[rich100]

Originally Posted by MashinBenzin

At this point can I just remind everyone of the thread titled something like 'how to create a storm in a dealership'. The headline act is among us. If you saw it, you will probably remember it

ah yes... one of the classics.

Some particularly innovative thinking from LOBB on that one if I recall.

"if you wish to complain walk into the middle of the dealership stark bollock naked"

[ZeroFx]

Originally Posted by ossi1

Clearly we have very different ideas of being "poor".

I hope she's happy but in the same situation I would have gone for the 3 year old Aygo at 0% over two years with 2 free services. No worry about a final payment and trust me she probably will be worrying. The NHS thing is a bit of a red herring. Tried it at Honda and found I could negotiate the same discount within reason online.

As you say horses for courses.

Fools and their money are easily parted.

They wonder why we dont need PCP to fund our purchases

[MashinBenzin]

Originally Posted by ZeroFx

Fools and their money are easily parted.

They wonder why we dont need PCP to fund our purchases

Or maybe the fools are the ones throwing away savings that could have made vastly more than the perceived saving of buying a nine month old vs. a heavily discounted new PCP.

[Witney]

Originally Posted by ossi1

Clearly we have very different ideas of being "poor".

I hope she's happy but in the same situation I would have gone for the 3 year old Aygo at 0% over two years with 2 free services. No worry about a final payment and trust me she probably will be worrying. The NHS thing is a bit of a red herring. Tried it at Honda and found I could negotiate the same discount within reason online.

As you say horses for courses.

Am I being dense, but where can you get 0% finance on a 3 year old used car?

[Witney]

Originally Posted by ZeroFx

Its based on a long conversation with TRL about buying a new car earlier this year.

The figures are indicative obviously. But the way PCP works means there is more borrowing involved and the costs have to go somewhere versus cash and HP etc.

Might have been an option in a specific case, but the dealer cannot always simply swap financial support for a bigger discount. (I am not even going to go into the difference in the cost of providing credit to BMWFS v benefit of credit to the customer)

[ossi1]

Originally Posted by Witney

Am I being dense, but where can you get 0% finance on a 3 year old used car?

https://www.toyota.co.uk/aygo-yaris-used-car-offer

[Witney]

Originally Posted by ossi1

https://www.toyota.co.uk/aygo-yaris-used-car-offer

[ZeroFx]

Originally Posted by MashinBenzin

Or maybe the fools are the ones throwing away savings that could have made vastly more than the perceived saving of buying a nine month old vs. a heavily discounted new PCP.

2.8-3.3% APR if i wanted.

Even if i did need the cash to do other things with. But i dont.

Plus i dont throw away anything since the costs are covered by a car allowance.

[....,,,,..,,..]

Originally Posted by ossi1

Clearly we have very different ideas of being "poor".

I hope she's happy but in the same situation I would have gone for the 3 year old Aygo at 0% over two years with 2 free services. No worry about a final payment and trust me she probably will be worrying. The NHS thing is a bit of a red herring. Tried it at Honda and found I could negotiate the same discount within reason online.

As you say horses for courses.

Do you happen to know the current wage for a receptionist at NHS?

I would class that as poor.

Anyone on or around the minimum wage is poor.

Why will she be worrying?

Obviously not everyone is the car buying guru as you are, mere mortals like this lass are quite happy with their lot.

[ossi1]

Originally Posted by Brigand

Do you happen to know the current wage for a receptionist at NHS?

I would class that as poor.

Anyone on or around the minimum wage is poor.

Why will she be worrying?

Obviously not everyone is the car buying guru as you are, mere mortals like this lass are quite happy with their lot.

Oh please..spare me the tears.

You lobbed 'poor and the huge number of issues it brings ' into the equation not me and then quoted this lady.

Having dealt with the poor over a 30 year career I reckon you might have to get out a bit more...

Your lovely lady is far from poor, she drives a brand new car purchased on credit ffs and fair play to her she probably loves it...let her enjoy it and worry about the final payment on another day eh!

[....,,,,..,,..]

Originally Posted by ossi1

Oh please..spare me the tears.

You lobbed 'poor and the huge number of issues it brings ' into the equation not me and then quoted this lady.

Having dealt with the poor over a 30 year career I reckon you might have to get out a bit more...

Your lovely lady is far from poor, she drives a brand new car purchased on credit ffs and fair play to her she probably loves it...let her enjoy it and worry about the final payment on another day eh!

Found the perfect thing for you.

http://www.haloeffects.com/STOrder.htm

[Goneinsixtyseconds]

Originally Posted by ossi1

Your lovely lady is far from poor, she drives a brand new car purchased on credit ffs and fair play to her she probably loves it...let her enjoy it and worry about the final payment on another day eh!

Why? If she can afford the monthly payment she just swaps to another at the end and never pays the final payment. Like nearly everyone on here does.

I don't even know what the final payment on mine is, I couldn't care less, I won't be buying it.

I know it's painful to know how much money people can be paying in interest, but, manufacturers have to make a profit too. She can afford the payment, the manufacturer and the dealer and the banks are making some money, everyone is happy. Well, apart from those looking in and deciding someone's being ripped off.

[MashinBenzin]

Originally Posted by ZeroFx

2.8-3.3% APR if i wanted.

Even if i did need the cash to do other things with. But i dont.

Plus i dont throw away anything since the costs are covered by a car allowance.

Very poor income rates, but I appreciate that you probably have an exceptionally low appetite for risk.

ETA. You do throw something away, the chance to make your £34k lump sum work for you and turn into something bigger.

[sahajesh]

Originally Posted by Goneinsixtyseconds

She can afford the payment, the manufacturer and the dealer and the banks are making some money, everyone is happy. Well, apart from those looking in and deciding someone's being ripped off.

Wow, who would be so judgemental? That's just harsh

[rich100]

Originally Posted by MashinBenzin

Very poor income rates, but I appreciate that you probably have an exceptionally low appetite for risk.

ETA. You do throw something away, the chance to make your £34k lump sum work for you and turn into something bigger.

When I bought my car I used a pcp, seemed like the easiest way to do it without disturbing the funds that I had invested.

The growth of those investments over the same time that the pcp ran exceeded the amount of interest I paid although I accept the reverse could have been true if the market had gone into meltdown and it does assume a reasonable interest rate rather than some of the loopy rates quoted on the AUC site.

In my view though it's better simply to remain invested rather than damage the chance of growing your capital by pumping into a car. It is as you say though very much a case of each to their own.

I'm not sure there is a definitive way that is better or worse, depends on the individual.

[isleaiw1]

Originally Posted by rich100

When I bought my car I used a pcp, seemed like the easiest way to do it without disturbing the funds that I had invested.

The growth of those investments over the same time that the pcp ran exceeded the amount of interest I paid although I accept the reverse could have been true if the market had gone into meltdown and it does assume a reasonable interest rate rather than some of the loopy rates quoted on the AUC site.

In my view though it's better simply to remain invested rather than damage the chance of growing your capital by pumping into a car. It is as you say though very much a case of each to their own.

I'm not sure there is a definitive way that is better or worse, depends on the individual.

Don’t come with all that sensible stuff to our friend ZeroFx - of course one way is always worse, he keeps saying it so it must be true...

[MashinBenzin]

Originally Posted by rich100

When I bought my car I used a pcp, seemed like the easiest way to do it without disturbing the funds that I had invested.

The growth of those investments over the same time that the pcp ran exceeded the amount of interest I paid although I accept the reverse could have been true if the market had gone into meltdown and it does assume a reasonable interest rate rather than some of the loopy rates quoted on the AUC site.

In my view though it's better simply to remain invested rather than damage the chance of growing your capital by pumping into a car. It is as you say though very much a case of each to their own.

I'm not sure there is a definitive way that is better or worse, depends on the individual.

Yes, exactly all of that. The same here and that's the choice that we made. It's worked for me on every pcp so far, although there is always the risk of a meltdown as you outline. If that happens, though, you need to remain invested or invest afresh to benefit from the following bounce.

My best result was on my first pcp where the investment growth enabled me to pay off the car from gains after 18 months. Depending on man maths application, that £18k car was free apart from £5400 in monthlies and deposit. After 3.5 years owned, it was traded for £6.5k, so arguably free car and £1.1k profit. The original funds then went towards a house move. If I had bought a nearly new car outright, I would have been hugely worse off, to the tune of perhaps £20k.

@zerofx - not suggesting your way is wrong FOR YOU but your blanket assertion that everyone else is wrong is plainly false.

[ZeroFx]

Originally Posted by MashinBenzin

Very poor income rates, but I appreciate that you probably have an exceptionally low appetite for risk.

ETA. You do throw something away, the chance to make your £34k lump sum work for you and turn into something bigger.

I've maxed out the ISA limit for the last 2 years in index funds 100% stocks.

Finance agreements also affect mortgage affordability assessments.

Low borrowing keeps my risk profile low relative to income which means i get the best rates and flexibility when i do want to borrow which is very rare.

Its also nice to psychologically have low monthly out goings.

[ByTheSea]

Have you guys considered pondering on how many angels can dance on a pin?

https://en.wikipedia.org/wiki/How_ma...ad_of_a_pin%3F

[ZeroFx]

Originally Posted by MashinBenzin

Yes, exactly all of that. The same here and that's the choice that we made. It's worked for me on every pcp so far, although there is always the risk of a meltdown as you outline. If that happens, though, you need to remain invested or invest afresh to benefit from the following bounce.

My best result was on my first pcp where the investment growth enabled me to pay off the car from gains after 18 months. Depending on man maths application, that £18k car was free apart from £5400 in monthlies and deposit. After 3.5 years owned, it was traded for £6.5k, so arguably free car and £1.1k profit. The original funds then went towards a house move. If I had bought a nearly new car outright, I would have been hugely worse off, to the tune of perhaps £20k.

@zerofx - not suggesting your way is wrong FOR YOU but your blanket assertion that everyone else is wrong is plainly false.

I said a PCP is the most expensive way to finance a car because of how they accumulate interest. If someone has one pot of 30k then spending it all on a car is not a smart move. Neither is buying a 440i on a PCP either.

Most people taking out PCP's probably barely have a pension let alone an investment plan.

[isleaiw1]

Originally Posted by ZeroFx

I said a PCP is the most expensive way to finance a car because of how they accumulate interest. If someone has one pot of 30k then spending it all on a car is not a smart move. Neither is buying a 440i on a PCP either.

Most people taking out PCP's probably barely have a pension let alone an investment plan.

Another blanket assertion... shall we have a little check - if you have a PCP and a pension plan, please reply to that effect.

I will go first - I do (and an investment plan)

[rich100]

Originally Posted by isleaiw1

Another blanket assertion... shall we have a little check - if you have a PCP and a pension plan, please reply to that effect.

I will go first - I do (and an investment plan)

Have both also.


Playing devils advocate though I suspect that this forum may not be truly representative of the population as a whole.Perhaps it's not even true of the forum, I don't know.

I think more generally there is a tendency to fund things through borrowing, coupled with a need for instant gratification.

investment may not be a priority for some and possibly treated with suspicion given its perceived risk and complexity.

It's a shame because it doesn't necessarily have to be that way. A passive index fund as a start point for example is not complex and by its nature mitigates risk to some degree through its diversification.

Sorry I think I've drifted away from the point... oh yes something about VT