Evoque - Guaranteed Minimum Future Value (GMFV)?

This is a bit of a snipey debate isn't it, LRX?

Yes of course a car is a luxury purchase, probably the biggest after a house. I just don't see any problem with someone electing to pay for it via a finance option. If they can afford the repayments, then they can afford the car.
At the end of the day we will all take a huge hit whichever way we buy them, it's just that hit will be larger for some.

Most people don’t have enough cash to buy a new car outright, and many obviously use loans of some sort. Cars generally are our biggest purchase, and as Paulus599 said probably the second biggest purchased after a home.  However the whole cost marketing approach of the Evoque seems to be aimed at a new customer base who normally couldn’t afford to purchase a RR, so I  imagine there will be a large majority using some form of credit to purchase their car.
 
I will not have the £40K to pay in cash, but depends also how long I have to wait for the vehicle. Even so I would feel very uncomfortable to clean out my whole savings by purchasing outright. Yes I would save on interest, but on the other hand I would be left with nothing that could be easily recoverable in case of an emergency. 
 
The irony is if I had £40K +/- to pay outright I would still go with credit as I think there are several other ways that cash could be invested with more opportunity on return than plunging the whole lot into a car.
 
At the end of the day the whole subject on cash, leasing, or finance is very subjective and complex – but if you can afford it then why not. 
 

PCP's are an excellent way of financing your car if you want to change regularly - I will be trading my Evoque after 2-3 years - no way would I be able to do that using cash each time I fancy a change

Alex, totally agree. If I could have been bothered to credit this stupid discussion with a full response, then this is what I would have said.

Notwithstanding of course that the opening post was not stupid in the least.

(11-05-2011 12:26pm)Wicksy Wrote:  PCP's are an excellent way of financing your car if you want to change regularly - I will be trading my Evoque after 2-3 years - no way would I be able to do that using cash each time I fancy a change

Are you mad? Do the sums and you'll see that, with cash, it'd be A LOT cheaper.

(11-05-2011 12:17pm)Alex Wrote:  I will not have the £40K to pay in cash, but depends also how long I have to wait for the vehicle.  
 

The way things are looking at the moment, saving £10 a week should get us well on the way to the full cash price!

(11-05-2011 01:06pm)LRX Wrote:  

(11-05-2011 12:26pm)Wicksy Wrote:  PCP's are an excellent way of financing your car if you want to change regularly - I will be trading my Evoque after 2-3 years - no way would I be able to do that using cash each time I fancy a change

Are you mad? Do the sums and you'll see that, with cash, it'd be A LOT cheaper.

To pay cash most people would have to take around £45k out of the bank which is earning interest, for example 45k in a guaranteed income fund would earn you around £350 per month - stick that into your calculations and let me know if it would still be cheaper

(11-05-2011 03:39pm)Wicksy Wrote:  

(11-05-2011 01:06pm)LRX Wrote:  

(11-05-2011 12:26pm)Wicksy Wrote:  PCP's are an excellent way of financing your car if you want to change regularly - I will be trading my Evoque after 2-3 years - no way would I be able to do that using cash each time I fancy a change

Are you mad? Do the sums and you'll see that, with cash, it'd be A LOT cheaper.

To pay cash most people would have to take around £45k out of the bank which is earning interest, for example 45k in a guaranteed income fund would earn you around £350 per month - stick that into your calculations and let me know if it would still be cheaper

And that only grazes the point. What about pulling cash out of ISAs, derivatives collateral, high yield investments, just so you can buy the car in cash? May well not make sense for everyone. Each to his own I say.

I choose to buy with PCP because I match it to the car allowance paid to me by my company.
I have the equivalent invested and last year made 30% on that so at 10% interest I am still well ahead.
There is more than one way to skin a cat.