:lol1: :lol1:

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!

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 + sh1t loads in interest - of course Mr Sales person!

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 do not need to worry about depreciation, Audi will buy the TT back from me at a GFV at some point in the future. On a PCP, although I'm the registered keeper, I am really just leasing it from Audi finance for a set amount each month. The car will never be an asset of mine. I may have a few thousand equity in it when I come to change the car, but that will just be for a deposit on the next car. (Is leasing a car any different than paying rental on a home? Neither is an asset. Big can of worms.)

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.

To be fair to the salesman he's only doing his job. He gets paid on finance so he's going to push it. :)

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?

To be fair, I did edit my point to add that part in. If money was no object then definitely not.

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 :thumb:

Long time dead.

Yacht/private aircraft sales would also stop if multimillionaire owners worried about depreciation!

I Suppose we should be grateful shes squandering our cash on something more british than the porker , id give er that

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.

im with first direct so part of hsbc, let me do a 28k transaction 15 months ago

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 !!!!:cry::cry::cry:

You wimp - £185 is hardly heavy.

I've got £200 in cash in my pocket right now and it's not heavy.

:)

It was in 2p,s ,5p,s and 20p,s .!!!!!:brickwall:brickwall:brickwall

I'd have told you to get F**ked too. :D

1) Is she fit?

2) Is she available?

That's all I needed to read to read to understand that you know nothing about finance, financing or the deployment of capital.

Well done :)

Where do I find these depreciation proof Audis you speak of?

I'll actually FORCE my wife to have one if you show me.

:)

I struggle to see how paying out about two thirds of the value of a used car to run it for three years and then give it back is a good deal.

No and No.

If she was either do you think I would be telling you lot?!!!!!

I think he mentioned a residual of £17k somewhere.

Sounds like £20k depreciation to me. I reckon the Aston is looking like a good buy?!

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? :Suspiciou

I'm not "you lot" thank you very much!! :p

LMAO so hard I nearly shat my pants! :lol1::lol1::lol1::lol1::lol1::lol1::lol1:

If you take into account the £500 pm 'lease' payments then you could argue depreciation is a lot more.

Absolutely! :thumb:

£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.

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.