Reply to: Car Finance

[Hobosapien]

Depends if you think the car will depreciate faster than sterling.

Debt is the new saving when inflation outperforms savings rates, providing the interest on the debt is at a fixed rate so cannot go up when the value of the money goes down and they eventually move interest rates up from the 'emergency' level set in 2008.

When the majority of the population are up to their eyeballs in mortgage/car/personal debt, they're the ones that will be bailed out so they can vote for the next lot of incompetents to keep the 'no more boom and bust' bollox going.

So hide all your cash*, load up with debt, and all bases are covered.

* I now understand the point of geocashing.

[AtW]

Yes but having the cash in the bank makes more sense than ploughing it into an asset that deprecates like a brick.

Not if you buy it after 60%+ of depreciation hit it already and desirability of the asset is maintained even if it's old...

[bobspud]

Repent!!!

It's this thinkimg that got Anglo-Saxon world in debt

The only acceptable debt is mortgage and only reasonable amount

Yes but having the cash in the bank makes more sense than ploughing it into an asset that deprecates like a brick.

I agree the whole debt thing is bad but now contractors are grabbing a kick in the balls for getting into the higher bracket

Opex trumps capex.

[AtW]

I reckon this PCP tulip will lead to even bigger misselling claims than PPI - when used values drop far more than PCP expected interesting small print clauses will kick in...

[jamesbrown]

Yup.

90% of new car buys are finance, people can't even afford used car without finance - so what would happen if half of them won't be able to get it? Used car values would plummet - that would affect amount to pay for new cars too, DOOMED!!!

Absolutely. The BoE has started to make some shouty noises recently, light years beyond the curve as always. But we can rest assured that they've initiated operation "watch and wait" while they prepare Hamfist Intervention Mk I.

[AtW]

Feck Brexit, car finance is the next tulipstorm (in the US too).

Yup.

90% of new car buys are finance, people can't even afford used car without finance - so what would happen if half of them won't be able to get it? Used car values would plummet - that would affect amount to pay for new cars too, DOOMED!!!

[jamesbrown]

Feck Brexit, car finance is the next tulipstorm (in the US too).

[AtW]

Repent!!!

It's this thinkimg that got Anglo-Saxon world in debt

The only acceptable debt is mortgage and only reasonable amount

[bobspud]

1. Buy a car for cash and sell it to your Ltd Co at a profit.
2. Buy a car for cash and rent it out to your Ltd Co.

Or rent the damn thing on an interest free loan and just claim 40/25p per mile and it more or less pays for the car tax free if you can legitimately claim 15-25k miles per year...

No asset transfer issues or write offs or profits that need to be declared. Just a car that was fully funded pre tax...

[Paddy]

To answer your original question: Why would anyone drag the whole cost of the car out of their business account and be liable for 30% of it if they could rock up with a small deposit and take a loan out for 5-6%?

Got my toy for 0% interest paid the monthly costs while remaining under the higher rate of tax and apart from the vicious depreciation am a very happy bunny soon I get to choose if I keep it or get another one on exactly the same terms

Buying a car for cash is a dumb move.

1. Buy a car for cash and sell it to your Ltd Co at a profit.
2. Buy a car for cash and rent it out to your Ltd Co.

[bobspud]

To answer your original question: Why would anyone drag the whole cost of the car out of their business account and be liable for 30% of it if they could rock up with a small deposit and take a loan out for 5-6%?

Got my toy for 0% interest paid the monthly costs while remaining under the higher rate of tax and apart from the vicious depreciation am a very happy bunny soon I get to choose if I keep it or get another one on exactly the same terms

Buying a car for cash is a dumb move.

[AtW]

That's because your last car was old and the fuel consumption wasn't a computer generated lie.

Like I gave a tulip if it was a sweet lie

[DimPrawn]

50% more fuel efficient in the city than my last car!

That's because your last car was old and the fuel consumption wasn't a computer generated lie.

[AtW]

Sounds like a lucky escape. Why do you want a gas guzzling Chelsea tractor?

50% more fuel efficient in the city than my last car!

[AtW]

Probably a local butler on the way back to his top of the range Limited Edition Range Rover Autobiography SVR++

FTFY