Finance numbers revealed!

MG outlines ambitious plans for MG4 - aims to be the UK’s second-biggest electric car in 2023

Chinese brand confident it can meet demand for its value-packed MG4 hatch as it ramps up production ahead of busy 2023

www.electrifying.com

• SE SR - £300 per month
• SE LR - £350 per month
• Trophy - £410 per month

All £4000 deposit & 3 years at 10k miles per year

 

[Harry 17]

I'm certainly not indifferent to the total cost, quite the reverse.

I'll have to re-visit your explanation tomorrow as I'm now befuddled after trying the Queens gin and Dubonnet, and some others

I hope I can convince myself of the strength of your logic as it will certainly avoid substantial up front cost.

Thanks, in the meantime, for taking the trouble to detail the arithmetic.

.

I may too need to revisit my arithmetic, but I look at the small initial cost as a way to minimise my initial outlay then spread the cost, and you never know, by not raiding my NSandI account, i may just win a bit of coin to make the whole deal a moot point .

I accpet there is a cost of borrowing monies, but for me, it seems reasonable. And should a life changing thingy-bob happen, I believe I will be well covered to hoy the Kids some coin and Not to worry about some random piece of rusting metal. Maybe they would have more luck than I on the Premium Bonds

 

[AdamMGEV]

So isn't that over 6.5k more on finance? If its £38,768 with finance if you decide to keep the car or £32,190 in cash.

I can't see how paying 6.5k in interest over 3 years is a good choice? If I can't afford something I either don't buy it or get a cheaper alternative. Obviously house mortgages are unavoidable.

 

[Harry 17]

So isn't that over 6.5k more on finance? If its £38,768 with finance if you decide to keep the car or £32,190 in cash.

I can't see how paying 6.5k in interest over 3 years is a good choice? If I can't afford something I either don't buy it or get a cheaper alternative. Obviously house mortgages are unavoidable.

It is over 4 years, and as I said, will probably settle in 2 yeasr thus taking a large sum off the interest payment.

anyway, not here to justify my financial choices nor argue with you over the current rate of interest when borrowing monies.

Happy that you can just go out and buy a car in cash whenever you fancy (or indeed go without if you can not ).

Some people do not have that luxury, and I was just displaying real life figures which I felt may have been of use to some.



EDIT: Oh! And do not have a mortgage, we own our home outright.

 

[chrisno21]

With the horrendously poor interest we get on savings it is clearly a better choice to buy in cash unless you can get a 0% finance which is pretty rare on a new line.

However, as finance is there for those who don't have the savings but do have a disposable income it is better to secure the loan against the car than via a bank loan imo.

 

[Whiskey Foxtrot]

With the horrendously poor interest we get on savings it is clearly a better choice to buy in cash unless you can get a 0% finance which is pretty rare on a new line.

However, as finance is there for those who don't have the savings but do have a disposable income it is better to secure the loan against the car than via a bank loan imo.

There's no such thing as 0% finance. If you're borrowing money it will be factored into the price. I try not to get bogged down in these finance threads.

I'm of a generation where we've had to accept borrowing of some form is inevitable. It is, what it is.

If I was lucky enough to have 26k in the bank to buy a car, I'd still finance and keep my money in the bank for unforseens.

My old man has PCP'd his last couple of cars and has paid the finance off after the first monthly payment. He was able to achieve a much better price overall than cash purchase.

For now this is not applicable to MG4 as there are no discounts available. If you're able to buy outright then great. I cannot .

 

[Jonbro]

My interest or attraction to the PCP deal is one of having a guarantee for a future value, in this very uncertain world.
For example, after 3 years and 30000 miles, using their own figures, a Tesla retailing at £51090 OTR only has GFV of £20947 or 41%.
The MG4 LR trophy after the same mileage and time has a retail of £31495 and a GFV of £17460, which is 55% left.
So if the bottom drops out of the market, suddenly all the supply chain issues are resolved, and new technology or taxation renders the cars worth a lot less than they are today, you can be safe in the knowledge that you can hand the car back to the dealer and walk away.
In the mean time, the cash I was going to spend to pay for the car outright, I will invest in a solar and battery setup for my house!

 

[JimB]

Very interesting!

 

[SeaSwimmer]

It is over 4 years, and as I said, will probably settle in 2 yeasr thus taking a large sum off the interest payment.

anyway, not here to justify my financial choices nor argue with you over the current rate of interest when borrowing monies.

Happy that you can just go out and buy a car in cash whenever you fancy (or indeed go without if you can not ).

Some people do not have that luxury, and I was just displaying real life figures which I felt may have been of use to some.



EDIT: Oh! And do not have a mortgage, we own our home outright.

Not wishing to go into your finances but if you don't have a mortgage it would surely be much cheaper to re-mortgage and buy the car with that?

 

[jamesc83]

Not wishing to go into your finances but if you don't have a mortgage it would surely be much cheaper to re-mortgage and buy the car with that?

You may technically be right, but also not wanting to dig into anyones finances- the process of remortgaging takes much longer than taking out a car loan.

 

[Sloucher]

You may technically be right, but also not wanting to dig into anyones finances- the process of remortgaging takes much longer than taking out a car loan.

I can confirm that it can take ages. I released some equity on my house in order to carry out some building work and the process took at least 6 months.

 

[AdamMGEV]

I can confirm that it can take ages. I released some equity on my house in order to carry out some building work and the process took at least 6 months.

To counter that I recently remortgaged my two BTL properties to release equity to buy my personal house and it took about a week.

 

[Harry 17]

I do not have a mortgage and I will not be taking out a mortgage.

 

[Whiskey Foxtrot]

Ivor biggun.... Mortgage that is

 

[Harry 17]

Ivor biggun.... Mortgage that is

that name is a blast from the past !