Dave Posted May 10, 2006 Report Share Posted May 10, 2006 Thought it would be interesting to see how the majority pay for their cars: So how do you do it? <ul type="square"> [*]Full Payment - nothing outstanding [*]Loan- From dealer [*]Loan-Bank or building society [*]Hire Purchase - deposit and montly installments [*]Lease Purchase - balloon payment at end [*]PCP [*]Contract Hire / Leasing [*]Other? Link to comment Share on other sites More sharing options...
NeilB Posted May 10, 2006 Report Share Posted May 10, 2006 The Alfa is on one of the old man's Credit card's. I'm paying the bulk off later this week and then paying £250 off a month, this gives me some room in case something breaks on it and I'm facing a bill. Link to comment Share on other sites More sharing options...
Soapsuds Posted May 10, 2006 Report Share Posted May 10, 2006 HP on this one , but will probably switch back to PCP for the next one in a year or two. Link to comment Share on other sites More sharing options...
collease Posted May 10, 2006 Report Share Posted May 10, 2006 my golf was bought using a loan from a bank. I have nowhere near enough saved to even contemplate changing for a very long time so it seemed like a good idea at the time. Link to comment Share on other sites More sharing options...
JamesB Posted May 10, 2006 Report Share Posted May 10, 2006 Cash, briefcase full of. Well, debit card actually, but it doesn't sound so exciting. I have previously used a dealer loan but only when they matched what I could find elsewhere. Link to comment Share on other sites More sharing options...
Dave Posted May 10, 2006 Author Report Share Posted May 10, 2006 I used to use the company route, in the good old days before the tax became ridiculous... i tend to use PCP now.. it's a form of just hiring cars. Link to comment Share on other sites More sharing options...
drpellypo Posted May 10, 2006 Report Share Posted May 10, 2006 I paid for mine with pixie dust. Got a cracking deal too. Link to comment Share on other sites More sharing options...
Problem_Child Posted May 10, 2006 Report Share Posted May 10, 2006 Saved for a few years to buy the MX5- we finally bought it when my ex's uncle popped his clogs and left us enough to top up our savings. When we split up my half of the proceeds of the sale of the Mazda paid for my Alfa 146 and a years insurance- it was only 6 months older and was almost a grand dearer when new! Link to comment Share on other sites More sharing options...
JamesB Posted May 10, 2006 Report Share Posted May 10, 2006 [ QUOTE ] I tend to use PCP now.. it's a form of just hiring cars. [/ QUOTE ] I've never been sold on PCPs. However I do my sums, the dealer seems to do better than the customer out of them. Of course, this may be because I'm no good at sums Link to comment Share on other sites More sharing options...
garcon magnifique Posted May 10, 2006 Report Share Posted May 10, 2006 I was lucky this time - paid outright for it (with px). Other times (including next!) it depends what rates are available - I've used bank loans and dealer loans before now. Never used PCP, contract hire etc so far - you only need to do slightly more than average miles for it to start getting expensive! Link to comment Share on other sites More sharing options...
Dave Posted May 10, 2006 Author Report Share Posted May 10, 2006 [ QUOTE ] I've never been sold on PCPs. However I do my sums, the dealer seems to do better than the customer out of them. Of course, this may be because I'm no good at sums [/ QUOTE ] Yea, i suppose it's what you want out of your car. I recently did this on the wife's verso.. i never want to actually own the car and am happy to pay a montly instalment to pretty much hire it. Link to comment Share on other sites More sharing options...
JamesB Posted May 10, 2006 Report Share Posted May 10, 2006 Fair enough. Makes sense to me Link to comment Share on other sites More sharing options...
crasher Posted May 10, 2006 Report Share Posted May 10, 2006 Current car is lease-purchase. Previous cars had always been company motors. I'm planning a dawn-raid on my company accounts for the next car though. Link to comment Share on other sites More sharing options...
Philbes Posted May 10, 2006 Report Share Posted May 10, 2006 Always pay cash. Won't borrow money to purchase anything that depreciates at the rate of a car. But then, apart from my mortgage, I have never borrowed money to purchase anything. If I can't afford it now, I save and buy it when I can afford it. I don't pay interest, I earn it as I save. You can't blame the current ridiculous level of debt in the UK on me! Link to comment Share on other sites More sharing options...
Bounce Posted May 10, 2006 Report Share Posted May 10, 2006 My Golf was paid for with cash and for a nice change i even had enough penny's to sell my old car after buying a new one, we have in the past used loans to buy cars, but i wouldn't do it again Link to comment Share on other sites More sharing options...
alexc Posted May 10, 2006 Report Share Posted May 10, 2006 Buy my cars with cash as they depreciate (apart from the classics) and buy my properties with loans as they generally appreciate! Link to comment Share on other sites More sharing options...
sayerbloke Posted May 10, 2006 Report Share Posted May 10, 2006 Lump sum on the Switch card last time. Link to comment Share on other sites More sharing options...
Calm Chris Posted May 10, 2006 Report Share Posted May 10, 2006 Cash, never will I borrow for a car. But I can see why people do, if money can be borrowed over 2 years, say £9k for £10k back inc interest or 18k for 20k back, then why not. As long as your disposable income can cope with the repayments then is makes sense for some. I hate debt and have no borrowings nor have had for a few years, I'd like to keep it that way. Link to comment Share on other sites More sharing options...
cruiser647 Posted May 10, 2006 Report Share Posted May 10, 2006 Paid on Paypal and part ex! Link to comment Share on other sites More sharing options...
NewNiceMrMe Posted May 10, 2006 Report Share Posted May 10, 2006 Cash, or rather as JamesB says, a debit card transaction. Link to comment Share on other sites More sharing options...
DHA Posted May 10, 2006 Report Share Posted May 10, 2006 Lease Purchase Link to comment Share on other sites More sharing options...
Dave Posted May 10, 2006 Author Report Share Posted May 10, 2006 I think the problem comes with buying the more expensive kit.. I'm looking at a GT3.. now, IF (and it is an if) i went new, you'd be looking at £80,000... that is a shed load of money to have tied up in car.. I could make two deposits for property with that money and have it working for me.. the money comming in from leasing those properties will cover the mortages and some of the montly installments.. So, i reckon for the expensive stuff, ok, use a biggish deposit if you like, but leave money so it can work for you. Anyone agree? Link to comment Share on other sites More sharing options...
garcon magnifique Posted May 10, 2006 Report Share Posted May 10, 2006 Agree? Maybe. I just wish I was in that situation! Link to comment Share on other sites More sharing options...
Booster Posted May 10, 2006 Report Share Posted May 10, 2006 [/ QUOTE ] I've never been sold on PCPs. However I do my sums, the dealer seems to do better than the customer out of them. [/ QUOTE ] Both the dealer and the finance co do better out of PCPs. The finance co I work for (and since last week, partly own ) are old fashioned in that we only offer good old HP, none of this PCP, Lease Purchase, contract hire nonsense! I agree that there are deals of this type out there that suit some but if it was me financing the car I would it to be on a decreasing balance scheme where I end up with something to show for my money at the end of it. I hear quite a few horror stories about people being charged horrendous sums for cars to be "put right" when they hand them back. This is just another way of the dealer/finance co making an extra quid. With regard to deals for cars in the price range you are looking at Dave, you are very limited in your choices. If the dealer offers you anything, be very careful as it will be over the 25k Consumer Credit Act limit you will not have the protection of the Act and he will be under no obligation to quote you an APR. If you want me to look at any figures and work out the true rate, let me know Link to comment Share on other sites More sharing options...
Dave Posted May 10, 2006 Author Report Share Posted May 10, 2006 Ok mate!.. didn't realise that.. and thanks! Link to comment Share on other sites More sharing options...
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