Newbie - Z4 or SLK or Cayman ?
- Thread starter Guitarman
- Start date
I didnt see any figures for HP, only PCP - did you work that out?
£2600+ monthly is quite a significant dent on your income
EDIT: Lombard provided a nice HP estimate, seems like a much better deal than PCP. I guess you're reliant on a dealer to buy your car and pay the finance early if you wanted to sell before the HP period ends though.
£2600+ monthly is quite a significant dent on your income
EDIT: Lombard provided a nice HP estimate, seems like a much better deal than PCP. I guess you're reliant on a dealer to buy your car and pay the finance early if you wanted to sell before the HP period ends though.
Yeah, I plumbed the numbers into an on-line HP estimator. The HP issue is it requires a fairly large lump of disposable income to throw at the monthlies. Depends on the agreement. Mine is pay off in full at any time and I pay what's owed + an extra months interest.
In my case I worked out for an average mile good condition car I was always in positive equity due to the discount & very large deposit (30% of the invoice cost)
In my case I worked out for an average mile good condition car I was always in positive equity due to the discount & very large deposit (30% of the invoice cost)
With PCPs you neede to be realistic, I certainly wouldn't use one to buy a 40/50k car but use it where you get a highish dealer contribution, I had 8k on the E89 and nearly 6K on the M135i and along with a lowish APR usually 4.9% then it can be relatively sheapish motoring. My PCP on the M135i was for 23K but realistically I'm paying less than half that as I won't be paying the ballon amount. I just don't like giving a dealer 30K or more of my own cash. Also if I did fall into financial difficulties in the future my money pot is still in the piggy bank and would just hand the car back and walk away.
End of the day its whether you like the smell of a new motor
Tim.
End of the day its whether you like the smell of a new motor
Tim.
I'm going to have a look to see what makes financial sense.
Currently looking at a 330/335xd so do I :-
A) spend £30k cash and loose the paltry 3% and maybe pay myself back over three years? Or
B )take a deal and pay the Bmw finance house 5% interest (guessing) or more ?
The depreciation remains identical at about 17% / year over three years and I'm told that a dealer contribution would be available on either scenario.
Sorry if this drags the post even more way off track
Currently looking at a 330/335xd so do I :-
A) spend £30k cash and loose the paltry 3% and maybe pay myself back over three years? Or
B )take a deal and pay the Bmw finance house 5% interest (guessing) or more ?
The depreciation remains identical at about 17% / year over three years and I'm told that a dealer contribution would be available on either scenario.
Sorry if this drags the post even more way off track
TitanTim said:Z4M-2006 said:
If you worried about depreciation then you wouldn't buy anything in life and its just something you have to stomach whether a car, TV, washing machine but there are ways of minimising depreciation on a car when buying new.
I take Lux's view, you can't take money with you once you've gone and as a new motor can give pleasure in life and you can afford it why settle for someones hand me down. I've had plenty of second hand cars in the past and as I'm pretty anal about condition etc I've never been 100% happy with a used buy. People simply don't look after cars these days. I tend to save a small deposit, keep the monthly payments reasonable and change for new on a regular basis knowing any probs that do crop up I don't have to worry about the expense etc.
The only other way I would do it is buy a really cheap new car and keep for 20 years so your maximising value for money but then ownership would become pretty boring, my Z3 being the exception
Tim.
If you save to pay for big purchase items in full then that means two things: that you will be forever saving (by the time you've saved for the latest model it have already become old and you have to same more for the new latest model) and that you will only enjoy things when you're old (probably too old).
The bulk of the cost of finance (for lease/PCP) goes towards paying for the depreciation rather than the actual interest. Actually if you ever work it out the interest isn't actually that bad, the dealer's rebate/contribution should cut a lot of that cost down.
My dad is the type that saves to buy things in full, even 1% interest for finance would put him off. He is also obsessed with car depreciation, which is why he drives an old Audi to work and a new CLS very rarely to family outings. We recently got a valuation on the £45k CLS and it was only £27K despite the mileage being under 6,000 miles. New CLS that have several times the milage are only a few £K less that my dad's example. This is all in USD as he lives abroad (I roughly converted the figures to £) but I know it's the same in the UK and everywhere else. If you are a cheapskate then life will figure out a way to f**k you anyway.
I'm not sure being a cash buyer is 'being a cheapskate' ?
I say "I'm not sure", what i mean is - "you're an idiot."
Let's say i save for a new £100k 911, (again, when i say save, what i mean is... i'm as awesome as you, and earn over £100k a month and live in my parents spare hoilday home, so i dont really need to save), and a new model comes out.. well darn, i'm now committed, i mean.. i was saving for the OLD model, there's no way my money is any use for the NEW model. Back to the drawing board
You're also assuming it takes people a lifetime to save for a car. The difference between me buying your beloved F-Type R now, and in a years time, is that now i'd be paying £1500 in interest to have it a year earlier. At that price, personally, i'd rather have a free sofa and wait 12 months. And whilst i'm not the youngest kid on the block, i'm confident i can wait 12 months without becoming that 70yo driving a convertible ferrari. I'm guessing the recent global debt crisis wasn't something that affected, or influenced you to learn from it.
On a serious note - I think people's concerns (or what their concerns should be..) with finance on expensive cars stems from the dangers of over leveraging themselves to pay for things that they possibly can't afford to run, own, maintain, dont have the rainy day fund to cover emergency costs on expensive cars etc etc. The interest cost (as we've already discussed) is calculated as part of the 'total cost to own the car over X time' and can be easily compared against cash purchase. The risk is that finance enables people to obtain things (and is designed to do so) they not only probably can't fully afford, but also at a greater cost to themselves vs cash buyer.. making it an even more bum deal.
I say "I'm not sure", what i mean is - "you're an idiot."
Let's say i save for a new £100k 911, (again, when i say save, what i mean is... i'm as awesome as you, and earn over £100k a month and live in my parents spare hoilday home, so i dont really need to save), and a new model comes out.. well darn, i'm now committed, i mean.. i was saving for the OLD model, there's no way my money is any use for the NEW model. Back to the drawing board
You're also assuming it takes people a lifetime to save for a car. The difference between me buying your beloved F-Type R now, and in a years time, is that now i'd be paying £1500 in interest to have it a year earlier. At that price, personally, i'd rather have a free sofa and wait 12 months. And whilst i'm not the youngest kid on the block, i'm confident i can wait 12 months without becoming that 70yo driving a convertible ferrari. I'm guessing the recent global debt crisis wasn't something that affected, or influenced you to learn from it.
On a serious note - I think people's concerns (or what their concerns should be..) with finance on expensive cars stems from the dangers of over leveraging themselves to pay for things that they possibly can't afford to run, own, maintain, dont have the rainy day fund to cover emergency costs on expensive cars etc etc. The interest cost (as we've already discussed) is calculated as part of the 'total cost to own the car over X time' and can be easily compared against cash purchase. The risk is that finance enables people to obtain things (and is designed to do so) they not only probably can't fully afford, but also at a greater cost to themselves vs cash buyer.. making it an even more bum deal.
It depends..I would prefer to save to buy a 3 yr old car than pay monthly to buy a new one..
Guess im weird....
I realise it the "modern" way to use debt and credit to your advantage...Or to look better off financially than you actually are....
But personally i hate debt.... I doubt owe anyone a quid,and havent for years.... No credit cards,loans etc etc....
I just find its easier to sort my money out that way..
Guess im weird....
I realise it the "modern" way to use debt and credit to your advantage...Or to look better off financially than you actually are....
But personally i hate debt.... I doubt owe anyone a quid,and havent for years.... No credit cards,loans etc etc....
I just find its easier to sort my money out that way..
Z4M-2006 said:It depends..I would prefer to save to buy a 3 yr old car than pay monthly to buy a new one..
Guess im weird....
I realise it the "modern" way to use debt and credit to your advantage...Or to look better off financially than you actually are....
But personally i hate debt.... I doubt owe anyone a quid,and havent for years.... No credit cards,loans etc etc....
I just find its easier to sort my money out that way..
Debt is fine in small 'managable' chunks, where your rainy day fund, or salary/emergency options can take you out of the lenders crosshairs.
If you REALLY want a new car, i think leasing is more realistic, you're just renting an object you later return, with no real obligations to it and minimal risks. Obviously the cost is greater, but you're not paying any interest/depreciation etc, and its a fixed price.
No right or wrong answers. Sure bad thing to buying outright new is you lose a lot of cash BUT the same happens if you lease.....leasing a new car, any depreciation is surely coming from your deposit or rental amounts, so it's the same.
I have been told on here to use £40K else where and don't buy it, but to be honest I wouldn't know what to do with £40K....in fact yes I would I would go to Vegas and either lose it or make £50K (yes I'll admit I've done it and admit I lost £200K last year) so I have nothing to brag about. Let that be a lesson. Yup a down day today but I'm still positive
So do whatever makes you happy and better perhaps if you want to change your car every 2 years do a lease with a GFV, and then that way you know you can just hand it back and maybe have enough for a bag of crisps.
I have been told on here to use £40K else where and don't buy it, but to be honest I wouldn't know what to do with £40K....in fact yes I would I would go to Vegas and either lose it or make £50K (yes I'll admit I've done it and admit I lost £200K last year) so I have nothing to brag about. Let that be a lesson. Yup a down day today but I'm still positive
So do whatever makes you happy and better perhaps if you want to change your car every 2 years do a lease with a GFV, and then that way you know you can just hand it back and maybe have enough for a bag of crisps.
In the good days of the 70"s and 80's I used to change them about every 6 months.Now I tend to keep them about 18 months.Presently The A6 avant is about to go for a new C class estate.The Porsche is 18 months as well.That will go in the next 6 months.At the moment it will be a new Cayenne ,but I will wait to test drive the new Merc. GLE.The Z has been the big exception.It's the longest Ive kept a car,that's because it's not used.Our new Renault Twingo,which I hate,will be replaced by a smart for four auto when they have one for us to test drive.That then might be the end,as we are getting on a bit and don't drive them as much as we used to. The reason for the Twingo being a pain is the manual box ,which means there is no foot rest.The auto has space for one ,and I hope will be more pleasurable to drive.
