Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
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quote:
Originally posted by A2H GO
quote:
Originally posted by Brett
quote:
Originally posted by A2H GO
Apart from putting it back to standard everytime it breaks for the warranty.
Well yeah I s'pose. Depends on what you were planning on doing really. My kind of mods are remaps, etc. things that aren't blatantly obvious. I suppose if you were going to stick a cherry bomb exhaust on there then yes, you'd have to remove it if something went wrong.
They'd see a remap too.
I'm doubtful of that, but not sure enough to argue it. I know they could if they looked specifically, but randomly discovering it when doing a repair elsewhere on the car? Not sure about that.
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ed
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Registered: 10th Sep 03
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quote:
Originally posted by Corsa_Sport21
The people who lend £15k to buy a car will pay off the £15k and more than likely have something to show for it at the end.
A car that they've spent about £16k buying and is now worth about £6k?
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
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Yeah but they can tell people they own it and get the RESPECT 
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Pop
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Registered: 8th May 03
Location: Reading
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Another real world example coming up. All figures are approximate but you will get the jist of it...
We used to have a 1.4 Megane Coupe which was over 3 years old. Each year it had to be serviced (£150), MOT'd (£50), insured (£400), taxed (£100) and fueled (£100 p/m). The car was being a bit tempremental and needed a new alternator and also had idling issues. Not necessarily major costs but you never know what may have gone wrong next.
We decided we wanted to change the car and I haggled a good deal on a new Toyota IQ. With this we get 3 years free servicing, tax is £0, insurance £300 and fuel £75 p/m.
So over a 3 year period (the time we will keep the car) this will save us...
MOT - £100
Service - £450
Insurance - £300
Tax - £300
Fuel - £900
Total - £2050
We aren't on 0% finance and over the 3 year period are paying back £1100 in interest.
So in conclusion we are approximately £950 better off. This is not taking into account anything else that may have gone wrong with the Megane. We have a new car with 3 years warranty and are making a saving by financing it.
Makes sense to me...
[Edited on 23-09-2011 by Pop]
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by Brett
quote:
Originally posted by A2H GO
quote:
Originally posted by Brett
quote:
Originally posted by A2H GO
Apart from putting it back to standard everytime it breaks for the warranty.
Well yeah I s'pose. Depends on what you were planning on doing really. My kind of mods are remaps, etc. things that aren't blatantly obvious. I suppose if you were going to stick a cherry bomb exhaust on there then yes, you'd have to remove it if something went wrong.
They'd see a remap too.
I'm doubtful of that, but not sure enough to argue it. I know they could if they looked specifically, but randomly discovering it when doing a repair elsewhere on the car? Not sure about that.
Depends on the manufacturer, BMW do a software update/check following each repair/service.
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Pop
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Registered: 8th May 03
Location: Reading
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And for those that would rather save up...
For the sake of argument the car is £10,000 exactly and you have saved hard knowing that you want to buy the car with cash rather than financing it. You pay the car off in full and drive away.
However, think of the potential return if you had kept your £10k in the bank. Lets go with an ISA of 3%, you can get better returns but it's only fair we aim a bit lower. Over 3 years the ISA would return you £927.27 interest.
So by paying cash you are only saving £172.73 compared to financing the car!
By keeping your money in your account you have the financial cushion of £10k should you need it for anything, for example, a new boiler or any other kind of emergency. You also have the support of the finance company behind you should you be dissatisfied with the vehicle, they have money invested in the vehicle and will help. Also if your personal circumstances altered you can voluntary terminate the contract after half the total payable has been completed without affecting your credit rating.
You can be even more clever and finance the car on a PCP, this gives you the option of returning the car after 3 years. This is especially useful should the car be worth less than the guaranteed future value that the finance company give you. If for example we head into another recession or the car market takes another dip there is a good chance you will find yourself in this scenario. I can almost guarantee the difference would be more than £172.73. In this situation if you had paid cash you would have to take the extra depreciation on the chin, so much for that being the better option.
Don't get me wrong there is a time and place for cash purchases but to ignore car finance is wrong in my opinion.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by Ian
This thread needs more maths. That's all it is.
Agreed, it all comes down to which option is most cost effective, that said buying a car from new is neither.
This is the downfall of PCP, most tend to be on new cars only, whereas you can finance a car of any age.
[Edited on 23-09-2011 by A2H GO]
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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quote:
Originally posted by Jambo
Plus I'm sure you have to tax the first year? Unless it's some promo.
As Ed says it's financing the depreciation on a depreciating asset. I spent £15k on my BMW and saw my money dwindle away whilst not getting me any benefits. I'd never buy a car outright that's more than £7k again, its a waste of cash. You will have it a long time, finance it. IMO.
Bingo absolute nail on the head, I could quite easily have bought the Clio outright ( ) but why bother when it costs me £150 a month? on 8% interest? I take 7k out of my bond and in 3 years that 7k is worth 3k probably? While paying 150 a month I wont even miss (not PCP deal)
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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quote:
Originally posted by Pop
And for those that would rather save up...
For the sake of argument the car is £10,000 exactly and you have saved hard knowing that you want to buy the car with cash rather than financing it. You pay the car off in full and drive away.
However, think of the potential return if you had kept your £10k in the bank. Lets go with an ISA of 3%, you can get better returns but it's only fair we aim a bit lower. Over 3 years the ISA would return you £927.27 interest.
So by paying cash you are only saving £172.73 compared to financing the car!
By keeping your money in your account you have the financial cushion of £10k should you need it for anything, for example, a new boiler or any other kind of emergency. You also have the support of the finance company behind you should you be dissatisfied with the vehicle, they have money invested in the vehicle and will help. Also if your personal circumstances altered you can voluntary terminate the contract after half the total payable has been completed without affecting your credit rating.
You can be even more clever and finance the car on a PCP, this gives you the option of returning the car after 3 years. This is especially useful should the car be worth less than the guaranteed future value that the finance company give you. If for example we head into another recession or the car market takes another dip there is a good chance you will find yourself in this scenario. I can almost guarantee the difference would be more than £172.73. In this situation if you had paid cash you would have to take the extra depreciation on the chin, so much for that being the better option.
Don't get me wrong there is a time and place for cash purchases but to ignore car finance is wrong in my opinion.
EXACTLY my circumstance and thinking to the letter.
Seriously not worth using my cash and be left with something that's loosing me money
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
User status: Offline
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I may have misunderstood, I thought this had turned into a discussion between PCP deals (ie. the one the OP posted) and straight forward finance that results in you owning the car at the end.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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quote:
Originally posted by Pop
You can be even more clever and finance the car on a PCP, this gives you the option of returning the car after 3 years. This is especially useful should the car be worth less than the guaranteed future value that the finance company give you.
The finance company wouldn't give you a guaranteed future value if it was straight forward finance as the customer owns the car at the end of the term.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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quote:
Originally posted by Pop
I was only giving an example of PCP versus buying outright.
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BYRON
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Registered: 1st Jun 04
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This thread makes me laugh. That's all.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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People who listen to people who bad mouth things they have no actual experience of are retarded.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
User status: Offline
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I've had 5 cars with some form of finance, 2 from new with PCP and bought 2 outright.
True story.
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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Mines finance, I will own it no balloon payment or rent-a-car but I do see benefit from PCP
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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Mines ford options because i am elite.
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