Discussion
hi all, still pushing my self to go and buy a t350c, as im not yet sure they have proven them self, my local dealer is hl gorner in ashton nr wigan anyone delt with them ?. i wanna spend about 32 grandish, going to need to borrow the first 20-something whats your opinion on the best finance option or are u guys richer than myself.
I have dealt with H L Gorner for the last year, I can only say good things about them, and they have been fantastic at every stage and have frequently surpassed my expectations. Mike Clarke (Sales Manager) is away from work at the moment, I haven't met the new chap yet but I'm sure he'll be just as good.
As for the finance, there are some cheap deals around if you have a look at some of the direct lenders; Northern Rock, Alliance & Leicester, Tesco to name but a few. Moneyfacts will have an up to date list of places you can try. Although it may be worth considering the dealer arranged finance (HP) as this can be beneficial in the unlikely event that things go pear shaped.
Hope this helps.
As for the finance, there are some cheap deals around if you have a look at some of the direct lenders; Northern Rock, Alliance & Leicester, Tesco to name but a few. Moneyfacts will have an up to date list of places you can try. Although it may be worth considering the dealer arranged finance (HP) as this can be beneficial in the unlikely event that things go pear shaped.
Hope this helps.
Hmmm.. taking money out of an appreciating asset to buy a decreasing one... Not something I would personally advise without knowing more facts. Assuming this chap wants to borrow ~20k he can get rates of 5.8% and repay without penalty through an internet based direct lender.
More info here Money Supermarket
chim_girl said:
Assuming this chap wants to borrow ~20k he can get rates of 5.8% and repay without penalty through an internet based direct lender.
More info here Money Supermarket
Still borrowings whichever way you look at it, seems like reasonable advice to me. You're unlikely to get a better rate than you can from your mortgage, failing that, any personal loan rather than HP would almost certainly have less penalties and if it's secured on your property the rates will be lower. Without knowing individual circumstances it's difficult to advise, but it's important to get an idea of how long you're likely to keep the vehicle and how long a period you need to finance over. The thing with car's like TVR, or rather the people that buy them, is they tend not to keep them too long, we're all a bit fickle and when we see a shiny one when ours is in for a service.....! SO, watch the penalties for early settlement. If HP looks like the answer for whatever reason, ie. it's easier to get (credit worthiness wise) and arrange and your dealer will be more than happy to sort it, it might be worth asking about 'balanced payment' if you think you might want to change the car again in 6-18 months. There are usually no penalties for early settlement. However, down-sides - usually slightler higher rate than other HP, VARIABLE rate based around the base rate and in my humble opinion I feel we may still see another .25% to .5% increase in base rates this year. Big advantage of HP is the option to have a 'balloon' payment at the end. This makes the wholes thing more 'affordable' by way of getting the monthly payments down. However, disadvantages again. You need to find that big lump at the end of the agreement and there is a chance the car may be worth less than is still owed. (Not so likely with this size of deposit) Most finance companies will happilly refinance that lump owing allowing you to keep the car for longer if you so decide. But some may not refinance more than the current value of the vehicle. But again, you can pay it off with a personal loan or equity release/re-mortgage etc. In reality, most people move on to another vehicle before or at this point. One needs to consider so many points, but most importantly seriously consider how much you can COMFORTABLY afford per month. One last thing, watch the interest rates, HP people will often talk in flat rates. So if they offer 4% flat on a 3 year agreement it'll be, say, £20,000 x 4% x 3 years = £2,400 added to the amount advanced then divided by 36 payments. There's tricks they use too, which can even mean you've paid interest on your deposit! Ask for the APR, it's supposed to be a fair way to make like-for-like comparisons, and to a point, it is. If you're not sure, look at the actual cost of finance over the life of the agreement and include the arrangement, acceptance and final settlment fees, which, incidently, haggle with them about these. There DOESN'T have to be an arrangement fee and it can be reduced, this is often the garage's (or finance salesmans) commission, they're already making money selling the car, tell them no! In many case's there does have to be a final settlement fee as legal consideration of the transfer of the asset to you at the end of the agreement. BUT again, this could be only £1 and still be legal (to the best of my knoweledge, any legal buffs about?) Sorry to waffle on, but this really is something I can talk about all day, just don't ask me about those black oily things under the bonnet.....!
Ellis
>> Edited by happypoof on Tuesday 7th September 12:17
In my eyes Borrowing 20k for a car is ok if you are on decent dough (in the £65-100k+ wage bracket) or its company funded. If you are not i would just buy something cheaper.
Borrowing £20k against your house is just the kind of talk which loan companies love but its not really sound financial advice.
Dont forget youll need fully comp insurance - which might cost a pretty penny.
Yeah the 350 is probably one (if not the) of the best cars in the world in its price bracket (imo) but it costs a stink load to buy and run one. Have a good think on whether you should be investing your money rather than spending it on something which value depreciates like a breeze block off a skyscraper.
Carl_Docklands said:
In my eyes Borrowing 20k for a car is ok if you are on decent dough (in the £65-100k+ wage bracket) or its company funded. If you are not i would just buy something cheaper.
Borrowing £20k against your house is just the kind of talk which loan companies love but its not really sound financial advice.
Dont forget youll need fully comp insurance - which might cost a pretty penny.
Yeah the 350 is probably one (if not the) of the best cars in the world in its price bracket (imo) but it costs a stink load to buy and run one. Have a good think on whether you should be investing your money rather than spending it on something which value depreciates like a breeze block off a skyscraper.
I don't personally believe in borrowing money for a car. However, do you really think that you need 65k+ salary to afford to pay for it over 3/4 years?
It's a bold statement without knowing any other facts about the person in question. What if they don't have a mortgage and therefore have a lot of disposable cash each month?
I'd guess that far more people that you would imagine buy them with a large chunk of finance and don't earn what you suggest is required to sustain the cars.
D
I don't see any problem with borrowing on a mortgage - as long as you have the income and the discipline to pay it back like any other loan. The advantage is that the car becomes yours instantly, and therefore immediately disposable if you fancy a change or just have a change of mind.
A loan is a loan is a loan....
A loan is a loan is a loan....
Can someone explain to me why it's not a good idea borrowing on your mortgage to pay for a car ? All the sums I've done seem to indicate it's the cheapest way if you need to borrow.
Although I can superficially understand the statement "taking money out of a appreciating asset (you hope!) to pay for a depreciating asset" - can someone explain the "so what" about why this is "bad" ?
Cheers,
Andy.
Although I can superficially understand the statement "taking money out of a appreciating asset (you hope!) to pay for a depreciating asset" - can someone explain the "so what" about why this is "bad" ?
Cheers,
Andy.
andyvdg said:
Can someone explain to me why it's not a good idea borrowing on your mortgage to pay for a car ? All the sums I've done seem to indicate it's the cheapest way if you need to borrow.
Although I can superficially understand the statement "taking money out of a appreciating asset (you hope!) to pay for a depreciating asset" - can someone explain the "so what" about why this is "bad" ?
Cheers,
Andy.
We used borrowing on our mortgage for our Tam, but not much, as I sold my Chim for the bulk of the payment. Also, our mortgage is very small compared to most (about £300pcm for a 160K property)
We also found this to be the best way, and we do plan to pay the extra on the mortgage early, like a loan.
In general, depending on your mortgage product and interest rate you will do very well indeed to beat it.
The key is the repayment term. The temptation and therefore danger is to repay the loan over an extended period possibly greater than the intended ownership, or even over the mortgage term. For me the important acid test with any loan is to look at the total interest payable over the term.
As long as you can sleep at night with your decision life is too short not too.
The key is the repayment term. The temptation and therefore danger is to repay the loan over an extended period possibly greater than the intended ownership, or even over the mortgage term. For me the important acid test with any loan is to look at the total interest payable over the term.
As long as you can sleep at night with your decision life is too short not too.
I dont think anyone is arguing that borrowing against your home gives you very low rates, its just not sound financial advice. Everyone seems to love credit, i just think its ok as long as the term is short and you really know what you are letting yourself in for
Its not about what you earn its your outgoings. If you earn £60k and have to pay out £1900 for a mortgage its not really wise to then start looking at spending £1500 a month on a car.
Looking back on it if i lived at home with my parents i would have bought stocks and shares :>
>> Edited by Carl_Docklands on Wednesday 8th September 19:03
Real mixture of opinion and advise here guys & gals, some interesting points but we must remember individual circumstances differ so wildly that no advise can really be considered good when generalising. As I said before, I could go on all day about this and still not guarantee the perfect solution. But I would like to pick up on a couple of things. Overall running cost of a car like a TVR is a huge consideration that is easily overlooked for the buyer who is just moving from a succession of Ford's or Vauxhalls etc. to their first proper performance car. If you're cutting it fine on the monthly payments, you're probably taking on a bit too much too soon. I'm sure most of the owners here will agree with me that it really is a huge leap, not just a small incremental change. Probably many hundreds of pounds per month?! Other thing, Credit like it or loath it, right or wrong? Everyone has their opinions about credit but the fact is it allows people to live their dreams and to live them earlier in life than was ever possible to our parents and/or grandparents. You can get yourself into a hell of a lot of trouble if you're not careful, but with your eyes open and being sensible (well a bit anyway, 'cause no one would buy a TVR really if we're all THAT sensible....!) I personally have no problem people enjoying their life now, rather than later, if that's what it takes.....
Ellis
Ellis
jh_007 said:
The motoring section of The Times on Sunday had a large section of financing your purchase.
Their advice from memory was choices in this order:
1) Money from Mortgage
2) Personal Loan
3) HP from dealer.
JH.
It's a case of horses for courses, and everybody has different priorities and circumstances, but IMHO I would not be comfortable financing a car.
Can't beat cold hard cash. I was happier with a £1k Citroen AX GT than when I chopped it in for a £10k car (with £7k loan). Fine once I'd paid it off, but for me I didn't like the fact I didn't own it outright.
I could never contemplate buying a TVR on finance - the running costs and depreciation make for pretty big running costs, without adding interest on top
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