UK interest rates held at 0.5% for years

bowlhead99

badger09 wrote: »

Also its on 0% finance with Santander apparently, so it feels quite MSE to borrow from them at 0% while getting 3% on a similar amount in their 123 account

Well, presumably somebody somewhere is getting compensated at market rates for giving you the finance, even if it's not visible to you, and those market rates on a car loan will be higher than the 2.4% you get net of tax in your current account.

So, perhaps the smarter / more MSE thing to do would be to have found a deal without interest free finance which got you access to an equivalent car cheaper or with more extras

lvader

Inflationary pressure from imports should be quite low at the moment, compared to 12months ago most natural resources are cheaper and the pound is about where it was against the USD.

badger09

bowlhead99 wrote: »

Well, presumably somebody somewhere is getting compensated at market rates for giving you the finance, even if it's not visible to you, and those market rates on a car loan will be higher than the 2.4% you get net of tax in your current account.

So, perhaps the smarter / more MSE thing to do would be to have found a deal without interest free finance which got you access to an equivalent car cheaper or with more extras

Yes, I understand that, and bought my last car through an online dealer, with great discount for cash etc, however, the car I want is a limited edition of 500 so additional discounts not available.

Besides which, I'm worth it

sabretoothtigger

which brand is it, I did read today how new cars are not as easily negotiated due to more frequent supply constraints then previously. We dont have excess production apparent, which would match low inflation

Minrich wrote: »

Never trust any government , majority of what they say is fiddled to some degree

Its not government or politics its just people. Its perfectly ordinary everyday self bias which is a human trait we all have. The greatest mistakes we have now are not new, they are ancient

The real dull thing is then to suppose perfection or absolutes in conclusion. All stats are wrong in some way, when I was in college we always stated them with levels of confidence and it was never 100% but if I see it on the news it always stated as if fact
http://en.wikipedia.org/wiki/Hedonic_regression
I think Soros gets it but he supports the Democrats, a bit like Warren Buffet that guy knows bonds are a disaster but again another policy supporter

Inflationary pressure from imports should be quite low at the moment, compared to 12months ago most natural resources are cheaper

I guess its oil that matters and any other energy we import.
We do have impending inflation in energy costs unlike USA we dont have excess resources, which makes fracker protestorers who drive to the site or camp there and then use cooking gas all the more silly

badger09

sabretoothtigger wrote: »

which brand is it, I did read today how new cars are not as easily negotiated due to more frequent supply constraints then previously.

Its this one

http://www.furrows-mazda.co.uk/news/limited-edition-mazda-mx-5-sport-graphite-on-sale-now

I'm having a very belated mid life crisis :rotfl:

Glen_Clark

Thrugelmir wrote: »

There's no control over inflation.

So all the money printing, Osborne's Help to Bubble House Price Scam, 0.5% bank rate etc etc is having no effect on inflation?

sabretoothtigger

Nice I like that car, I think it was the Mx5 which was 12k 20 years ago so its risen in price far less then most, some might argue its a good value car
How long is the 0% for, at 5 years or longer it could tempting on that alone. If inflation did get unleashed the price would effectively become cheaper as the months pass which is no wonder a discount would be a problem

Current Mazda MX-5 owners will also qualify for a loyalty bonus of £500, with no requirement to part-exchange their existing vehicle.

buy an old near scrap one

So why tie rates to unemployment figures?

USA is doing it, thats all the reason we need. The world thinks they demonstrate an example of success, the dollar would not be so strong if budget management and policy failure was more evident

badger09

sabretoothtigger wrote: »

Nice I like that car, I think it was the Mx5 which was 12k 20 years ago so its risen in price far less then most, some might argue its a good value car
How long is the 0% for, at 5 years or longer it could tempting on that alone. If inflation did get unleashed the price would effectively become cheaper as the months pass which is no wonder a discount would be a problem

buy an old near scrap one

Why thank you - so do I, and I think I have at least one more sporty type car in me (i.e this one) before I settle for something more Ho Hum

The interest free period is 42 months but its too late for me to benefit from the additional £500 now. I do have a very low mileage Renaultsport Clio to dispose of though

Thrugelmir

Glen_Clark wrote: »

So all the money printing, Osborne's Help to Bubble House Price Scam, 0.5% bank rate etc etc is having no effect on inflation?

These measures need to put into context of the state of the UK's finances. Government, consumer and critically the banks. QE had more to do with providing the banks with a life jacket to keep them operationally afloat.

sabretoothtigger

The banks and HMG, they did buy 1/3 of all their debt

If inflation is 2% a year that car is £1,224 cheaper then it appears to be. 5% averaged would be £3,152 'saved' [aprox obviously] presuming wages rise I guess that relys on

Digger might argue you put the cash into gold meanwhile and see what happens to the effective price. If gold doubled, your car will have halved :j