Tomnova16
Premium Member
Registered: 21st Jan 06
Location: Gerrards Cross Drives: Porsche 911
User status: Offline
|
Best way to do it is to never owe more than the car is worth. Basically when you drive it away it will be worth less than the loan. Basically if you lose job etc you can clear it by selling.
http://www.lemass.co.uk/ for all your automotive/bodyshop needs
Located in Chalfont st Peter
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
quote:
Originally posted by ash_corsa
You wouldnt pay interest on the remaining balance surely.
You pay interest on the debt while you are in debt, based on the expected length.
That is why you will get a lower figure if you settle early than you owe at any given time. Because if you settle you're no longer responsible for the borrowing past that point.
The duration of the loan is very important because it dictates the total amount of interest and therefore the portion of monthly payment which is interest. It also decides when it will be that the car will have equity - ie. you'll owe less than it's worth.
If you take a loan over 5 years and try and sell after 2 you'll generally not be at that point. 3 years you might be depending on things like deposit and interest rate and of course the rate of depreciation of the car. Don't forget, a petrol Vauxhall will need a lot of cash in terms of monthly payments to get it square, particularly an old shape one.
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
quote:
Originally posted by Tomnova16
Best way to do it is to never owe more than the car is worth.
Which without a big deposit isn't really possible.
|
Tomnova16
Premium Member
Registered: 21st Jan 06
Location: Gerrards Cross Drives: Porsche 911
User status: Offline
|
Yes indeed. I'd say save a bit first so you don't borrow so much but you've already reserved the car
http://www.lemass.co.uk/ for all your automotive/bodyshop needs
Located in Chalfont st Peter
|
ash_corsa
Member
Registered: 15th Apr 04
Location: Shrewsbury
User status: Offline
|
So how does everyone else do it? with big deposits or big end payments?
The link to the used astra - its done 20k and is only 2300 less than the brand new one. Surely that wouldnt be a good deal?
[Edited on 17-10-2010 by ash_corsa]
|
corsa-sxi
Member
Registered: 11th Jul 03
Location: Kingston upon Hull
User status: Offline
|
there are plenty from evanshalshaw with various mileages and they are quite popular, perhaps you could strike up a deal?
its up to you, but with the new mk6 out prices may not hold as well?
and you said new was £12.6k
thats 3k, saving 25% because its a year old.
[Edited on 17-10-2010 by corsa-sxi]
|
FlamingCorsa
Member
Registered: 22nd Apr 03
Location: Shropshire
User status: Offline
|
hi stranger, hows thing?
buying new cars only ends in big losses, be it through lending/finance or through deprication! but come people just seem to accept that as part of a cars expences i guess.
which is y i would not buy a new car, best of buying an older one:-) and only pay for car outright so u own it all
|
Fro
Member
Registered: 20th Jun 06
Location: Rainham, Essex Drives: A3 2.0TDi Sport
User status: Offline
|
I wouldn't be going for it if you need to borrow 12k and the car is costing a few hundred more than that. You will end up in negative equity from day 1.
You should try and get some sort of deposit behind you and get something that has already taken its first hit of depreciation imo.
|
mwg
Member
Registered: 19th Feb 04
Location: South Lakes
User status: Offline
|
No one seems to like it on here but I'd be looking at PCP/HP etc. and see what you think. Works for some people. Especially if you are only going to have it 2 or 3 years.
|
A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
|
quote:
Originally posted by fro-dizzle
I wouldn't be going for it if you need to borrow 12k and the car is costing a few hundred more than that. You will end up in negative equity from day 1.
You should try and get some sort of deposit behind you and get something that has already taken its first hit of depreciation imo.
THIS. I learnt this the hard way, having lots of expensive cars on finance over the past 5-6 years and at the end of it you own nothing as the payments are eaten up in interest and depreciation. Currently driving a clio and saving to buy something I acutally own.
|
whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
|
quote:
Originally posted by mwg
No one seems to like it on here but I'd be looking at PCP/HP etc. and see what you think. Works for some people. Especially if you are only going to have it 2 or 3 years.
|
XE Col
Premium Member
Registered: 23rd May 10
Location: Rochdale, AKA:Boissy07
User status: Offline
|
get a bank loan, that way you have cash effectivley go to the dealer and ask for a discount for a cash sale
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
I've not seen a dealer do a 'cash deal' in years, they actually don't like taking physical cash anymore.
|
whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
|
quote:
Originally posted by John
I've not seen a dealer do a 'cash deal' in years, they actually don't like taking physical cash anymore.
agree - your more likely to get disocunts and better deals by taking their finance as they get money for doing this and then make money on the interest you pay
|
XE Col
Premium Member
Registered: 23rd May 10
Location: Rochdale, AKA:Boissy07
User status: Offline
|
well maybe not waltz in with cash but a collegue recently bought a car payed on debit card and got 1500 off
|
A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
|
quote:
Originally posted by John
I've not seen a dealer do a 'cash deal' in years, they actually don't like taking physical cash anymore.
Agree. Personally i'd get a bank loan and buy private. If its 6 months old it will come with warranty, will have already taken a hit on depreciation and will be far cheaper than dealer prices.
|
