How did you pay for your car...?

[ppysjrh]

Afraid this is a little boring, but I do a lot of work with retail banks, most of whom provide finance for cars (Renault Financial Services, for example, is part of HBOS). This got me thinking, what proportion of owners take out finance on their cars? Would do one of those poll thingies, but not sure how, so short answers along the lines of cash/garage finance/personal loan will do!

Obviously, if you dont want other people to know then don't reply!

 

[Andy_con]

cash the best way

 

[MikeDX]

I paid with my soul as it's a company car.

 

[Storm_Force]

Never had a loan / credit card etc. Always pay for it with cash.

 

[ppysjrh]

forgot to mention... i saved up and paid cash

 

[Mattieuk]

cash and a PX

 

[Steve2004]

Paid for it up front in full using a building society cheque (basically cash).

 

[TrophyBoy]

Paid using debit card.

Told dealer that I was interested in 0% finance (but only 0% - nothing else) and he said that they could do it but would up my part exchange offer if I paid full amount "because if you take 0% credit we have to pay for it".

 

[edde]

Trade in plus two cheques.

 

[Clio 1.216v Dynamique]

Cash, (Building Society Cheque) same as cash cleared funds

 

[Drift_King]

Finance gutted

 

[DaveJwxm]

bank loan 6.9% not too bad

 

[Nicksie]

£7000 cash £5000 on finance with Renault paid off two years early

 

[Leeds_VTO]

monoply money

 

[Nez]

PX + Cash

 

[*Clare*]

part ex and loan.. 5.6% northern rock!!!

 

[Storm_Force]

monoply money

Cool will give that a go :clown:

 

[klmillard]

Cash all the way. Dont do loans, finance etc. If I aint got the money then I cant afford it (Thats what my grandad taught me, and I reckon he is right)

 

[DaveJwxm]

Cash all the way. Dont do loans, finance etc. If I aint got the money then I cant afford it (Thats what my grandad taught me, and I reckon he is right)

v true my dad is like that, but i just give in everytime

 

[ppysjrh]

Thanks for all the responses. Does anyone know how to start one of those poll things (like the "what car do you own?" one)? Would be interesting to get lots of responses.

 

[172.com]

Cash and 0% Renault finance

 

[dick]

cashhh

if you aint got the cash, you cant afford it, been drilled into me from a young age by mother, would never lend me money from allowance, had to wait

 

[klmillard]

I find people who pay cash for things tend to appreciate them more than people who get them on finance. I think its too easy to get finance where as if you save then you realise how much hard work it took it get what u have

 

[Waitey]

I stole mine

 

[ppysjrh]

I find people who pay cash for things tend to appreciate them more than people who get them on finance. I think its too easy to get finance where as if you save then you realise how much hard work it took it get what u have

I'm with you there, there's not many better feelings in life than the satisfaction of saving for something for a while, doing some research, finding a good one, buying it and then giving it a damn good thrashing!

Apart from sex, obviously.

 

[*Clare*]

I find people who pay cash for things tend to appreciate them more than people who get them on finance. I think its too easy to get finance where as if you save then you realise how much hard work it took it get what u have

Not everyone!!!

I have a loan to pay for my car.. I appreciate it and it is washed weekly and loved!!!!

 

[klmillard]

I know that aint the case of every1 but do think it is the case with a lot of people who pay on HP.

 

[ppysjrh]

buying on HP makes it too easy imo. i could go an buy a new 911 on HP tomorrow, it'd just take me about 10 years to pay for it, and it'd end up costing me about 100k!

 

[klmillard]

I remember seeing program compairing Finance people to cash people and the differences. I think it was something like the finance people will spend on average a 3rd more in there life time for the same things as cash people and that is with them being perfect paying finance people and dont default etc which would obviously cost them more. After watching this I thought to myself I will pay cash for everything and save up. Obviously 99% people have a mortgage though and so this was not taken into account on the program.

I am 25 now and to be honest I think I have more than most of my mates who are HP people but it takes patients as they will just go out and buy a car when they decied the want it but I may have to save up for it.

 

[Josh]

cash. best way.

 

[Josh]

I am 25 now and to be honest I think I have more than most of my mates who are HP people but it takes patients as they will just go out and buy a car when they decied the want it but I may have to save up for it.

Yeah same here mate, + when your saving the car will come down in price!

 

[ppysjrh]

big difference between car finance and a mortgage is that, on the whole, cars depreciate and property appreciates.

Buy a depreciating assets (car) and financing it with an appreciating liability (ie a loan) doesn't make sense, as the difference between the two is the cost to you! In two years your car may depreciate £1,500 but if you had a loan you may have paid £1,000 in interest too, hence the cost to you is nearly twice what it would be if you bought in cash! do the math, i just did...!

 

[Leeshez]

I paid a deposit over the phone and rest on my switch card.

 

[boulterboy]

Cash!

 

[klmillard]

ppysjrh - You think the same as me pal, i say this to my mates all the time bit they cant see my point. Fine for them but finance aint for me as I aint into spending over the odds. people wont pay more for a car than its worth then they go and finance it and spend more for the car over time, crazy!

My mates always say I am the silly one as my credit score will be fecked as I dont do credit, but I say a credit score and credit history is only usful if you WANT CREDIT. I wont use credit so why do I give a toss if my credit score is crap, it just dont effect me. The only credit I have is 2x mortgage, one as a buy to let (joint 50/50 with my mum) and one on my own house and my "bad" credit score dont seem to have affected me getting these mortgages at a good fixed rate.

Nothing wrong with HP/Credit etc as long as it is under control but it aint for me

 

[tommyboy]

PX and a 4.7% Nationwide personal loan 2 years ago... not a bad rate hey.

 

[Adamhodg]

cash for me. plus a small loan from dad as he suggested i didnt spend all my money and kept a bit for maintenence ( and oh was he right lol)

 

[ppysjrh]

ppysjrh - You think the same as me pal, i say this to my mates all the time bit they cant see my point. Fine for them but finance aint for me as I aint into spending over the odds. people wont pay more for a car than its worth then they go and finance it and spend more for the car over time, crazy!

Nothing wrong with HP/Credit etc as long as it is under control but it aint for me

Yeah, as long as you can service your finance it's all good, getting behind is bad news, as they'll take away your pride-and-joy!

I'm still not sure how credit scoring works (even tho I do consulting work for a certain credit card that used to sponsor the premiership...), some say that taking as much finance as you can and servicing it properly will give you a good credit rating, as will being a "rate tart" and moving balances from 0% deal to 0% deal. Weird.

 

[jooliona]

I paid with my soul as it's a company car.

haha nice one

bankers draft for me

 

[gazcaddy]

Half in cash half loan from my bank 5.8%

When i lived with my mum and dad its easy to save loads of money. Now I have a mortgage and bills to pay its a bit more tricky to save.

I dont see anything wrong with buying on finance, obviously you pay the interest and it enables you to get something quicker. I will stress though I would only get finance if i could easily afford to repay it. I agree there are two many companies offering too many people too much money hence the reason people get into stupid amounts of debt