M2RTY
Member
Registered: 25th May 01
User status: Offline
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quote:
Originally posted by Ben G
my finance is 4.5% or somewhere near that.
bet you that is flat rate, not apr
big mastake most people make
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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quote:
Originally posted by Colin
It depends really on your circumstances. Even if you are loaded, plenty money in the bank your sometimes better off getting a loan, if you bank a lot of cash you'll get a better loan deal from the bank. If you finance a £20k car on a low apr loan you'll make more money with your £20k invested rather than a big hole in your bank account. I usually pay cash for my cars, however there is a threashold where the table turns & you'd be pouring away money buying outright.
only better off if 0% apr or an apr less then you make in interest on the money in the bank. Same as I use my 0% overdraft to fund £1500 in a saving account and make money on it
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by M2RTY
quote:
Originally posted by Ben G
i'm on finance now. owe 11,200 over 3 years.
only pay 210 a month, very easy payments 
i think you need to recalculate that as 210 x 36 = way less then 11200
[Edited on 04-12-2007 by M2RTY]
theres a balloon payment at the end of the 3 years mate. something like 3k.
[Edited on 04-12-2007 by Ben G]
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by M2RTY
quote:
Originally posted by Ben G
my finance is 4.5% or somewhere near that.
bet you that is flat rate, not apr
big mastake most people make
i work at ford so i can't see them mugging me off to be honest  and it's just a 4.5% fixed rate.
[Edited on 04-12-2007 by Ben G]
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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quote:
Originally posted by M2RTY
quote:
Originally posted by Colin
It depends really on your circumstances. Even if you are loaded, plenty money in the bank your sometimes better off getting a loan, if you bank a lot of cash you'll get a better loan deal from the bank. If you finance a £20k car on a low apr loan you'll make more money with your £20k invested rather than a big hole in your bank account. I usually pay cash for my cars, however there is a threashold where the table turns & you'd be pouring away money buying outright.
only better off if 0% apr or an apr less then you make in interest on the money in the bank. Same as I use my 0% overdraft to fund £1500 in a saving account and make money on it
My old man gets loan offers of circa 5% APR all the time, he can make 7% on anything he banks at least without even trying.
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Ian W
Member
Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
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Got a loan to buy mine, can afford the payments so don't really see the problem with it 
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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quote:
Originally posted by Ben G
quote:
Originally posted by M2RTY
quote:
Originally posted by Ben G
my finance is 4.5% or somewhere near that.
bet you that is flat rate, not apr
big mastake most people make
i work at ford so i can't see them mugging me off to be honest and it's just a 4.5% fixed rate.
[Edited on 04-12-2007 by Ben G]
good going, my dad gets 4.5% from work on loans too
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Gareth
Member
Registered: 2nd Mar 00
Location: Derby, Drives: EVO VIII MR & pug 308
User status: Offline
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Never had finance but i brought a bmw off a so called m8 then sold it to another m8 and a few months later it got repo'd!
The beemer got blocked in at the pub by some type of car debt collecter scout that just drive around looking for cars owed money on.
Then the repo man turned up complete with false snake skin hand low loader and court order!
Was a right messy situation everyone involved lost aload of cash.
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Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
User status: Offline
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I've thought about it a few times, buying a nice brand new car on finance, but I hate the thought of debt!
My 0% credit card is bad enough for me, owing a few £££ each month!
Can't afford it don't have it is my opinion, if your getting in debt to afford something you can't really afford it!
Houses being the only worthy cause to get in debt!
April '06' Corsasport Feature Car  | Aug '08' Total Vauxhall Feature Car | Spring '09' Fast Car Feature Car
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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If you put alot of busines though the bank they give you good deals & thats a fact, they'll let you borrow 20k at 4-5% no probs if your putting 50-60k through them every year. Being young & not making good money is most of our downfall
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Ian W
Member
Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
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quote:
Originally posted by Daniel_Corsa
I've thought about it a few times, buying a nice brand new car on finance, but I hate the thought of debt!
My 0% credit card is bad enough for me, owing a few £££ each month!
Can't afford it don't have it is my opinion, if your getting in debt to afford something you can't really afford it!
Houses being the only worthy cause to get in debt!
I can afford my car but I didn't have 8k saved up 
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Does anyone think folk that buy 100k ferraris & astons pay them outright, do they fuck, they would loose a shit load in the intrest that 100k would make them!
Basically if you can afford the payments & keep a nice sum in the bank you can counteract any interest your paying on the car. Thats what I plan to do for my next motor.
Not having any cash & taking on debt isnt so good, but yeah if your young & want to have a nice car so much then why not.
[Edited on 04-12-2007 by Colin]
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Ian W
Member
Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
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quote:
Originally posted by Colin
Does anyone think folk that buy 100k ferraris & astons pay them outright, do they fuck, they would loose a shit load in the intrest that 100k would make them!
Basically if you can afford the payments & keep a nice sum in the bank you can counteract any interest your paying on the car. Thats what I plan to do for my next motor.
Not having any cash & taking on debt isnt so good, but yeah if your young & want to have a nice car so much then why not.
[Edited on 04-12-2007 by Colin]
Someone who understands the basic principles of loans and finance
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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I understand money, but not that reasoning.....
The best MOST people could get on savings in an ISA or whatever, is probably about 5% interest free, and thats with a load in the bank, £10k+ on a 'standard' account.
You'd be hard pressed to get a loan for less than that, therefore not making yourself any money. I agree if you've got a ton of money, then yes, you could make more in interest, but not your average joe.
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Well its exactly what im going to be doing next time I buy a car.
The only sore bit about finance/loans is having to pay the interest......so why not have something in place to dismiss it!?
[Edited on 04-12-2007 by Colin]
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mav
Member
Registered: 19th Jun 01
Location: Scotland
User status: Offline
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probably 70% of car buyers buy a decent car on loans or finance..Not many ppl can shell out on a decent car without financing or loans...
I have had both and no issues what so ever, just make sure you get a decent interest rate....
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williamz
Member
Registered: 29th Nov 05
Location: stoke-on-trent
User status: Offline
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my plan is to finance or loan money out for a car that doesn't depreciate like an escort cosworth golf r32 etc
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EarlofBarnet
Member
Registered: 26th Mar 04
Location: West Cumbria
User status: Offline
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If you do get finance, be very weary and shop around. Its usually best to get finance from a lender as apposed to the dealership, as you'll get a better rate.
If you do get it from a dealer, watch that the rate is APR, not PPR!!!! If its PPR the rate will look lower (4.5% etc) but you'll actually be paying something like 7-8% APR as the interest is worked out differently! You've been warned!
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ebthesned
Member
Registered: 17th Apr 07
Location: Lancashire
User status: Offline
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I would get a personal loan mate, the loan isn't tied to the car then, so if you decide to sell it you can do and use the money for a different car without worrying about paying the settlement figure on the finance.
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G11_VTS
Member
Registered: 5th Jul 07
Location: Kirkcaldy, Fife
User status: Offline
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I got my first finance, 8000 over 5 years, £224 per month!!! I did not have a credit rating as I have never been in debt before and could not get anything with a good apr, but after having it 6 months I had saved up £5k and got a loan of 4 k and paid it off, basically paid the people £2k to lend me money for 6 months!!!
I suggest loan not finance!! Bloody scotsdale!!!!!!!!!!!!
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Kano
Member
Registered: 29th Aug 04
Location: Fife
User status: Offline
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quote:
Originally posted by G11_VTS
I got my first finance, 8000 over 5 years, £224 per month!!! I did not have a credit rating as I have never been in debt before and could not get anything with a good apr, but after having it 6 months I had saved up £5k and got a loan of 4 k and paid it off, basically paid the people £2k to lend me money for 6 months!!!
I suggest loan not finance!! Bloody scotsdale!!!!!!!!!!!!
We use Scotsdale... there APR's are hilarious..
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G11_VTS
Member
Registered: 5th Jul 07
Location: Kirkcaldy, Fife
User status: Offline
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I ano tell me about it!!
What you driving now anyway Cubie?
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atz_49
Member
Registered: 17th May 05
Location: Midlands Drives: 350Z
User status: Offline
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If you're financially savvy and have a good credit rating (and don't need the money in cash - and the car dealer accepts plastic), then why not open two credit cards. One with 0% apr on purchases for, say, 12 months, and one with a lifelong low apr on balance transfers of 5.8%.
Buy the car on the first card. 0% interest remember. Then transfer the balance to the second card, and you have as long as you want to pay off the debt at an apr of only 5.8%, better than any loan available.
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EarlofBarnet
Member
Registered: 26th Mar 04
Location: West Cumbria
User status: Offline
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I've heard of a few people doing that with credit cards. Superb idea aslong as you remember to switch at the right time etc.
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Kano
Member
Registered: 29th Aug 04
Location: Fife
User status: Offline
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quote:
Originally posted by G11_VTS
I ano tell me about it!!
What you driving now anyway Cubie?
A red top Cavalier... I work for Vauxhall so might aswell have a tatty old Vauxhall.. lol
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