Select or Loan?

[LisEvs]

Hi All,

Need to pick the collective brain again!

Trying to work out the best way to pay for my new baby:disapprove:and I'm swithering between Select or a low rate Loan. Both have obvious advantages and disadvantages...

Any thoughts?

[Scottie]

I'd do a private lease:D

[Craig]

I would always go PCP (personal contract plan) or Personal Lease as Scottiecoop says.. Both are small deposit, lower monthly payment and if you get to the end of the term, you can just hand the car back, even if the finance is worth more than the car.. The crucial part is you are only financing part of the car, not the full price..(ie there is always a large chunk outstanding after your term..)

Problem with a low rate loan is you are taking the gamble, not the billion dollar car producer..:D

[Gismo]

It all depends on whether you want to own the car at the end of the loan period, or, like most people trade in after a couple of years etc.

If you want to own the car outright, a fixed repayment method is best, but, you'll have a bit of a fight on your hands with the dealer as they always want you to use their scheme.

[The Dogfather]

You're financing the whole amount on PCP, as far as interest goes, but you don't usually make the last big payment.

[bpirie1000]

Personally I think it depends on your Outlook.. It all depends on whether you want to own the car at the end or not...or like most people use the car as a daily drive and not worry about it..trade it in after a couple of years no hassle.

If you want to own the car outright, a fixed repayment method is best, you'll will always get the best cheapest deal from a dealer as they can make massive amounts on signing people up for their schemes. Worth Checking Bank..

But As many people have stated PCP is a good Option I would However advise to make an allowance every month over and above your payment so that IF you can't be parted from the car at the end of the term you have enough to cover the Lump at the end.
OR
Have enough to Cover a Large Deposit for your next car once you walk away.....

In theory that works But money in the bank is usually a ticket to spend.

Either way It'll cost you a fortune. That is life.......

[OBN]

Win the Euro lottery this weekend and pay for it outright

[AndyP & Lenore]

There is a third option here...

Under the Consumer Credit Act, there is a "get out" clause built in to every credit agreement regulated by the act. ALL consumer (not business) credit agreements regulated by the act under £25,000 have this clause. Basically it means that once you have paid half the monthly payments due under the agreement, you are entitled to hand the goods back to the finance company and walk away. It bears no reflection on your credit history and is a commonly used procedure for lots of people these days. So basically, if you take a 4 year fixed term finance agreement, and you pay 24 months of payments, contact the finance company, tell them you want to hand the car back and they tell you where to take it. Usually a local car auction mart. No fee's, no costs, not bad credit, no more monthly payments - but no more car. But it does leave you free to take another car on another agreement.

Edit: I've even seen these terms on a PCP agreement, which I didn't think was possible, but there you go. And it's also worth noting that if you begin the agreement with the intention of doing this half way through, DO NOT stick a massive deposit in at the front end. And also bear in mind, if your car has equity half way through the agreement (a MINI could well do, even with a small deposit), you will loose that equity.

A.:D

[AndyP & Lenore]

quote:Originally posted by OBN

Win the Euro lottery this weekend and pay for it outright


Aye, and 4799 other MINI's too.:approve:

A.:D

[OBN]

quote:Originally posted by AndyP & Lenore


quote:Originally posted by OBN

Win the Euro lottery this weekend and pay for it outright


Aye, and 4799 other MINI's too.:approve:

A.:D


1 each for everyone on NMS and cash to spare

[LisEvs]

I'm generous - I'd have no problem getting you all one!:D

Thanks for the advice. By private lease - do you mean using another company other than BMW? Are there companies that just do the finance without providing the car?

[Scottie]

quote:Originally posted by LisEvs

I'm generous - I'd have no problem getting you all one!:D

Thanks for the advice. By private lease - do you mean using another company other than BMW? Are there companies that just do the finance without providing the car?





it is recommened that the most cost effective way to run a car is by private leasing.

You know how some companies lease the cars that they use well you can get the same kinda deal but private. |It covers all costs of running the car tyres servicing etc etc and at the end of the period they come and collect the car kinda idea so basically your paying for the use of the car and nothing else but over the period of time say 36 months the idea is you loose least amount of money when you factor in depreciation etc etc.

The length of the lease and the period you take it over. so say a 6 month leasse could cost you £500 a month while a 36 month lease could cost you £229 a month.

Quentin Wilsons advice on Radio 2 a few weeks back

[LisEvs]

Makes sense although I have to say my brain is hurting a wee bit now!

I'll get searching for the best deals...oh joy.

[Craig]

try www.genuscars.com - based in Stirling.

REALLY good prices - know a couple of people who have used them. Great service. :D

[LisEvs]

Thanks - I'll have a look now.

I'll let you know how I get on.