' with car buying, in terms of costs, he really has bought the wrong car at the wrong price - which is ok if you really aspire to owning a Peugeot 308 - but then please dont tell the rest of us how to buy cars.

What galls me is this 'attitude' that if you use finance because you otherwise 'cant afford it', when there are many valid reasons why using finance can result in a better deal.

eschaton

Jesus, Paul really has a bit of the old jealousy syndrome :rotfl:

Trying to pick at everything to try and win but failing miserably.

I could explain the whole car deal to you and the financial detail - but really why would I want to do that for some unknown sitting behind a keyboard

So back on topic....

Best to buy a car if you can afford to pay for it. If using finance, only 0% if you have the cash aside to pay for it.

Everything else with finance results in you giving free money to the finance houses.

If you need to borrow, ensure it does not lead to difficulty repaying and it for whatever reason you had to sell up, you are not left in negative equity.

verityboo

eschaton wrote: »

Best to buy a car if you can afford to pay for it. If using finance, only 0% if you have the cash aside to pay for it.

Everything else with finance results in you giving free money to the finance houses.
QUOTE]

I'm afraid I have to disagree. We are changing our car at the moment and have found the reverse to be true

We have found that deals offering low interest rates but with larger discounts & other incentives (free insurance or servicing etc) work out cheaper overall than buying the same car at list price with 0% finance.

What really matters is the total price you pay including any interest, It is easy to get over a 20% discount on a 308 from a main dealer through Broadspeed etc. Much better to pay a small interest rate and get a 20% discount in my opinion

eschaton

eschaton wrote: »

Best to buy a car if you can afford to pay for it. If using finance, only 0% if you have the cash aside to pay for it.

Everything else with finance results in you giving free money to the finance houses.

verityboo wrote: »

[
I'm afraid I have to disagree. We are changing our car at the moment and have found the reverse to be true

We have found that deals offering low interest rates but with larger discounts & other incentives (free insurance or servicing etc) work out cheaper overall than buying the same car at list price with 0% finance.

What really matters is the total price you pay including any interest, It is easy to get over a 20% discount on a 308 from a main dealer through Broadspeed etc. Much better to pay a small interest rate and get a 20% discount in my opinion

Maybe you don't read or missed it. 0% was a take it or leave financed through Peugeot and not the dealer.

No difference to deal if I never took the offer.

Total cost of car includes trade-in, discount etc.. headline figure that Paul seems to like does not matter. He is also claiming full list price paid yet he has no idea of the options taken, trade-in discount, he is grasping at straws.

Broadspeed were not as cheap as Drive The Deal. I would have been cheaper with DTD but after taking into account selling a £10k+ used sports car private (hassle), time without a car (hire costs) and money to be made from investing money that I haven't yet spent due to 0% finance - there was not much in it. Not enough savings to merit the inconvenience a purchase from DTD or Broadspeed would have been.

Residuals also irrelevant as well, well aware of them. If you don't want to lose money then you don't buy a car. I have spent way over £50k on cars (net loss) over 16 years because I want to drive certain cars and you take the loss that it brings. Last car cost more than current one (paid by Switch for Paul's info in 2005) and had better residuals but another wasn't practical so didn't want another. Truth be known I probably couldn't have afforded it anyway without some small borrowing at the time.

Verityboo - 20% discount not possible for particular model/colour/options - 14 week build time. 13.5% from DTD which was best possible and as mentioned once gains from deal took off, it wasn't worth the hassle.

Also car arrived 4 weeks before 10 plate change and dealer held onto car at my request until 1st March which is another residual value saving, a DTD dealer would have been most unlikely to do that. Originally agreed car would be registered when it arrived unless after mid February.