Finance or cash up front for a car ?

Ensti · 10-09-2011 1:22am #1

Hi, as some of yous may know I'm looking for a car for work. At the moment, I'm renting a car to get me to Kerry and back.

Myself and my fiance were talking about financing a car. Would we be mad to do this ? If we buy in cash we have a budget of €20K. This would be a car for me.
I took a look at 2010 Impreza's & Legacy's. 2011 Dodge Nitro. And a 2010 Citroen C5. All within the €20K cash budget. As for financing (Roughly €50K), we looked at the BMW X3, Audi Q5, Audi A5 SB, Merc C-Class 220 CDI AMG Sport. But, if we finance. Would it be better to wait until 2012 ?

Thanks guys

andyseadog · 10-09-2011 1:32am

if you have 20k to sped up front on a car, no way would i consider finance. 20k buys lots of car.

bazz26 · 10-09-2011 1:58am

You both would want to have very secure jobs to borrow that kind of money on a car in the current economic climate. I suppose you have to ask yourselves if one or both of you lost your job(s) could you afford to still pay the finance?

Delancey · 10-09-2011 3:22am

Crazy to use finance OP - no way that makes sense , if you have 20,000 cash then use that - avoid borrowing where possible ( in your case there is no need to borrow ).

Mar4ix · 10-09-2011 8:01am

I had same problem a year ago, at the end, i choose pay cash.... glad i did it...

_Conrad_ · 10-09-2011 1:11pm

Get a legacy estate within your cash budget. Practical-ish car, nice to drive, good in all weather conditions.

You'd be nuts to get a car on finance if you'd that much cash available to buy one, finance will cost you more in the end, and as has already been said if your circumstances changed you could be in difficulty.
Owning the car outright will be a weight off your mind

lomb · 10-09-2011 2:52pm

If in the UK I would disagree strongly with the cash argument. One can lease a new C class estate there for around 350 euros a month all in over 3 years. Why bother buying when the lease companies can negotiate such large purchase discounts on new motors. Here its a little different, the same C class will probably be around 700 a month.

Pdfile · 10-09-2011 4:36pm

lomb wrote: »

If in the UK I would disagree strongly with the cash argument. One can lease a new C class estate there for around 350 euros a month all in over 3 years. Why bother buying when the lease companies can negotiate such large purchase discounts on new motors. Here its a little different, the same C class will probably be around 700 a month.

because just like when you start out... i always thought it was for when you're upgrading per say... then you have something to put against the new purchase.

Atlantic Dawn · 10-09-2011 4:43pm

My depressing recession look on things at the moment....I'd nearly max out at €10k of a spend unless you both work in a 100% secure job, ie the civil service. If one or both lose your job you may not be able to keep up payments, it's quite easy to sell something on below €10k privately if you have to leave the country to get a job and have the other €10k to set yourself up for a few months. If buying new wait until 2012.

-Corkie- · 10-09-2011 4:44pm

I got a car loan once and I swear never ever again. Use the cash OP, borrowing 20K will cost u nearly 25K.

Drummerboy08 · 10-09-2011 4:51pm

lomb wrote: »

If in the UK I would disagree strongly with the cash argument. One can lease a new C class estate there for around 350 euros a month all in over 3 years. Why bother buying when the lease companies can negotiate such large purchase discounts on new motors. Here its a little different, the same C class will probably be around 700 a month.

There is no such thing as personal Contract Hire in Ireland. It's a UK thing.

And I'd imagine the same C Class would be closer to 900/1000 here.

OP, 20k will buy a lot of car, you'd be nuts to finance a car if you can afford to spend 20k on a motor.

copacetic · 10-09-2011 4:57pm

Drummerboy08 wrote: »

There is no such thing as personal Contract Hire in Ireland. It's a UK thing.

And I'd imagine the same C Class would be closer to 900/1000 here.

OP, 20k will buy a lot of car, you'd be nuts to finance a car if you can afford to spend 20k on a motor.

Yes there is, lack of competition just means the deals aren't as good.

Drummerboy08 · 10-09-2011 4:59pm

copacetic wrote: »

Yes there is, lack of competition just means the deals aren't as good.

Really? Who?

R.O.R · 10-09-2011 5:06pm

copacetic wrote: »

Drummerboy08 wrote: »

There is no such thing as personal Contract Hire in Ireland. It's a UK thing.

And I'd imagine the same C Class would be closer to 900/1000 here.

OP, 20k will buy a lot of car, you'd be nuts to finance a car if you can afford to spend 20k on a motor.

Yes there is, lack of competition just means the deals aren't as good.

I'd also like to know. Like Drummerboy probably gets asked a few times a week, I do to, so it would be great to be able to give an answer.

pburns · 10-09-2011 5:06pm

Cash all the way...taking out finance for a depreciating asset is stupid if you can avoid it and 20k buys a lot of car.

I presume for that amount you mean the old model Legacy?

copacetic · 10-09-2011 5:21pm

Drummerboy08 wrote: »

Really? Who?

Audi and BMW both do very similar schemes.

http://www.audi.ie/ie/brand/en/Finance/financial_products.html

Audi even call theirs a pcp. Value isn't same as uk though as they are manufacturer schemes, but they suit someone wanting a set payment and no risk.

CiniO · 10-09-2011 5:54pm

pburns wrote: »

Cash all the way...taking out finance for a depreciating asset is stupid if you can avoid it and 20k buys a lot of car.

+1.

I never even though about getting a finance for car, unless it's going to bring income (f.e. taking a loan for a car that will be used for business to bring money).

For private purposes general rule is always to buy a car which you can afford in cash. At least for me.

mickdw · 10-09-2011 7:53pm

Depending on your circumstances, it might be an idea to finance a 20k car and keep the ball of cash given the way the country is.
I paid over 50k for a car in 08 and to be honest, it was an absolute waste of money.
Having said that, 20k buys alot of car now but IMO just misses alot of the nice stuff.

Drummerboy08 · 10-09-2011 8:03pm

copacetic wrote: »

Audi and BMW both do very similar schemes.

http://www.audi.ie/ie/brand/en/Finance/financial_products.html

Audi even call theirs a pcp. Value isn't same as uk though as they are manufacturer schemes, but they suit someone wanting a set payment and no risk.

They also suit someone who wants an Audi or BMW but...............what if you want something else? You also have to be bulletproof to be approved for it, something that is few and far between in Ireland.

As I said, personal Contract Hire doesnt really exist in Ireland. If you want one of the above brands, and can probably afford to buy the car straight anyway then the above may suit you. If you want something that isn't BMW or Audi then you're stumped.

Anyway, all of the above is useless because most Irish people don't even know how Contract Hire works.

gpjordanf1 · 10-09-2011 8:04pm

Ensti wrote: »

Hi, as some of yous may know I'm looking for a car for work. At the moment, I'm renting a car to get me to Kerry and back.

Myself and my fiance were talking about financing a car. Would we be mad to do this ? If we buy in cash we have a budget of €20K. This would be a car for me.
I took a look at 2010 Impreza's & Legacy's. 2011 Dodge Nitro. And a 2010 Citroen C5. All within the €20K cash budget. As for financing (Roughly €50K), we looked at the BMW X3, Audi Q5, Audi A5 SB, Merc C-Class 220 CDI AMG Sport. But, if we finance. Would it be better to wait until 2012 ?

Thanks guys

Never ever spend your own money on a depreciating asset, mental stuff.

Finance the 20k over 3 years, this will cost you ONLY €2850 over the 3 year, or next to nothing in lay man terms.

And you'll have your car and 20K in the bank if anything goes wrong.

Spend 20k and you have nothing to fall back on! Crazy advice on here about spending all your money on a car.

copacetic · 10-09-2011 8:26pm

Drummerboy08 wrote: »

They also suit someone who wants an Audi or BMW but...............what if you want something else? You also have to be bulletproof to be approved for it, something that is few and far between in Ireland.

As I said, personal Contract Hire doesnt really exist in Ireland. If you want one of the above brands, and can probably afford to buy the car straight anyway then the above may suit you. If you want something that isn't BMW or Audi then you're stumped.

Anyway, all of the above is useless because most Irish people don't even know how Contract Hire works.

Jeez, wtf to you want!? You didn't say it 'doesn't really exist', you said there is no such thing. I pointed out there was, gave two examples, pointed out the limitations. Then you post that we Irish are too stupid to understand it anyway and it doesnt really exist in spite of evidence in black and white so therefore you were still right all along?

Delusional is the kindest word...

Drummerboy08 · 11-09-2011 1:29am

copacetic wrote: »

Jeez, wtf to you want!? You didn't say it 'doesn't really exist', you said there is no such thing. I pointed out there was, gave two examples, pointed out the limitations. Then you post that we Irish are too stupid to understand it anyway and it doesnt really exist in spite of evidence in black and white so therefore you were still right all along?

Delusional is the kindest word...

Seeing as I work in the Contract Hire game, I'd like to think I know what I'm talking about.

However, as there is usually no winning with anyone on the motors forum, I'd like to say one thing.

Good man for posting the above. Its about what I've come to expect of this place.

Finance or cash up front for a car ?

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