Pixelpower wrote:

I should finance the lot as I can make 10% net through investing cash

+1

I'd be over the moon with safely getting back half of that. I'd love to know how?

Some great replies thanks.

My situation is I have a lump sum of £20k to put down and I would like my monthly payments to start in the £600s. Obviously with this I would be looking at a PCP deal.

I appreciate the views of not financing a deprecating asset, but the reality is for me to get behind the wheel of a L405 this is the route I would have to take.

Now I am definitely not a financial advisor but if you want an investment that could make more than 10% per annum try classic cars. You get to enjoy them and if you buy the right one at the moment you will be making more than 10%.

Don't worry - most people are financing to some degree or other - find the car you like & go for it - if everyone had the same attitudes, then life would be boring

Classic cars - as every other investment - may have returned well in the past, but that doesn't mean it would be a wise move now. Investing in hindsight is always easy

Trommel wrote:

Pixelpower wrote:

I should finance the lot as I can make 10% net through investing cash

Show me where cash can make a guaranteed 10% return when the base rate is 0.5%, and I'll buy a hat and eat it. In fact, give Warren Buffett a call.

You've done really well Pixelpower but my philosophy regarding investments is not to risk more than I could afford to lose (or take a big hit on) The stock Market is not looking like the guaranteed thing many people still think that it is and although I do a little myself it's at a level where it wouldn't leave me destitute if it went belly up.

Good luck with your future investments

Yes, I agree. Definitely only invest what you can afford to lose. The ironic thing is the more you can risk, the more you can make. It's like a safer version of gambling. Over the long term the stock market has always given significant returns. It's a case of buying the right thing at the right time, or buying over time. Money is so cheap right now, I'd even borrow to invest if I didn't have other things to do

Like most, I hate finance however as you say, to get behind the wheel of something desirable it's often the only option.

I had some finance on my recent purchase and used Zopa, which I would thoroughly recommend. I achieved a flat rate of 3.9%. At that rate based on a £25k loan you would repay "only" £27,500over a 5 year period.

The application is very simple online and approved within minutes and transferred within 3 days.

I think that they finance through individuals rather than like a bank, hence low overheads = lower rates.

Hope it helps and good luck with the search.

Dave

I don't want to burst any bubbles but 3.9% flat rate is around 7.25% Apr and on a 25K loan would equate to around £5,000.00 give or take in interest alone. Flat rate is the rate most people who sell finance want you to concentrate on because it confuses most people into thinking it's the apr figure.
Your figures would be correct if it was 3.9%apr just not flat rate

Thanks Basil, it was the APR figure, your'e correct.

Ruddy good deal though

Yep. 3.9% Apr is a great deal

If you ask, the dealer will show you all the current comparable cars on the market from all LR dealers nationally, which should help you sense-check the price.
HTH