Finance Help

[Wotsirb]

If you're putting in less than 10% then you'd be financing too much.

For example, I had a guy come in with a B8 RS4 who put 20k down (remember, this can be a PX, treat this as cash). His payments were £300 per month (dirt cheap right?)

He only had £5k equity and couldn't put down another big deposit. His payments on a Golf R worth 30k less were coming out at £450 per month. Imagine what it would have been on another RS4. My point is, don't expect to get out what you put in. You'll need to match the deposit next time to get into another car of a similar value for the same price, so yes, middle ground is the best solution. The other trouble with high performance cars is the depreciation... Dealers will have a harder time shifting high performance cars unless they're unbelievably priced.

[PSB1]

Ok, got it. So there are actually people out there who think you can roll a big deposit from one agreement to another? Wow. No, you fund the depreciation one way or another - via deposit or monthly payments.

Which ever way you cut, you lose a fortune have a blast on the way.

[Wotsirb]

If you're smart you can minimise your losses. So long as people are AWARE of where their money is going/will go thats all that matters. All about the informed decision

[Lady Penelope]

Get a better paid job and buy outright?

Live within your means and all that..... Buy what you can afford and if you can't aim lower and live well.

LP

[S4WON]

Lady P! Wb!

[HYFR]

Get a better paid job and buy outright?

Live within your means and all that..... Buy what you can afford and if you can't aim lower and live well.

LP

thats bollux.
modern financial markets allow for people in the 21st century to pay for just the depreciation of the car.
unless you plan to keep the car till the day you die, then there is no reason to buy it outright only to then have to sell it at a given point in the future.
if you can afford the depreciation, you can afford the car ... no bollux about no affording the car if you can't buy it outright

[S4WON]

Id sort of agree with the "if you can afford the depreciation" line if the car was an appreciating asset (like a house, interest only mortgage example maybe) but it ain't...

I know you are a numbers man DK, but just because you can afford an interest payment doesn't mean you should, does it?

Let me ask you a hypothetical question.

I'm going to buy a new Audi RSwhatever
I have cash, access to a bank loan and access to PCP.
For arguments sake the APR is the same for credit (5%) and Im getting 2% on my cash.

Which is the best way to buy my car?

[doodlebug]

Have a word with yourself for only getting 2% on your cash!!

[S4WON]

Yeah, I knew I shouldnt have bought 100ks worth of VAG shares last month!

[HYFR]

Id sort of agree with the "if you can afford the depreciation" line if the car was an appreciating asset

??? eh

read what you have wrote again !

[S4WON]

Im just smashing random keys tbh..

I think the point I was trying to make is that PCP is a great way to have the car, but not the best way to buy one

Cash is still king, especially in this crappy market
Then a bank loan
Then PCP

No?

[HYFR]

I'm going to buy a new Audi RSwhatever
I have cash, access to a bank loan and access to PCP.
For arguments sake the APR is the same for credit (5%) and Im getting 2% on my cash.

Which is the best way to buy my car?

cash obviously, unless you are Donald Trump or having good investment opportunities

the point is, if someones disposable income per month after all bills etc is a couple of £k, they have £1m of assets, and a big enough deposit ... then yes they can afford a car that they may not have the upfront cash for right now, their only penalty is interest payments, but hey ho ...

[S4WON]

Thats a lot of lolly to pay on a 90k car though,, i guess in the real (non rs6) world, its not crazy.

Pays your wages too?

[HYFR]

life too short

[S4WON]

Know what? You're right..

If everybody made decisions based on financial sense they'd be nothing worth busting our balls for.

Amen to making irrational decisions!