Original post by Fekky.Literally 99% of cars over £10,000 are financed, I mean why wouldn't you? Let me give you an example.
Lets say you have £10,000 in the bank, ready to spend on a car.
You've found a car which you like which is bang on £10,000
Now you can purchase that vehicle with cash, and boom, £10,000 is taken from your bank account but hey, you can go around shoving your ego around saying you own your car.
Or, you could put a £1,000 Deposit down, (or even less) but to keep it simple i'll leave it at a £0 deposit.
You then look at finance packages (or a bank loan if you prefer) and you'll find most interest rates are between 6-10% (can get 3-4% if your credit history is good), but to keep it simple lets say your credit history is absolutely appalling and you're given a 10% interest rate over 2 years on a HP finance deal. So, each year you will pay £1,000 in interest , totalling to £2,000 over the total period. So in total you would pay £12,000, yes you pay more but the trade off being you don't have to pay the full amount. Lets say the monthly payments are around £550 (On a HP Deal remember), so you would only have that subtracted from your 10k that you have in the bank. This leaves you to do as you please with that 10k, invest it, start a side business, savings account etc. That will pay you a greater return, and hopefully using that 10k you will have made over 2k which you paid in interest and therefore it balances out.
Finance is probably the best thing out there when used correctly, don't understand why people knock it. You can pay 10k upfront or pay it in installments, guess what, both ways you're still driving the car, so who cares? Its like looking down on people who have mortgages, I mean after all, its not their house until they've paid it off is it?
Grow up pal