MK5 Golf GTI
General => Random Chat => Topic started by: Jules86 on May 20, 2010, 10:03:55 am
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Hello guys. Ive decided to get myself an S3 and see what all this ko4 fuss is about :signLOL:
Im either going to get a loan or go finance as i can buy one outright but it will be an old high mileage. If i finance or loan it i can go higher spec, lower mileage and newer, also i can keep some of my money to use when i want instead of tying it up in a car.
Im looking to keep the car for 3-5 years. Whats best to do
PCP, balloon payment, loan etc its all quite confusing!
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If you havent got the cash to hand, dont buy the car.
Personally i wouldnt want to get into debt over a car. My mortage is the only debt I have, and the only one I ever want to have!
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I have never signed up to this. It could take me years to collect the cash and i could die next week! My love is cars, i dont smoke, rarely drink and have few hobbies other than detailing (which requires a car) so would happily be in debt over something that made me happy :happy2:
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I know what you mean Jules, I'm exactly the same, my car is the thing that I spend most of my time using and most of my other hobbies are free or very cheap so I might as well spend money on a car.
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I know what you mean Jules, I'm exactly the same, my car is the thing that I spend most of my time using and most of my other hobbies are free or very cheap so I might as well spend money on a car.
Exactly. i dont have kids and am training to be signed off for a role which will see me wage improve year on year, also the missus ahs given the go ahead and will pay the insurance :laugh:
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I know what you mean Jules, I'm exactly the same, my car is the thing that I spend most of my time using and most of my other hobbies are free or very cheap so I might as well spend money on a car.
Exactly. i dont have kids and am training to be signed off for a role which will see me wage improve year on year, also the missus ahs given the go ahead and will pay the insurance :laugh:
She sounds like a keeper :laugh:
One thing that you might want to consider is that with some of the financing options the car isnt technically yours until you make the final payment (or the bubble thingy) it belongs to the finance company so you shouldnt really modify the car in any way. So if you plan to do some mods then an unsecured loan might be a better option.
And if you are likely to want to make additional payment (once you have the money) make sure there is no penalty for paying the loan off early plus a facility to make the additional payments as this will reduce the overall cost of the credit.
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Not sure if it's relevant but Audi are giving 2 years free servicing on finance deals, but not cash deals :stupid:
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I think its only on new mate but yeah i saw this. Do they move them around for you, so you dont have to travel?
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Not sure if it's relevant but Audi are giving 2 years free servicing on finance deals, but not cash deals :stupid:
they must make more money from finance deals, as bmw offered me a bigger discount on a new car if i purchased with finance rather than cash...
i looked into pcp but just seems like a complete waste of money.. you put down a deposit of say £4000 and then pay £800pcm for 3 years and at the end of it you have nothing to show for it... apart from the memories of driving an alright car for a few years.. :confused:
imo if you cant afford it dont drive it, especially with the current economic conditions as its going to get a lot tougher for us all over the next couple of years especially if you work in the public sector
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I got a small amount of finance for my GTI.Worked out cheaper than a personal loan for the amount i wanted. :happy2:
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Jules, from what youve said you can afford an older S3, so what your talking about here is not buying the car outright on finance but topping up the money you have to get a newer better spec'd one? Am I right. While still being able to keep some money in the bank for emergency requirements like zorst and tuning :evilgrin:
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Jules, from what youve said you can afford an older S3, so what your talking about here is not buying the car outright on finance but topping up the money you have to get a newer better spec'd one? Am I right. While still being able to keep some money in the bank for emergency requirements like zorst and tuning :evilgrin:
Basically mate, im looking to finance as big a chunk as possible to leave me more cash for other things (holidays, mods, electronic items etc)
Not sure if it's relevant but Audi are giving 2 years free servicing on finance deals, but not cash deals :stupid:
imo if you cant afford it dont drive it, especially with the current economic conditions as its going to get a lot tougher for us all over the next couple of years especially if you work in the public sector
I can afford it, just instead of saving 3-400 pound a month for a few years i can have the car now and pay someone the money for the privilege!
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My basic opinions are
If your looking to mod the car get a Loan.
If you want the minimum monthly payment and will probably look to change the car every 3 years get a PCP.
If you want the inbetween get a Hire purchase agreement.
With all VWFS finance agreements (except Contract hire) if you buy the car from a main dealer there are no early settlement charges.
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Nice one cheers mate :happy2:
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If you havent got the cash to hand, dont buy the car.
Personally i wouldnt want to get into debt over a car. My mortage is the only debt I have, and the only one I ever want to have!
Not everyone has that kind of cash so the amount your saving a month, why not just pay it of the car?
Maybe your paying some interest but you have the car years earlier than saving for it. As long as he has more money in the car than its potentially going to lose he cant get himself into trouble.
Finance rates are dropping at the minute, just go see which works out cheapest. I had PCP but at silly interest rates..so be careful what your signing up to. You pay interest on the full amount (the balloon payment aswel) when taking on PCP.
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I think its only on new mate but yeah i saw this. Do they move them around for you, so you dont have to travel?
No they do it on used (or maybe nearly new). They were only willing to deliver the car for my brother and said they don't have other dealerships nearer north for him to look at and test drive the car.
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I know what you mean Jules, I'm exactly the same, my car is the thing that I spend most of my time using and most of my other hobbies are free or very cheap so I might as well spend money on a car.
Exactly. i dont have kids and am training to be signed off for a role which will see me wage improve year on year, also the missus ahs given the go ahead and will pay the insurance :laugh:
I am with you on this mate.Why wait when you can have it now
you would only blow it on other things! Go for it
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I have never signed up to this. It could take me years to collect the cash and i could die next week! My love is cars, i dont smoke, rarely drink and have few hobbies other than detailing (which requires a car) so would happily be in debt over something that made me happy :happy2:
When you put it this way, it does make sense!!
I often think that sometimes, you could die next week and cant take money with you!! May as well live life as best you can and enjoy whatever you can, while you can!
Im not too hot on finance deals, but best of luck to you!!
How much are you looking to borrow though??
When I need to borrow money for somet I tend to get a 0% interest balance transfer card.
I transfer the balance onto that, and pay off whatever I can while its 0%.
When the 0% comes to an end, if the card isnt paid off, transfer it to anyother 0% balanace transfer card, and so on!
You need to keep an eye on minimum payments, and when the 0% offer comes to an end end, but Ive done it a few times in the past - interest free loan!
For example, every time the fixed rate on my mortgage comes to an end, I pump my savings into the mortgage before I fix it again with a better deal, and I also get a 0% card for £5k or so and stick that into the mortgage as well - that way I pay off an extra £5k of my mortgage, save on the mortgage interest, and just pay off the card interest free.
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Ill either get around £10k or around £20k. Im going through some figures to see if it works out best for me to get more as i can spread it out over a few more years and pay back less also leaving me with some left over for an iMac, holidays etc
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I don't think finance rates are that good at the moment.
I've used PCP, HP and Unsecured Loans in the past and each has its merits. One thing I've not used before is LP (Lease Purchase). From what I can see it's an alternative to PCP and is punted by independant finance providers. When I've questioned them on it they seem to try and brow beat you into but can't really give me any significant benefits. I have used VWFS several times without a problem and wouldn't hesitate to use them again.
I will using some sort of finance on my new car. i have a sizeable deposit to put down so shouldn't need a massive amount so I've been keeping quite an eye on current rates.
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Buying outright will be cheapest. Loans slightly more expensive and PCP costs even more.
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Lease Purchase is very simillar to a PCP but the main difference is with a LP is that the balloon figure is not guarunteed. So you can defer a larger balloon figure but if it all goes tits up you wont have the hand back option at the end.
To the op how much deposit are you looking to put down? If its more than 30% of the value of the car you wont be able to go on a PCP.
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Lease agreement means no mods.
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Lease agreement means no mods.
yeah but plenty still do it :surprised: :confused:
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I'm sure someone will point out if I'm wrong - but I'm 100% sure that unless you buy outright, then you should get a personal loan.
Try your bank first (they understand your balance etc) and are more likely to give you a good rate then try others money supermarket is a genuinely good way to see the market. Be aware that rates will be tailored to your credit rating good or bad will mean varying rates - however even a 'bad' personal loan from the major banks etc will be better than a finance deal from the dealers.. garage in the long run.
Don't do gimmicks, cash back crap - nothing is free in this world! ;) keep it straight simple.
ps. Also be careful how many times you apply for a loan - it will effect your rating after 3 or so trys So don't just try lots of places - use the comparison sites and then cherry pick the few you think are good and may accept you.
So in summary..
1. Try your bank (if you have a good banking history with them)
2. Personal loan is the way forward if you don't have the £ in cash - not many do
3. Don't worry to much about a small rate difference of just look at the end figures - there is never much between them unless your talking upwards of 3%
4. Personal loans mean YOU own the car and you if you scratch it well only you have to worry about it! :smiley:
5. Enjoy the car!! :happy2:
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finance it on HP. Then if it turns out to be a dog, you can dump your problems onto the finance company, as its a tri party agreement.
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If you havent got the cash to hand, dont buy the car.
Personally i wouldnt want to get into debt over a car. My mortage is the only debt I have, and the only one I ever want to have!
That is a ridiculous quote, and lucky you for having lots of money to buy what you want. I always buy cars on a lease purchase, with a large enough deposit, so I'm always the right way round. Large lumps of cash should be used to pay off your mortgage, not buy cars. But hey it good we are all different!
In my humble view, cars should be looked at as a tool for getting around and business(alright a very nice tool), but paid for on a monthly basis, so at the end the depreciation doesn't look too bad!
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Oh and remember, if you do finance it, because of the halves rules on a regulated agreement, once you have paid half the total amount payable, you can just hand the car back to the finance company, as long as its in a servicable conditon - Bonus!!!!
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My basic opinions are
If your looking to mod the car get a Loan.
If you want the minimum monthly payment and will probably look to change the car every 3 years get a PCP.
If you want the in-between get a Hire purchase agreement.
With all VWFS finance agreements (except Contract hire) if you buy the car from a main dealer there are no early settlement charges.
You can modify the car on HP and LP, the car is yours, unless you stop paying and then it wont make any difference, as it will be repossessed, and sold at auction and they will come after you for the shortfall!
PCP is expensive as they guarantee the balloon, Lease purchase is essentially the same, but no guaranteed balloon, so less risk for the finance company, so cheaper.
Most finance companies only charge 1 months interested if you settle early, unless it is scratchers finance!
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My basic opinions are
If your looking to mod the car get a Loan.
If you want the minimum monthly payment and will probably look to change the car every 3 years get a PCP.
If you want the inbetween get a Hire purchase agreement.
With all VWFS finance agreements (except Contract hire) if you buy the car from a main dealer there are no early settlement charges.
I agree with this...if you can't buy outright. :smiley:
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I went with Tesco for a loan 7.2%, paying £7650 over 28 months for a £7000 loan, which I think is great. I prefer buying using a loan,as the car is then HPI clear incase any circumstances change, and paid for as far as the garage is concerned, jsut make sure you knock the garage right down as you will not be benefitting from any of the possible finance offers that they sometimes give.