Finance Help

[Lady Penelope]

I'm with you on the irrational decisions but why not buy what you can afford and enjoy it?

Don't pay someone else in commission and interest.

You've clearly some funds available so spend them, that's all I'm saying.

It's only lining someone else's pockets and if the deal was that good then everyone would be doing it.

Glad to see the forum alive with banter though. Reassures me it is worth staying..

[PSB1]

I think - as outlined already above by others - for most people on here it probably isn't an either/or decision. Given the ability to purchase outright or fund with a portion of spare disposable income it's often just less disruptive to finance.

For me, it's a segment of income which I reserve and completely write-off for fun. As long as you into it fully informed, I don't see an issue.

Over-stretching yourself, funding cars instead of saving, instead of holidays or just to keep up with the Jones' is loopy though.

[S4WON]

It wasn't about affordability for me, it was about feeling like I wasn't getting bent over for the pleasure.

What I didn't realise about PCP (till i ran the numbers myself) is that you are paying interest on the total amount of the car yet actually only "borrowing" against the depreciation.

I.e the cars GFV is never at risk to the finance house which when you think about it makes it a very expensive way to borrow.

So i bought a rs4 instead

[HYFR]

take this scenario

you own £1m of unencumbered property with a yield of 5%. You have a cash deposit of £25k. You do not want to mortgage the property to fund a car

£50k pa. gross rental income
after tax and living expenses etc you have £10k pa of pure disposable car fun income

You want to buy a £65k R8 V10.

Option a: Save for 4.5yrs to buy in cash
Option b: Finance it and buy it tomorrow, but pay interest to the man

Of course, in a purely rational, minimum expenditure perspective, you would choose option a .... but by the same logic you would buy a diesel Golf.

life is too short

[S4WON]

That example is very relevant to me

Option C
Sell existing car
Add 25k
Buy good as new RS4

I get it, I really do. I just don't like paying the man i guess.

C7 RS6 will likely be next, in a couple of years, sell RS4 and add another 25k!