Help with my current PCP

Mercdriver

Tarambor wrote: »

AFFORD: Verb. To have enough money to pay for.
If you can afford it you have the moneny to buy it outright in cash. If you can't afford it you get it on PCP/HP. "Affording the monthly repayments" is not the same as "being able to afford to buy a car."

If you used that standard with property no one other than millionaires would own their own house.

bigadaj

Mercdriver wrote: »

If you used that standard with property no one other than millionaires would own their own house.

Property is generally an appreciating asset and so an investment, cars aren't.

Mercdriver

bigadaj wrote: »

Property is generally an appreciating asset and so an investment, cars aren't.

That is true - but that doesn't change the definnition of "afford" in the context Tarambor was using it.

neilmcl

Mercdriver wrote: »

That is true - but that doesn't change the definnition of "afford" in the context Tarambor was using it.

Absolutely. This same old argument that people on finance can't "afford" to buy a car outright is quite frankly insulting and born out of ignorance.

takman

neilmcl wrote: »

Absolutely. This same old argument that people on finance can't "afford" to buy a car outright is quite frankly insulting and born out of ignorance.

You may find it insulting but when the average household in the UK only has £3,134 in savings then it's true that the large majority of people in the UK simply can't afford to buy a new car outright.

Obviously that doesn't mean that everyone on a finance deal can't afford to buy it outright, but it does apply to the large majority.

Mercdriver

takman wrote: »

You may find it insulting but when the average household in the UK only has £3,134 in savings then it's true that the large majority of people in the UK simply can't afford to buy a new car outright.

Obviously that doesn't mean that everyone on a finance deal can't afford to buy it outright, but it does apply to the large majority.

Why do you need to be able to afford to buy outright in order to borrow as a form of purchasing. Surely it's the payments that need to be affordable.

If cars could only be sold to people that could afford to buy them outright, there would be no need for credit, fewer cars purchased, and as a result fewer used cars to buy.

For sure some people borrow more than they should in order to have a shiny new car but I don't think credit should limited to just the people that don't really need it.