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Leasing V Outright purchase

nick mercedes said:
Hard to he jealous of someone driving a hire car.

Perhaps this country would be in a better place if skint people were not allowed access to "luxury" imported cars at subsidised rates just so they can feel a bit more important than they really are?

Don't worry, you might be hopelessly in debt, have no real skills, a worthless throwaway degree and a pointless job in the service sector, but have a new C63 to make you feel like you're the sort of person who could actuallly afford one...

Do you not suppose the reason MB residuals are only slightly better than those of Proton Sagas is if it were not that every tom, dicky and bankrupt harry could have one for £150 a month?
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I think Hawk is right. Why buy a house you cant pay cash for? why dont you just continue to rent?
 
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hawk20 said:
And of course we would all love cars to be an appreciating asset from new! But they aren't. So whether you buy outright for cash, or choose a method that lets you pay monthly, you will still be suffering the depreciation. The only question is which method of losing money, in exchange for having a car, suits you best.
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If people want to 'finance' a car in that way, I've no gripes with that, a couple of my friends finance their lifestyle in that way and it's up to them and none of my business in that sense.

I, and this is my own personal opinion, would feel a fraud driving around in a £50k motor that I hadn't bought with my own money. That's why generally I'll drive cars between £10k-20k until the day comes when I can spend more.....
 
It is years since I've bought a car outright - it is a depreciating asset so is not a place to stick your capital.

As long as it is insured, financing it monthly and keeping to a recent model with warranty gives fixed monthly payments and some stability, and a reliable car.

In addition, for me, it's mostly covered by my business expenses.

For me straight finance over 5 yrs gives me no mileage limits and the option to change when I want, normally at 2-4 yrs. I'll buy low mileage 2-5 yr old cars and run them either to average mileage and move on or until they become unreliable (if I like the car).

If I was sat on millions, earning nowt in the bank, then maybe cash purchase would be an option.
 
nick mercedes said:
Don't worry, you might be hopelessly in debt, have no real skills, a worthless throwaway degree and a pointless job in the service sector, but have a new C63 to make you feel like you're the sort of person who could actuallly afford one...
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This is silly. They can afford one. If they can pay the deposit on a PCP and the monthly payments which cover all depreciation and interest on capital tied up while it is tied up, and the insurance road tax fuel and all other running costs, believ me they are affording one. They are covering the full costs of ownership. And people who do PCP's will over a period of ten years or so pay out a lot more than it costs to buy a car for cash.
 
nick mercedes said:
Surely the best way to invest capital is not to involve a loan or a lease where someone else takes a cut??
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Of course. Wonderful if you are one of the lucky ones with enough cash to buy your car and house without need for finance. But now let's meet the other 99% of the population who need a mortgage for a house and finance for a car. In many parts of Britain a car is a necessity not a luxury.
 
hawk20 said:
Of course. Wonderful if you are one of the lucky ones with enough cash to buy your car and house without need for finance. But now let's meet the other 99% of the population who need a mortgage for a house and finance for a car. In many parts of Britain a car is a necessity not a luxury.
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But a perfectly adequate car costs £500 or less, around the cost of one PCP rental payment.

I accept that in some parts of the UK a car could be a necessity, but in no part of the UK is a new Mercedes a necessity.

Do you not suppose that this national obession with mostly imported material things is what has led this country to the brink of bankruptcy?
 
So you're saying that nobody should be allowed to buy cars on credit? Can you imagine what the motor industry would be like if everyone had to buy cars for cash outright? It would consist of Tata Nanos and little else.

Most cars of a value exceeding 30k are financed in some way or another.
 
Peter DLM said:
So you're saying that nobody should be allowed to buy cars on credit? Can you imagine what the motor industry would be like if everyone had to buy cars for cash outright? It would consist of Tata Nanos and little else.
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New car prices might be lower and used cars might retain some value (bit like the USA).
 
Shude said:
New car prices might be lower and used cars might retain some value (bit like the USA).
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Damn right they'll be lower and retain value, because there'll only be basic ones for sale. :doh:
 
Peter DLM said:
Most cars of a value exceeding 30k are financed in some way or another.
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Because the vast majority of folk in them couldn't afford them if it wasn't for finance. I know I couldn't have bought the first Mercedes I owned without.

This one I bought cash.

People would, if it were not for easy finance, have to do the unthinkable and actually save up for their car. They'd have to save what they'd otherwise pay out in a loan, not a PCP payment as that wouldn't get them the car they are in.
 
nick mercedes said:
You are aware that used cars can be brought too?
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In the credit free world, there are only Nanos. Do you think there'd be the likes of SLs and M5s if car credit didn't exist? Manufacturers wouldn't have a business case selling a relative handful of cars every year.
 
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