Large finance deal agreed and then subsequently refused!!!!

motorguy

Strider590 wrote: »

There are few people who'd do that......

The really well off, are well off because they're sensible with money, they don't buy stuff on finance or credit.

The people who do, generally have lot's of other debt and wouldn't have a large chunk of cash to drop down on a car anyway.

Even if they did have that cash, cash is different, it's physical, it's harder to throw away on trivial things, I can't see someone shelling out £20k of cash on something they won't actually own.


There are always exceptions, but the whole system (which most people fall into) is designed to make the rich even richer by creating this illusion that perceived material wealth can buy social class. In truth it just keeps us all poor and them all super stinking rich.

Did you read all this in The Sun did you?

90% of mercs, audis and BMWs are bought on some sort of finance deal. Few people - even the truly rich - will lay out 50 or 60K of their own money into a depreciating asset.

All it means is that some people are happier paying a hundred or two more a month in finance than 'average' people pay for their ford focus or vauxhall astra.

My wife PCP's something nice for three years then chops it in and gets another. Currently its a z4 2.0i Turbo, previously it was a Turbo Subaru, and before that, previous BMW's.

Could she 'save' money driving an old or cheaper car? Yes.

Does she know this? Yes

Does she care? No.

Can she afford the payments? Yup.

Would i do it at the moment? No - i've a £500 Fiat diesel which is doing exactly what i need of it.

Might i do it at some point in the future - yes.

motorguy

neilmcl wrote: »

If you really believe that it's always cheaper to pay in cash (if you have it) rather than finance or because it's the "sensible" option then you really don't understand how car finance works or the concept of depreciating assets.

Yup. Totally agree.

motorguy

Strider590 wrote: »

Because if I lost my job, the bank wouldn't be coming to get their car back.

And erm.... The banks share isn't the bit that depreciates.

If you lost your job you simply continue paying the payments until you get another job. Or do you not think your skillset will get you another job? And i take it you do having savings, dont you? Or redundancy insurance? Or both?

I've been made redundant a couple of times in the past when i've had car payments and all it meant was i had something nice to waft about in until i got something else. Got some looks turning up at the dole office in a BMW 535d though.

motorguy

anotherbaldrick wrote: »

If I was him I would do just nothing, worst come to the worst he might loose 500nicks deposit, but he has saved £20 K in not suffering the first years depreciation.

Depreciation index


Year 0Year 1Year 2Year 3Year 4Mercedes-Benz S-Class Saloon S350L CDI BlueTEC . Deprcn. £65,440£41,653£34,077£27,700£22,114

If he has it on a PCP deal then the depreciation on the car is immaterial.
- he'll have agreed to the deposit and monthly payments.

And personally, i would be pushing for a refund on the deposit as he still wants to buy the car.

anotherbaldrick

motorguy wrote: »

If he has it on a PCP deal then the depreciation on the car is immaterial.
- he'll have agreed to the deposit and monthly payments.

And personally, i would be pushing for a refund on the deposit as he still wants to buy the car.

Reading the posts ! the deal is finance, not PCP.

For the record, the car is worth £60k - I never mentioned how much of it is being financed.

neilmcl

Strider590 wrote: »

Because if I lost my job, the bank wouldn't be coming to get their car back.

And erm.... The banks share isn't the bit that depreciates.

If you'd lost your job then at least you'd have the money in your bank rather than tied up in a depreciating asset.

neilmcl

anotherbaldrick wrote: »

Reading the posts ! the deal is finance, not PCP.

PCP IS finance.

Strider590

motorguy wrote: »

Could she 'save' money driving an old or cheaper car? Yes.

Does she know this? Yes

Does she care? No.

Can she afford the payments? Yup.

I could quite easily afford something for several hundred a month......

But it all comes down to the deep psychological reasons for why people put themselves into debt with things like this. Whether they realise it or not, it's all about social influence and social class, impressing people they don't even know.

This idea that (being perceived to be) further up the class ladder, means they're automatically successful and intelligent, when in reality they're just poor and stupid.

They talk about "middle class debt", because there are people out there who are driven to virtual poverty through trying to maintain the outward illusion of being "middle class".

anotherbaldrick

neilmcl wrote: »

PCP IS finance.

So, what would the deposit + finance over 3 years + final payment to own car + arrangement and other costs be on a OTR car value K60 be ?

motorguy

Strider590 wrote: »

But it all comes down to the deep psychological reasons for why people put themselves into debt with things like this. Whether they realise it or not, it's all about social influence and social class, impressing people they don't even know.

Both her and i have only ever bought a particular car because it impresses us. If it happens to !!!! other people off then thats just an added bonus.

Strider590 wrote: »

This idea that (being perceived to be) further up the class ladder, means they're automatically successful and intelligent, when in reality they're just poor and stupid.

So people cant drive a nice car because they want to drive it and are happy with it? In reality they're just poor and stupid?

Do you not think thats a bit blinkered and perhaps speaks more about your own personal shortcomings than that of other people? If i see say, a nice six series BMW out on the road i think 'wow nice car', I wouldnt make any judgement on their social or financial standing. However you would think 'oh chances are its on finance, therefore hes actually poor and stupid'.

Strider590 wrote: »

They talk about "middle class debt", because there are people out there who are driven to virtual poverty through trying to maintain the outward illusion of being "middle class".

I think anyone who does something to impress other people when they cant afford it is fairly foolish. However i dont equate say, a person driving a new merc on a PCP deal which they can afford and because they want it as 'stupid' and on the road to virtual poverty.