What method of purchase is best for my situation?

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Yes but of course it takes effort and time to achieve this. The point made by nick froome of putting your own capital into an appreciating asset everyone understands I was extending this point saying working your own capital harder than the rate you can borrow someone elses money at.

Unsurprisingly banks etc make money from apathy and inertia with the kind of rates you quoted.

Regards
Jeremy

So, in the O/p's case, where he has a limited amount of capital invested as cash, you advise he borrows money at a higher rate.

I suspect your investments may be in the form of bricks and mortar, so not exactly liquid capital, and possibly not capital at all, since you have borrowed funds to purchase the equity.
 
Dieselman said:
So, in the O/p's case, where he has a limited amount of capital invested as cash, you advise he borrows money at a higher rate.

I suspect your investments may be in the form of bricks and mortar, so not exactly liquid capital, and possibly not capital at all, since you have borrowed funds to purchase the equity.

So in the o/p case, what is your advice?
 
So in the o/p case, what is your advice?

If the O/p is using cash capital and only getting a low rate of return and isn't intending to use that capital as a higher rate investment option, I would advise he uses the cash rather than use finance as paying interest on a depreciating asset means an additional loss.

The caveat to that is if by using finance he can obtain a better deal on the car so saving the additional interest loss and still retaining capital as a slush fund.
 
It was on the news the other night that 70+% of all new cars are financed in some way.
 
It was on the news the other night that 70+% of all new cars are financed in some way.

That doesn't make it the best method, just the easiest way to get into metal you can't afford to buy outright and the Salesperson some commission.
 
Hi all, im looking for a bit of advice and cant find the answers im looking for elsewhere so figured id start a new thread....

First off i have about £800 a month 'spare' cash left over each month after outgoings and some spending money, but im not really comfortable spending more than £400 a month on car repayments, can i even afford an MB realistically!?

Bang the loose £800 a month into the bank, wait a year and buy a half decent Mercedes.

No need to hire one.
 
dont know much about a class but if you buy used - dont forget to buy a decent warranty - at least for the first year - and read the small print - u can find decent well maintained 9 year old e320 cdi 60k milers with loads of toys for under 6k - dont know your age but insurance cost might complicate the maths - go for the inline 6 the later v6's can be high maintenance and not so frugal
 
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Bang the loose £800 a month into the bank, wait a year and buy a half decent Mercedes.

Are you feeling OK? You do know that you've recommended someone buys a Mercedes - that's very unlike you. I'll put it down as a typo and assume you meant Vauxhall.
 
Are you feeling OK? You do know that you've recommended someone buys a Mercedes - that's very unlike you. I'll put it down as a typo and assume you meant Vauxhall.

Some of the ex pcp MBs seem like very good used buys, if someone can cope with the shame of a 3 year old Mercedes that is.
 
Where has the OP gone?

I'm back! Thanks for all of the replies, i've been trying to stay away from looking at cars etc and think about what i actually want etc.

Bang the loose £800 a month into the bank, wait a year and buy a half decent Mercedes.

No need to hire one.

I've reached the same conclusion, as i'm in no rush and my A3 is still running like a dream (touch wood) i may as well put the money to one side and see what i fancy doing with it in a years time.

Hopefully ill have enough to either buy a second hand model with low mileage or at least have the bubble payment set aside if i cant find an approved used one i like and decide to go the PCP route. will be interesting to see the second hand prices of the new A-Class in a years time, although i still love the C-class!

Thanks again for all the responses guys.
 
I have been contract hiring mine for years now. Started when I was self employed and VAT reg'd as I got 100% tax relief on the rentals and my VAT back (Navara pickup therefore commercial vehicle) Once I became employed and after weighing up options it still made financial sense to me to continue even though no tax relief or VAT recoverable. I did ( still do) get a mileage allowance and cover about 25K business miles pa. I 've had a VW Touareg for the last couple of years which goes back in May, however I picked up a Suzuki Swift (Yes I know, a bit of a hairdressers but cheap as chips to run) which I now use 90% of the time. I've just ordered a new facelift E220cdi estate on a 2 year (3+23 payments) on a 15K per year contract which I will use mainly for personal use now as I'm going to continue to do my business miles in the Swift. The cost is £375 including VAT per month which works out at £9750 over the two years. I suspect that the Merc will depreciate a good deal more than that over two years with 30K on the clock. I'm not bothered about owning it at the end so it suits and works for me and I get a new car every two years :thumb:
 
I think the best way to buy a mercedes is by hire purchase as you give a deposit and pay monthly and if you want to pay it all off in one go there are no extra charges and the car is yours to keep
I currently pay around 450 for a 2013 facelift e class
 

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