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Original poster

Do you have car finance?

56 replies

mrsbluesky5 · 14/08/2021 20:13

do you have car finance or save up and pay for the car outright? When I was younger I wouldn’t get car finance and I always saved money up to pay for the car outright. I’m married now with a mortgaged home and I have different priorities for large amounts of money. I got car finance for the first time recently and my family and parents have told me how disappointed they are and they think I should have saved up. I know im an adult but it’s upset me thinking they are disappointed and it’s left me wondering if I’ve made a mistake. I got a small car that’s 2 years old and I can afford the monthly payments and I’ll own the car at the end and then I could get another car if I wanted to and sell mine. I didn’t want to keep having older cars and I would like to have a reliable car as my commute is 20 miles round trip. Is getting a car on finance that bad when I would rather spend large amounts of money on other things?

OP posts:
nothingcanhurtmewithmyeyesshut · 14/08/2021 20:17

Finance here. Couldn't afford to buy it outright. Yes OK, I paid some interest but I got a good little car with low milage, I can easily afford the monthly payments and uts given my credit score a boost.

Garman · 14/08/2021 20:22

No finance, saved up to pay for it.

notacooldad · 14/08/2021 20:28

I had fiance on my car over five years but paid it off in three years and have had it for 9 years now.

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FizzyPink · 14/08/2021 20:30

We have finance. Could easily save up to buy outright but we like having a new and reliable car every 4 years with services for free etc. We do always make sure to negotiate hard though and shop around so get good deals.

MuchTooTired · 14/08/2021 20:34

I own mine outright. I had finance when the crash happened, I couldn’t afford the finance payments but couldn’t get rid of it either so had to find the money to pay for it.

I vowed to never have a car on finance again, and haven’t so far. I don’t drive a brand new car (he’s 15 years old) but he’s a beast and very comfortable and so far been pretty reliable! If truth be told, I couldn’t afford the car I’ve got now with the same spec brand new.

countdowntonap · 14/08/2021 20:36

No finance. I’ve been driving for 15 years and spend

First car £1000 (bought for me)
First car was written off after someone drove into me, was given £1000 from insurance.
Bought a £4000 Honda, with £1000 from insurance and cash.
Traded in Honda for £2000, and bought a Mazda for £6000 (£2000 trade in, plus £4000 cash).

In my 15 years of driving, I’ve spent £7000 on cars. That’s £39 a month!

I earn plenty (higher tax bracket), no children, and an unfortunate inheritance sum, but don’t see the need to buy a car on finance. When this car ‘dies’, next one will be brought outright too.

whatthejiggeries · 14/08/2021 20:38

I always bought mine outright and then I worked out that by leasing I only lose what I would lose in depreciation anyway and can give the car back after 4 years

QuiltedHippo · 14/08/2021 20:39

I don't fancy being in debt for a depreciating asset so I pay cash.
I understand why people do it though

qualitygirl · 14/08/2021 20:42

No finance.

Pinkstars2501 · 14/08/2021 20:46

I got my car on finance. I needed a car to get me to work if nothing else, no buses at either end of my shifts and it'd take it 2 hours to walk the country lanes. I work 8am-8pm, so no thanks.
I couldn't afford to buy outright as we had also just bought our house when I passed my test. I can afford the payments and it'll be paid off early next year. Obviously I've paid interest on it, but the mileage was low and it's a reliable car so it's fine.

I wouldn't normally go for anything on finance, but needs just.

TheDoctorDances · 14/08/2021 20:48

Bought mine on an interest free credit card. I could have bought it with my savings but it made more sense to gain a tiny bit of interest on the savings and just pay the credit card bill every month.

Blankspace4 · 14/08/2021 20:48

I think your parents should mind their own business with their judgement! You’re an adult free to make your own financial decisions.

I have a car on PCP. Payments are affordable and I never think of it as an ‘asset’. Interest rate is next to nothing and I avoid repair bills because car is always within 3-4 years old and then I hand it back.

pocoyoyoyo · 14/08/2021 20:49

Well how you deal with your finances is really none of their business, as long as it works for you that's all that matters.

My dad bought me my first car for about £800, then after that it was old bangers until about 2 years ago when I took a car out on higher purchase, i handed it back recently and decided to just share a car with DH as I'm wfh, he pays for his car through his business

Seesawmummadaw · 14/08/2021 20:51

No finance here because it scares me shitless.
But if I did it would be none of my families business! If they are paying they get to express their thoughts but if not it’s nothing to do with them!

MsAdoraBelleDearheartVonLipwig · 14/08/2021 20:55

Yep, none of their business, cheeky twats. Are they always so rude?

I’d rather have a newer, more reliable car on perfectly affordable finance than be constantly worrying about an older car breaking down.

guessmyusername · 14/08/2021 20:59

I got interest free finance when I bought my car. It was a no brained as far as I was concerned

Strictly1 · 14/08/2021 21:01

I have one on a PCP - the only debt I have. None of your families business. We all spend money and as long as you're not asking them for a loan, it's nothing to do with them!

Hobnobsandbroomstick · 14/08/2021 21:04

No, I haven't yet, my current car was outright paid for.

But when it dies I'll consider getting one with some form of finance, as long as it's a good deal.

TwinkleTwinkle11 · 14/08/2021 21:06

We've done it the past 5 year.

We aren't bothered about owning a car out right and enjoy having brand new every few year.

It works for us!

spongedod · 14/08/2021 21:11

When DD was looking into buy her latest car she looked at the finance options buy it seemed so restrictive to me - X amount of miles per year or pay Y per mile on top. She decided to pay cash instead because like me, she wants the freedom of ownership.

shewalkslikerihanna · 14/08/2021 21:15

No I buy outright
My current one is about 6 years old now and cost £8k two years ago
Was the most I’ve ever spent on a car
But I do love a good toyota

PaddingtonsHat · 14/08/2021 21:18

Finance. Sometimes saving up isn’t actually viable when you need a functioning vehicle ASAP.
Also tell your family to mind their own business

anon12345678901 · 14/08/2021 21:21

Mines on finance with GAP insurance. Hopefully it doesn't happen but if it's written off, the payments finish too.

SomethingToldTheWildGeese · 14/08/2021 21:26

There was a brilliant programme on Radio 4 about car finance.
It said that (surprisingly!) - finance is the most sensible way to buy a car. Apparently, if you're money savvy, and are 1000% sure you can afford the payments, you should consider finance. I can't remember their exact reasons (someone might be able to find the program - I think it was a Money Box episode from 2020) but their main point was that - it's not sensible to pay in full for an item that, over time, depreciates in value.
(especially if you prefer newer cars).

RickJames · 14/08/2021 21:28

My little car was bought brand new on finance. 120€ a month, interest free. Was cheaper than a months public transport and much more convenient. We ended up paying the final payment and keeping it. It worked out pretty well. I can't imagine me getting a Range Rover or something like that though.

I think the interest free deals are fantastic, why not?