Poll: Do you buy brand new car with full payment?

masterboy123 · 12-08-2019 10:01AM #1

I wonder if there are people out there who buys a brand new car with a full payment on purchase?

colm_mcm · 12-08-2019 10:04AM

They are rare enough but they’re out there.
When I sold cars you’d have the old money types that would just write the cheque for the amount there and then. Very rare though.

Heres Johnny · 12-08-2019 10:07AM

We bought 2 cars last year with full payment upfront, they were both used and they were both about €20,000 each. 2014 BMW and a 2014 Audi.
So we could have bought a new car with cash (but not the type of cars I like they are well out of my cash range!!)
I put money aside now for when I change again in the future instead of funding a loan.

Always bought my cars outright, they are usually a good bit cheaper and older but didnt have another use for the cash this year so just went for it

If somebody buys their first car without a loan and saves instead of borrowing it is very possible to keep this cycle going.

terrydel · 12-08-2019 11:09AM

Heres Johnny wrote: »

We bought 2 cars last year with full payment upfront, they were both used and they were both about €20,000 each. 2014 BMW and a 2014 Audi.
So we could have bought a new car with cash (but not the type of cars I like they are well out of my cash range!!)
I put money aside now for when I change again in the future instead of funding a loan.

Always bought my cars outright, they are usually a good bit cheaper and older but didnt have another use for the cash this year so just went for it

If somebody buys their first car without a loan and saves instead of borrowing it is very possible to keep this cycle going.

Very few people can save at that level given the enormous cost of living in this country.
I've bought 3 cars in my life, only one for me. The dearest was 11k or so for a car for my dad, but I bought that after getting a nice redundancy payment.
The two other cars were 6k and 1.4k.
I've spent 10k or so buying myself a nearly new motorbike also.
I wouldnt even consider spending anything above those figures on a car to be honest, even with a loan, never mind shelling it out in cash.

fits · 12-08-2019 11:12AM

Bought last two cars with cash (not new). You think very long and hard about spending the cash after saving it whereas it’s much easier to spend money from a loan. I detest paying interest so that’s me.

CoBo55 · 12-08-2019 11:15AM

With 0% finance why would you do that?

Sexual Chocolate · 12-08-2019 11:29AM

Was always of the assumption that a lot of retired folk generally buy and pay in full. Or the rich.....

12-08-2019 11:36AM

CoBo55 wrote: »

With 0% finance why would you do that?

First time buyer... where can I shop around for such a thing?

bee06 · 12-08-2019 12:05PM

I bought my last car (brand new) outright and currently waiting for my next car to be delivered that I’ll also be paying for in full. I’m not rich but I’m very good at saving with a well paid job. My husband bought his car last year outright as well (used but new enough).

lmimmfn · 12-08-2019 12:10PM

CoBo55 wrote: »

With 0% finance why would you do that?

While 0% is great, you can get a discount buying a new car with cash( better discount if not trading in) that you won't get with 0% finance.

I did both a few years ago, generally though 0% is better if you save regularly and your savings would only cover the car as better to have cash in reserve for emergencies but if you had 70k in the bank and buying a 30k car I would pay cash and get it for 29k or so.
0% also usually has a 30euro monthly fee to cover servicing so over 3 years that's 1080euro. Paying cash the servicing is free.

Heres Johnny · 12-08-2019 01:43PM

terrydel wrote: »

Heres Johnny wrote: »

We bought 2 cars last year with full payment upfront, they were both used and they were both about €20,000 each. 2014 BMW and a 2014 Audi.
So we could have bought a new car with cash (but not the type of cars I like they are well out of my cash range!!)
I put money aside now for when I change again in the future instead of funding a loan.

Always bought my cars outright, they are usually a good bit cheaper and older but didnt have another use for the cash this year so just went for it

If somebody buys their first car without a loan and saves instead of borrowing it is very possible to keep this cycle going.

Very few people can save at that level given the enormous cost of living in this country.
I've bought 3 cars in my life, only one for me. The dearest was 11k or so for a car for my dad, but I bought that after getting a nice redundancy payment.
The two other cars were 6k and 1.4k.
I've spent 10k or so buying myself a nearly new motorbike also.
I wouldnt even consider spending anything above those figures on a car to be honest, even with a loan, never mind shelling it out in cash.

Off top of my head the cars I've bought were 1999 316i e36 13k (with a loan, the only one I've ever got and sold it for 12k a year later), 8k 2000 318i e46, 5k 1999 318i e46 (yes I went back in years but I moved to UK that year), 8k e39 530i 2001, then didn't drive for 3 years as living in City centre, 3 k e39 525i 2004, 5k e60 523i 2007, then these 2 last year for 20k each, a 530d m sport and an a6 s line both 2014. Just had the cash so went ahead with it. I do save a lot and I have some small investments going so can do it.
Can't afford the big German saloons I like in cash though, but I reckon the 530d will be replaced with a 530e g30 in cash in about 3 years time when they fall to a manageable level

deathtocaptcha · 12-08-2019 01:49PM

CoBo55 wrote: »

With 0% finance why would you do that?

To stop you from spending money you don't have and prevent you from feeling wealthier than you actually are which could compromise your future financial standing.

masterboy123 · 12-08-2019 02:25PM

So far it's interesting to see the results:

55% - NO
45% - YES

I expected higher percentage for No.

Comhrá · 12-08-2019 02:51PM

Always paid cash for new cars over the years.

I'd be open to a PCP in the future though, if I got a 0 % deal on a model I

liked. I have very low annual mileage so wouldn't have an issue there.

BarryD2 · 12-08-2019 02:57PM

deathtocaptcha wrote: »

To stop you from spending money you don't have and prevent you from feeling wealthier than you actually are which could compromise your future financial standing.

This, apart from a car bought years ago on some sort of hire/ purchase scheme, just saved since a bit each year and used that to fund a nearly new car. Keep that for c 8 years till it starts to cost more serious repairs, rinse & repeat.

Don't have to worry about mileage or the odd scratch from country ditches. Just keep it serviced and works out well enough.

Mad_maxx · 12-08-2019 04:41PM

lmimmfn wrote: »

While 0% is great, you can get a discount buying a new car with cash( better discount if not trading in) that you won't get with 0% finance.

I did both a few years ago, generally though 0% is better if you save regularly and your savings would only cover the car as better to have cash in reserve for emergencies but if you had 70k in the bank and buying a 30k car I would pay cash and get it for 29k or so.
0% also usually has a 30euro monthly fee to cover servicing so over 3 years that's 1080euro. Paying cash the servicing is free.

I've asked for cash discount deals down the years, it never made a bit of difference

Saving a grand by paying cash in full is madness, very poor use of capital, you would need to be getting it for 27 k

Mad_maxx · 12-08-2019 04:44PM

Sexual Chocolate wrote: »

Was always of the assumption that a lot of retired folk generally buy and pay in full. Or the rich.....

The rich are not afraid of debt and understand it

CoBo55 · 12-08-2019 06:11PM

lmimmfn wrote: »

While 0% is great, you can get a discount buying a new car with cash( better discount if not trading in) that you won't get with 0% finance.

I did both a few years ago, generally though 0% is better if you save regularly and your savings would only cover the car as better to have cash in reserve for emergencies but if you had 70k in the bank and buying a 30k car I would pay cash and get it for 29k or so.
0% also usually has a 30euro monthly fee to cover servicing so over 3 years that's 1080euro. Paying cash the servicing is free.

You can refuse the service pack, I did, it isn't obligatory. You can still haggle, I saved 2k by shopping around.

Sonny noggs · 12-08-2019 06:17PM

Bought my current car (2010 reg) new with a cheque, will do the same with the next new car I get.

CoBo55 · 12-08-2019 06:19PM

Mad_maxx wrote: »

The rich are not afraid of debt and understand it

I'm not rich and understand debt... Stupid statement.

12-08-2019 06:29PM

Mad_maxx wrote: »

The rich are not afraid of debt and understand it

We're talking regular car purchases here. Not debt that's being put to use.

Mad_maxx · 12-08-2019 06:49PM

CoBo55 wrote: »

I'm not rich and understand debt... Stupid statement.

A lot of people have an instinctive aversion to debt, you regularly hear people advising people ( who happen upon a lump sum) to pay off tracker mortgages

Mad_maxx · 12-08-2019 06:51PM

[Deleted User] wrote: »

We're talking regular car purchases here. Not debt that's being put to use.

Availing of sub 3% debt to finance a car purchase is good business.

You could then potentially use the thirty grand to make home improvements, personal loans are close on 8% in most cases

12-08-2019 07:10PM

deathtocaptcha wrote: »

To stop you from spending money you don't have and prevent you from feeling wealthier than you actually are which could compromise your future financial standing.

This shows a very poor understanding of how to manage your finances.

masterboy123 wrote: »

So far it's interesting to see the results:

55% - NO
45% - YES

I expected higher percentage for No.

I don’t think people read the question or are ignoring it. Most of the posts are people buying sub 10k cars for cash I bet the same people are voting in the poll. It should only be people who buy brand new cars who vote.

No way the real figure for new cars being bought for cash is anywhere near 45%.

ShadowHearth · 12-08-2019 07:24PM

Kole Odd Suspicion wrote: »

This shows a very poor understanding of how to manage your finances.

I don’t think people read the question or are ignoring it. Most of the posts are people buying sub 10k cars for cash I bet the same people are voting in the poll. It should only be people who buy brand new cars who vote.

No way the real figure for new cars being bought for cash is anywhere near 45%.

This. I was a bit surprised on how many people buy with cash Brand new cars, then I sow posts where people talk about second hand older cars. So poll itself is botched.

I voted no, as my current car was very first new car I ever bought. If I had 25k, I would still have taken finance. I prefer spending banks money and have my own for emergency. With very low apr rates it's a small price to pay. My PCP is at 0%. I am good at managing my money and do maths before I sign up for any finance. So far, it worked.
When I was younger and bought old cars, and would finance half of it, even if I could buy it out right. Again, same reason as before - I better have extra cash if car poops itself. Worked out well too.

13-08-2019 02:48AM

Mad_maxx wrote: »

Availing of sub 3% debt to finance a car purchase is good business.

You could then potentially use the thirty grand to make home improvements, personal loans are close on 8% in most cases

People are interested in shiny things, not good business. For the average person, they just spend more on their car and then have less money to invest elsewhere. A new iPhone wouldn't be a good purchase over a phone a third the price just because it's interest-free.

Kole Odd Suspicion wrote: »

No way the real figure for new cars being bought for cash is anywhere near 45%.

You're not going to get a realistic picture of society from a Motors forum.

It's like doubting a poll in a fitness forum saying no way 50% of people go to the gym over three times a week. Or looking at a guitar forum poll incredulous that over 35% of people in Ireland own guitars worth over 1,000euro.

Mad_maxx · 13-08-2019 10:24AM

[Deleted User] wrote: »

People are interested in shiny things, not good business. For the average person, they just spend more on their car and then have less money to invest elsewhere. A new iPhone wouldn't be a good purchase over a phone a third the price just because it's interest-free.

You're not going to get a realistic picture of society from a Motors forum.

It's like doubting a poll in a fitness forum saying no way 50% of people go to the gym over three times a week. Or looking at a guitar forum poll incredulous that over 35% of people in Ireland own guitars worth over 1,000euro.

That's like " so random"

CoBo55 · 13-08-2019 10:26AM

Mad_maxx wrote: »

That's like " so random"

A nice way of saying it's gibberish..

Varta · 13-08-2019 10:45AM

Mad_maxx wrote: »

Availing of sub 3% debt to finance a car purchase is good business.

You could then potentially use the thirty grand to make home improvements, personal loans are close on 8% in most cases

I feel as though I've been transported back to the celtic tiger days. What if someone does as you suggest and then suffers an income drop?

rob316 · 13-08-2019 10:50AM

When alot of PCP deals are 0% I couldn't seen any point in paying your own money up front.

Some people don't like the idea of owing money, I'm the opposite if I owe you money that's your problem

rob316 · 13-08-2019 10:55AM

Varta wrote: »

I feel as though I've been transported back to the celtic tiger days. What if someone does as you suggest and then suffers an income drop?

They'll possibly default on the payments, the car will be repossessed but they will still have their 30k. Like I said if its a few % or less that's cheap money, makes no sense using your own.

Poll: Do you buy brand new car with full payment?

Do you buy a brand new car with full payment? 108 votes

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