Looking to finance a new car

[CaptainSlow]

[okgo]

Can't see any issues with that personally (from a dealers point of view)

[Sarnie]

dele said:

Hello all

Im in the middle of looking for a new car and was hoping some more experienced people could help me out

I havent approached any companies yet, but im looking to finance a new car upto £40k, problem is im a private user with an income just over £40k living in a rented home with a 10% deposit with no outstanding debts and a 900+ credit score

Is there anything out there for me or will i likely be declined by everyone because of my income and having no real assets?

Should i set my sights a bit lower?

Edited by dele on Monday 25th October 16:01

You shouldn't have any problems at all.......

[mcflurry]

This being PH you should buy a rusty ole banger for 5p instead

[Bing o]

mcflurry said:

This being PH you should buy a rusty ole banger for 5p instead

No-one in PH buys cars on tick, we're all cash buyers, dontchaknow?

[Zippee]

I have no problems with finance, used correctly it's an easy and cost effective way of getting a car. But you'll be financing nearly 100% of your annual income which to me seems a bit daft.
Can you not get the same car at maybe 2 years old once depreciation has taken its hit and so save up to 50% of the new cost?

[DonkeyApple]

Bing o said:

mcflurry said:

This being PH you should buy a rusty ole banger for 5p instead

No-one in PH buys cars on tick, we're all cash buyers, dontchaknow?

Indeed. Only a fool would buy something they can't actually afford.

[robsti]

DonkeyApple said:

Bing o said:

mcflurry said:

This being PH you should buy a rusty ole banger for 5p instead

No-one in PH buys cars on tick, we're all cash buyers, dontchaknow?

Indeed. Only a fool would buy something they can't actually afford.

Depends on what you mean by "cant actually afford" ?

[robsti]

Paddy_N_Murphy said:

Oh dear.

Are you Trolling btw?
Earn 40k - so actually take what, £25k ? And are going to buy a 40k car?

Do you think that all the people driving around in Rangerover sports BMW M3s and every other high end motor are all earning north of 40k?

[Slagathore]

okgo said:

Can't see any issues with that personally (from a dealers point of view)

Dealer will give you finance with no problems. The interest rate will probably be rubbish, though.

[Dr Jekyll]

robsti said:

Paddy_N_Murphy said:

Oh dear.

Are you Trolling btw?
Earn 40k - so actually take what, £25k ? And are going to buy a 40k car?

Do you think that all the people driving around in Rangerover sports BMW M3s and every other high end motor are all earning north of 40k?

The vast majority will be.

Do you think all the people driving round in 5 year old Mondeos are earning less than £4K?

[DonkeyApple]

robsti said:

DonkeyApple said:

Bing o said:

mcflurry said:

This being PH you should buy a rusty ole banger for 5p instead

No-one in PH buys cars on tick, we're all cash buyers, dontchaknow?

Indeed. Only a fool would buy something they can't actually afford.

Depends on what you mean by "cant actually afford" ?

Is that a can of worms I hear opening?

I think my view is quite well known that I despise finance on products that simply are not necessities in life.

The reason being that people seem to have become totally detached from elementary common sense. If I'm honest I find it disgusting and the root of many issues in this country. The complete inability to act with fiscal responsibility.

If you are dying of cancer then it is understandable but I do suspect that there is a strong correlation between buying things on credit and people who have low savings and no pension. It is pathetic.

Anyway, back on topic

I guess that if you have 20 or 30k in the bank but wish to keep it there for emergencies to protect your family then borrowing as much as 10K to buy car is understandable as the premium levied on the debt can be justified by the opportunity costs, so long as you have a decent job/income etc.

But the reality is that you can buy a very good and solid car for just a few grand and anything above that is a luxury.

In the case above, wanting to borrow for a 40k car when pre tax income is 40k is, on the surface, nothing short of pathetic and sad. This is a total loss of reality.



I am still holding out for someone able to point out a good reason for borrowing to pay for a luxury good and I am genuinely all ears and very open to the concept that I have missed something obvious. But until then I hold nothing but contempt, sorrow and blame.

[robsti]

Paddy_N_Murphy said:

robsti said:

Paddy_N_Murphy said:

Oh dear.

Are you Trolling btw?
Earn 40k - so actually take what, £25k ? And are going to buy a 40k car?

Do you think that all the people driving around in Rangerover sports BMW M3s and every other high end motor are all earning north of 40k?

New ones - yes -

Or should I say, yes I would like to fking think so.
Or are we to go off topic once more and say the fact that people aren't is why the country is fked?

[dele]

After stepping out of dreamland and realising the salary was going to my head ive realised this is one of the more dumbest ideas ive had

But some of the replies have made me chuckle

Edited by dele on Tuesday 26th October 21:54

[DonkeyApple]

robsti said:

Paddy_N_Murphy said:

robsti said:

Paddy_N_Murphy said:

Oh dear.

Are you Trolling btw?
Earn 40k - so actually take what, £25k ? And are going to buy a 40k car?

Do you think that all the people driving around in Rangerover sports BMW M3s and every other high end motor are all earning north of 40k?

New ones - yes -

Or should I say, yes I would like to fking think so.
Or are we to go off topic once more and say the fact that people aren't is why the country is fked?

I was blown away when talking a while back to a director of Stratstones. He claimed that they sold as good as nothing without finance. His comment was that he wouldn't be surprised if someone told him that there wasn't a new RR Sport on the roads of Britain which wasn't financed. Same with Astons and Bentleys.

I never realised that people borrowed for this stuff until a few years ago. OK, I knew some people did but they were just flash harrys wasting their life but to find out that most people used finance blew me away.

But it explains why society is splitting in two so quickly between those who will have a good old age and those who will have an appalling one.

[robsti]

DonkeyApple said:

robsti said:

Paddy_N_Murphy said:

robsti said:

Paddy_N_Murphy said:

Oh dear.

Are you Trolling btw?
Earn 40k - so actually take what, £25k ? And are going to buy a 40k car?

Do you think that all the people driving around in Rangerover sports BMW M3s and every other high end motor are all earning north of 40k?

New ones - yes -

Or should I say, yes I would like to fking think so.
Or are we to go off topic once more and say the fact that people aren't is why the country is fked?

I was blown away when talking a while back to a director of Stratstones. He claimed that they sold as good as nothing without finance. His comment was that he wouldn't be surprised if someone told him that there wasn't a new RR Sport on the roads of Britain which wasn't financed. Same with Astons and Bentleys.

I never realised that people borrowed for this stuff until a few years ago. OK, I knew some people did but they were just flash harrys wasting their life but to find out that most people used finance blew me away.

But it explains why society is splitting in two so quickly between those who will have a good old age and those who will have an appalling one.

I was not being smart with the rofl it was just funny that paddy thought that expensive new cars were bought by people with decent incomes!
If you speak to anybody in prestige showrooms they will tell you 10% deposit and a balloon after 24/36 months is the way that most cars find new owners!

[robsti]

Paddy_N_Murphy said:

robsti said:

DonkeyApple said:

robsti said:

Paddy_N_Murphy said:

robsti said:

Paddy_N_Murphy said:

Oh dear.

Are you Trolling btw?
Earn 40k - so actually take what, £25k ? And are going to buy a 40k car?

Do you think that all the people driving around in Rangerover sports BMW M3s and every other high end motor are all earning north of 40k?

New ones - yes -

Or should I say, yes I would like to fking think so.
Or are we to go off topic once more and say the fact that people aren't is why the country is fked?

I was blown away when talking a while back to a director of Stratstones. He claimed that they sold as good as nothing without finance. His comment was that he wouldn't be surprised if someone told him that there wasn't a new RR Sport on the roads of Britain which wasn't financed. Same with Astons and Bentleys.

I never realised that people borrowed for this stuff until a few years ago. OK, I knew some people did but they were just flash harrys wasting their life but to find out that most people used finance blew me away.

But it explains why society is splitting in two so quickly between those who will have a good old age and those who will have an appalling one.

I was not being smart with the rofl it was just funny that paddy thought that expensive new cars were bought by people with decent incomes!
If you speak to anybody in prestige showrooms they will tell you 10% deposit and a balloon after 24/36 months is the way that most cars find new owners!

I don't dispute that ^^^ (10% down, 24/36 mo tick) - but I don't think the Borrow to Salary ratio is as high as 1:1.
If it is, then good fking luck to the lot of em.

From what I have heard 1:1 is pretty good!

[dele]

Paddy_N_Murphy said:

OP, why delete the original Post?

Because in hindsight it wasnt a very well thought out idea, especially when someone mentioned i wanted to borrow at 1:1, so i thought id try and sweep it under the carpet before anyone saw

Fail

[dele]

Well i wanted an E92 M3

So ill settle for a E46 M3 instead i think

[P-Jay]

As above, most high-end car purchases are financed. I worked in Finance for 10 years and funded all sorts of very high-end cars, the highest of high-end. Ford GT's every kind of Ferrari, Porsche up to and including Carrera GT's, Lamborghini’s the original (dented) Veyron that lapped the TG test track was financed by a former colleague of mine.

People who are fortunate enough to have enough cash in the bank to pay for their Car are few and far between, it doesn't matter if you're 'Joe the Plumber' buying a second-hand Volvo or a mid-table premiership footballer buying a yellow Bentley.

Used correctly there's nothing wrong with financing a car. Some people might gasp at 1:1 salary to finance borrowing, but income has little to do with it, it's disposable income that matters. I met a lot of people during my time earning big 6 figure salaries who get very upset when I told them that we had to decline to finance a new Car because despite their income they were spending more than they earned every year, and that was just based on the out-goings we could see on their credit files! If you can clearly see / prove you can afford the repayments, and you can live with them on a monthly basis then go for it.