plus your cash could have been in an isa etc or re-invested into a growing business or spent on the winning lottery ticket, giving LR a few % interest isnt the end of the world.

I borrow money like its going out of fashion, but spend it on hopefully wise plans/products
(and never borrow what I cant repay or for personal/luxury items) At work
At home

"I can't always believe facts I read on the web" - Charles Dickens

winner by default of the tractor vs caravan race

Picking my FL2 up Thursday, I admit it's two years old, car was 17k I'm trading in and adding cash so fianace was going to be about 9.5k

On the purchase option over four years with a ballon payment at the end it worked out about 3.5k more than a personal loan, but I have open a couple of credit cards that have 0% for 16 months on purchases, when these expire I shal transfer te balance to another interest free card

Quids in

dunroof wrote:

IMHO, pay cash of you can. Your paying 2.5k interest otherwise.

Whilst my wonderful employer lops 20% off the list price we don't get the favourable finance rates that Joe public does , so unless we can stump up £30k in used ten pound notes we have to go and see a loan shark

Yes pay cash if you can, but if like me you want to make your cash work hard and LR finance will only want 60% of the purchase price up front, then go with that. 0% too, so I get a brand new FL2 or RRS (depending on my cash position at the time) with nothing to pay for 2 or 3 years (Depending on the deal available). The rest of the cash is invested for a return, but available to meet the bullet if I like the car enough to keep it. If you pay the GMFV, you have NOTHING further to pay; you only get done for dings and excess miles if you hand back. On P/X I've only 'lost' once, in 2009, when prices on all 4x4s dropped. I got GMFV for one RRS, but the upside was £6K off the replacement car, so in terms of the deal it worked well for me. Current car has GMFV of £15,000. That for a FL2 SD4 HSE with loads of kit on it, so I reckon I've got about £7-8K in hand. I chopped in a RRS for this car. That had a GMFV of £19K and I got £34K px - the dealer then sold it almost immediately for £39K!