FSA advisers urge delay to mortgage reform and more 'flexible' lending

Graham_Devon

It IS all down to the price.

While the market factors may influence the setting of the price, the price always comes out as leading everything. The price sets the need for the market factors in the first place.

Good to see you arguing it to the death though.

Really2

If you could give an example as you seem to trip yourself up straight away?

You also seem to be still arguing the point??

HAMISH_MCTAVISH

Graham_Devon wrote: »

It IS all down to the price.

While the market factors may influence the setting of the price, the price always comes out as leading everything. .

IN your opinion.

Some of us view the total cost of buying (including mortgage costs, transactional costs, etc) as being "the price".

All the components are of equal importance.

Graham_Devon

HAMISH_MCTAVISH wrote: »

IN your opinion.

Some of us view the total cost of buying (including mortgage costs, transactional costs, etc) as being "the price".

All the components are of equal importance.

Well thats costs of ownership. Not the price.

By that theory, when you buy a new car, you go in there totalling up the costs of services, fuel, tyres, MOT's etc, and then call that the "price"...not the cost of ownership?

Cleaver

Graham_Devon wrote: »

By that theory, when you buy a new car, you go in there totalling up the costs of services, fuel, tyres, MOT's etc, and then call that the "price"...not the cost of ownership?

Dunno about anyone else, and I haven't read the backdrop to today's Graham vs Hamish row, but I work out how much a car costs me per month based on running costs over a long period. I don't include petrol though, as work generally cover that.

Really2

Graham_Devon wrote: »

By that theory, when you buy a new car, you go in there totalling up the costs of services, fuel, tyres, MOT's etc, and then call that the "price"...not the cost of ownership?

Would cash vs finance price be more appropriate.

Your example is more like housing up keep, utilitys and council tax.

Graham_Devon

Cleaver wrote: »

Dunno about anyone else, and I haven't read the backdrop to today's Graham vs Hamish row, but I work out how much a car costs me per month based on running costs over a long period. I don't include petrol though, as work generally cover that.

Do you call that the price of the car?

Or do you look at the numbers on the windscreen to determine the price?

HAMISH_MCTAVISH

Graham_Devon wrote: »

Do you call that the price of the car?

Or do you look at the numbers on the windscreen to determine the price?

For all big ticket items, for the overwhelmingly vast majority of people, the cost of finance is an essential part of the cost of a product.



Sticker prices (asking prices) are misleading and only a part of the total price paid.

Just as "Zero percent finance" deals are misleading and do not accurately do what it says on the tin.

http://www.carbuyingguide.org.uk/zero-percent.php

The price of the goods and the price of the finance together make up the price you pay. They're both as important as each other.

Really2

Graham_Devon wrote: »

Do you call that the price of the car?

Or do you look at the numbers on the windscreen to determine the price?

The cost of anything is the cost of purchase. If you take car finance it lists total cost.
The cost is the cost to own, until you pay for it all it is not fully yours or you can be forced to sell it (loans secured against purchase) should you default.

Any credit has to show total price so you have kind of agreed wit hamish on this as full cost (finance and on the road) is the total price.

http://www.honda.co.uk/cars/civic5door/offers
Notice the bold bit

Representative Example
On The Road Price £13,995.00
Customer Deposit £3,473.62
Total Amount of Credit £10,521.38
36 Monthly Payments (duration of agreement 37 months) £195.00
Final Payment £5,000.22
Option To Purchase Fee £65.00
Credit Acceptance Fee £125.00
Total amount payable £15,493.84
Interest rate p.a (fixed) 5.4%
Representative 6.4% APR
Excess Mileage 5p
Annual Mileage

Cleaver

Graham_Devon wrote: »

Do you call that the price of the car?

No, I'd call the price of the car the price of the car.

Graham_Devon wrote: »

Or do you look at the numbers on the windscreen to determine the price?

I look at the windscreen to give me the purchase price of the car. Then I look at how much insurance, tax, servicing, maintenance and depreciation and then work out how much the car will actually cost me.

For example, an old BMW 3 litre with 90,000 miles may be on sale £5,000 and a Citroen C2 1.4 diesel with 20,000 miles may also be on sale for £5,000. Same purchase price but very different cost to the buyer.

Can I just say that I haven't read the argument between you and Hamish, so not sure who I'm agreeing with. God golly, this is exciting.