perils of car finance

Grumpy_chap

ontheroad1970 said:

frost500 said:

"I took out finance last time because it was cheaper than paying cash" How can this be? Was the interest charged negative?

With all due respect, if you do not understand how you can indeed pay less through finance than straight cash, then your OP is just an poorly researched rant.

I think, in fairness and particularly for people of a certain vintage, that 'cash is no longer king' is a paradigm shift.  The situation that the car is almost ancillary to selling the finance does seem absurd to many.

DUTR

Grumpy_chap said:

ontheroad1970 said:

frost500 said:

"I took out finance last time because it was cheaper than paying cash" How can this be? Was the interest charged negative?

With all due respect, if you do not understand how you can indeed pay less through finance than straight cash, then your OP is just an poorly researched rant.

I think, in fairness and particularly for people of a certain vintage, that 'cash is no longer king' is a paradigm shift.  The situation that the car is almost ancillary to selling the finance does seem absurd to many.

The thing is as well, is that you save money elsewhere to get the things you enjoy (whether car or other), I agree with the vintage, however if the PCP etc was around in my early days of car buying then it may have worked out the smarter way to 'purchase' if one was employed. My early cars were £100ish quid and if you were lucky would get through the next MOT, twas a while before I had a decent enough car that would pass several MOTs and still good enough to sell on.

EdGasketTheSecond

Apart from a house which is generally an appreciating asset, buying something you can't afford is generally a bad idea.

timwalker

These type of threads always end up with the same people arguing about the same things.
Life is too short, if you want a new car then buy one using the most cost-efficient method available that works for you.
If you want to drive using 'bangernomics' that's fine too.
Just please stop telling everybody else that they are wrong.

sebtomato

I think the OP made a good point about the real price of a car on finance: many people underestimates the repair costs they will be charged for fairly standard "wear and tear" after 3 or 4 years. Even if finance was at 0% and there was some contributions, the total cost of ownership has to be considered, and not many people will do that.

fred246

I know someone who has just replaced their three year old car for a brand new one. They hadn't intended to get stuck on the new car every 3 year business but they have. The car is exactly the same model in the same colour. You just look at it and think "Wow you have taken a brand new car, just run it in and it's lost half of it's value in 3 years. You have gained absolutely nothing and now you are going to take a brand new car down that ski slope of depreciation". It's crazy. Well this is a money saving site and that is exactly how NOT to save money. The old one may have needed a new tyre or two or even brake pads but the cost is nowhere near those depreciation losses.

waamo

frost500 said:

 Take a new (or nearly new) Golf (£20k), and a 2005 Golf (£1k). Both drive and stop, both do the same job. If you take the wings, doors and bonnet off both cars - could you tell them apart? 

I don't know about anyone else but personally I prefer to drive a motor that has wings, doors and a bonnet on it.

[Deleted User]

fred246 said:

I know someone who has just replaced their three year old car for a brand new one. They hadn't intended to get stuck on the new car every 3 year business but they have. The car is exactly the same model in the same colour. You just look at it and think "Wow you have taken a brand new car, just run it in and it's lost half of it's value in 3 years. You have gained absolutely nothing and now you are going to take a brand new car down that ski slope of depreciation". It's crazy. Well this is a money saving site and that is exactly how NOT to save money. The old one may have needed a new tyre or two or even brake pads but the cost is nowhere near those depreciation losses.

Exactly, I got bombarded with mail and emails at the 36 month point on my 42 month (0%) PCP deal, all these wonderful offers for new cars, another cycle of PCP, more money so I could have a new plate blah blah. Ignored them, final payment made on car, funnily enough, the world hasn't fallen in because my car has 64 plate not 67/18, my car still runs. Depreciation doesn't exist for me because my car isn't an asset to sell, it's something that will be run for another 4 or more years, perhaps longer until EV with range that works for me and are affordable or until I get taxed off the road (Euro VI diesel so may not be forever at £25 VED!)

Grumpy_chap

Deleted_User said:

funnily enough, the world hasn't fallen in because my car has 64 plate not 67/18, 

I think you'll find it pretty much has!
If only you had bought that new car, this whole coronavirus malarkey could have been avoided.

AdrianC

Grumpy_chap said:

Deleted_User said:

funnily enough, the world hasn't fallen in because my car has 64 plate not 67/18, 

I think you'll find it pretty much has!
If only you had bought that new car, this whole coronavirus malarkey could have been avoided.

Blimey... Our newest are 02 and 05 - bought this year to replace R and E-prefixes. Presumably, that makes EVERYTHING from Trump, Brexit and the weather onwards entirely my fault?

Sorry, everybody.