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01-02-2019, 14:13   #61
ELM327
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Originally Posted by jimgoose View Post
The car is an asset. The finance on the asset, e.g. car loan, is a liability, as is the expense of driving it.

Yes but you do not own the asset.
In the form that it is presented to you, as a leveraged asset if you will, it is an expense in the form of depreciation monthly.


This is more formalized in the case of PCP deals but is equally true for all forms of car finance.
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01-02-2019, 14:14   #62
bazwraf
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Which is called a "loan".
Ok, I understand what you're saying, but lets get pedantic/off topic
Say a new car is going to cost you €50k
You can afford €50k and have it sitting in your bank account
The dealership will offer you the car on PCP at 0% finance
Would you rather pay the €50k from your account, or pay back €1388.89 a month (€50k/12 months), and let the rest of the money sit in your account, accruing interest, and available in the case of emergencies?
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01-02-2019, 14:16   #63
theteal
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You mean per week surely? No way you could feed a family of 4 here for €50/week.
Different family make-up (and different country) but 2 adults and a 2 yr old, yes £50 per week. I'd say standard weekly shop is closer to £40 tbh (it was closer to £30 a year or two ago!), I've allowed extra for nik-naks during the week.
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01-02-2019, 14:19   #64
jimgoose
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Originally Posted by ELM327 View Post
Yes but you do not own the asset.
In the form that it is presented to you, as a leveraged asset if you will, it is an expense in the form of depreciation monthly.


This is more formalized in the case of PCP deals but is equally true for all forms of car finance.
No, it is not. If you raise a term-loan product with a bank or credit union to buy the car, then you own it and no-one else. The finance on the car, i.e. the aforementioned loan, is your liability and that car is your asset.
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01-02-2019, 14:19   #65
ELM327
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Originally Posted by bazwraf View Post
Ok, I understand what you're saying, but lets get pedantic/off topic
Say a new car is going to cost you €50k
You can afford €50k and have it sitting in your bank account
The dealership will offer you the car on PCP at 0% finance
Would you rather pay the €50k from your account, or pay back €1388.89 a month (€50k/12 months), and let the rest of the money sit in your account, accruing interest, and available in the case of emergencies?



The opportunity cost of having the 50k in your bank account is being provided for free via 0% finance.
The interest rate doesn't change things (unless it's something exorbitant like 9%), I would always finance cars even when I have the funds to pay up front.
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01-02-2019, 14:20   #66
jimgoose
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...the rest of the money sit in your account, accruing interest, and available in the case of emergencies?
...and you get to call it a "current asset".
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01-02-2019, 14:20   #67
ELM327
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No, it is not. If you raise a term-loan product with a bank or credit union to buy the car, then you own it and no-one else. The finance on the car, i.e. the aforementioned loan, is your liability and that car is your asset.

Yes but that is not, as I stated "a form of car finance". That is a personal loan which you elect to spend on a car. A subtle difference but one which changes the ownership and expense question a nuance.
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01-02-2019, 14:21   #68
jimgoose
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Originally Posted by ELM327 View Post
Yes but that is not, as I stated "a form of car finance"...
Of course it is, what else would it be?

The original topic didn't say anything about different types of finance, only ISTR the term "car loan" was mentioned once or twice.
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01-02-2019, 14:21   #69
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The second the pay comes in about 2k goes out.
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01-02-2019, 14:23   #70
D3V!L
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Currently saving for a house. All my salary is accounted for apart from €80 a week for myself.

I'm not going into figures but I'm saving a third of my salary, then paying rent on a 2 bed house and then repayments for a bike loan. I basically have the €80 as pocket money or I'd go mad.
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01-02-2019, 14:30   #71
TeaBagMania
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Currently saving for a house. All my salary is accounted for apart from €80 a week for myself.
i know the feeling brother, im on the fast track to get my mortgage paid off, almost every penny i earn goes towards the principal.
Should be finished in no more than 15 months. (its the only debt i have left)

it sux but you have to sacrifice now to have a better life tomorrow
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01-02-2019, 14:31   #72
InstaSte
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Originally Posted by McGaggs View Post
This planet. I've never had a car loan.
When you have a car loan you can avoid having a car which leaks water into the boot of your focus.
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01-02-2019, 14:46   #73
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When you have a car loan you can avoid having a car which leaks water into the boot of your focus.
Nah, I stumped up the cash to replace it with a Mondeo. It took me long enough to realise the boot wasn't getting wet through me opening it in the rain...
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01-02-2019, 14:53   #74
 
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Nespresso subscription 40
Jesus H Christ ....
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01-02-2019, 15:04   #75
holliehobbie
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Rent - 550
TV - 30
Internet - 67
ESB - 150

So not much when compared to yourself but for me its quite a bit considering my pay is awful for someone with an Honors Degree....
Are you in the US?
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