The stupidity of German car owners.
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May have the badge, but it ain't a Merc.
These days Mercs and BMWs seem to have become the brands of choice for chavs with a bit of money. I think its the TOWIE effect.
Ive always thought Audis were bought by people that couldnt quite afford a proper German brand
Fook all to do with who can afford what, as over 80% of new cars are on finance anyway nowadays.
https://www.businessinsider.com/uk-car-finance-pcp-mortgage-market-morgan-stanley-2017-7?r=US&IR=T
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SammyInnit
It's a massive problem. I know a few people who've had motors from Trade Centre UK - while they're not new they're sold on the monthly.
The cars they sell are mostly over priced for that they are but they're easy to get for people with no up front cash. I've told people who've been and bought cars from there that they've been had.
A friend of mine bought an A5 that cost him double the cash price because of the finance interest. He's now trying to sell it on and at best it's worth half of what he's asking - trying to get back the money he's lost on interest but he's going toing to bed £10k for a car that's worth £5k. Shouldn't laugh but I can't help but think, what a mug.
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Ive never had a car on finance. Ive always put an amount each month into a savings account and used it to buy a car.
I dont know if it costs any less, finance deals for cars can be really cheap.
The sweet spot if you can is to take the finance on a new car to get the additional contributions from the manufacturer. Then pay it off inside a couple of days. Couple of quid interest but you get to keep the deposit contribution.
Never seen the issue taking a car on finance, dropping 30k (or whatever) large on a depreciating asset in one go or paying a bit over the odds to effectively rent it. If something goes belly up you still have a pot of cash to raid. If it's all in the car you won't get it at all quickly or will need to slit your throat to shift it. I'd rather have the cash in case of need.
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SammyInnit
Is this a joke?
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SammyInnit
What logic is there in paying interest on an already depreciating item when in your scenario you could effectively buy it outright for cash?
And no, I don't buy the rainy day fund as a reason. If you're that hard up, sell the car or then take out a loan if you're immediately desperate.
Interest on loans is often much cheaper than car financing.
You've never bought a new car have you? You take out the finance even if you want to buy it outright to get the better discounts. Pay it off straight away if you want to up to you.
I'd much rather have the cash to do with as I wish / mess about with other projects. Not for rainy day, just doesn't make sense to have your pot of cash tied up in something that's not easy to dispose of quickly without taking an astronomical hit.
Servicing a monthly debt for a limited period means not being tied to the "problem". Pay half your payments, VT it if you want, get to the end of the term, hand it back, walk away. Put in a tiny deposit and you've risked little.
Take your pick, whatever works. Personally I own 3 out of 4 of my vehicles outright, the daily is disposable so it can be someone else's problem. Yes it means paying a bit more for the "rent" but meh.
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SammyInnit
I've read some crap but this is a winner. Cars are dead money, there's no justification for throwing more at one than necessary.
You pretentious arse. You sound like you're bitter that others can choose to be a bit frivolous about something they enjoy
For the record I never said cars were not dead money. I'm a car enthusiast. I like toys..I own those, they're only an investment in enjoying my life, you should try it sometime.
The rest is personal choice. A choice incidentally a *lot* of people appear to be making.
Get used to it, what do you think is coming with electric cars? Pure rental. It's already there with some with additional battery rental monthlies. You'll never own it but will pay handsomely for it.
FWIW, the PCP debate comes up on car forums many times and results in circular arguments where some obstinate plank cannot get their head round someone making an informed choice to pend money because it doesn't fit in with their own world view....and here we are again.
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SammyInnit
You pretentious arse. You sound like you're bitter that others can choose to be a bit frivolous about something they enjoy
Your money to waste as you'd like.
Presuming you mean spend, I see a clear difference in spending money and wasting money. If you can buy a car and have it paid off for (arguments sake) £30k with all the extras what's the sense in spending another 3-5 years worth of interest accrued debt?
You call it an informed choice while ignoring the fact motor finance costs more than a personal loan is most situations. If you really wanted to spend on interest why couldn't you pay for the car, take out a much cheaper loan for whatever projects you have on and pay less back in the long run?
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I have looked into comparisons of PCP vs saving in advance and buying outright. Its quite surprising, even with buying second hand how much the total costs of car ownership actually amount to over the period and then seeing what the equivalent monthly outlay works out.
I personally keep cars for a long time, I'm just happy driving what I'm used to you, so for that reason, I like to buy a car -but if I was going to change every 3 years or wanted to buy new, Id probably choose PCP.
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