How was your Golf bought?

[CHB100]

Well if you plan on keeping it for a good few years then i'd say taking the PCP finance then paying off immediately is likely to be the best way forward.

If you swap cars often, and don't do lots of miles then it's worth considering a personal lease. Regardless of how much cash you have in the bank. This is what i've done on my last two cars now, so far no regrets.

Paying cash enables you to spec the car to your requirements and get a massive discount (near 20% in my case) while that cash in the Bank/BS is deflating in value. OK if you need to use your cash for a business ventures, house purchase. But IMO a new car should be way down the priority list for most people.

[Guzzle]

Not disagreeing, but the cash will deflate more if it's sat on your driveway.

I've bought cars the old fashioned way before, paying cash upfront. But I kept those cars a good few years.

Some of the PCH deals that have been around in the last few years made paying cash look like a very expensive way of doing things. As I said in my previous post though, cash will work out better if it's a car you plan to keep long-term.

[CHB100]

Not disagreeing, but the cash will deflate more if it's sat on your driveway.

Presuming you need a car. You do get to USE it, it's not just an object to look at on the drive. So bound to devalue. As I've said before I intend keeping this one for 7/8 years min. Im convinced my R ,looked after will be desirable for some time and hold a very good resale value.

[fredgroves]

Working out the exact cost of ownership with all the relevant factors is actually pretty hard to do...

I'm fairly sure that nobody has managed to create a suitable illustration that is accurate for today's market anyway.

BTW, this:

As stated above the boom in car sales is fake and like most things and only achieved on credit. I wonder for how long?

There is nothing wrong with credit. Absolutely nothing at all. If you believe otherwise, you are probably just old. I don't mean that nastily, I just mean that in olden times people thought being in debt was morally wrong. Its not at all.

Providing the lending is responsible (ie lent to people who can afford it) then its perfectly fine.

Sure, the lightning bolt might strike you, but life is full of freak risk.

[Guzzle]

Not disagreeing, but the cash will deflate more if it's sat on your driveway.

Presuming you need a car. You do get to USE it, it's not just an object to look at on the drive. So bound to devalue. As I've said before I intend keeping this one for 7/8 years min. Im convinced my R ,looked after will be desirable for some time and hold a very good resale value.

Well I need a car, only I don't have a huge amount of cash tied up in it and I still get to drive it.

I'm not suggesting people shouldn't buy a car the way you've done. I've done it myself and would do so again. I'm merely pointing out doing things another way is just as valid, and can have benefits as long as you've done your homework.

[dubber36]

My view is that credit will ultimately cost more, so if you have the cash, why not use it? Business users will use credit as it frees up working capital which can be used to earn much more money, but for private buyers, what else are you keeping your money in the bank for? A rainy day?

[CHB100]

Working out the exact cost of ownership with all the relevant factors is actually pretty hard to do...

I'm fairly sure that nobody has managed to create a suitable illustration that is accurate for today's market anyway.

BTW, this:

As stated above the boom in car sales is fake and like most things and only achieved on credit. I wonder for how long?

Providing the lending is responsible (ie lent to people who can afford it) then its perfectly fine.

Ah! and there's the rub. It's still lent incredibly irresponsibly, of course, it is in the lender's overall interest.( and interest!!)

The only credit worthwhile is interest-free as I got on a new kitchen recently, obviously mortgages. Yes and for those who have a guarantee of paying it off should the need arise.

Surely some of you folks remember high unemployment, repossessions it's historically cyclical, blimey what with Brexit I think it's maybe better to be old-fashioned and patient.

The credit boom is back in full swing, let's hope the result is not similar to the last.

[fredgroves]

So having a house on credit is OK because its needed...

Having a functioning form of personal transportation is not a requirement?

Maybe not if you are retired or live in London... very much a requirement for me, its what enables me to pay for the food on my table and the roof over my head.

Perhaps not if its a toy that sits shiny on the drive....

[dubber36]

Having a functioning form of personal transportation is not a requirement?

A car costing £1000 is a functioning form of transport. In fact bangernomics is the most economical way of driving around. It's not necessary to have a £30k car to drive around in, but we do because that's what we like.

We all have different ways of justifying or affording the cost. Besides, if people didn't have new cars, what would people be able to drive around in in 15-20years time?

[fredgroves]

Banger driving isn't cost effective for me. I cannot afford to loose a day's business due to a malfunctioning POS leaving me stranded somewhere.

Just a couple of those a year could amount to any financial savings being lost and its definitely going to happen...

The same goes for buying even a 5 year old car, combining loss of business and repair bills, it just doesn't work (for me)