Finance (Can of Worms?)

[Dom81]

Twenty years of company cars have left me totally ignorant of the best way to actually buy a car...

I'm about to order an RS4 Avant (per my other post) and was planning on actually paying for the thing, but reading more leads me to think I might be doing the wrong thing

The car will be a weekend / holiday / track / work (occasionally) toy more than a daily runaround; parked in central London with associated dents and dings to deal with and straighten. Would be the family replacement for the S4, but Ken's latest stunt of no residents discount for high emission cars (and a planned increase in daily rate to £25) means the school run car needs to be leaner! Certainly no more than 8k p/a mileage and there's likely to be something else (Audi I hope) that takes my fancy in 3 years or so

Does anyone have any suggestions - I'm talking method rather than specific broker - especially since it seems some use the forum for business. Happy to consider any option from outright purchase to highway robbery...

Really appreciate the advice so far - I might not have ordered the car yet, but I bought an RS04 plate today!

[david7m]

If you have the cash to buy the car outright, then that will be cheaper than any loan/finance deal. The interest earned on £50k in the bank is going to be far less than the interest you'll pay on a £50k loan...if that makes sense.

If you have some deposit money and need to make up the difference with either a finance package or loan, then I think finance is a preferred option from many on here! I personally would either get a non Audi finance package or loan, ie so you are not tied in with Audi if it all goes Pete Tong!

I think a user on here, Kam100, has sorted a few people out. Drop him a PM.

Also, try searching "finance" on here, it has been discussed many times.....

Dave

[PaulL]

Kam is definately the person to talk to.

He has arranged finance for me on a number of cars and I would hightly recommend him.

kam@mhasnain.co.uk

[PhilT]

It would be nice if these people who charge a pretty penny for their services put a little something into the site.....

We will soon have a Site Sponsor offering finance options with excellent rates and exceptional service.

[DuncanMac]

Iain M @ Pitstop automotive all the way.....

Sorted my RS4 finance out and is an absolute gem. Will help you with whatever you need and isnt at all pushy. Say Duncan sent you.

www.pitstopautomotive.co.uk

He is a user on here so I am guessing he might be along at somepoint...

[david7m]

We will soon have a Site Sponsor offering finance options with excellent rates and exceptional service.

Dave

[Dom81]

Thanks to everyone for their comments / suggestions, but I fear I might not have been clear enough in my original post.

Rather than looking for suggestions of specific financiers, I'm really asking how best to buy a car (given my likely usage and length of ownership)

More than happy to buy without any form of finance (and agree with davidm's view that this is more cost efficient way) but was just wondering what the best from of ownership is - outright or on some form of contract or lease. Are there benefits to the latter which might outweigh any interest charge, or is the general rule that if you've got the cash then use it?

Much appreciated

[JamieG]

Methods of financing generally are cash, straight HP, Lease Purchase (HP with a balloon), PCP or contract hire.

The answer to your question depends on circumstances. If you are buying the car for private use, are unsure of your annual mileage or indeed how long you want to keep the car for then i would suggest instalment credit i.e. HP or LP. If you want to build up equity then pay the debt off with HP or if you want minimum instalments then consider a balloon payment (at your risk) with LP - A variable rate balanced payments plan would allow you to settle early or make overpayments with no or minimal penalty.

PCP and contract hire are useful if you know your mileage, tend to change your car in a cycle i.e. every 3 years and don't want to carry the risk of future value of car / want a fully maintained package - however these plans can be expensive and inflexible if you want to get out early.

I hope this helps, let me know if you want more information specific to your circumstances.

Jamie