0% Finance Deal

[DSK]

Originally Posted by XC90Mk1

It’s something that always amazes me that people would buy a new car on finance? Surely you are better to buy outright cash used?

I bought mine at 4 years of age for 1/3rd of the price from Volvo direct with a 1 year warrenty.

I've seen many nearly new but used cars that work more costly than a new one (BMW 335d as an example) on finance deals.

Sadly the industry has pushed tactics and prices to push people down a financing route. The deals that could be had as a cash buyer are sadly long gone as dealer make a killing on the extras and finance setups. Cash buyers are useless to the dealer and further more, very few people have wads of cash to spare in this day and age. FFSK people buy TVs/Sofas/Phones on credit... what next, a pair of shoes on credit at Next? Even as a cash buyer you'll be pushed down a finance route with better deal being presented on face value.

[XC90Mk1]

Originally Posted by DSK

I've seen many nearly new but used cars that work more costly than a new one (BMW 335d as an example) on finance deals.

Sadly the industry has pushed tactics and prices to push people down a financing route. The deals that could be had as a cash buyer are sadly long gone as dealer make a killing on the extras and finance setups. Cash buyers are useless to the dealer and further more, very few people have wads of cash to spare in this day and age. FFSK people buy TVs/Sofas/Phones on credit... what next, a pair of shoes on credit at Next? Even as a cash buyer you'll be pushed down a finance route with better deal being presented on face value.

People like me that run our own businesses and have good cash flow buy cars from approved used schemes and then when you get a good one you keep it.

Then loads of people tap themselves up for multiple years of finance. How sad.

[XC90Mk1]

I was always taught if you can only afford it on credit you can’t afford it.

[Fika]

Avoid buying on finance. The only thing you ought to buy on "finance" would be a house. If you can't buy a car without finance you simply can't afford it- save up for it.

Sorry to break wind on this topic but finanance, credit cards, etc, are all a lure to trap you in their web of doom!

[XC90Mk1]

Originally Posted by Fika

Avoid buying on finance. The only thing you ought to buy on "finance" would be a house. If you can't buy a car without finance you simply can't afford it- save up for it.

Sorry to break wind on this topic but finanance, credit cards, etc, are all a lure to trap you in their web of doom!

I lust admit I couldn’t buy the house outright yes true.

Funny I drive around in a 9 year old car but I bought it outright 4 years ago and it’s cost £1,800 all in for all servicing work, consumables and tyres etc etc.

Then people drive around in brand new vehicles when they earn half what I do. I just can’t understand how people ‘have’ to go to work as they have large mortgages, credit cards and foreign holidays.

Some people seem to want to live forever in debt...

[cts1975]

All pretty subjective I suppose. The car is to be purchased by and used by a business. It needs to be diesel (we pay bunker price) hence a used S90 and it needs to be VAT qualifying. The majority of 3 year old S90's at Volvo dealers are end of lease VAT qualifying. The 0% HP was just a bonus really.

[EssexExile]

Quite right, each to their own. I bought my new car on finance because they paid me to, cash would've cost more.

[DaveNP]

There always were some funny deals to be done with cars, either big discounts to shift cars before calendar deadlines or finance deals with 0% or deposits paid. Whilst I know what Fika means by not buying things on finance and I'd certainly say one should be very cautious of any finance offer, either formal loans or credit cards, sometimes the consumer can take advantage of the oddities of the system as Essex Exile seems to have managed.

Personally 'my' car is definitely in the 'bangernomics' end of the market, but 'the wife's' car is a nearly new one which we bought for a good price at less than a year old after some looking around. The one thing I don't think I could do is buy brand new due to the immediate drop in value as my name on the registration made it secondhand; but then if others want to do that, or do PCP or whatever, then I'll not judge them and I'll happily buy their castoffs.

[MikeGMT]

When I purchased my previous car (XC60) I borrowed one for the weekend, returning it to the dealership I was on the verge of buying the demonstrator, and much like EssexExile, when we went through the figures it was better to buy a new vehicle, so I specced one up to my requirements.

Now I’m on my 3rd consecutive Volvo all on PCP’s, which just seem to work for me personally. My wife doesn’t agree as her opinion is that I never own the car, and she isn’t really bothered what I drive (as long as it’s not a Skoda, not sure why as we have never had one, she just has a dislike of them for some reason)! I counter that argument with the fact that when I have paid off the finance I change the car, so why own it.

Usually I find you can get a lower APR, then factor in a manufacturers contribution, a finance contribution and Dealer discount/contribution together with a loyalty bonus. After that I usually throw the Affinity Scheme into the pot and see the figures tumble. Add to the afore mentioned, free metallic paint, 10% off accessories together with the manufacturers warranty and 5 years servicing for £599 pounds and it just works for me.

Having worked hard all my working life, and not dipped my fingers into the governments benefit systems I can usually convince myself that I can afford a new car now and then. And I am more than happy to pass my cast-offs on to the used market.