Loan for car £15,000
Discussion
I have never taken a loan to buy a car, always bought on cash. Just wanted an idea of what people think of my plan.
I am buying a 35k car, going to put down 20k cash and then a 15k loan over 4 years. Approx £350pm repayments.
The car will be worth approx £15-16k after 4 years.
Am I being silly with my approach or do most people take the same angle on car purchases??
I am buying a 35k car, going to put down 20k cash and then a 15k loan over 4 years. Approx £350pm repayments.
The car will be worth approx £15-16k after 4 years.
Am I being silly with my approach or do most people take the same angle on car purchases??
MoonMonkey said:
Personally I wouldn't want to take that much of a financial hit. However, if you must then 'my logic' would suggest that I'd want to recover my initital investment at least so would look to sell on when the car was worth £20k.
The hit is always going to be there. If you switch to another car, it will just be in a different car, which will also be more if the car is newer/more expensive.okgo said:
sinizter said:
Which car are you planning on buying ?
15k after four years seems somewhat optimistic.
M3?15k after four years seems somewhat optimistic.
Edited by sinizter on Monday 23 August 12:39
Edited by sinizter on Monday 23 August 12:56
One huge benefit compared to finance is the loan is not secured on the car, hpi checks etc will show no finance secured on the car so you can sell it at any time & walk away & just keep the loan.
I had a 15k loan 8 years ago to by my Esprit, loan paid off years ago... Esprit still worth around 15k
I had a 15k loan 8 years ago to by my Esprit, loan paid off years ago... Esprit still worth around 15k
splodge s4 said:
One huge benefit compared to finance is the loan is not secured on the car, hpi checks etc will show no finance secured on the car so you can sell it at any time & walk away & just keep the loan.
I had a 15k loan 8 years ago to by my Esprit, loan paid off years ago... Esprit still worth around 15k
how much you spent keeping it going? lolI had a 15k loan 8 years ago to by my Esprit, loan paid off years ago... Esprit still worth around 15k
musclecarmad said:
well, you are never going to be in negative equity with the car so if you don't mind losing cash why not go for it.
However, if it were me £20k would get a 6 series convertible which is a decent car, you save £350 per month and you lose less in depn.
In 4 years your £350 per month would be nearly £20k saved up too!
But why? It's not a lot different to having 35k now in cash to pay for the car, regardless in 4 years it'll still be worth the same. Only difference is the OP will have spent approx 2k or so in interest in order to have the car now rather than in 4 years time.However, if it were me £20k would get a 6 series convertible which is a decent car, you save £350 per month and you lose less in depn.
In 4 years your £350 per month would be nearly £20k saved up too!
There seems to be a massive hang up by some on here regarding finance, personally I see nothing wrong as long as you're comfortable with the repayments.
Zippee said:
musclecarmad said:
well, you are never going to be in negative equity with the car so if you don't mind losing cash why not go for it.
However, if it were me £20k would get a 6 series convertible which is a decent car, you save £350 per month and you lose less in depn.
In 4 years your £350 per month would be nearly £20k saved up too!
But why? It's not a lot different to having 35k now in cash to pay for the car, regardless in 4 years it'll still be worth the same. Only difference is the OP will have spent approx 2k or so in interest in order to have the car now rather than in 4 years time.However, if it were me £20k would get a 6 series convertible which is a decent car, you save £350 per month and you lose less in depn.
In 4 years your £350 per month would be nearly £20k saved up too!
There seems to be a massive hang up by some on here regarding finance, personally I see nothing wrong as long as you're comfortable with the repayments.
It is tricky to purchase cars. I think I am looking to buy a newer car; i.e one that is 2 years old. I have gone off the XKR because of the heavy depreciation and witha budget of £35k I can only afford a car that is 3 years old. For about £33-35k I can pick up a 2 year old M3.
The decision is tough; either I buy a car that is £20k on cash and own it for 3 years and replace then or buy a newer car with £20k cash and 15k loan. The 15k loan would be over 4 years.
Over 4 years a M3 will drop from 33k to approx £15k. I will need to top up 5k of cash when I am looking to replace the car.
If i buy a 20k car, for example a 6 series now, I will prob get an old 2005 model, not sure how much it will lose but there is a chance it will cost more to maintain then a new M3?
Essentially buying an older car or a newer car may work out to be the same in terms of lost money through depreciation/repairs etc.
The decision is tough; either I buy a car that is £20k on cash and own it for 3 years and replace then or buy a newer car with £20k cash and 15k loan. The 15k loan would be over 4 years.
Over 4 years a M3 will drop from 33k to approx £15k. I will need to top up 5k of cash when I am looking to replace the car.
If i buy a 20k car, for example a 6 series now, I will prob get an old 2005 model, not sure how much it will lose but there is a chance it will cost more to maintain then a new M3?
Essentially buying an older car or a newer car may work out to be the same in terms of lost money through depreciation/repairs etc.
Zippee said:
musclecarmad said:
well, you are never going to be in negative equity with the car so if you don't mind losing cash why not go for it.
However, if it were me £20k would get a 6 series convertible which is a decent car, you save £350 per month and you lose less in depn.
In 4 years your £350 per month would be nearly £20k saved up too!
But why? It's not a lot different to having 35k now in cash to pay for the car, regardless in 4 years it'll still be worth the same. Only difference is the OP will have spent approx 2k or so in interest in order to have the car now rather than in 4 years time.However, if it were me £20k would get a 6 series convertible which is a decent car, you save £350 per month and you lose less in depn.
In 4 years your £350 per month would be nearly £20k saved up too!
There seems to be a massive hang up by some on here regarding finance, personally I see nothing wrong as long as you're comfortable with the repayments.
I have no understanding as to why someone would ever borrow money to purchase a depreciating asset, it's insane.
DonkeyApple said:
I have no understanding as to why someone would ever borrow money to purchase a depreciating asset, it's insane.
Life must be so simple in your world. How can you not envisage a scenario where the car is needed (or heaven forbid, just wanted) now yet can only be funded over time?Jubal said:
DonkeyApple said:
I have no understanding as to why someone would ever borrow money to purchase a depreciating asset, it's insane.
Life must be so simple in your world. How can you not envisage a scenario where the car is needed (or heaven forbid, just wanted) now yet can only be funded over time?You can buy a perfectly good car for well under £2k if it is vital that you have a car to earn a living etc. If you need to borrow to afford that then this is acceptable although you are probably not able to insure or run so it is a bit a no go.
But we aren't talking about that aspect are we? No, we are talking about using debt to purchase a luxury item because it is something we want, not need. No one needs an XKR do they?
You ought to try engaging brain and your life might be a little better.
Or just get off your high horse and stop making an arse of yourself with silly attempts to defend the indefensible.
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