Finance or Cash?
Discussion
Just wondering how most people go about laying there hands on a Noble.
I guess the two choices are pay it all up front or finance of some sort. Previously I've always paid up front for my toys. But given the outlay I'm just wondering if its worth going the finance route?
Does anyone know of any websites that have a finance type calculater, so I can work out monthly payments.
Cheers
Michael
I guess the two choices are pay it all up front or finance of some sort. Previously I've always paid up front for my toys. But given the outlay I'm just wondering if its worth going the finance route?
Does anyone know of any websites that have a finance type calculater, so I can work out monthly payments.
Cheers
Michael
Just wondering how most people go about laying there hands on a Noble.
I guess the two choices are pay it all up front or finance of some sort. Previously I've always paid up front for my toys. But given the outlay I'm just wondering if its worth going the finance route?
Does anyone know of any websites that have a finance type calculater, so I can work out monthly payments.
Cheers
Michael
All I can add is that any finacial adviser will tell you that, if you have the cash, then you don't finance -it costs more! And remember, when you pay cash you still have an item with a residual value all yours!
amg merc said:
Just wondering how most people go about laying there hands on a Noble.
I guess the two choices are pay it all up front or finance of some sort. Previously I've always paid up front for my toys. But given the outlay I'm just wondering if its worth going the finance route?
Does anyone know of any websites that have a finance type calculater, so I can work out monthly payments.
Cheers
Michael
All I can add is that any finacial adviser will tell you that, if you have the cash, then you don't finance -it costs more! And remember, when you pay cash you still have an item with a residual value all yours!
Ah.... but why tie up all your cash in a depriciating asset when you can use someone elses money for this, and use yours to invest in something that will give you a return on it....
ek993 said:
Ah.... but why tie up all your cash in a depriciating asset when you can use someone elses money for this, and use yours to invest in something that will give you a return on it....
Please expand on where in todays economy you are guaranteed to find such an investment??
PS - made a 25% return in two months recently. But it was watered down considerably by the negative performance of the rest of the portfolio!
goodlife said:
ek993 said:
Ah.... but why tie up all your cash in a depriciating asset when you can use someone elses money for this, and use yours to invest in something that will give you a return on it....
Please expand on where in todays economy you are guaranteed to find such an investment??
PS - made a 25% return in two months recently. But it was watered down considerably by the negative performance of the rest of the portfolio!
True there are no guarantees, but if you put all your cash into the car, over a 5 year period you can be 100% sure about losing a significant amount of that!
I would be marginally confident of getting a return on my investments over a similar period.
Alternatively, we could all be dead next year when Bin Laden unleashes his WoMD, so what the hell, get the car any way you can and enjoy it
Mine's financed because at the moment you can get rates as low as 6.25% (as Mole Valley - they like beating up First National - 
), and without too much skill you can get more return than that in the market (pick a sound set of companies that are currently returning 4-6% in divvies and the rest is simple...). Over each 3 year period I've made money, which I then use to upfinance to the next car etc. etc.
J
), and without too much skill you can get more return than that in the market (pick a sound set of companies that are currently returning 4-6% in divvies and the rest is simple...). Over each 3 year period I've made money, which I then use to upfinance to the next car etc. etc. J
OK heres my thought sfor what they are worth.
If you are like most people and dont keep the car for long terms (5yrs+) then paying up front is a bit of pointless exercise. EG you buy say a 30k car with a deposit of 5k at a rate of 5% flat and finance it over 5yrs. Your payment will be £520 p/m (TAP 31,250).
But if you only decide to keep it for say 24 months it will have cost you your initial 5k + 12,480 (monthlies), £17480 spent. Then you have asettlement of around 15k add that to your outgoings = £32480 then take away what you get for the car when you sell it lets say I dunno £20k leaves you with a grand total of 12480 spent.
Now on the other hand if you buy it outright at £30,000 and get 20,000 back when you sell it its cost you £10,000 in total. But and heres the biggy how much would you have earned on the £25k if you had invested wisely? Would it have been more than the £2480 in interest charges etc?
If you need to work out monthly payments its quite simple.
cost price less deposit + amount borrowed.
amount borrowed x finance rate (flat not apr)= annual interest payable.
annual interest payable x number of years borrowed = total interest payable.
total interst payable + amount borrowed = total amount payable.
Total amount payable / months of term = monthly payment.
i.e
£30,000 - £5000 deposit =£25000
25000 * 5% = £1,250
1,500 * 5 years = 6,250
25,000 + 6250 = 31250
31250 / 60months = £520.83
Hope that helps. i'm going for a lie down
3
If you are like most people and dont keep the car for long terms (5yrs+) then paying up front is a bit of pointless exercise. EG you buy say a 30k car with a deposit of 5k at a rate of 5% flat and finance it over 5yrs. Your payment will be £520 p/m (TAP 31,250).
But if you only decide to keep it for say 24 months it will have cost you your initial 5k + 12,480 (monthlies), £17480 spent. Then you have asettlement of around 15k add that to your outgoings = £32480 then take away what you get for the car when you sell it lets say I dunno £20k leaves you with a grand total of 12480 spent.
Now on the other hand if you buy it outright at £30,000 and get 20,000 back when you sell it its cost you £10,000 in total. But and heres the biggy how much would you have earned on the £25k if you had invested wisely? Would it have been more than the £2480 in interest charges etc?
If you need to work out monthly payments its quite simple.
cost price less deposit + amount borrowed.
amount borrowed x finance rate (flat not apr)= annual interest payable.
annual interest payable x number of years borrowed = total interest payable.
total interst payable + amount borrowed = total amount payable.
Total amount payable / months of term = monthly payment.
i.e
£30,000 - £5000 deposit =£25000
25000 * 5% = £1,250
1,500 * 5 years = 6,250
25,000 + 6250 = 31250
31250 / 60months = £520.83
Hope that helps. i'm going for a lie down
3
joust said: Or, if you really like a challege - do what I did and do 95% of it on finance and invest the other £45k
Only recommended if you've actually got the other 45k in cash, and also that you won't ever have to sell the car..... Nobles are in a niche market - liquidity is not guaranteed - don't buy on big finance if you may ever get in financial trouble and need to sell the car. You may end up getting screwed, or not be able to flog it.
This obviously doesn't apply to Joust and his stable of thoroughbreds
but for people like me - keep the monthlies down On second thoughts, perhaps it's only me who spends far more than he should on cars????
lx993 said:
joust said: Or, if you really like a challege - do what I did and do 95% of it on finance and invest the other £45k
Nobles are in a niche market - liquidity is not guaranteed - don't buy on big finance if you may ever get in financial trouble and need to sell the car. You may end up getting screwed, or not be able to flog it.
I disagree. Act wisely. If you have bought the car on aloan and get that far up shit ally then you hide your cash you never used. Then if they reposess the car you still have your cash. Where as if you pay cash and go bankrupt they still reposess your car and you have no cash tucked away.
>> Edited by funkyboogalooo on Thursday 15th May 08:14
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