As per title, whats your thoughts on buying a weekend toy, cossie..etc on finance i.e loans or c/c or using savings.

 

Personal preference. Cossie on tic = Dangerous

 

tic?

 

Tennency in common. Finance.

 

Buy a rental property with your savings as a deposit, interest only. Use the cashflow to pay for your toy, once the finance is paid off you still have your savings as the property won't have devalued, and you will have a "free" toy

 

My old boss was saving for his dream car had been since he started his business 4 years earlier, ill never forget at the xmas do when we got on about cars he said this time next year ill have my ferrari, anyway he never made it ended up with cancer and was dead 16 weeks later

He could have easily got the car on finance/loan but he was also a cash man, can't help but think if you can afford by whatever means and you really wan't it then go for it, live for today and all that

 

Do what you want in this life mate... Trust me...!

 

Always been a finance man but pains me with the cashflow it takes up...oh and the finance is far higher than current savings!!

 

If you have the savings then use it, then set a direct debit into your savings account to pay off amount plus about 10% over 36 months. That's how I finance my cars then I get the interest.

 

aslong as u can afford it, do it.
plus you can always sell if need be and wont lose much on a cozzy providing its decent.

 

I have thought about using the money that i put into my savings into paying off the finance as invariably i will only be buying a car that will hold or go up in value and therefore it becomes an asset, and as mentioned it can always be sold!

 

if i get a good amount saved up i hate spending it, so would just get a loan and keep the cash in the bank and keep adding to it.

 

I'd go for a little from column A and a little from column B; that way if things go tits up financially for you or you get bored of the toy at any point in the future, providing you went for a decent/equal split between the payment options to start with, your toy should be worth more than is outstanding on the loan.

So you can sell it, pay off the remaining loan to remove the monthly loan payments going forward and concentrate on getting back on a level playing field again.


Cheers,
Grant

 

As said, as long as you can afford the monthly payments then get it on finance, why waste savings when you can get it on finance (assuming you get a good interest rate)

BUT be sensible, if you're on minimum wage i wouldnt advise getting a focus rs on finance as running costs will leave you with next to nothing every month & fuel isn't getting any cheaper!

 

Buy it out of saving but buy well and on something that will retain value. Interest rates are gaff, so why leave that in the bank earning little and be paying interest to the bank on a loan.

The toy can be sold to recoop cash and you wont be bummed for early pay off of a loan.

 

you should have been doing that from the start, why pay interest on a loan at XX% and get X% (ie less )on the savings

no brainer pay debts before savings unless the savings pay you more than the finance costs (very unusual)

i was working with a mate today and i was ripping that his missus put her thumb down and stopped him buying an focst, he said i should buy what i want but he couldnt come up with anything i'd want (nor could i)

if i could get a free toy up to say 20k i would want a rat bag mondial 'rari, i'd never drive it and it would sit in the warehouse being show to anyone with interest

 

I think that's the best way forward. I have a great deal on my c/c with 0% interest which i have used to build a mk1 capri, once that deals up i will get another card an transfer the balance for another 0% for 18months...etc im only looking at 5-6k as i NEED a saph cossie!

 

Only finance I want in my life is my mortgage... you won't enjoy what you've got otherwise, what you own owns you.

 

I would get it on finance that way if things go tits up you have the cash in your savings account to fall back on or pull you out the shit.

Plus if you keep up the repayments then you will increase your credit score and in the long run that will help no end.

 

and there goes the wet dream of the credit card company

ill borrow 10k and repay 14k over 2 years

ive got 10k in the bank tho (for a rainy day) but that will get me 10 500 in that same 2 years

hang on thats 3.5k out of my pocket and into the credit companies, i know what i would do!!!, that money saving expert dude used to say this and i thought nobody would do it in such a stupid waste of money way

as for credit score i have a nice bit of cash, credit cards i rarely use unless online and always pay that mth, no phone contract (works phone) car insurance is paid there and then, all bilsl paid with not s single thing on credit, i has accounts at work do a credit check and i passed, now i dont know what sort of pass but i could take anything from them there and then

credit score costs money to get but it wont make you tea or give you a lift (and makes no odds to me)

 

my mind boggles

do you realise what you are saying?
you woudl get finance so you have the money in the bank for later even tho you are paying interest on that borrowed money

and james its only worth it if the interest was 0%!! how is it good to pay someone money when you already have it and get fuck all for saving it

i used to get 5% on savings now i get 1% i still wont pay fuckin 15% out (on a good deal) to use someone elses bloody money

 

And we wonder why the country is bankrupt

 

reason i get a loan is it would take me years to save up the amount of cash i need and i would probs change my mind on buying what i want in that time or something could pop up.
ive always had loans, never massive ones and never missed payments and always had a decent amount of cash.
i dont have any kids or a mortgage so why not get a loan to get the things i want now.

 

finance / loans are the root of alot of peoples problems.


stay clear of loans... if you dont have the cash u cant afford it... simple.

i was in over 30k of debt and i've gone without for 4 years but im now debt free and have good savings going into my account. i'm 10times happier as i can go out when i like do what i like and now have a really nice house.

 

Same here the interest on my car is £22 a month, oh well, i'll spend more than that in the takeaway & then the taxi home tonight!

& it leaves my savings, errr, safe in the bank for a rainy day!

Am i wasting my own money on interest charges? yes! do i care? not at all!

 

I would use your savings and set up a D/D similar to what loan repayments would be so your instantly saving again. Or pay half upfront with savings and get a loan for the rest so you still have a savings blanket.

 

Totally agree!

 

That's quite an interesting idea. The only issue I can think of is the capital gains tax whenever you come to sell the property. You might actually end up being out of pocket rather than making money.

For me personally the only item I have on "finance" is my house. Each to their own, but I don't see the point in paying finance on say a £10K car, the payments making the total amount paid say £14K. You're essentially paying over the odds for something.

 

Good idea on paper, only it all falls apart when repairs to the house is required which costs money & then when your tennet walks out leaving the place like a shit hole so then more money required & then a lengthy wait for replacment tennets!

Unless you have a couple of properties the rental game is tricky one based on many varibles to actually make money!

 

I can see your points and they are all valid but personally I would go the route I suggested because thats how I operate

 

I'd say it would be very much dependant upon where your rental property is located. I know from personal experience that flats in Aberdeen city centre are in massive demand and there would be no trouble at all in terms of finding new tennants if the previous ones walked out. Granted tennants could wreck the place, but thats why most people ask for 1 or 2 months rent as a deposit up front, and sometimes use a letting agency to take care of all the hassle.

The flat I rented last year was a 1 bedroom worth somewhere in the region of £90K, and the rent was £600pcm without bills. I think that would have been enough to cover the mortgage payments on it.

 

yep lol, buy one with savings then finance the tuning parts lol

 

Live for today.....

 

2nd that

Been there done that with Finance. If you've got the money in the bank why not use it to buy the car your after. As others have said you can then pay the money you would of paid out on the loan each month into your savings. Best of both worlds in my mind, you get the car you want without the stress of a loan/finance & you're building your savings back up along with having the car as an asset. Providing the car doesn’t depreciate faster than you can save you're quid’s in.

 

CGT does not apply unless you make a profit, and even then I think it is over 8k before it kicks in, very easy to minimise/avoid, even so you would not lose money, merely gain less!