Is it any wonder people lease/PCP?

fred246

motorguy said:

fred246 said:

Even I borrowed money once to buy a car. Paid off quickly though. Never again.

Why?  What bad experience did you have that yielded that view?

I had to pay interest 

motorguy

fred246 said:

motorguy said:

fred246 said:

Even I borrowed money once to buy a car. Paid off quickly though. Never again.

Why?  What bad experience did you have that yielded that view?

I had to pay interest 

It got you the car you wanted at the time you want it which presumably you've subsequently been happy with?

And you've just said you paid it off quickly, so likely a miniscule percentage relative to the car purchase price.

Hardly one of lifes "never again" moments in the grand scheme of things?

fred246

I don't give banks money. They give me money. Well they used to.

motorguy

fred246 said:

I don't give banks money. They give me money. Well they used to.

I'm sure you've lost x20 in depreciation compared to the small amount of interest you paid.

Still not feeling the "never again" life moment there over a few pounds in interest probably 10 odd years ago.

hareng

motorguy said:

And you've just said you paid it off quickly, so likely a miniscule percentage relative to the car purchase price.

Hardly one of lifes "never again" moments in the grand scheme of things?

Depends what the interest rate was and how he done it. Is an average 11% a mere few pounds - no neither is 30%+ interest on credit cards.Theyre brlliant at lending money at corrupt rates but give you nothing in return! Which is the point of Freds debate.

Not ignoring the fact to pay off early would bring in additional charges, in their favour of course.

Depreciation, you will lose more the newer a car is and not held to ransome by exorbitant garage/dealership servicing just to retain any warranties. ie cam chain at a dealer £650, i had it done by the same person that worked their for £200 privately. Point being does that £450 add or retain £450 to the value of the car, no.

motorguy

hareng said:

motorguy said:

And you've just said you paid it off quickly, so likely a miniscule percentage relative to the car purchase price.

Hardly one of lifes "never again" moments in the grand scheme of things?

Depends what the interest rate was and how he done it. Is an average 11% a mere few pounds - no neither is 30%+ interest on credit cards.Theyre brlliant at lending money at corrupt rates but give you nothing in return! Which is the point of Freds debate.

Not ignoring the fact to pay off early would bring in additional charges, in their favour of course.

Depreciation, you will lose more the newer a car is and not held to ransome by exorbitant garage/dealership servicing just to retain any warranties. ie cam chain at a dealer £650, i had it done by the same person that worked their for £200 privately. Point being does that £450 add or retain £450 to the value of the car, no.

If you know Fred at all and his posting history, then no doubt he bought the best car at the very best price and got the very best finance rate.

Even if he didnt get the bestest rate, he did say he paid it off quickly.

So assuming he borrowed £10K at even 5% interest then clearing it after six months would mean he was paying a few hundred at most.  And no, finance companies cant charge you extra for clearing the loan early.  Invariably there is a calculation based on length of loan, etc, which results in a palatable settlement figure.

And i never said to the contrary RE: running costs and how to minimise them.  For our cars i use a local (literally a mile up the road) BMW indy who does probably a better job than the main dealer for a fraction of the price.

I'd love to know where you're getting a cam chain replaced for £200 by the way.

Ultimately i was making the point though that paying a little (in the grand scheme of things) interest over a short period of time to get the car he wanted doesnt IMHO warrant the "never again" sentiment.

Ganga

hareng said:

motorguy said:

And you've just said you paid it off quickly, so likely a miniscule percentage relative to the car purchase price.

Hardly one of lifes "never again" moments in the grand scheme of things?

Depends what the interest rate was and how he done it. Is an average 11% a mere few pounds - no neither is 30%+ interest on credit cards.Theyre brlliant at lending money at corrupt rates but give you nothing in return! Which is the point of Freds debate.

Not ignoring the fact to pay off early would bring in additional charges, in their favour of course.

Depreciation, you will lose more the newer a car is and not held to ransome by exorbitant garage/dealership servicing just to retain any warranties. ie cam chain at a dealer £650, i had it done by the same person that worked their for £200 privately. Point being does that £450 add or retain £450 to the value of the car, no.

But by having it done privately ( i suppose you mean cash in hand ) does it not invoke ant warranty as you could not go back to the dealership even for a goodwill payment toward a repair .

motorguy

Ganga said:

hareng said:

motorguy said:

And you've just said you paid it off quickly, so likely a miniscule percentage relative to the car purchase price.

Hardly one of lifes "never again" moments in the grand scheme of things?

Depends what the interest rate was and how he done it. Is an average 11% a mere few pounds - no neither is 30%+ interest on credit cards.Theyre brlliant at lending money at corrupt rates but give you nothing in return! Which is the point of Freds debate.

Not ignoring the fact to pay off early would bring in additional charges, in their favour of course.

Depreciation, you will lose more the newer a car is and not held to ransome by exorbitant garage/dealership servicing just to retain any warranties. ie cam chain at a dealer £650, i had it done by the same person that worked their for £200 privately. Point being does that £450 add or retain £450 to the value of the car, no.

But by having it done privately ( i suppose you mean cash in hand ) does it not invoke ant warranty as you could not go back to the dealership even for a goodwill payment toward a repair .

As long as its by a VAT registered mechanic and using OEM parts then the warranty remains intact.

BUT you would likely forego any goodwill gesture if you're problems outside of manufacturer warranty, if you had never darkened their doors during the first three years of its life.

Any of our cars that have been new and under warranty we've taken them to the main dealer for scheduled services but any maintenance / interim (not manufacturer scheduled) services we've got our local guy to do them.  Outside of warranty, they just go to our local bloke.

GunJack

BOWFER said:

dipsomaniac said:

Someone has to ask the question.  If Adrian's not going to ask I will.  Why get a car on credit when you can buy one for £200?

Someone has to say it, so I will.
Because it will look and drive like a piece of dung.

...and there it is folks, the extreme prejudice towards anything other than perceived perfection, no matter what the cost....I wish I (and probably about 99.9% of the general population) could be so blase about money, but this is the real world (and a moneysaving forum to boot).  

motorguy

GunJack said:

BOWFER said:

dipsomaniac said:

Someone has to ask the question.  If Adrian's not going to ask I will.  Why get a car on credit when you can buy one for £200?

Someone has to say it, so I will.
Because it will look and drive like a piece of dung.

...and there it is folks, the extreme prejudice towards anything other than perceived perfection, no matter what the cost....I wish I (and probably about 99.9% of the general population) could be so blase about money, but this is the real world (and a moneysaving forum to boot).  

In fairness, the last £200 car i drove did look and drive like a piece of proverbial dung.  It was a metallic purple FIAT Maria saloon that the previous owner hadnt washed in at least a year, the seats were scarily dirty, the wheels had a set of very battered halfords wheel trims on it and it had had more hits than The Beatles.  It was definitely hard on the eye.

So personally I dont see it as extreme prejudice, its pretty much a statement of fact (albeit in "colourful" language)

And, again, for the avoidance of doubt - this site is about helping ensure you get what you want for the best price, NOT about eking out a living getting clothes from charity shops and freecycle.