How do you buy your cars?

[smileyfaces]

I also own everything in my house. I have a car on finance. That is it. Why shouldnt I get a good car (cost about 6k) because I dont have loads of savings? The alternative would have been getting a car for about £500 that wouldnt be in great condition, that would cost a lot on road tax because of emisions of older cars, would use a lot more petrol due to it being much older and not as efficient as it used to be and then having to worry about having cash saved up for inevitable repairs. This is what it was like with my cheap car that my dad bought me.

With the car I have on finance, I pay £20 a year road tax, spend less than £60 a month on petrol and in the 3 years I have had it havent had to pay a penny for repairs. Not toention the cheap insurance. It is a fab car and saves me loads of money over the space of a year compared to what I would be paying with a cheaper car. I would have wanted this car whether it was on finance or not. For me to save for it would have taken me just as long as the finance agreement takes to pay off anyway.

This is just my personal experience. For me it was finance or a shit car. Not everyone has the money to buy something so substantial outright. Great if you have the money, then of course buy it outright.

I just dont like the attitude that if I dont have all the money in the bank there and then that I shouldnt have it Like you RachA, I wont take out finance for couches, household items etc etc...everything I have is mine. But with a car, I think it is completely different. It is a purchase that costs thousands and thousands, not just a few hundred quid.

 

[Pearls18]

Just out of interest....to the people that think you shouldn't buy something you can't afford straight away, does that mean you wouldn't get a mortgage And only buy when you could outright? Just playing devil’s advocate really. I have student loans, there’s no way I could have gone to university without taking those loans, but I wouldn’t have the job I have now paying them off if I didn’t go. I think big purchases like cars, houses, student finance, even things like sofas are easier to do in small chunks, whereas I think it’s a slippery slope is when you are using credit cards because you HAVE to for food (as in the money isn’t in your account, not because you prefer using CC) or if your splashing out on ‘small’ luxuries when the money isn’t there that it’s perhaps not the smartest financial move. But that’s just my opinion, I would rather pay for cars on cash but I understand why they are commonly bought on finance.

 

[smileyfaces]

Just out of interest....to the people that think you shouldn't buy something you can't afford straight away, does that mean you wouldn't get a mortgage And only buy when you could outright? Just playing devil’s advocate really. I have student loans, there’s no way I could have gone to university without taking those loans, but I wouldn’t have the job I have now paying them off if I didn’t go. I think big purchases like cars, houses, student finance, even things like sofas are easier to do in small chunks, whereas I think it’s a slippery slope is when you are using credit cards because you HAVE to for food (as in the money isn’t in your account, not because you prefer using CC) or if your splashing out on ‘small’ luxuries when the money isn’t there that it’s perhaps not the smartest financial move. But that’s just my opinion, I would rather pay for cars on cash but I understand why they are commonly bought on finance.

 

[RachA]

We do have a mortgage but if we could of saved up and bought outright we would of done. OH saved up basically all of his wages from when he started work until we got married so that we could have as low a mortgage as possible.


I can understand what you mean smileyfaces. Funnily enough though our newer car costs more to run than the two cars that we have before it. We knew when we bought it though that it wasn't as economical so it was a choice we made. The cars that we've both owned that have run the best and cost the least were much older cars. DH still has his golf that he got nearly 18 years ago - it's not on the road because i refuse to drive it as it just don't feel safe in it (thats due to me being in a car accident a number of years ago) but it still runs well and would hardly cost anything to run compared with our new car.

I guess for me it just comes from the idea that buying on credit can cause a lot of problems. I know two couples who buy everything on credit cards and finance. Each month most of their wages go on paying their debts - it's a situation that they are unable to get out of really.

 

[smileyfaces]

There is a massive difference between getting a car on finance and using credit for everything as that is just living beyond your means. I agree, credit can be a vicious trap to be stuck in, but when used correctly it can be great. If I wanted to sell my car now, I could sell it for MORE than the cost of what is remaining on my finance agreement.

I agree about the mortgage thing, its the same principle in my eyes.

 

[vaniilla]

Cash/debit card - we're currently saving up for a new one.

We buy second hand because cars lose value very fast - you can get a nearly new car for much less!

 

[sue_88]

Just out of interest....to the people that think you shouldn't buy something you can't afford straight away, does that mean you wouldn't get a mortgage And only buy when you could outright? Just playing devil’s advocate really. I have student loans, there’s no way I could have gone to university without taking those loans, but I wouldn’t have the job I have now paying them off if I didn’t go. I think big purchases like cars, houses, student finance, even things like sofas are easier to do in small chunks, whereas I think it’s a slippery slope is when you are using credit cards because you HAVE to for food (as in the money isn’t in your account, not because you prefer using CC) or if your splashing out on ‘small’ luxuries when the money isn’t there that it’s perhaps not the smartest financial move. But that’s just my opinion, I would rather pay for cars on cash but I understand why they are commonly bought on finance.

My student loan was paid off within 2 hours of me receiving the final bill through the post.
And I currently rent, but when I chose to by in a year or two - I will buy outright.

I know I am lucky to be in the position I am, I certianly wouldn't wish it any other way, but as my original post said this is the way I was brought up by my parents so whether its a mortgage, a car, a loan (student or otherwise)....I do not use monthly payment.

Just responding to your devils advocat perhaps I am the exception to the rule but when I say I buy everything outright - I do actually mean it.

 

[Pearls18]

Just out of interest....to the people that think you shouldn't buy something you can't afford straight away, does that mean you wouldn't get a mortgage And only buy when you could outright? Just playing devil’s advocate really. I have student loans, there’s no way I could have gone to university without taking those loans, but I wouldn’t have the job I have now paying them off if I didn’t go. I think big purchases like cars, houses, student finance, even things like sofas are easier to do in small chunks, whereas I think it’s a slippery slope is when you are using credit cards because you HAVE to for food (as in the money isn’t in your account, not because you prefer using CC) or if your splashing out on ‘small’ luxuries when the money isn’t there that it’s perhaps not the smartest financial move. But that’s just my opinion, I would rather pay for cars on cash but I understand why they are commonly bought on finance.

My student loan was paid off within 2 hours of me receiving the final bill through the post.
And I currently rent, but when I chose to by in a year or two - I will buy outright.

I know I am lucky to be in the position I am, I certianly wouldn't wish it any other way, but as my original post said this is the way I was brought up by my parents so whether its a mortgage, a car, a loan (student or otherwise)....I do not use monthly payment.

Just responding to your devils advocat perhaps I am the exception to the rule but when I say I buy everything outright - I do actually mean it.

Thank you I did ask you to answer and honestly didn't think you would say that lol,it's a great policy to have I think you are a major exception though, very very few people could afford to do this baring in mind most people are into their 50s before they pay off a mortgage. I for one am glad more people are able to own their homes today than 100 years ago, but of course with irresponsible lending this has gone too far, I don't think that should stop everybody else from being able to buy a house though. I don't buy the policy of because you can't afford something now doesn't mean you shouldn't have it, I do for the majority of things, but I had no way to pay my £20,000 of school fees without getting a loan, my parents didn't pay for me and I couldn't earn that pre degree without going to uni in my 30s so it was a sensible financial decision to make, as will be getting a mortgage, it isn't frivolous because if everybody tried to save outright for a house chances are the housing market prices would increase beyond what they could save in the same amount of time, not all credit is bad. But good for you, that sounds like a lovely way to live, I hope to be there in my 60s haha.

 

[Feltzy]

DH gets a company car and we pay for mine in cash. He works for a hire company and when their cars are 3 years old they sell them, so we tend to get them for a good price.

I've only been driving 4 years, my first car was a toyota yaris which was 3 years old when I got it and the car I've just got is a Peugeot 207 which is 2 years old. Has 5 doors too which is amazing lol, so much easier!

 

[davidjoemum]

We bought our car for cash from my Fil he gave us huge discount on it so we lucky it is very nice car (BMW x5)but its getting old so I'm thinking to sell it soon.i will get more for it than we paid we want something more economical this time as I drive a lot.i will get possibly nissan quashqai part on finance.

 

[lau86]

I've only bought one car I paid cash, it was only £1000. There's no way I could pay thousands up front for a car. For now I don't mind a cheap car

 

[LoraLoo]

I've just bought myself a brand new Mazda, paid for in cash.

I don't agree with finance personally...........motto for myself as passed down by my parents is - if you can't afford it up front, can't by it.

This is exactly my motto too we dont have finance on anything, nor credit cards. I i want something i save for it. The mortgage is exempt from my motto mind

 

[LoraLoo]

Just out of interest....to the people that think you shouldn't buy something you can't afford straight away, does that mean you wouldn't get a mortgage And only buy when you could outright? Just playing devil’s advocate really. I have student loans, there’s no way I could have gone to university without taking those loans, but I wouldn’t have the job I have now paying them off if I didn’t go. I think big purchases like cars, houses, student finance, even things like sofas are easier to do in small chunks, whereas I think it’s a slippery slope is when you are using credit cards because you HAVE to for food (as in the money isn’t in your account, not because you prefer using CC) or if your splashing out on ‘small’ luxuries when the money isn’t there that it’s perhaps not the smartest financial move. But that’s just my opinion, I would rather pay for cars on cash but I understand why they are commonly bought on finance.

I couldnt care less what anyone else does with their money, but for me i wont use finance, credit cards etc, if i cant afford to save up for it then i probably cant afford to pay finance every month. And credit cards i would just be lethal with. Yes I have a mortgage, because i could never save that amount and i need somewhere to live. A car, we never get anything fancy, usually 3k at most and we usually sell the old car and put saved money towards it. I could live without a car. Although i would cry

 

[lindseymw]

Both for us.

VW Polo - cash
ford Fiesta Zetec S - loan from parents
Vauxhall Vectra - cash
Vauxhall Signum - Cash
VW Passat CC - Finance (still own)
Suzuki Ignis Sport - Cash (still own)

We could have never saved up to buy the Passat outright, but can easily afford the payments. We took the loan over 4 years, we have 3 years left. After which, we will probably trade it in for a Jaguar XF or Mercedes CLS.

 

[discoclare]

we don't have a car. I did own one 20 years ago though and it was paid for with cash (though it was very cheap since it was a banger and a hand-me-down from stepbrother so family rates!).

if I was to buy one now I would pay cash since we have money in savings. however I have no issue with others using hp to buy, agree with marinewag that it's the same thing as a mortgage - if you don't have the cash it's fine to spread the purchase for something that many people need. we rent at the mo and are considering buying. we may move up north and if we do we will buy outright but if we stay in London we will need a mortgage.

 

[xJG30]

Cash every time. Only ever paid via paypal once.