40K Deposit on a 599

I would imagine his £350 a month is only there to cover the depreciation risk (As some people have said) and there is a bigger payment to be made at the end of a certain term.

If he gets lucky it won't depreciate too much and he will essentially have had a 599 for £350/month - Pretty good deal if you ask me!!

Either way if he does lose money from his deposit it probably won't be more than £10K if he keeps it for less than 3 years
 
Gibbo said:
It made him 40k!

The 10k cost was what he'd paid on finance. Reality is if you deduct that cost, the car made him a 30k profit. :)

If only I'd have known, I'd a purchased a 4.0 RS brand new from Porsche, owned it for a year and done the same. But as would most of us if we could predict they'd appreciate the way they have.
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Does he pass the finance on to the next owner or how does it work?
Sorry for being thick :p
 
mjt said:
Yeah but he bought it on finance. So I guess he just paid off the rest of the finance when he sold it?
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I think the new RS 4.0 was about 130k new from Porsche.

So for sake of it lets say he dropped 10k deposit on and took 120k finance.

After 8 months his settlement was probably 115k on the car and RS 4.0's seem to be trading around 180, so lets say for a quick sale he sold it to a trader for 160k, even after settling the finance he has a nice 40-50k in his bank from the appreciation. Hence 40k deposit on nice shiny Ferrari.

Like I said if one could have predicted the RS 4.0 would have appreciated so much I'd have put my name down for a brand new one and instead of buying the 911 I have would have just dropped 20-30k deposit on the RS and financed the rest and then sold it a year later for 180k and made a nice 50k deposit. If only we had crystal balls!
 
I was reading the article earlier today.

Love the guy, been following him for quite some time now.

I don't see why people are giving him a lot of stick? In fact people should be grateful that he is even telling us how he has managed to afford one in the first place.

On a slightly different note I sent J.F Musial (executive producer of DRIVE) a message on youtube asking if he could do a video on automotive journalism and how to start off, or how he started off, he replied saying sure we can do something like that on Road Testament. :)
 
I quite like Harris.

Gibbo said:
Though I would like more details on his current finance deal, purchases 90k, puts 40k deposit and leaves 50k on finance. Yet pays only £350 a month, I am guessing there is some crazy baloon figure at the end of that?
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Must be.

£350/month would take 12 years to clear the £50k, even longer if you add the interest!
 
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crinkleshoes said:
£40k down and only £350/month?

How the heck?

By my maths that's a 151 month loan without interest... so probably more like 180-210 month loan.

Can you really get 15+ year car loans?
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He'll do the same with the Ferrari as he did with the 4.0 GT3 RS, own it for a bit then sell it.

He doesnt intend on buying it outright and just wants to own a nice car for as cheap as possible for a bit.

Great way to enjoy lots of different carrs if not "owning" it doesnt bother you.
 
MrLOL said:
He'll do the same with the Ferrari as he did with the 4.0 GT3 RS, own it for a bit then sell it.

He doesnt intend on buying it outright and just wants to own a nice car for as cheap as possible for a bit.

Great way to enjoy lots of different carrs if not "owning" it doesnt bother you.
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I've come to the same assumption.

Why anyone would think he would finance a car for that many years is bonkers.
 
The GT3RS 4.0 is carrying a massive premium at the moment, some of them mad but there is good cash in them so him making £40K over what he paid for it is an example of this if that is what he did. These are also for many an 'itch' car, you have it, enjoy it and then flog it a few months in so you don't take a bath on the finances, nothing strange with what Harris did, most GT3 RS4.0's in the UK would be bought, used a bit and sold for big profit as these are a hugely epic motor.

A 599 like that one will have a relatively solid residual now as it's **** the majority of it's cash and with a big deposit it will be cheap to finance because of this. I paid less for a GT3 than I did for an M3 on fiancé with similar deposits but the GT3 was £20K more.

Very few people buy these sort of cars without finance, it's just the way you do it as when you grow up you realise that actually owning the car is an irrelevance unless you plan to keep it for ever...
 
DAIR said:
I've come to the same assumption.

Why anyone would think he would finance a car for that many years is bonkers.
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I made it clear above - I forgot about PCP - I've only ever bought cars with cash.

I need to improve my rating before I can take advantage of that - still recovering from abusing interest free overdrafts while I was a student.
 
I imagine for a lot of people, having the owner be Chris Harris would help the resale value of the car, so he does have that little bit extra behind him when playing this game.
 
Housey said:
The GT3RS 4.0 is carrying a massive premium at the moment, some of them mad but there is good cash in them so him making £40K over what he paid for it is an example of this if that is what he did. These are also for many an 'itch' car, you have it, enjoy it and then flog it a few months in so you don't take a bath on the finances, nothing strange with what Harris did, most GT3 RS4.0's in the UK would be bought, used a bit and sold for big profit as these are a hugely epic motor.

A 599 like that one will have a relatively solid residual now as it's **** the majority of it's cash and with a big deposit it will be cheap to finance because of this. I paid less for a GT3 than I did for an M3 on fiancé with similar deposits but the GT3 was £20K more.

Very few people buy these sort of cars without finance, it's just the way you do it as when you grow up you realise that actually owning the car is an irrelevance unless you plan to keep it for ever...
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I'm guessing the payment is low because he never intends on completing the finance agreement to actually "buy" the car.

Thus he takes out the repayment as low as possible, over as long as possible, to keep the costs of running it for 12 / 18 months as low as possible. Then just sells the car and recoups his deposit, and hopefully some of what he's paid in finance over the owernship period.
 
The 599 is literally my favourite all round Ferrari of all time. If I don't have one (or at least have owned one for a short time) by the time I'm 40, I'm going to poo my pants
 
Matt82 said:
i think its interesting that he has bought a ferrari after his long rant not so long ago about how theyre so flawed and the myth is all created by the tweaked press cars
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His criticism was of the company, not of the cars. Even in the rant itself, he made it clear that he rates the cars very highly. He didn't say that the "myth is all created by the tweaked press cars". If anything, his implication was the other way around, i.e. that the cars are being diminished by the company's obsessive tweaking and control freakery to manipulate media coverage because it could be taken to imply that the company lacks confidence in the cars, that they think the cars must be precisely tweaked for a specific track by a team of experts in order to compete with a car on standard settings from a competitor.
 
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