Recommend me a new / next car
10-11-2016, 02:05 AM
#91
Banned
Originally Posted by Nottm_S2' timestamp='1476174301' post='24081237
I don't see rates increasing to those levels anytime soon, they've (central bankers) created a monster addicted to cheap credit which it will take years of 25 basis points rises to eradicate. I think if rates went to 2% or 3% tomorrow there'd be a huge economic tsunami and certainly people wouldn't be affording their mortgages at 6%, that wont go away anytime soon but the low rates are kind of self fulfilling in that without them the debts will go bad but with maybe not. For VW i guess they have the finance in place at fixed cost.
So these deals are good for people who need a hack. i have no commute, we use the missus' car for everything and she is also a ding magnet so wouldnt suit her or me.
the flood of Golf R's in years to come may make a decent hack though. Not at nearly £20k but closer to £10k
So these deals are good for people who need a hack. i have no commute, we use the missus' car for everything and she is also a ding magnet so wouldnt suit her or me.
the flood of Golf R's in years to come may make a decent hack though. Not at nearly £20k but closer to £10k
10-11-2016, 02:24 AM
#92
Cars are much more short term than those crazy structures
I hope they do affordability checks too
And maybe they just ramp the RRP to support the lease market. Anyone actually buy these days?
I hope they do affordability checks too
And maybe they just ramp the RRP to support the lease market. Anyone actually buy these days?
10-11-2016, 03:48 AM
#93
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This is the the craziness of these rentals, 200 quid month for this sort of car is no brainer for me. If 500 quid comes in from the firm, I sit in this and have few quid left over with no tax impact.
The alternative is that I paid 400 in tax and lose the 500 allowance. Or a pay 30 large out of my own reserves.
The alternative is that I paid 400 in tax and lose the 500 allowance. Or a pay 30 large out of my own reserves.
10-11-2016, 04:13 AM
#95
Banned
This is the the craziness of these rentals, 200 quid month for this sort of car is no brainer for me. If 500 quid comes in from the firm, I sit in this and have few quid left over with no tax impact.
The alternative is that I paid 400 in tax and lose the 500 allowance. Or a pay 30 large out of my own reserves.
The alternative is that I paid 400 in tax and lose the 500 allowance. Or a pay 30 large out of my own reserves.
So the line about buying out of my own money versus renting is based on a fantasy that the choice exists.
The ONLY way most people can get into a new £30K car is by renting it.
All of which is fine until the ride stops.
10-11-2016, 05:07 AM
#96
I suppose the only upside to that is that cars usually have wheels underneath - they have to find it before they can snatch it back off you!
The problem is, if you have no equity in your rentals, how do you start again?
For most people, it is however beyond the wall of worry; there's no tomorrow. The Septics migth start WW III before then, to help with the hyperinflation.
Debt slavery is the new reality.
The problem is, if you have no equity in your rentals, how do you start again?
For most people, it is however beyond the wall of worry; there's no tomorrow. The Septics migth start WW III before then, to help with the hyperinflation.
Debt slavery is the new reality.
10-11-2016, 05:10 AM
#97
Another downside to these rentals is they are returned in a crap condition.
We went to look at March 2013 Panda over the weekend to use as a daily beater - only 6k miles and described as excellent condition with full service history.
In reality, it had been serviced once (so not a full (annual) service) and every panel had a dent or scratch. There were also some interesting stains inside...the salesman couldn't understand why we walked away, despite me explaining that clearly we had different definitions of "excellent" condition.
We went to look at March 2013 Panda over the weekend to use as a daily beater - only 6k miles and described as excellent condition with full service history.
In reality, it had been serviced once (so not a full (annual) service) and every panel had a dent or scratch. There were also some interesting stains inside...the salesman couldn't understand why we walked away, despite me explaining that clearly we had different definitions of "excellent" condition.
10-11-2016, 05:18 AM
#98
UK Moderator
I'd say there are two other options:
If one was looking at a £30k car, that'd be £24k with the aforementioned 20% discount. A bank loan for £24k over 84 months would be £325 per month (at 3.8% APR).
You could then (if you chose) sell the car after 36 months and get a new one, increasing the loan accordingly (assuming interest rate Armageddon hasn't happened by then - if it has, hang on to what you haveor sell the car and pay off the outstanding loan, or most of it at least.
The maths vary of course, but it's worth considering.
- One of those PCP deals, where you are effectively buying a share in the car. This is the most common way people buy cars these days, and a great way for manufacturers to guarantee repeat business with nice margins on the second hand market.
- A good old bank loan. Interest rates are fixed and low at the moment, so you are immune from rate rises, and you own the car from the outset.
If one was looking at a £30k car, that'd be £24k with the aforementioned 20% discount. A bank loan for £24k over 84 months would be £325 per month (at 3.8% APR).
You could then (if you chose) sell the car after 36 months and get a new one, increasing the loan accordingly (assuming interest rate Armageddon hasn't happened by then - if it has, hang on to what you haveor sell the car and pay off the outstanding loan, or most of it at least.
The maths vary of course, but it's worth considering.
10-11-2016, 05:23 AM
#99
£24k down to £20 something in a year is more manageable
its interesting maths.
Probably the key question if you do have £30k.. or £24k.. lying around is 'Why bother?'
if i needed a daily i'd struggle with that
its interesting maths.
Probably the key question if you do have £30k.. or £24k.. lying around is 'Why bother?'
if i needed a daily i'd struggle with that
10-11-2016, 05:23 AM
#100
Banned
Originally Posted by gaddafi' timestamp='1476187985' post='24081321
The ONLY way most people can get into a new £30K car is by renting it.
- One of those PCP deals, where you are effectively buying a share in the car. This is the most common way people buy cars these days, and a great way for manufacturers to guarantee repeat business with nice margins on the second hand market.
- A good old bank loan. Interest rates are fixed and low at the moment, so you are immune from rate rises, and you own the car from the outset.
If one was looking at a £30k car, that'd be £24k with the aforementioned 20% discount. A bank loan for £24k over 84 months would be £325 per month (at 3.8% APR).
You could then (if you chose) sell the car after 36 months and get a new one, increasing the loan accordingly (assuming interest rate Armageddon hasn't happened by then - if it has, hang on to what you haveor sell the car and pay off the outstanding loan, or most of it at least.
The maths vary of course, but it's worth considering.