How do i delete my post?

bob_dob

.....................

eschaton

bob_dob wrote: »

Hi,
My friend was recently in a conversation with his work colleagues about each other's finances.

His friend stated that he spends £340 per month for his car and has done for 2 years and will continue to do so for another year. My friend commented that at least he will have the car to himself in a years time and then his friend said "No, im afraid all that will happen is that i'll have the option to buy it!"
My friend was in shock at this as it does sound a terrible waste of money (admittedly he doesn't know exactly what car it is though but just asssumed that, generally, these sort of finance deals are not good value for money)

My friend then commented that surely it would make more sense to save up for a car and then buy it outright rather than use car finance companies.
Then his boss (who also has a car on finance) waded in and said "What, even if you're paying 0%?"

Now my friend couldn't instantaneously calculate this to his boss but am i correct in assuming the difference between saving the amount and using 0% car finance is this:

Saving- You can put your weekly/monthly savings in to a bank account that pays interest thus getting to your required amount quicker. Also, you have the advantage/possibility of getting the car cheaper by paying with cash.

Finance- Yes it may be 0% but the price you are paying for the car is actually over and above the 'true' value of the car (so, in effect, you may as well be paying interest)

Please correct me if im wrong on this or im missing out something?

Depends who is funding the 0% deal - manufacturer or dealer. It can be the case that the price you end up paying for the car will be the same whether or not you take the 0% deal.

Apart from that, it's best to save up - only buy what you can afford.

0% finance is fine if you already have the cash saved as that way you will make some cash in interest whilst you pay off the finance.

If you need to borrow to pay for a car then you can't really afford the car.

bob_dob

Hi, please can someone tell me how to erase this/any post that i have made?

smitchy73

For that amount of money it must be quite a decent car, the option to purchase outright will be one of three options, usually, return the car with nothing else to pay, or pay the outstanding amount/refinance it, and lastly, use the car you have as the trade in for the next car, hoping of course that you get more than the guaranteed future value and that acts as the deposit.
If you are paying 0% interest than you are only paying for the cost of the car, anytime I buy a car I negotiate a price and then set up either finance or loan, just because you are financing doesn't mean that you have to pay list price.
Saving in a bank account does mean that if you save it all up then you don't have to worry about anything other than paying for the car, but most of what you get in banks these days is about 3% in an ISA, but if it takes you three years to save up enough to buy the car outright, inflation may have risen so much that the 3% per annum interest won't cover the increase in the cost of the vehicle, plus if you have to wait three years to save up for it, you also don't have a car for those three years.
Personally speaking I pay something similar for a car and I like getting a new car every 2-3 years, thats just me. I never own the car, but there's alot out there who do the same!

bob_dob

Hi, please can someone tell me how to erase this/any post that i have made?

CH27

You have already deleted your first post.
What else do you want to delete?

eschaton

bob_dob wrote: »

Hi, please can someone tell me how to erase this/any post that i have made?

Why do you want to delete it?

eschaton

More to the point - the majority of your posts are about a 'friend'.

Care to tell us how many friends you have? You appear to have them coming out of your ears.

HappyMJ

eschaton wrote: »

More to the point - the majority of your posts are about a 'friend'.

Care to tell us how many friends you have? You appear to have them coming out of your ears.

LOL. How many do you have? Probably the same as me just a few.

I see nothing justifying deletion. A simple question and a fair answer.

The problem with saving towards a car is that you actually need a car to get to/from work to earn the money to pay for the car. No car? No income. It's good debt. A bit like a mortgage to buy a house. You either pay rent or take out a mortgage and pay interest on it. Have to live somewhere and also in this case need some form of transport to get to/from work. Yes buses can be used to get to/from but why not pay for a car instead and work a few extra hours each week. I'd rather spend £50 a week on the car payments and save myself up to 10 hours each week in travelling time.

Peelerfart

Hi, please can someone tell me how to erase this/any friend that i have made?

bob_dob

eschaton, why do you ask about my friends? Is it a problem for you? I do apologise for seeming to have more friends that im willing to help than you have but what do you want, maybe for me to apologise?Or maybe you'll do an Alan Partridge on me and if i say i have 11 friends you'll say you have 12?

And as for the question of saving v Car finance.....I thank you all for your comments, i really do.
However, id love to know the big man's opinion on this (Martin Lewis, not God)....but im pretty sure i know what he'd say!Going back to my question of how to delete this post, do i have to explain it? I dont mean to sound rude but i genuinely mean it- Being a novice im not familair with deleting posts so am i able to do it myself or do i have to give a reason to you folks?Thank you in advance.