Finance People

[NornIron91]

I have 17k at the minute plus the 1k deposit. I won't be getting my car till May and I also have my current car to sell so hopefully I will only need a small loan from Santander.

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[Lone Survivor]

I've no problem with anyone who has to or wants to pay more, absolutely not. The sales drone guy has already said, it will depend on individual circumstance, however, to try and make out that on a bone Fiesta deal that this is cheaper than a personal, unsecured or secured loan for a Mustang on dealer finance is basically dishonest.

He has at least admitted it. Personally, what someone does for their finance is up to them, none of my beeswax, just don't tell me it's cheaper, it's not.

There are specific circumstances to meet the best credit deals, being young and seemingly debt free is only a part of it, if you own property outright, that's another part, a LONG checkable employment history is a major part.

If PCP works for you, magic, it'll take you years to ever own a car outright though.

I just don't accept a dealer salesman, who is more interested in volume, to can offer anyone better finance. I'm cool that anyone takes it on.

This is mostly the reason that an Audi sales drone won't even talk to you if you want to buy outright with your own finance or cash, they don't make any money on it, fail to meet a target and treat you like a knobber!

 

[Actual]

Lots of options for car finance but just consider...

If you finance a car purchase using dealer finance hire purchase then you don't own the car until the loan is paid off and if the worst happens and you can't keep up the loan payments then the loan company can take the car back.

If you finance a car using a PCP or a lease then the above applies and you are tied to returning the car after X years in a certain condition or mileage so there is a risk you won't get back what you expected at the start. If you don't pay the balloon payment then you need to jump into another deal or you don't have a car.

If you use a standard bank loan then there is no connection between the loan and the car so the loan company won't take the car but the bailiffs can take your car or maybe your house.

Circumstances change and a lot can happen to your personal situation and the national situation during the period you finance a car purchase. How great is the economy right now, seems ok but it could just be dead cat bounce, China is imploding and that means the money supply is drying up, that could mean job losses, petrol is under £1 a litre so there is no demand, interest rates will be going up...

 

[Zerocool]

If you use a standard bank loan then there is no connection between the loan and the car so the loan company won't take the car but the bailiffs can take your car or maybe your house

Except in Northern Ireland where bailiffs don't operate [emoji13]



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[Lone Survivor]

And Scotland.....

 

[NornIron91]

Except in Northern Ireland where bailiffs don't operate [emoji13]



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Over here you just get masked people come around to your house and knee-cap you or worse, I'd take the bailiff any day :lol:

 

[Lone Survivor]

We just call a referendum :lol:, blame the English and burn everything, sales drones first

 

[Lone Survivor]

Lots of options for car finance but just consider...

If you finance a car purchase using dealer finance hire purchase then you don't own the car until the loan is paid off and if the worst happens and you can't keep up the loan payments then the loan company can take the car back.

If you finance a car using a PCP or a lease then the above applies and you are tied to returning the car after X years in a certain condition or mileage so there is a risk you won't get back what you expected at the start. If you don't pay the balloon payment then you need to jump into another deal or you don't have a car.

If you use a standard bank loan then there is no connection between the loan and the car so the loan company won't take the car but the bailiffs can take your car or maybe your house.

Circumstances change and a lot can happen to your personal situation and the national situation during the period you finance a car purchase. How great is the economy right now, seems ok but it could just be dead cat bounce, China is imploding and that means the money supply is drying up, that could mean job losses, petrol is under £1 a litre so there is no demand, interest rates will be going up...

Buddy I was paying 15% interest on my mortgage in the bad old days of Mrs Thatcher, the Chinese didn't even have an economy then :lol:

Anything can happen, you're right, but that applies to any sort of credit, governments can legislate at the drop of a hat, outlaw PCP's, anything is possible.

 

[benanderson89]

just don't tell me it's cheaper, it's not

If you have every intention of giving the car back at the end of the lease agreement or selling it after 3~5 years (as many, MANY people do), then PCP will actually be the cheaper option. Given how many people do keep their car for a limited time, salesmen just assume that's what you'll do until you correct them.

If you aren't going to keep the car, PCP is definitely the way to go.

 

[SteveS]

How can financing a car ever be the cheaper option? Indulge me; I just don't get that?
I see the value in it, but would assume I'd be paying for that value. We finance my wife's car.

 

[benanderson89]

How can financing a car ever be the cheaper option? Indulge me; I just don't get that?
I see the value in it, but would assume I'd be paying for that value. We finance my wife's car.

Plan to keep a car 3~5 years - what'll be cheaper? Paying the entire value of the car via a loan/HP over 5 years, or only pay around 50% of its value via PCP?

If you don't plan to keep a car then that's the thing to do. You end up with lower monthly payments over the same period of time and equity at the end for a new model from any brand.

Just look at Ford's own finance calculator for the Focus ST. Even with 24,000 miles on the agreement at 2.8% (HP is at 2.9%) you're paying £207.26 less a month over 36 months. Again, if you're not planning to keep the car, then why would you ever choose anything else? Given the value of Focus STs after three years you'd probably end up with another £4k to splash on another car in equity.

 

[SteveS]

Well yeah, paying the entire value of the car is always going to be more expensive than paying 50% by PCP however you then own the car. I get the fact that the payments under PCP will be lower and you may have equity at the end but to my mind you have to pay for finance so it has to be more expensive. Could be that Aspall's affects me more than I'd like but otherwise I don't get it ;)

 

[Zerocool]

Well yeah, paying the entire value of the car is always going to be more expensive than paying 50% by PCP however you then own the car. I get the fact that the payments under PCP will be lower and you may have equity at the end but to my mind you have to pay for finance so it has to be more expensive. Could be that Aspall's affects me more than I'd like but otherwise I don't get it ;)

Mmmm aspall..... Which one? 4.5, 7.5 or the 9.5?

 

[SteveS]

Mmmm aspall..... Which one? 4.5, 7.5 or the 9.5?

Premier Cru which I guess is the 7-odd % one...

 

[Zerocool]

Premier Cru which I guess is the 7-odd % one...

Good choice sir.... The top strength is a lights out job after a few....

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