Credit card for £20k car loan?

bigadaj

NickX wrote: »

You are missing the bigger picture here. If "idiots" were not able to make purchases using credit, then the whole country would be in a much worse economic condition.

Partially true but the reason we are in the terrible economic condition currently is because of quoted idiots.

NickX

bigadaj wrote: »

Partially true but the reason we are in the terrible economic condition currently is because of quoted idiots.

Whilst I would agree that the economic issues were bought on by people who perhaps were not able to consider the long term view of their actions (whether that makes them "idiots" is perhaps debateable), I am sure that the purchase of cars on credit had nothing to do with it, and in actual fact such actions have helped stop the UK economy being worse than it is now.

bigadaj

NickX wrote: »

Whilst I would agree that the economic issues were bought on by people who perhaps were not able to consider the long term view of their actions (whether that makes them "idiots" is perhaps debateable), I am sure that the purchase of cars on credit had nothing to do with it, and in actual fact such actions have helped stop the UK economy being worse than it is now.

I think well agree to disagree on this one, the idea of borrowing money to purchase an asset that depreciates by a significant amount on day one, and continues to do so over the long term is economically unjustifiable. Part of the current ills are down to personal debt levels, as well as inflated asset prices, excessive lending and out of control public finances. I'd therefore contend that purchasing cars on credit will have had something to do with it.

NickX

bigadaj wrote: »

I think well agree to disagree on this one, the idea of borrowing money to purchase an asset that depreciates by a significant amount on day one, and continues to do so over the long term is economically unjustifiable. Part of the current ills are down to personal debt levels, as well as inflated asset prices, excessive lending and out of control public finances. I'd therefore contend that purchasing cars on credit will have had something to do with it.

Well I believe that around 90% of vehicles purchased from main dealers are done so via some sort of credit arrangement.

You may not think that those customers are behaving in a financially sound manner, but all those purchases are keeping people in jobs, they are keeping businesses running, if the cars are made in Britain they are boosting British manufacturing and all the ancillary companies associated with the manufacture, if the cars are not made in Britain the companies that are doing the importing are staying in business. Then there is the VAT, the car tax, the vehicle excise duty and not to mention the duty on the fuel that will used. This is all helping the economy run and without it I dread to think what state we would be in.

You (and others on this thread) are just seeing the purchase of a depreciating asset on credit as bad for the consumer. Well ok, the majority of cars do depreciate, but they don't depreciate to zero straight way - there is still a tangible asset there that can be sold on. Surely this is better than spending the funds on nights out, designer clothes, holidays to far flung places - where the consumer is left with nothing that could recoup the funds at a later date ?

I don't see any problem with buying a car on credit provided the figures stack up and you have done the maths beforehand so you know how you are going to handle the debt.

Personally I always buy cars (and I have purchased cars in costing in excess of £40k before now) using some form of credit, usually using a 0% credit card in some way. I mean, why would I want to empty my bank account when I can finance the purchase using the bank's money for a minimal cost ?