finance

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That wasn't a serious suggestion BTW. I was just illustrating the gaping hole in your argument
There is a correct way, it's to get out of debt as soon as possible, debt is debt, whatever way you like to think of it - it costs money. Spreading it around just compounds & complicates the problem. Be debt free and you have the ultimate financial freedom. Having a never ending mortgage would seem to be the exact opposite. "What? I never pay anything off the sum I've borrowed, so the interest never goes down? Excellent, I like simplicity"
 
My plan works as long as my cash earns me more then the interest I pay. And if I end up with more cash than mortgage, then my debt is effectively paid off. I must add that I fix my mortgage on long term fixes when a good rate comes up so I know exactly how much my cash needs to earn me to beat my mortgage. So if I choose to pay cash for a car for example I am only paying my mortgages interest rate not the finance companys rate often a 3-4% difference. And as I am not taking out a new loan no paperwork fees etc.

But it is all how long is a piece of string, my system works for me
 
hi dudes, im 23, i just bought a A3 3.2 sline fully loaded, outright. i cant buy cars on finance, i done this with my first car, and hated the fact that i couldnt sell it, due to finance etc. i prefer to be able to have the car as an assett, in the sense where i know if i want to sell it i can. Plus i get bored quickly! i havent lived at home since i was 16, but the downside is that i rent, the amount of rent i pay could pay a mortgage, but im scared to make that commitment, i hate the idea of knowing that ill owe all that money. its a step i know i must take soon though!!
 
I buy my cars outright using a low cost employers loan - no dealership has ever beaten the APR, but Audi did come close once, except they then wanted arrangement fees which increased the cost.

I never borrow more than 50% of the price of the car (the current A3 was 30% borrowed) and I pay off over a short period (2 years max), that way I never have negative equity so if things turn bad I can sell the car. Over two years and just under 40,000 miles I still get decent trade ins, leave it another year and the trade in price reduces heavily.

PCP can be very expensive, especially for someone like me doing 18,000+ miles per year (Audi always have very attarctive PCPs on the A6, but limited to 6,000 miles a year!) and interest rates are often higher than HP rates.
 
well although the thread took a bit of a sideline to the best way of buying a house lol i'm glad at least to see that a number of people are not under this delusion that a house 'makes you lots of money' when in the real world, taking into account all the interest you pay over 25 years completely obliterates any increase in house price in that time!
 
steve184 said:
well although the thread took a bit of a sideline to the best way of buying a house lol i'm glad at least to see that a number of people are not under this delusion that a house 'makes you lots of money' when in the real world, taking into account all the interest you pay over 25 years completely obliterates any increase in house price in that time!
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Valid point...

But next to the other options of staying with Mummy and Daddy forever (not really an option), or renting...it makes you money!
 
steve184 said:
well although the thread took a bit of a sideline to the best way of buying a house lol i'm glad at least to see that a number of people are not under this delusion that a house 'makes you lots of money' when in the real world, taking into account all the interest you pay over 25 years completely obliterates any increase in house price in that time!
Click to expand...

Thats not strictly true is it? For example my parents moved from Aberdeen down south about 20 years ago, at that time they paid £85K for their house. They now own it outright and it is worth circa £500K. Even if they had a 100% mortgage on it the total repayed on it including interest would be no more than £200K. To me that looks like a decent investment.

My wifes parents have lived in the same house for 34 years, they paid £17K for it then, have spent a further £60k on having it extended. Today it is valued at £600K. Again to me that looks like a decent investment.

Ah I hear you say that they will need to to sell and buy somewhere else to release the equity and that buying somewhere else will eat into all the money. Well no not really. Both sets of parents are retired and live in big 4 bedroom houses. So they could very easily down size if need be.

J.
 
marriedblonde said:
Both sets of parents are retired and live in big 4 bedroom houses. So they could very easily down size if need be.J.
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Exactly what we intend doing.
BTW, the wife's Mini might be 'on hold.
Derisory offer for a trade-in:wtf: , so I'll be selling her Clio privately.
Quite honestly, at this time of year, I can't be *****.
I wouldn't be able to keep it clean enough to show off the fact it's in mint nick, so I'll probably wait until nearer the summer.
Then I'll get her a Mini through 'drive the deal' and, quite honestly, screw the local dealer.
 
I'm 25, I have a 07 S3 and a 01 S3...both of which were bought cash, I can't stand loans and credit and a hire purchase or long term lease wouldn't allow me to modify the car.
 
Not that I know S3IZZO stays with his mum and dad, but I know I'd go mental if a child of mine was ordering flash cars instead of moving out.
That's taking the ****, and more than a bit sad.
 
Not aimed at having a go at anyone....

But I think much of the impact of impressing people with your lovely expensive car is soon removed (and then some) when said people realise you still live with mummy and daddy - often at nearly 30 years old!

Don't get me wrong, I love my foks and they gave me a very good upbringing...but no matter how good/cool they are/were...as soon as I was working and able, I wanted a life of my own.

So the flash cars went on hold, and a flat was bought.

They gave up 20 years of their lives to bring me up...the least I could do was ****** off and let them have their independance back.


Although I'm car daft...I'd not take a flash car over a home of your own. Ever.
The independance and life that comes with moving out is just in a different league.
You can always buy another flash car...
 
too true, get on the property ladder first then start thinking of cars. There is nothing crazier than parking an expensive car outside mum and dads house!
Also when houses,wives and babies come into you life you will probably end up down scaling your car and I hate downscaling its depressing, I prefer each car to be better than the last!
 
audi upgrades
Frightening to think what sort of car my mortgage payments would get me too.
Jealous?
Not even slightly.
 
treblesykes said:
Also when houses,wives and babies come into you life you will probably end up down scaling your car and I hate downscaling its depressing, I prefer each car to be better than the last!
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Nah never! Although I am sure my wife is hoping that one day I will be happy to drive a cheaper slower car... Mid 30's and not happened so far :)
 
bowfer said:
Frightening to think what sort of car my mortgage payments would get me too.
Jealous?
Not even slightly.
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Quite depressing when you think about how much money gets piled into bricks and mortar. PAying the council tax, utlities, food etc etc etc
 
marriedblonde said:
Nah never! Although I am sure my wife is hoping that one day I will be happy to drive a cheaper car...
Click to expand...

Said the woman who wants an ML!:scared2:
 
bowfer said:
Exactly what we intend doing.
BTW, the wife's Mini might be 'on hold.
Derisory offer for a trade-in:wtf: , so I'll be selling her Clio privately.
Quite honestly, at this time of year, I can't be *****.
I wouldn't be able to keep it clean enough to show off the fact it's in mint nick, so I'll probably wait until nearer the summer.
Then I'll get her a Mini through 'drive the deal' and, quite honestly, screw the local dealer.
Click to expand...

Is there still a stupid wait for a new mini or are the leads times better now?

Can't you just order a mini and sell the Clio while your waiting for it to arrive?

J.
 
marriedblonde said:
Quite depressing when you think about how much money gets piled into bricks and mortar. PAying the council tax, utlities, food etc etc etc
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Amen, but what can you do.
When the wife moans about our mortgage/council tax, I point to horrible high-rise flats and say "we'd have money if we lived there".
That shuts her up.
Quick glance on t'internet shows I could easily lease a Brabus Merc or a Bentley coupe for my mortgage payments...
 
marriedblonde said:
Quite depressing when you think about how much money gets piled into bricks and mortar. PAying the council tax, utlities, food etc etc etc
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I reckon about £2000 per month in some cases...
With Mortgage, Council Tax, Utility Bills, Sky, Broadband, Life Insurance, House Insurance etc...

What could you buy, car wise, for £2k PM with say a £80k deposit?

The mind boggles...
 
marriedblonde said:
Is there still a stupid wait for a new mini or are the leads times better now?
Can't you just order a mini and sell the Clio while your waiting for it to arrive?
J.
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They haven't actually said when the Mini will come, which is part of the problem.
I haven't a clue, yet, when I can put the Clio up for sale.
I could put it up for sale this week, then find out the Mini is months away.
Then again, I could postpone selling the Clio and then find out I have no time left.
Pain in the ***, it really is.
We simply can't afford any time without her having a car, not even a day or two.
Trading-in is so much simpler, but you do lose dosh doing it.
 
marriedblonde said:
live with your mam ;)
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I moved out of my parents house in 2001/2 IIRC

I own my own limited company and i'm a shareholder in another, I know where to invest money for fast ROI. (I'm not a drug dealer or anything illegal/shady like that)

In outlay to myself my cars probably owe me about £500 all together.
 
marriedblonde said:
Me too :) But I still wouldn't buy a car cash
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Just explaining how I managed to buy the car and that I don't live with my parents as was insinuated above.

Also i'm failing to understand the point of this post, why should someones age dictate the amount of money they earn and therefore the car they drive?

If I, as a 25 year old earn 3 x more than someone else as 40 year old why would that be a huge suprise to anyone? - people earn different wages regardless of age. Granted I suppose there is some correlation between age/wage but it's not set in stone by any means.

Buying a car cash may make sense for me whilst it may not for you, c'est la vie.
 
S3IZZO said:
Just explaining how I managed to buy the car and that I don't live with my parents as was insinuated above.

Also i'm failing to understand the point of this post, why should someones age dictate the amount of money they earn and therefore the car they drive?

If I, as a 25 year old earn 3 x more than someone else as 40 year old why would that be a huge suprise to anyone? - people earn different wages regardless of age. Granted I suppose there is some correlation between age/wage but it's not set in stone by any means.

Buying a car cash may make sense for me whilst it may not for you, c'est la vie.
Click to expand...

Whats the company ?
 
It has nothing to do with age, my reply was tongue in cheek you have just chosen to bite.

Everyone knows age has nothing to do with salary what so ever, there will always be people who earn lots and those who earn the minimum allowed regardless of how they are.

But hey your obviously very rich and we are all humbled by your huge salary and vast personal wealth ;)
 
treblesykes said:
too true, get on the property ladder first then start thinking of cars. There is nothing crazier than parking an expensive car outside mum and dads house!
Also when houses,wives and babies come into you life you will probably end up down scaling your car and I hate downscaling its depressing, I prefer each car to be better than the last!
Click to expand...

Nice idea in theory but it doesn't work quite like that for some of us. I cant get a mortgage for anywhere near the amount it costs for your average house around here. If I could I would of bought a house
 
steve184 said:
well although the thread took a bit of a sideline to the best way of buying a house lol i'm glad at least to see that a number of people are not under this delusion that a house 'makes you lots of money' when in the real world, taking into account all the interest you pay over 25 years completely obliterates any increase in house price in that time!
Click to expand...
I'd try redoing your maths there, first house I bought cost £57k, paid for it in 10 years, total cost was £107k including interest, and I sold it for £182k. Now show me an ISA that would make me £75k in 10 years?
This is my point, if you opt for an interest only mortgage over 25-30 years then yes you'll probably break even, but compared to spending £1k a month renting, you are effectively making a grand a month (excluding living with mummy & daddy). Buy a house and rent out a room and then it starts to make even more sense.
A new car on the other hand, however you pay for it is money down the drain (with a few exceptions), in most cases it loses the VAT as soon as you drive it off the forecourt, all you can do is restrict how much you pour into it.
 
marriedblonde said:
It has nothing to do with age, my reply was tongue in cheek you have just chosen to bite.

Everyone knows age has nothing to do with salary what so ever, there will always be people who earn lots and those who earn the minimum allowed regardless of how they are.

But hey your obviously very rich and we are all humbled by your huge salary and vast personal wealth ;)
Click to expand...

My post wasn't aimed at you personally - the first post asks the question how "young" people afford these cars, I personally think that's a silly question as people earn different wages regardless of age....hence the reply. :icon_thumright:
 
S3IZZO said:
My post wasn't aimed at you personally - the first post asks the question how "young" people afford these cars, I personally think that's a silly question as people earn different wages regardless of age....hence the reply. :icon_thumright:
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Also what is considered young? Personally I'm 35 but would still consider myself as young... :)

A couple of friends in their mid 20's always refer to me as their really old mate :eek: Nice!

J.
 
But probably more to do with the fact that most can't afford them, but choose a life of outrageous debt to accomodate a bizarre desire to own a fairly average new car.
If I wanted to spend £22k on a car then it would be on a secondhand RS4, not a brand new A3.
 
Matt said:
Nice idea in theory but it doesn't work quite like that for some of us. I cant get a mortgage for anywhere near the amount it costs for your average house around here. If I could I would of bought a house
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Same here, I can't afford to buy on my own and im not really into spending a major chunk of my salary renting for £££.

By the looks of things the housing market is going to settle down this year so hopefully be able to get myself a nice flat, I will sacrifice the better things in life such as my car to do this but im not giving up my car so I can rent a flat to say " I have my own place " :no:
 
S3IZZO said:
Just explaining how I managed to buy the car and that I don't live with my parents as was insinuated above.

Also i'm failing to understand the point of this post, why should someones age dictate the amount of money they earn and therefore the car they drive?

If I, as a 25 year old earn 3 x more than someone else as 40 year old why would that be a huge suprise to anyone? - people earn different wages regardless of age. Granted I suppose there is some correlation between age/wage but it's not set in stone by any means.

Buying a car cash may make sense for me whilst it may not for you, c'est la vie.
Click to expand...

Agree... What has age got to do with the price of fish, or salary or intelligence or personal choice... me I'm 50ish like nice standard quick Black Audis, no mods, no PP's can pay cash, feel very lucky at times but have worke b* hard to get here.. Just don't like BMW's or PP's + a few other things..

TT:icon_thumright:
 
AndyMac said:
But probably more to do with the fact that most can't afford them, but choose a life of outrageous debt to accomodate a bizarre desire to own a fairly average new car.
If I wanted to spend £22k on a car then it would be on a secondhand RS4, not a brand new A3.
Click to expand...

I suppose the other way to look at it is whats the point of having money in the bank, lots of savings and no debt? you could be dead tomorrow...

J.
 
Age should not depend on income every industry is different. What might be a huge salary in one industry might be small in another. Thats like saying Ronaldo is in his early 20's and should not get as much Giggs because he is in his 30's(footballers for any one without a clue) Im 24 got my own place, Decent job and have never been helped out by my parents as far as cash. I bought my first car myself and the only thing i got from my parents was a personal plate and tank of fuel towards it, not because they are skint because they believe in hard work.

I am looking at a brand new A5 3.0 tdi at the minute is this allowed being only 24?
 
marriedblonde said:
I suppose the other way to look at it is whats the point of having money in the bank, lots of savings and no debt? you could be dead tomorrow...J.
Click to expand...

You know, it's funny you should mention that.
A friend of ours has been obsessed by money for years.
He's paid a fortune, he makes a mint on the side with stocks and shares.
Yet his lifestyle was pish.
His house, seriously, what a state.:scared2:
He's recently had a bit of an epiphany and is finally starting to spend it.
We think (at 48) he's getting a sense of his own mortality and the fact he has absolutely no-one to leave his 'fortune' to.
No kids, no wife.
He's welcome to leave it to me, but I'm quite happy with the fact he's 'loosening up' a bit.:respekt:
 
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