Buying a car: finance or not finance

[wikramasingha]

I really am in two minds about this.

I have a small reserve of cash - more than enough to purchase a new car with. There is a part of me that feels that I would always like to have this cash reserve for a rainy day (and for investing) so there is some justification in going for finance. But then, finance (unless I get 0%) will cost me more.

What are views of those on here?

[KentPhilip]

Buy an old banger for £2K, and keep the cash. It's what I do..

You don't need a poncy new motor..

[Paddy]

Buy an old banger for £2K, and keep the cash. It's what I do..

You don't need a poncy new motor..

+1

Buy a car that you do not worry about it being dented buy supermarket trolleys. It also gives you confidence pushing your way through traffic. If it goes wrong, chuck it and buy another one.

[stek]

I paid 4k for my Caddy 3.6 CTS with LPG several years ago - 40 quid for 400 miles - not super great but comfort and oomph for 69p a litre....

All I've paid out is a service or two - £120 ea, two mots costing tyres really - all four over time - £500, tax is £245 or something, £10 off for dual-fuel, headlight scare, unfounded - UK headlight is 1700 quid plus vat!

Eek

[Platypus]

Buying on credit is nuts if you have money in the bank.

Unless, as you say, the credit is 0%, which you'll only get for a new or overpriced car. So nuts whichever way you look at it.

Knowing that my car is paid for feels good.

(OTOH knowing that my house is rented sucks)

[Sysman]

Buy an old banger for £2K, and keep the cash. It's what I do..

You don't need a poncy new motor..

WHS

Plus if you go the finance route you'll end up getting pestered forever by them trying to sell you more finance.

[Gibbon]

I always finance my cars. However I always hand them back worth significantly less than I owe as I do >40K miles per year. With HP you can hand the item back once you have paid half the agreement total with no questions asked as long you have taken reasonable care of the goods. I'm on my 5th car doing this.

[alreadypacked]

Buy an old banger for £2K, and keep the cash. It's what I do..

You don't need a poncy new motor..

+1

I paid 3K and got a car with only 40k on the clock.

[Support Monkey]

+1

Buy a car that you do not worry about it being dented buy supermarket trolleys. It also gives you confidence pushing your way through traffic. If it goes wrong, chuck it and buy another one.

+2 Same here, having a decent car for everyday use would stress me out, i want to be able to dump it anywhere and not worry if some toerag is damaging it, also as Alvin Hall always used to say "no point having money in the bank if you owe money" plus you probably will not make as much money in the bank as its going to cost you in interest

[VectraMan]

I always finance my cars. However I always hand them back worth significantly less than I owe as I do >40K miles per year. With HP you can hand the item back once you have paid half the agreement total with no questions asked as long you have taken reasonable care of the goods. I'm on my 5th car doing this.

I can't remember what that's called, but it's not regular HP. In the past I've gone for bank loans, as then it isn't tied to the car and you can always sell and use the money for something else if you desire. But bangernomics does make a lot of sense, and modern cars are pretty reliable even if they're old.