Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
Or Asset Finance, effectively an HP agreement but there is a balloon as a final payment.
You therefore finance a lower capital at a lower % interest rate as lower risk vs. straightforward HP, but you are solely responsible for the balloon, also no mileage restrictions.
I’ve used it for 8 cars since 1999, if you are sensible with the balloon (Bank have a max value that is conservative anyway) you won’t lose out when you come to sell privately or trade in. I’ve always been able to sell for greater than balloon to give a decent deposit for the next car, on a couple of low mileage cars I’ve kept and just paid the balloon.Now Golf GTI PP, 7 speed DSG.
Ex D3 and D4
10th Jun 2020 10:08 am
rrhool
Member Since: 28 Aug 2014
Location: Norfolk
Posts: 4540
Cash, cash, cash! Never bought a new car, never bought something I couldn't afford. Wouldn't dream of getting into a PCP deal.Richard
D3 SE 2007. Triumph 2.5Pi 1973. Ferguson TEA20 1948.
Discovery 2 4.0 ES 2001- Gone
Discovery 1 300Tdi ES '95 - Gone
Range Rover Classic '79 - Gone
10th Jun 2020 10:10 am
LT
Member Since: 31 Dec 2005
Location: South West
Posts: 23866
I wouldn’t tie up a big chunk of capital in a depreciating asset. The last time I did that was in 2006 with my new D3 HSE. I kept it for 6 years to ride out the depreciation wave.
I’ve bought a few <£10k used cars for cash since then, but anything much over that I’d definitely rent. Not least for the backstops it provides. I can hand back the keys once I’ve paid 50% of the finance (regardless of mileage) and chuck back the keys at the end of the agreement (subject to mileage etc.). On a big Diesel engined vehicle that gives me peace of mind.2006 D3 HSE (Original & still the best)-GONE
2010 D4 HSE (A bit bling)-GONE
2014 D4 HSE (Almost too bling)-GONE
2015 D4 HSE (A heated what?)-GONE
2016 D4 Landmark (Written Off)-GONE
2016 D4 Landmark (Surely the last!) PD1881 rims-GONE
2017 FFRR SDV8 Autobiography (now semi-retired)
10th Jun 2020 10:44 am
pjm-84
Member Since: 04 Oct 2016
Location: Hampshire
Posts: 2608
But that's why you don't buy new or buy wisely or don't buy at all and put large contributions into your pension pot.
The sums do add up though when you look back. Yikes.
10th Jun 2020 11:25 am
sasdiscos
Member Since: 22 Feb 2013
Location: Northants
Posts: 889
This is my point. The diversity of it all.
I will keep my car as long as I can, the wife also has a diesel Audi. At some point we will have to get rid of both and buy 1 car. If it suits at the time.
My d4 owes me nothing, hasn’t gone wrong. Shhhhh! And I love it.
But at 600quid tax, uncertainty of diesel etc etc, with the 3k miles I do I feel I’m being forced into buying a new clean car.
But that’s just it, what is a new clean car if it’s dirty again in 3 years.
I was always a save and buy type of person, but my brother who works in car sales tells me the wind had changed and nearly everyone is on pcp etc.
I hate the thought of paying out every month for 3 years. It feels like such a tie round my neck. Don’t ask me why it’s just what my dad engrained into me and I can’t seem to get out of that mind set.
SteveYou remind me of a younger me, not much younger mind...perhaps even a little older!
10th Jun 2020 12:32 pm
LT
Member Since: 31 Dec 2005
Location: South West
Posts: 23866
pjm-84 wrote:
But that's why you don't buy new or buy wisely or don't buy at all and put large contributions into your pension pot.
The sums do add up though when you look back. Yikes.
Yes exactly. I’d rather use capital to buy assets I hope will appreciate in value, not guaranteed of course.
However, I know for sure that my FFRR is going to depreciate.2006 D3 HSE (Original & still the best)-GONE
2010 D4 HSE (A bit bling)-GONE
2014 D4 HSE (Almost too bling)-GONE
2015 D4 HSE (A heated what?)-GONE
2016 D4 Landmark (Written Off)-GONE
2016 D4 Landmark (Surely the last!) PD1881 rims-GONE
2017 FFRR SDV8 Autobiography (now semi-retired)
10th Jun 2020 9:56 pm
defector
Member Since: 23 Feb 2009
Location: Greater Manchester
Posts: 1476
Like some of the others here, i have always been a save and buy type (except house - but even that was paid off double quick).
If i had not, i would be absolutely bricking it at the moment having no income for the past three months, and possibly much longer yet to come, about paying the mortgage, car finance, PCP etc etc take your pick.
I'm afraid i learnt from previous hard hitting recessions.
If i must be truthful, although this Covid virus has and still does frighten me, the past three months have been quite enjoyable and relaxing and allowed me to get on with things i should have completed around the house and let me get on with some of my hobbies for which there was never enough time.
The only downside has been the plague of locusts that descended home from far flung Universities that keep raiding the fridge and every cupboard where food was stored.
11th Jun 2020 2:32 am
Dusty
Member Since: 23 Sep 2013
Location: London
Posts: 1022
I bought my last D3 (2nd hand) outright and thought I’d turned over a new leaf not worrying about depreciation etc,etc.
All going well until it’s 6th birthday and before it’s 7th I’d spent over £4.5k keeping it in fine fettle. Got rid and spent less in HP on a D4 in manufactures warranty.
Unfortunately, with Land Rovers, they either cost a fortune for a new one or cost a fortune to maintain an old one Discovery 4 HSE
SDV6
2015
11th Jun 2020 1:05 pm
aaronh21
Member Since: 15 Oct 2019
Location: Norfolk
Posts: 13
I’ve always been a buy-outright kind of person myself, but with the way prices have been going up, it’s getting tough to justify. Last year, I actually started looking into financing for the first time because dropping 50-60k in one go just isn’t doable. A lot of folks I know have gone down the route of leasing or PCP plans, which seems to be the new norm for affording these high price tags.
A friend of mine even imported a car from another state because the local prices were just too high. I considered doing the same when I was looking at a new SUV and explored shipping options to see if it’d be worth it. If that’s something you might consider, I’d recommend checking out this https://www.a1autotransport.com/ made the whole process way less stressful.
Last edited by aaronh21 on 15th Oct 2024 9:50 am. Edited 1 time in total
10th Oct 2024 10:54 am
al cope
Member Since: 08 Nov 2005
Location: Oldbury, WM
Posts: 10361
I’ve done all three, HP, pcp and cash. Latest deal on the Volvo was a 0% finance deal, which Volvo finance bunged in 2k towards the car, so it was daft not to take it. I then banged the outstanding balance in an account paying 5% interest and setup the DD to pay off the finance out of that account
AlVolvo XC90 B5 Plus Dark
Gone - MY18 D5 HSE - Corris on 22's with Black Pack
Now gone - MY16 D4 SE Tech, Loire Blue, Almond Leather, Privacy, plus some other goodies.
Old - MY12 D4 SDV6 XS Auto - Ipanema Sand with Almond Leather - Plus other niceties, and D4.com sticker
Older - D3 TDV6 XS Auto - Lugano Teal with Almond Leather, 20" Stormers, Shiny Tailpipes, DVD/TV - and obligatory D3 sticker
Ancient - D3 TDV6 S - Tonga with Ebony, 20" Stormers, satnav & DVD
10th Oct 2024 11:07 am
DIY Pete
Member Since: 08 May 2022
Location: Wirral
Posts: 36
Sounds good to me, then I remember the tax man wants 20% or 40% (depending where you are financially ) of your 5% interest!!
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