Finance

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LuttiSLuttiS Frets: 2243
I don't like it. 

<insert rant about society>

To summarise,

I see these young people in top of the range cars, with all the latest tech and big tvs and the like. 
I understand that sometimes, it can be useful, to get you out of a bind, but to get things that you just cannot afford on finance? 

I've seen people getting into a shit-ton of crippling debt due to this finance and i admit this has probably made me quite biased towards the subject. 

If i want something.. i save and then buy it when i can afford it? Usually by the time i can afford it, i don't need/want it so it has that added benefit..

Does anyone regularly use finance schemes to get stuff that you don't need?
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Comments

  • joeyowenjoeyowen Frets: 4025
    I worked in the bank for a few years, oh the stories I could tell...

    I tend to have one thing at a time on 0%.. normally a luxury.  My guitar from Peach for example.  Other than that, the car we needed a loan for.  Ours broke and two we have 2 young children.  Could we have got a runner for cheap? sure, but it wouldn't last so we made a judgement.  (Also got a very good deal, so even with interest it was a good price).

    It's easy to judge I'll admit, but honestly it isn't worth thinking about.  Working in the bank opened my eyes at light speed.  Biggest lesson was not to bother judging.  Even if they chose to live at home an lease a massive Merc, why should it bother anyone else?


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  • RedRabbitRedRabbit Frets: 483
    As long as you can afford it and don't mind paying the interest I don't see the problem.

    That said I don't have a lot on finance - just my car really.  I was either looking at a 3/4 year old car and taking a loan out to cover it or a brand new version of the same car on a PCP deal.  On a monthly basis the PCP deal was cheaper and got me a new car with a 3 year warranty.  I guess I could have saver for a while and paid a few grand for an older car but I could afford to get something better through finance so I did.

    Similar to credit cards, they are a dangerous thing for people who can't manage their money but can be very useful if used the right way.
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  • SporkySporky Frets: 27569
    Not sure about "regularly", but I've used finance. Lady BMcH's piano was on a 0%-for-12-months thing because it was more than I had in cash, but I could easily budget for it over that period. Next car will probably be on finance as that works out cheaper than buying outright given work's requirement for me to have something fairly new (and therefore change it fairly often).

    Oh, and I bought a Nintendo Switch on 3-month 0% finance because that got me 10% off.

    I don't use it for trivial stuff.
    "[Sporky] brings a certain vibe and dignity to the forum."
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  • boogiemanboogieman Frets: 12314
    Personally I’ve only used finance if it works to my benefit, like a 0% pay-later deal. I hate the idea of debt hanging over me...I’ll pay up front if I can and clear my credit cards every month. But I used to work with a guy who lived a millionaire lifestyle on relatively low pay: he just put everything on credit cards and juggled the monthly payments, using one card to pay off another. He had luxury holidays, a really expensive car and a house full of, mostly pointlessly expensive, stuff. He always said he preferred spending other people’s money and would let somebody else worry about his mountain of debt after he’d died (which I presume was his wife and/or kids, the selfish bastard.). Some people just have to have everything, right now. 
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  • jaygtrjaygtr Frets: 218
    I used to be in debt all the time, but it's a mugs game so now the only debt I carry is my mortgage.
    ill happily use 0% if it's offered though. 

    I am am saving for a new car at the moment but I'm not sure I'll be able to pay out a large sum of cash in one go. 
    As I quite like having it in the bank!


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  • Danny1969Danny1969 Frets: 10356
    I don't have any finance, no credit cards, no loans, no HP. No phone contract. If I can't afford it I don't have it basically. Luckily there's no much that isn't affordable these days without finance. I can understand people using it for cars and such though, but I don't understand people using it for TV's and clothes etc
    www.2020studios.co.uk 
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  • Only once - I "needed" a decent washing machine, and when I got it, the improvement to my life was dramatic, but I bought it on HP and ended up paying twice as much as if I'd paid cash. Except that I didn't have the cash. These days I have a much better saving regime (ie I do have one), so I don't think I'm as likely to get stung that way in future.
    "Working" software has only unobserved bugs. (Parroty Error: Pieces of Nine! Pieces of Nine!)
    Seriously: If you value it, take/fetch it yourself
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  • VimFuegoVimFuego Frets: 15475
    we have to have credit, it's the only way our economy grows. 

    I'm not locked in here with you, you are locked in here with me.

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  • boogiemanboogieman Frets: 12314
    Danny1969 said:
    I don't have any finance, no credit cards, no loans, no HP. No phone contract. If I can't afford it I don't have it basically. Luckily there's no much that isn't affordable these days without finance. I can understand people using it for cars and such though, but I don't understand people using it for TV's and clothes etc
    Credit cards are fine providing you use them properly. We’ve got c/c’s that give us points towards airline flights. Some of my wife’s family live in the states so we visit fairly often, so that’s a good perk. We stick everything on the cards to get the maximum flying points, but we do clear them every month so don’t pay any interest. 
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  • Danny1969 said:
    I don't understand people using it for TV's and clothes etc
    If they didn't buy TVs maybe they wouldn't need it for clothes ?
    "Working" software has only unobserved bugs. (Parroty Error: Pieces of Nine! Pieces of Nine!)
    Seriously: If you value it, take/fetch it yourself
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  • not_the_djnot_the_dj Frets: 7306
    I've used finance before for a couple of guitars on 0% deals, always trying to pay quite a high initial deposit so I end up paying an easy amount each month for 9 or 12 months, nothing wrong with that if you plan it so you can easily pay it off each month.

    In the past I've bought cars on a finance deal, not the sort of thing I could have easily have saved for, and again planned so the monthly payments are easy so no real hassle. I actually took out a separate loan for that so I was effectively a cash buyer to give us more negotiation power with the garage rather than using their own finance deals.

    I can see how it's easy for people to get tempted with these deals and get into trouble, but for me it's always worked out fine.

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  • VimFuego said:
    we have to have credit, it's the only way our economy grows. 
    I'm not too sure about that, although I agree that with credit, you can buy more stuff faster. I've signed up for some hand-built-to-order luxury electronics, but only because I saved for it, and am sure that when they email me saying "It's ready", I will be able to pay for it. If I'd decided to buy it with a credit card, they'd have had the order sooner, so you could argue the economy "grows" quicker with credit, but I'm not sure that having credit is the only way to grow it.
    "Working" software has only unobserved bugs. (Parroty Error: Pieces of Nine! Pieces of Nine!)
    Seriously: If you value it, take/fetch it yourself
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  • VimFuegoVimFuego Frets: 15475
    99% of all our money is created as debt, the main way the economy grows is to create more money (remember we import more than we export, so we send more money overseas). Simple economics really. 

    I'm not locked in here with you, you are locked in here with me.

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  • VimFuegoVimFuego Frets: 15475
    Henry Ford once said (paraphrasing here as I can't be arsed to google the actual phrase) that if the people knew the simple truth of how money is created we'd riot in the streets. 

    One of the Rothschilds back in history said (again, paraphrasing) I don't care who rules a country, so long as I control the money supply.

    I'm not locked in here with you, you are locked in here with me.

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  • 0% cards can save money in many situations - if an annual bill costs less than paying in monthly instalments putting the amount on a 0% card means you can do both.  Or if an opportunity to make a future planned purchase for a cheaper price than you'd projected then you can buy it when the opportunity arises.  

    If you're sensible credit is a good thing and can save you money.  If you're not, it's not.
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  • fields5069fields5069 Frets: 3826
    I only get credit if it's 0%, although if plans come to fruition in the near future then I may need to get a loan for a car.

    Having said that, I have an almost perpetual overdraft which interest is charged on. So I'm lying.
    Some folks like water, some folks like wine.
    My feedback thread is here.
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  • Danny1969Danny1969 Frets: 10356
    The money these days IS in the finance ... a car dealer will make more money selling you the finance for the car then he makes on the car. Stores make more money from the finance on the store cards than they do from selling you clothes. In an ideal world Very, Next etc only really want people to pay the minimum monthly payment on their store cards as this means the interest is paid but the capital isn't .... people never catch up and are just paying again and again for clothes they probably don't even wear anymore ... madness !!

    @boogieman what you do is sensible and buying on CC and then paying off completely can offer benifits and protection but ultimately your not the kind of customer CC companies want, they aren't gonna make anything from that they really need people to not pay the money back until they have made the interest 
    www.2020studios.co.uk 
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  • VimFuegoVimFuego Frets: 15475
    Danny1969 said:
    The money these days IS in the finance ... a car dealer will make more money selling you the finance for the car then he makes on the car. Stores make more money from the finance on the store cards than they do from selling you clothes. In an ideal world Very, Next etc only really want people to pay the minimum monthly payment on their store cards as this means the interest is paid but the capital isn't .... people never catch up and are just paying again and again for clothes they probably don't even wear anymore ... madness !!

    @boogieman what you do is sensible and buying on CC and then paying off completely can offer benifits and protection but ultimately your not the kind of customer CC companies want, they aren't gonna make anything from that they really need people to not pay the money back until they have made the interest 
    I remember seeing something a few years back where GM (I think) made more money from finance (both car and non car related) than they did actually selling cars. What a world we live in.

    I'm not locked in here with you, you are locked in here with me.

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  • MrBumpMrBump Frets: 1244
    Mortgage and a car loan, that's it.  I'm 46, and I'm still having sleepless nights about the debt I ran up 20+ years ago at university.  I hated the way that made me feel.  I'm lucky in that the wife is dead frugal too... I could imagine massive problems if she was more open to finance and credit.
    Mark de Manbey

    Trading feedback:  http://www.thefretboard.co.uk/discussion/72424/
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  • Danny1969 said:
    The money these days IS in the finance ... a car dealer will make more money selling you the finance for the car then he makes on the car. <snip>
    So I understand... I bought a new car last year and actually had the cash in the bank to pay for it. The dealer (the main dealer for the manufacturer in my area) then offered me another £2k off the price (worth about 10%) if I bought it on finance. So I did. I paid it off in full after a week and it cost me £8 interest. 

    Good for me, but seems totally daft, doesn't it?
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