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I know it's treated as sacrilege on this forum but you could just lease. Take £800 out of your budget and allow £180pm Inc vat for a small/med suv with 10k miles p.a over 4 years. You'd still have the bulk of your capital to use/invest and have a safe, reliable, cheap to run car.
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I know it's treated as sacrilege on this forum but you could just lease. Take £800 out of your budget and allow £180pm Inc vat for a small/med suv with 10k miles p.a over 4 years. You'd still have the bulk of your capital to use/invest and have a safe, reliable, cheap to run car.
Its not sacriledge, its just that some of us who are older have seen for ourselves that signing up to pay £x per month for a product you can't sell to clear the debt if things go wrong could be a dodgy move.
Yes its currently fashionable for 30 somethings to rent their cars long term like this, and there's nothing wrong with doing this so long as you keep your job and your immediate world stays on its axis for the 3 or 4 years of the rental.
But us oldies have seen, and some have experienced first hand, just how quickly our worlds can fall apart when things go wrong either personally nationally or globally, hence maybe here with a more mature set of regulars than some other places you might find a more cautious approach to how we finance our transport.
We have millions of people who are once again ignoring what has gone before and indebting themselves, egged on by cheap credit and each other to spend what they don't have being good little consumers, there might well be much wailing and gnashing of teeth for many to come...my own suggestion for people would be to throw every spare penny at their mortgages while interest rates are at this unsustainable low and run bangers as cheaply as they can and borrow nothing for any other reason than the roof over their heads, but what do i know.
The country also has a national debt, still growing, that cannot be repaid do not forget, they'll try to blame the inevitable when it arrives on Brexit or Nigel Farage, but the seeds for coming national economic strife were planted over the past 20 years and still being drilled in daily.
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"Its not sacriledge, its just that some of us who are older have seen for ourselves that signing up to pay £x per month for a product you can't sell to clear the debt if things go wrong could be a dodgy move.
Yes its currently fashionable for 30 somethings to rent their cars long term like this, and there's nothing wrong with doing this so long as you keep your job and your immediate world stays on its axis for the 3 or 4 years of the rental.
But us oldies have seen, and some have experienced first hand, just how quickly our worlds can fall apart when things go wrong either personally nationally or globally, hence maybe here with a more mature set of regulars than some other places you might find a more cautious approach to how we finance our transport.
We have millions of people who are once again ignoring what has gone before and indebting themselves, egged on by cheap credit and each other to spend what they don't have being good little consumers, there might well be much wailing and gnashing of teeth for many to come...my own suggestion for people would be to throw every spare penny at their mortgages while interest rates are at this unsustainable low and run bangers as cheaply as they can and borrow nothing for any other reason than the roof over their heads, but what do i know."
Wise words indeed. End of every financial year I chucked every spare penny my business made at my mortgage instead of buying or leasing an expensive motor I didn't really need and was mortgage free by 36. None of the older sub £2k runabouts I ran let me down.
Only reason I lease our CRV was down to the deal being cheaper over 4yrs than I'd lose in depreciation if I'd bought one even with a discount. There are some cracking lease deals out there if you shop around and if you want a pricey new motor it often makes more sense than buying. Lease firms get huge discounts that we can only dream of as private buyers.
I would never have taken it on if it hadn't been for wanting a safe place to put baby and hiararchy plus I've paid off the mortgage I'd otherwise tell folks to concentrate on. Well worth years of bangernomics.
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All fair points and I'm probably closer in age to you than the 30 somethings so have lived through many financial cycles.
We are in a strange position of being able to borrow so cheaply that you could argue for disposable income being invested and giving much better returns than the cost of debt.
Your point about your CRV hits the nail on the head.
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Yes don't get me wrong, for many people a good rental or leasing deal may well work out very well for them if their cirmunstances allow such a commitment, but its not the answer for everyone.
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Not on thread but where can you safely earn more than the interest rate charged on loans (other than so called free finance) ?
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Not on thread but where can you safely earn more than the interest rate charged on loans (other than so called free finance) ?
When I ordered the Superb the discount was 15% for cash sales or 9% with a PCP (4.5%?) and a deposit contribution. Obviously the PCP was more costly over 3 years.
But there was another option that was not widely publicised which was 15% discount and 0% finance, this was the deal I took. Even if I only get 1% on the £14000 I am financing its still just over £200 in my pocket, more if I can find a better rate.
So in my opinion the finance is not just free, its better than free.
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Not on thread but where can you safely earn more than the interest rate charged on loans (other than so called free finance) ?
Depends on your idea of "safe" - all our spare money is in a Stocks & Shares ISA, invested in UK Income Unit Trusts, making about 4.5% above the rate of inflation so about 6.5% net of all tax.
For those below pension age, SIPPs and LISAs are the way to go for money you don't want/need before pension age.
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Depends on your idea of "safe" - all our spare money is in a Stocks & Shares ISA, invested in UK Income Unit Trusts, making about 4.5% above the rate of inflation so about 6.5% net of all tax.
RT, out of curiosity, would you mind sharing the name of the UK Income Unit Trusts, that is consistently providing 4.5% above the rate of inflation so about 6.5% net of all tax.
Completely understand if that is a wealth secret, and you don't want o share the deatils. :-)
All my ISA investments have been going down, from the time I bought it. Mainly gold producers and commodity producers.
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Depends on your idea of "safe" - all our spare money is in a Stocks & Shares ISA, invested in UK Income Unit Trusts, making about 4.5% above the rate of inflation so about 6.5% net of all tax.
RT, out of curiosity, would you mind sharing the name of the UK Income Unit Trusts, that is consistently providing 4.5% above the rate of inflation so about 6.5% net of all tax.
Completely understand if that is a wealth secret, and you don't want o share the deatils. :-)
All my ISA investments have been going down, from the time I bought it. Mainly gold producers and commodity producers.
I'm not a financial advisor but to avoid HJ or the Back Room being involved in Financial Services legislation, Avant might pass on my email address to eustace.
(Edit - thank you for your discretion. Will do so, and copy you in.)
Edited by Avant on 02/01/2017 at 19:23
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I'm not a financial advisor
I think you ought to consider becoming one, and seriously think about applying for the job of non politically aligned chancellor asap, Heaven knows after the individuals who have been making a pigs ear of the post for the past 20 years the nation would be very grateful.
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I suspect too good to become a financial adviser. The only ones I know of do not give advice which is profitable - well maybe for them !
I do take the point about investing in stocks and shares : if you can forget about the capital for quite a few years to ensure you can sell at the right time.
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I suspect too good to become a financial adviser. The only ones I know of do not give advice which is profitable - well maybe for them !
I do take the point about investing in stocks and shares : if you can forget about the capital for quite a few years to ensure you can sell at the right time.
I took the trouble to learn much more about investments after being screwed by two different IFAs and losing a shedload of pension in Equitable Life
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I'm not a financial advisor
I think you ought to consider becoming one, and seriously think about applying for the job of non politically aligned chancellor asap, Heaven knows after the individuals who have been making a pigs ear of the post for the past 20 years the nation would be very grateful.
I'd want to permanently ban the worst 50% of all drivers and cut the UK population by a third - from where I stand the last 70 years have been a pig's ear.
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Depends on your idea of "safe" - all our spare money is in a Stocks & Shares ISA, invested in UK Income Unit Trusts, making about 4.5% above the rate of inflation so about 6.5% net of all tax.
RT, out of curiosity, would you mind sharing the name of the UK Income Unit Trusts, that is consistently providing 4.5% above the rate of inflation so about 6.5% net of all tax.
Completely understand if that is a wealth secret, and you don't want o share the deatils. :-)
All my ISA investments have been going down, from the time I bought it. Mainly gold producers and commodity producers.
A relevant website would assist you in ivesting in some good funds. Just use a search engine.
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The Fiat 500L looks a good suggestion.
For sensible private people, the trick I think with leasing is to be flexible and search for a bargain. Manufacturers who need to shift stock ahead of model changes etc don't trash the price immediately, they try and shift them to fleets including lessors.
Son's old Panda was written off in November and he got a new Nissan Note with a/c though Ling, 3+35 on a 3 year contract hire, £126.xx a month. It works out at c. £32 a week including advance rentals and the arrangement fee of £180. That £126 is £177 today, so presumably they have got rid of the surplus metal and cut the discounts.
Have you considered whether a city car would do the job? The current Ling bargain is a basic Panda on a 4 year hire for £107.51, 3+47, 4 years. About £1,400 annually, £5,500 for the full term. You can't pay the depreciation+maintenance on second hand SUVs for that.
Your point GB about commitments is one I totally agree with*, but son needs a car even if he loses his job...and I can afford to stand behind £32 a week if it comes to it. I think finding a good deal on basic transport like this is different to a family signing up to £300-£400 a month on PCP for a car they can't really afford.
*I haven't borrowed money to buy a car since 1978. It was £500, 24 payments of £22. It didn't cause me any problems, but I resented every payment for making me that much poorer that month!
Edited by Manatee on 03/01/2017 at 17:19
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Hi Manatee.
Yes i quite agree in the right circs for an individual and the right bargain that a lease can be good value, but yes you are so right about people who really can't afford a new car being drawn in by how cheap it appears at first glance, or at first listen i should add when some bod on the radio is rattling through the small print like small automatic arms fire... irony being its the small print which should actually be the large print, its not just the figures people know about, its what the bills might be on return to sort out damage, excess mileage, missed service etc.
Lings Cars is always worth a poke nose, makes sense what MT says about shifting stocks, i've heard of other people getting real bargains there which 3 months down the line have gone up by a third.
The secret to bargain car buying is as said there, flexibility, its when you've pencilled your choices into a corner of one or two only that you end up paying through the nose.
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Happy New Year GB. You still have the LC then!
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Happy New Year yourself MT.
Yes have an LC still but not the same one as when i spoke to you last, swapped over to a 2005 LC5 a couple of months ago when the right one cropped up, i'd seen some real dogs before mind, looking forward to the weather breaking so i can get down and dirty changing all the transmission oils and then mega rustproofing.
Still got the Outy? or am i behind the times to.
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Yes, still have it. New in 2011 so should be a few years left in it!
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