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Actually at the moment buying a house with a mortgage is a good deal so not a valid example.
Saloon [UK] Is this a good finance deal?
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I think he's making the point that mortgage rates are so low (<2%) that you're better off borrowing the money at those rates than potentially ploughing your savings into it that could earn more invested elsewhere.
Generally, yes.
Say you want to buy a house for £130k. You have £10k and save £1k a year for 10yrs while living in cheap rental. By the time you have £130k that house has more than likely risen in value, as it’s an appreciating asset. It’s probably now worth closer to £250k....so you either have to save double the amount or buy something half the value of what you wanted originally.
If you got a mortgage instead, you would be paying about £600 a month, and have benefited from that house price rise. Mortgage payments on the capital plus the appreciating price means that in 10yrs you are sitting on about £170k worth of equity now. So you’ve paid less per month on the mortgage vs saving (£1k vs £600) and end up with £40k more, all while living in the house you wanted. Of course a lot of the time, the mortgage payment is the same as the rental, so you could save the £1k each month as well (although it would be used for ongoing costs that come with home ownership).
Obviously ideally no one wants the mortgage, but generally people don’t just have £100k + materialise in their bank account one day. It’s saved up over time, and as above, this time is better spent borrowing the money (particularly at such a low rate), rather than constantly chasing a rising house market, which you will struggle to keep up with since it’s outperformed wage growth for decades now....
Obviously rising house prices are not guaranteed, and it comes with risk as any debt does, but it’s far less risky than car debt, particularly if you buy in the right area.
Also...people need somewhere to live so don’t really have much choice...!
Sorry I meant if you had the cash in your bank to start with.
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Yes, mortgage rates are very low at the moment and a £200k investment should beat a 1% mortgage.
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House prices are very dubious at the moment, reducing in London . Car sales down significantly as a result of uncertainty caused by Brexit. the smart money is on Brexit being stopped in 2018 as many Brexiters have changed their mind and the narrow majority was not actually arrived at by fair means.
Can someone ban this guy?
It’s a car forum, the majority of your posts are about Brexit. You’re on the wrong forum and should take your political rambling elsewhere.
House prices reducing in London is a good thing surely? Where’s the evidence that car sales are down because of Brexit?
I still bought a brand new car, I couldn’t give a monkeys about Europe, the Euro or Brexit for that matter. Never even entered my mind when I bought the car.
It wasn’t a fair vote? Jesus.
Brexit is happening because that’s how democracy works. Simple.
It’s a car forum, the majority of your posts are about Brexit. You’re on the wrong forum and should take your political rambling elsewhere.
House prices reducing in London is a good thing surely? Where’s the evidence that car sales are down because of Brexit?
I still bought a brand new car, I couldn’t give a monkeys about Europe, the Euro or Brexit for that matter. Never even entered my mind when I bought the car.
It wasn’t a fair vote? Jesus.
Brexit is happening because that’s how democracy works. Simple.
Nice to see house prices diminishing in London as they are hyped up beyond reason to say the least,London never suffers in a recession same as Aberdeen but what goes around comes around.
Anyway moral of the story is...If think you cant afford a certain car do not buy it
These car finance deals will be the next miss-selling scandal. It’s clear from these posts that a number of people that have taken them out are not aware of the fact that they have just taken out a massive loan at 6% secured on the vehicle which they never own in the lowest rate environment we have known. When interest rates start to rise , which they are , all be it slowly as things begin to normalise , then your car payments may be the same , but your mortgage which the majority will have will go up . In % terms significantly. Faced with this people will continue to pay their mortgage and be forced to default on the car payments . Cars get repossessed or given back , finance companies whether external banks or the manufacturers get left with the asset . They clearly have to sell them . Residuals will collapse the second hand mkt will be flooded with cars that are 1 or two years into these deals . How this lending has not been more closely regulated with checks on affordability I’m not really sure . Have we learned nothing over the last few years. Car sales over the last few years have been phenomenal but only as result of banks re inventing this type of secured loan . The problem is it’s not as secured as they think. The GFV numbers are great in a bull market. So stress test your payments. If your income stays the same , inflation continues as is and mortgage rates double are you still happy paying 500 600 700 A month. If you are then in my opinion no problem. If that doesn’t work then you are far to geared . It has got nothing to do with Brexit . It’s got all to do with the fact that people in this country have borrowed money that if conditions change they won’t be able to repay. Just like the last time . But that’s QE encourage everyone to spend . Worry about the unravelling later.
In my opinion. Please don’t shout at me about this being a car forum I think people need to think about this or they won’t be on here in the future ..
In my opinion. Please don’t shout at me about this being a car forum I think people need to think about this or they won’t be on here in the future ..
l tell you what l put down £8000 deposit on my S3 plus l bought the Matrix candles and the rear view camera on top of the £8000 to give me even lower monthlies,l got a £5,700 discount on a £48k S3,my monthly payment is £380 even that is too expensive,in hindsight great thing that....lol cars aint worth it....as they are getting far far too expensive especially Audi's,l wont do it again but that's just my train of thought now,other folks charge on its your money
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I bite too easily... but...
The Brexit vote was a "popular vote", basically a straight fight between yes or no, regardless of where you lived. If it had been a first past the post vote like a general election, it would have been the biggest landslide win ever in favour of leave. It was all set up to favour remaining. And yet leave still won. It cannot have been any fairer.
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Have just been talking with Audi locally. All discounts are down, all interest rates are up and sales are down too. Is this what us folks want?
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Also remember @D0C that people generally prefer "no change" and to not "rock the boat" so to get a vote like that in favour of change was most surprising.
Anyway back to cars ...
TX.[/QUOTE
Bunch a loosers in them 4 cars with wee winkies......lol
Yup . Might as well take the pain up front and get the first move advantage by leaving before the whole of Europe implodes.
Growing faster than any economy in the world at the moment. Fortunately I have property in the EU and work abroad too so a low £ means my property abroad is worth more. But simple question before we go back to cars... How are we meant to benefit by having a soft breakfast and paying £50 billion to trade on same terms with no influence. The car market is pan Europe, all our components are sourced pan Europe so weaker pound benefits exports but also component costs sourced in europe cost more so unit cost goes up and us mugs pay more for EU cars and British cars. I know rather more about the EU and economics than your average punter and if my dubious MP Liam Fox thinks Brexit is a good idea that is yet another reason to be suspicious... My RS4 arrives in UK mid February and will of course be proudly displaying EU number plates!!
Why are you converting things back to sterling ? you clearly want to stay with your property and job in Europe so the exchange rate is meaningless ? Unless of course you Wish to retain the optionally of converting back if it all gets a bit tricky. If you think you can predict euro stg exchange rate post brexit with that degree of certainty then give up the day job back your opinions and become a very rich man. You won’t be worried about car prices moving 20%.
I wish to maintain the UK as my main home. Sterling EU exchange should be around the 1.3-1.4 mark however the current circa 1.1 is primarily as a result of Brexit. Yes my EU properly is worth more but I'm not so selfish as to relate everything to property values. The current blind Brexit approach is damaging the UK and its people longer term and I hope that we will halt the madness and reflect. We are not living in the 1950s and have a key role to play in a reformed Europe. Hopefully being able to still buy reasonable priced Audis.
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I didn't vote leave because I thought we'd be better off economically. It was to get out of a corrupt club we're not liked and where people like drunk Junck and high Guy are left to spout off threats. The EU parliament is about as corrupt as FIFA. I'd have sacrificed half my salary and the RS3 to get out.
And our Government are angels! Don't be daft all politicians are dodgy. The EU is a wider democracy and protects us from excesses in all political directions. There are no threats from the EU. We are telling them we want to leave, even though most of us don't want to, how is that democratic??
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Callump01
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Well... earlier than expected! Fingers crossed it doesn't slip repeatedly like my Ford did...
When do you guys think the delivery date will be from the start date of the build? Hopefully March 1st is doable but perhaps that's wishful thinking.
Usually 4 weeks from build date
Well... earlier than expected! Fingers crossed it doesn't slip repeatedly like my Ford did...
When do you guys think the delivery date will be from the start date of the build? Hopefully March 1st is doable but perhaps that's wishful thinking.
Mines a week 3 (15 Jan) and dealer reckons 1 March delivery should be fine. Fingers crossed tightly!
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So your Brexit ramblings are from a mere selfish point of view? Your mind is clouded by your own best interests due to properties and investments you have made in Europe. There is a financial reason for your clouded judgement. That’s a fair enough reason to vote remain I suppose but then trying to force your opinion and convince everyone else that EU membership is great based on your own selfish reasons is ludicrous. You’re one person with a voice but sadly not one single person on this forum other than yourself cares for your financial position in Europe. Surely you see that and how selfish your viewpoint is?
I went to Spain April 16, 2 months before Brexit and the best exchange rate on offer was a 1.22 EUR exchange. Went back again October 16, a few months after Brexit and best exchange rate was 1.14 EUR. The difference fairly negligible.
The sooner Europe implodes and fails, the better. Time for individual countries to sort themselves out. Bring back the Peseta
As pointed out previously, RS3’s in the UK are comaparatively cheap to elsewhere in Europe.Sod the poor unemployed homeless man in the street waiting 6 months for an op on the NHS and adopt the old “I’m alright Jack” attitude springs to mind here. There’s a lot more to wanting out of the EU than for financial reasons. One of the main reasons was in fact uncontrolled immigration. The extra burden this causes on the NHS, Schools, Housing etc. Looking at it from merely your own financial position is EXTREMELY selfish. Strangely enough, I do find the people that shout the loudest about Brexit are the people that have financial Interests in Europe.
To summarise though, you’re wasting your time posting about Brexit on a car forum site. The vote is done, there’s no one left to convince, no matter how hard you try, the UK will be leaving. For a British government to defy its own people and turn its back on democracy, we will have far more worse things to look forward to than leaving a very corrupt EU.
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I think you miss my point. I don't actually care that the value of my EU properly has increased by 25% as a result of Brexit. This is way above the value of and RS3 or RS4! I am far from selfish and care about the future of the UK, (in particular the NHS!!) which if we allow a take over by the extreme right wing will be dire.
The Euro was at 1.40 ish in 2015 before the Cameron announcement and 1.30 or just over in June 2016. It is now around 1.12. I am talking FX Interbank rates!!
Let's not make this personal, I will gladly provide evidence! My property in the EU has little or no effect on my pro EU stance. Now that Brexit isn't going to happen we will hopefully return to normal service asap and EU cars will no longer be so highly priced.
Incidentally uncontrolled immigration doesn't happen in the EU, nor does it have to happen here. As the French would say that is a 'poussin rouge'. Theresa May when Home Secretary could have done something and failed us then, much as she is now. Mods, can we move this debate to the 'social non cars section ' . My original comments related to financial effects of our purchases Leo is getting far too off topic I fear.
The Euro was at 1.40 ish in 2015 before the Cameron announcement and 1.30 or just over in June 2016. It is now around 1.12. I am talking FX Interbank rates!!
Let's not make this personal, I will gladly provide evidence! My property in the EU has little or no effect on my pro EU stance. Now that Brexit isn't going to happen we will hopefully return to normal service asap and EU cars will no longer be so highly priced.
Incidentally uncontrolled immigration doesn't happen in the EU, nor does it have to happen here. As the French would say that is a 'poussin rouge'. Theresa May when Home Secretary could have done something and failed us then, much as she is now. Mods, can we move this debate to the 'social non cars section ' . My original comments related to financial effects of our purchases Leo is getting far too off topic I fear.
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Have I missed something on the news...has there been another vote?!
If you want to go off topic then how about something interesting!
Other than that there is a Rants & Raves section for going off on a tangent.
http://www.audi-sport.net/xf/forums/rants-raves.106/
Brexit Smegxit either way those in power will feck it up!
Oops starting to rant
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Other than that there is a Rants & Raves section for going off on a tangent.
http://www.audi-sport.net/xf/forums/rants-raves.106/
Brexit Smegxit either way those in power will feck it up!
Oops starting to rant
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If you want to go off topic then how about something interesting!
Other than that there is a Rants & Raves section for going off on a tangent.
http://www.audi-sport.net/xf/forums/rants-raves.106/
Brexit Smegxit either way those in power will feck it up!
Oops starting to rant
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Thanks Barry..... Have taken your advice but as Brexit isn't happening now, hopefully we can spend more time with our Audis..
Thank Frig you've started a thread elsewhere.......
Can the Mods delete the B word waffle now.
Can the Mods delete the B word waffle now.
Ban the BMW word now!!!Thank Frig you've started a thread elsewhere.......
Can the Mods delete the B word waffle now.
Both B words are rubbish and should be stopped immediately. Replace BMW with AUDI and Brexit with EURemain.
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