[gangzoom]

^^ You also get cash back on virtually all your house hold bills, which is more than enough to pay for the monthly fee. When I called up to change my council tax direct debit the chap at the end of the phone took 10 seconds to ask me if it was because I was switching to a 1-2-3 account!!

At the moment I honestly cannot see why your wouldn't open one (providing you have the cash savings).

[Gooner_M]

Originally Posted by gangzoom

^^

But your comparing the interest over 5 years on a loan versus 18 months. 18 months of interest on a £20k loan is about £500 at 3.5%, so hardly any more expensive than paying a 3% transfer free on a credit card.

Have you also got a £20K 0% credit card limit??

I fully understand the benefits of having access to 0% credit cards, but I simply don't get how some people claim they can buy everything they want on them. Most new credit cards only a credit limit of £1000-2000 pounds. By the time you persuade the card company to increase the limit your only a limited time of 0% interest left....At which point your have to repay the whole amount or face 20-30% APR.

Yes you can arrange another load of 0% cards, but it gets very complicated quickly. Surely if your going to spend so much time and effort sorting that out the why not use the tired and tested method of 'Buying only what you can afford' or shock-horror SAVE UP for something over a period of 1-2-3 years is the most prudent financial option?

Yes I was just doing a comparison on a 20k loan over a number of years. I didn't compare my credit card deal with a loan of an equivalent period because if you got a 20k loan to buy a car you most likely wouldn't choose to pay it back in 18 months, hence you would pay more interest on a loan generally speaking over 18, 24, 36 months or whatever term you choose. Also most people won't be offered 3.5% when applying, they'd be offered a rate to match their credit score.

Yes I have two cards with a 20k limit, and one had a 0% offer for 18 months when transferring to my bank account.

Yes nowadays it is hard to get large balances, but it's taken me a long time to get those balances and also into a position where they now can benefit me hugely.
Basically having the 0% option is going to benefit me far more than having any loan or car finance. Firstly there is no new loan/credit application, there is no fixed term and as long as I can move the remaining balance after 18 months to another card it allows me to dictate how and when I pay it off.

If I compare it to my last finance agreement from BMW or any loan it beats it hands down any way you look at it.
Having the cards in place already means this method is not complicated nor any effort to sort out any new cards as I don't need them.
I appreciate nowadays it is hard to get high balances so this method won't be for all, but if you have the options available to you and you can use it wisely it is a no brainer.
Saying you should save up over a number of years to buy a car outright is like saying you should never get car finance or a loan to buy a car, this would then mean that most people would never get a car of their choice.

[gangzoom]

Originally Posted by Gooner_M

Saying you should save up over a number of years to buy a car outright is like saying you should never get car finance or a loan to buy a car, this would then mean that most people would never get a car of their choice.

What is the problem with that concept??

I want a £90K Tesla P90D on my drive, I could go and get a stupid loan or finance it with Tesla and order one tomrrow, but instead I'm saving up (hence currently driving a Nissan Leaf), and will buy 2nd hand and the cheapest 70S model because I cannot afford to spend anything close to £90K on a deprecating asset - even spending £40k on a car is going to be painful.

Cars are great but when you grow up your quickly realise borrowing money on a deprecating assesst that will earn you £0 return is not all that clever. What ever money I spend on a car I count as 'wasted', I certainly aren't going to borrow money or pay finance for a car. Call me old fashioned but that's how I was brought up, living with debts/loans is a concept I simply don't understand. Even the mortgage is painful to pay, when I see 1/4 of the monthly payment is pure interest, at least bricks and mortar on the whole goes up in value.

But I agree, if you can turly get £20k of 0% interest that's great, but rather than buy a car, why not use that to offset the mortagage or similar. I know that's what I would do.

[Gooner_M]

Originally Posted by gangzoom

What is the problem with that concept??

I want a £90K Tesla P90D on my drive, I could go and get a stupid loan or finance it with Tesla and order one tomrrow, but instead I'm saving up (hence currently driving a Nissan Leaf), and will buy 2nd hand and the cheapest 70S model because I cannot afford to spend anything close to £90K on a deprecating asset - even spending £40k on a car is going to be painful.

Cars are great but when you grow up your quickly realise borrowing money on a deprecating assesst that will earn you £0 return is not all that clever. What ever money I spend on a car I count as 'wasted', I certainly aren't going to borrow money or pay finance for a car. Call me old fashioned but that's how I was brought up, living with debts/loans is a concept I simply don't understand. Even the mortgage is painful to pay, when I see 1/4 of the monthly payment is pure interest, at least bricks and mortar on the whole goes up in value.

But I agree, if you can turly get £20k of 0% interest that's great, but rather than buy a car, why not use that to offset the mortagage or similar. I know that's what I would do.

Nothing wrong with that concept. If you want to live that way that's your choice. Wouldn't be my personal choice.

We all just buy what we can afford. I want a Ferrari but can't afford it, so I bought a year old M4 as it's what my budget could run to whilst paying other bills. I certainly wouldn't put 20k of my credit card money towards my mortgage and not drive my M4, that would be straight up boring! Why work hard and drive a boring car?

The reason we're all on here is that we enjoy motoring, and it means we will lose money in the process of having a nice car and enjoying it. It's a passion of mine so whilst losing money I'm having fun. I'm not losing sleep over my car losing money.

[gangzoom]

^^ I have no problems spending money on cars, I wasted enough money on my old 335i with modifications and when my Leaf contract ends in 12 months I'll be spending a totally insane amount on some kind of Tesla. I just don't get the concept of living with debut that many people seem comfortable with. I wish I could be more relaxed with borrowing money, it would make buying thing much easier

[Gooner_M]

Originally Posted by gangzoom

^^ I have no problems spending money on cars, I wasted enough money on my old 335i with modifications and when my Leaf contract ends in 12 months I'll be spending a totally insane amount on some kind of Tesla. I just don't get the concept of living with debut that many people seem comfortable with. I wish I could be more relaxed with borrowing money, it would make buying thing much easier

Enjoy the Tesla!!