Best wat to finance new car??

Cortinaa_GTR

pgilc1 wrote: »

Are there any restrictions around the age or type of car that you have to own? For example with my last company company scheme, i had an allowance but was able to buy a four year old 535d BMW, rather than use it to lease / buy a standard A6 TDI. Also are you being taxed on the car allowance? (i take it you will be) - I'm honestly unsure about any restrictions. I don't know if I've read or heard of the car needing to be 3 years or under old. Otherwise what would stop you buying a £300 banger and pocketing the allowance each month. I presume I will be taxed on the allowance as it will just be added on to my base salary.

With that in mind, there are various options :-

Lease new - check out the likes of www.lingscars.com as a starting point. Advantages to leasing are set monthly payments, may be more competitive than a finance deal, low deposit. Disadvantages - may be expensive to get out of if you changed jobs, you never 'own' the car. Had a look at Lings website and it's bizarre to say the least but pretty useful. Like you say I could lease a car for £15k over 3 years and have nothing to show for it.

Use your CASH savings to buy a car, and top that up with the net value of the £375 to top up your saving again. You own the car immediately, your savings will be depricated, you wont pay any interest charges but you'll lose the interest on your savings. I'm not fussed over losing the interest on savings because the rates are so crap just now anyway however I'd rather keep the savings as a buffer zone should anything unexpected happen.

Finance the car via a LOAN. Use moneysupermarket to find the best rates. Pick the car you want and negotiate hard! A loan at a decent rate could be an option which would allow me to buy the car outright now but then there is the interest over and above to factor in.

Finance the car via a PCP deal. Deposit, monthly payments, balloon payment. Cheaper monthly payments than loans, BUT some people struggle with the notion of a balloon payment. Interest rates often not as competitive. I presume you will know what the value of the balloon payment will be at the end when you begin the deal? It seems to be like paying the deposit at the end instead of the start?

0% finance - usually available on some new cars. Can be an indicator of poor residual values on the car OR of the manufacturer having to support a weak car on the market (or both!). Often less or no discount is available when you take this option. So interest free but ultimately you pay for it with no discounts given.

Ultimately, decide what suits YOU best. There is noone on here who can make that call for you (or judge you stupid or a mug) as they dont know your own personal circumstances.

I can't honestly say I'm feeling the love for any of them but if push comes to shove then I need to select one of them. Thanks for the explanations,

Inactive

pgilc1 wrote: »

I really suspect you are one of those people who has to validate their own financial situation (or lack thereof) by considering everyone else who doesnt live as you have to live as a 'mug'.

I could say exactly the same about you, I don't pay the banks/finance houses interest, you do.

So who is the mug?

Dress it up how you like, you are throwing money down the drain.

motorguy

Inactive wrote: »

I could say exactly the same about you, I don't pay the banks/finance houses interest, you do.

So who is the mug?

Dress it up how you like, you are throwing money down the drain.

You cant say the same of me because i am not describing you as a mug because of how you chose to live your life, based on your perceptions of my finances from one or two lines on a forum

Also,i've given you a specific example of how i'm saving 17.5% VAT on house fittings because of the 4% car loan, but you chose to ignore that and call me a mug - again suggesting it helps you reconcile to yourself how you have to live.

How do you finance your 'home' by the way? You seem to neatly sidestep that one when asked.

I would say 'each to their own' at this point, but thats definitely a concept you cant grasp.

motorguy

Inactive wrote: »

I could say exactly the same about you, I don't pay the banks/finance houses interest, you do.

So who is the mug?

Dress it up how you like, you are throwing money down the drain.

So i pay £1000 in interest and i'm throwing money down the drain yet Peugeot Boys' car has dropped £10K in value in 5 months, but you dont comment on that?

I think that says a lot about you and what you're trying to achieve.

cyclonebri1

eschaton wrote: »

Unless it is 0%, then the best way to finance a new car is with.....




CASH, works for me everytime.

Gets my vote everytime, if you can't afford cash wait untill you can. Patronising? possibly, but it works for me.

Oh and let someone else take the hit, buy a "nearly new" car instead, the neighbours will never know:D:rotfl:

motorguy

Parnott wrote: »

I can't honestly say I'm feeling the love for any of them but if push comes to shove then I need to select one of them. Thanks for the explanations,

No probs.

Inactive

pgilc1 wrote: »

So i pay £1000 in interest and i'm throwing money down the drain

Yup.

Exactly £1000 by my reckoning.

motorguy

Inactive wrote: »

Yup.

Exactly £1000 by my reckoning.

But Peugeot Boy isnt a mug for losing £10K in 5 months, but i am for losing £1000 over 3 years?

Mate, all you're doing now is trolling and making yourself look ridiculous.

You still havent answered how your finance your 'home'? Is it a bedsit or do you still live with your parents? Or both?

Inactive

pgilc1 wrote: »

Mate, all you're doing now is trolling and making yourself look ridiculous.

You still havent answered how your finance your 'home'? Is it a bedsit or do you still live with your parents? Or both?

Now that is strange, I was thinking exactly the same about you.

I own 2 properties outright, one here and one in Spain, I paid cash for the one in Spain.

motorguy

Inactive wrote: »

Now that is strange, I was thinking exactly the same about you.

I own 2 properties outright, one here and one in Spain, I paid cash for the one in Spain.

And presumably the one here, you mortgaged at some point?

Of course, you will answer the above to suit your argument, so theres hardly any point in asking.

I guess the bottom line is if it gets your through your life thinking other people are mugs because they on occasions use finance, then thats your problem not mine.

I dont see any point in continuing a conversation with you TBH.