How to buy an expensive car!
12 November 2010, 12:14 PM
#31
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If you only invested in something to earn money, what would be the point if you don't spend it on something you like/want.
For someone to have £85k to spend on a car, you have to assume they already have a house and are living quite comfortably in order to have saved £85k to spunk on a car.
Depreciating asset = stupidity? Should have invested.
When are you getting your depreciating TT-RS?
For someone to have £85k to spend on a car, you have to assume they already have a house and are living quite comfortably in order to have saved £85k to spunk on a car.
Depreciating asset = stupidity? Should have invested.
When are you getting your depreciating TT-RS?
12 November 2010, 12:41 PM
#32
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Same thing happened to me when i bought the wife a Mini Cooper. Part ex plus cash and the salesman tried pushing finance and even brought out the finance manager to explain how low a rate he could get!
12 November 2010, 12:45 PM
#33
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Nik - briefly had the same on the BM - I was asked a couple of times if I wanted to speak to some finance guy about various options. After the third time of saying WE ARE PAYING IN CASH, they gave up!
Have even had them telling me finance is a better option than cash - errmmm yes. Purchase price + **** loads in interest - of course Mr Sales person!
Have even had them telling me finance is a better option than cash - errmmm yes. Purchase price + **** loads in interest - of course Mr Sales person!
12 November 2010, 12:59 PM
#34
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banks have very strict rules on handling cash due to the anti money laundering regulations
(I tried to transfer 500k in cash from a Bolivian bank last year-- what a hassle that was)
(I tried to transfer 500k in cash from a Bolivian bank last year-- what a hassle that was)
12 November 2010, 01:00 PM
#35
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If you only invested in something to earn money, what would be the point if you don't spend it on something you like/want.
For someone to have £85k to spend on a car, you have to assume they already have a house and are living quite comfortably in order to have saved £85k to spunk on a car.
Depreciating asset = stupidity? Should have invested.
When are you getting your depreciating TT-RS?
For someone to have £85k to spend on a car, you have to assume they already have a house and are living quite comfortably in order to have saved £85k to spunk on a car.
Depreciating asset = stupidity? Should have invested.
When are you getting your depreciating TT-RS?
You cannot seriously tell me tying up money in a heavily depreciating asset makes financial sense?
Buy a £90k car just now and it will cost you £50k in depreciation over the next 3yrs easy. Work out the maths on how much that same car would cost you over 36mths on a finance agreement (lease) and then offset that against A) Depreciation of the vehicle, and B) Missed investment opportunity.
I could spend that same £90k on a 2bed flat that would generate an income of £575pm. Over the next 3yrs, the flat rises in value upto £100k. Add on the £22k or so in rental that you would have made minus 40% tax, and that i'm sure you'll agree is a sound investment plan. You could potentially go 1 step further and re-invest the rental income to generate yet another income but I wont drive down that far.
At year 3 with the flat, you have worth of £115k or so. At year 3 with the car you have worth of £40k or so. Now do the maths as to what 36mths worth of leasing the £90k car would cost you and check your sums
I'm not an accountant or a banker, I just think tying up that level of cash into a heavily depreciating asset is ludicrous. Even more ludicrous than financing a vehicle through PCP finance yes.
But hey, that's just me. I'd only ever buy a high value car with cash if money was no object.
Last edited by Mitchy260; 12 November 2010 at 01:24 PM.
12 November 2010, 01:14 PM
#36
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Nik - briefly had the same on the BM - I was asked a couple of times if I wanted to speak to some finance guy about various options. After the third time of saying WE ARE PAYING IN CASH, they gave up!
Have even had them telling me finance is a better option than cash - errmmm yes. Purchase price + **** loads in interest - of course Mr Sales person!
Have even had them telling me finance is a better option than cash - errmmm yes. Purchase price + **** loads in interest - of course Mr Sales person!
12 November 2010, 01:23 PM
#37
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Mitchy, I understand your logic but you have no idea about the finances of the women mentioned in the original post.
Lets say you had £50m in the bank, would you worry about buying a depreciating asset?
Lets say you had £50m in the bank, would you worry about buying a depreciating asset?
12 November 2010, 01:30 PM
#38
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To be fair, I did edit my point to add that part in. If money was no object then definitely not.
12 November 2010, 01:35 PM
#39
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You can't drive a house or an apartment, it's just....there.
Buying a car will never make financial sense (unless it's a very rare exotica), but by God, with the right choice of car think of the fun you can have
Long time dead.
Buying a car will never make financial sense (unless it's a very rare exotica), but by God, with the right choice of car think of the fun you can have
Long time dead.
Last edited by zip106; 12 November 2010 at 01:36 PM.
12 November 2010, 02:10 PM
#42
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Mitchy260, it sounds like you're advocating borrowing money on a car so that you can use your cash to speculate on property?
And no, I wouldn't pay £575 per month to rent a horrible rabbit hutch of a flat that costs £90k. I'd pay another £250 a month for a large detached farmhouse with land, views and nearest neighbours 5 minutes walk away.
And no, I wouldn't pay £575 per month to rent a horrible rabbit hutch of a flat that costs £90k. I'd pay another £250 a month for a large detached farmhouse with land, views and nearest neighbours 5 minutes walk away.
12 November 2010, 03:29 PM
#44
Im with Yorkshire Bank ,and I went in there the other day with £185
in cash to deposit and they told me to get f**cked .!!!
Now thats being real tight on money laundering .Kin arms were the length of a Gibbons by the time I carried it home again !!!!
12 November 2010, 03:59 PM
#45
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I've got £200 in cash in my pocket right now and it's not heavy.
12 November 2010, 04:41 PM
#48
A friend of mine (yes, a banker) went out to buy a car.
First of all she went to the Porsche dealer where they showed her a one year old C4S with a sticker of £95k (how it was that much boggles my mind!).
After much farting around to see if her golf clubs could be put in it she made an offer and said she would buy it if the price started with an 8. The salesman messed about, spoke to his boss and said no. He said he would speak to her after the weekend.
Not deterred she then went down the road to the Aston Dealer where they had a Vantage that was only a few months old for £85k. She thought, oooh, cheap! And bought it on the spot.
The following Monday, the Porsche guy phoned to find he lost his sale. And she also bought a small Mercedes as she realised the Aston wasn't practical day to day around Leeds!
The wierdest thing is that this is by far the most she has ever spent on a car (by threefold) and yet the buying process was simply I want to buy an expensive car today!
First of all she went to the Porsche dealer where they showed her a one year old C4S with a sticker of £95k (how it was that much boggles my mind!).
After much farting around to see if her golf clubs could be put in it she made an offer and said she would buy it if the price started with an 8. The salesman messed about, spoke to his boss and said no. He said he would speak to her after the weekend.
Not deterred she then went down the road to the Aston Dealer where they had a Vantage that was only a few months old for £85k. She thought, oooh, cheap! And bought it on the spot.
The following Monday, the Porsche guy phoned to find he lost his sale. And she also bought a small Mercedes as she realised the Aston wasn't practical day to day around Leeds!
The wierdest thing is that this is by far the most she has ever spent on a car (by threefold) and yet the buying process was simply I want to buy an expensive car today!
1) Is she fit?
2) Is she available?
12 November 2010, 05:03 PM
#54
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It's amazing!
You give a dealer £37k and also pay them £500+ per month and after 3 years they give you back about £55k (but they get to keep the car now) ...... oh hang on.... that's not quite right, is it?
You give a dealer £37k and also pay them £500+ per month and after 3 years they give you back about £55k (but they get to keep the car now) ...... oh hang on.... that's not quite right, is it?
12 November 2010, 05:05 PM
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12 November 2010, 05:10 PM
#59
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£2.5k + £598 x 35 = £23.4k. On a £37k used car.
R35 is predicted to lost £20k in the same period (from 1 to 4 years old). Of course that doesn't include finance, but for me that is quite enough to lose already without even thinking about the extravagance of financing it.
To me, finance is for an education, primary dwelling and business assets. Maybe I'm just too conservative, but I already got stitched up like a kipper once on HP at 9.9% for a sodding Focus in the late 90s. Early termination of that one due to a barrell roll and a brick wall. I lost my deposit which was about 20% plus all the payments in the first year and walked away with nothing except my health (they crash well) and the dubious pleasure of a year with a Focus.
R35 is predicted to lost £20k in the same period (from 1 to 4 years old). Of course that doesn't include finance, but for me that is quite enough to lose already without even thinking about the extravagance of financing it.
To me, finance is for an education, primary dwelling and business assets. Maybe I'm just too conservative, but I already got stitched up like a kipper once on HP at 9.9% for a sodding Focus in the late 90s. Early termination of that one due to a barrell roll and a brick wall. I lost my deposit which was about 20% plus all the payments in the first year and walked away with nothing except my health (they crash well) and the dubious pleasure of a year with a Focus.
Last edited by john banks; 12 November 2010 at 05:21 PM.
12 November 2010, 06:16 PM
#60
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If you are going to buy a flat for 85k you wouldn't use your own money either unless you had hundreds of thousands. You'd get a motgage for the flat so you got 40% tax relief on the interest.