Something went wrong, ordered a Mustang, yet ended up in a British hotrod, I blame OcUK!

kindai said:
People have a poor grasp of financial responsibility.

Finance is fine as long as you go in eyes open, its not fine when people are putting themselves in risky situations because of it.
Click to expand...

Exactly!
I’ve shared my findings to help others and to show the options as I was not aware of interest only option which for me not only means paying less interest but a lower monthly that allows more cash to be saved towards balloon.

For me options are:

1. Sensible and easy!
130-150k, 70-80k down, interest only of around £250-300 a month with 70k end balloon, save 1k a month, over pay by 8k per year leaving a 54k balloon with around 30k saved, then open up some funds or bank loan for 15k and own the car. Probably be worth 110-120k and sell privately giving 120-130k deposit for next car. At which time EVO’s will have come down or if Performante drop head there or another brand or realise owning a super car is a real pain and just drive Clio everywhere. :D Plus of course this option is also great should earnings not go so well or even if the car throws a big repair bill that warranty does not cover, something else to consider.

2. Achievable but but not ownership at end and a gamble:
200k, 80k down, interest only of around £650 per month with 120k end balloon. Make over payments and get that down to 90-100k end balloon. Unless a miracle happens like crypto goes 5x fold I won’t have 100k saved to pay that balloon. Could get it down to maybe 70k and refinance it but monthly would be over 2k. Worse case it’s worth 150k so I get 30k back most likely it’s worth 170-180k so 50-60k back and if they go same way as Speciale and Pista then it’s worth 300k plus so I get 180k back. That is the gamble, I hate losing money it’s why I don’t gamble or extremely rare I do and if I lose even a tenner I’m in a bad mood. Advantage newer car, there should be no big bills and potential of making some monies.


First choice is sensible try to get an epic deal on right car or some extras thrown in that increase it’s value, cough race exhaust.

My thinking is if I could get that green Lambo for 135k I’d then put 85k in to only be financing 50k, over pay and under £200 a month at which point end balloon is paid off with no issue. Seems better than dropping 200k on something I can’t own at the end and gives me a level of progression for next car.
 
Last edited:
Berger said:
Quick. Nathwraith to the rescue! Gibbo can answer his own questions.

I couldn’t tell you what the latest supercars are one from another as I don’t look as I can’t afford.



In which case then you have that extra money to immediately overpay, invest elsewhere or save to pay the balloon allowing you to increase your overpayments without having to save for the balloon.
Click to expand...


You've gone from not wanting to know details it seems, to wanting to now know every fine detail.
I can afford upto £1500 per month on a car as in monthly payment, that is my max limit.
Right now I could put as much as 100k deposit on a car (SVR pending sale at 70k)
I could wait, I could save, but that is then like waiting for the next thing, your always waiting.
As others put I get itchy feet, I jump.

I have assets of value that I own, I also have a lot of crypto currency which though has been hammered owes me in short nothing as I did not buy currency, it is currency I personally mined years ago when it made sense to do so at which I currently release 11k per year to avoid capital gains.Fa

I am employed so also have consistent earnings.

Fact is I never want to drop all my money into one purchase, or one thing, I can do other things with my money too.
Simple fact is regular PCP was £900, easily affordable.
But interest only is £300, all of a sudden I am £600 spare, plus £600 left from my max budget, that is £1200 I can just put aside or I have surplus. But most importantly by doing it this way I save and I personally feel that to only pay a finance company on 70k loan around 5k interestest max over 2yr is very good going and perfectly acceptable to myself.

What I will say is £300 a month or less for a Huracan is less than I was paying on the SVR and the SVR I had manage to pay off in a year of owning. I could have waiting a purchased an SVR now, but I wanted the Mustang gone back then and I wanted something new back then, not in 12-18 months. I plan to purchase in 2-3 months.

I am not stretched, I have no other loans, no credit cards to pay off, no mortgage to pay.

The only difference is whereas many people hand back the car at end of term, I do not I take ownership outright at end of term or before hand, I did this with the SVR and with the Huracan will cost me even less than the SVR did (monthly) due to the large deposit and due to interest only option.

The SVR was my first PCP purchase, I did not know all the facts and I could have got myself an even better deal if I knew what I knew now, that is why I have shared to help save other members some money.
Also interest free options are available typically on any car over 25k with over a 25% deposit, so its not just expensive stuff but can also be put into use on lower value cars too.
 
Last edited:
Blackhawk47 said:
I’m not sure I fully understand the importance of over paying to drop the monthly cost to £200.

Surely if you can drop such a large deposit then paying £300-400 a month is affordable without overpaying £xxk (whatever the amount is I guess depends on car), and then settle it after the 2 year term.

Got to be the Lambo Huracan or GT3 then.

I still think running it daily will affect the residuals quite a bit though I know the huracan has already depreciated quite a lot - R8 V10 plus has too.
Click to expand...


To save interest, that is the whole point, that is what I am getting at, that is why interest only works in your favour, BUT ONLY IF YOU OVER PAY!
If I did not intend on over paying, then it makes zero sense, I might as well take regular PCP, pay £900 a month and pay £7000 interest.

I take interest free, £300 a month and interest is £7000, over pay of the final balloon you get interest rebate, which comes off the monthly. I can comfortable over pay and thus reducing interest paid and thus reducing total price.

If the car is 140k, PCP total cost 147k, interest only option 145k and more flexible, so I take cheaper option.

I always focus on total repayable, that is me, maybe it is wrong, but I want best deal, best price on car, best deal on interest (least amount paid).


So many idiots go to Audi, BMW, buy a car on PCP and just look at the monthly figure, they do not even ask about the interest rate, then what happens 3yr later they paid over 10k interest on a 40k car that is then worth under 20k. Don't be that person! On such cars they should be getting 0% then its far better!
 
balky12 said:
Yea I learned a fair bit. Didn't really look into financing cars outside of dealership finance PCP/HP.

Just so I got this right @Gibbo , using your figures loosely.

70k deposit
70k interest only finance.
Sub £300 monthly payments for 2 years.
If you don't like he lambo you can sell up, pay the 70k back to finance company, and all you lose is the depreciation from your deposit? Effectively.

E.g.
Buy for 140k
Sell for 120k
Pay back 70k
You're left with 50k.

Minus fuel costs. So zero. :D
Click to expand...

Buy for 140
Deposit 70
70 to finance circa £300 for 24 months (£7200 less if you over pay!)
Sell for 120k
Pay 70k back
50k in your pocket

Total cost
20k depreciation
£7200 interest less if you over pay
£3000 insurance for two years
Fuel
Tyres
Brake pads
Service (£5000 for two years)
Extended warranty £3500 for second year
Plus a lot of fuel!!!!


So yes you get 50k back but you’d have lost 20k in depreciation and spent around 20k in two years on servicing, insurance, tax and warranty/repairs etc.

You’d need to sell privately as a dealer will offer you 20k under list, Lambo offered 52k on SVR, Jaguar offered 67k for comparison.
 
olv said:
Surely the cheapest overall option with a huge amount of flexibility around paying it back and minimising interest.
Click to expand...


Interest only option, so still need to settle at end is coming out at £85-£125 per month on 70k over 2yr, around £2500-£3000 interest/setup fee.
Repayment is around £1250 per month over 5yr, interest around 4-5k with setup fee, though for this period some do not charge setup fee.

Its not dramatic and would I rather secure money against the property or a car that could just be handed back if times got hard.

Going to think it over and scary they seem willing to lend upto nearly 500k! :eek:
You people need to stop giving me crazy ideas. :D
 
Yurka said:
I'd be steering to use a GT3/Huracan as a stepping stone up the ladder. However if you're planning to track it a lot, you'll end up taking a bigger hit on the Huracan imo (plus it will cost more in servicing). You'll be able to use the GT3 for the years track day season and sell it back before the new one gets released. GT3s are expected to be tracked and there will always be buyers for them.

Only problem is finding the GT3 spec you want, as most have gone to their long term owners now (at least the manual/CS/PCCB cars) so only a few cars left, albeit asking top dollar. Perhaps a 2nd run of GT3 RS' will help in releasing more cars back to the 2nd hand market.
Click to expand...

I’d only want a 991.1 or 991.2

991.1 now have 10yr warranty on engine so good until 2024-26 and all are PDK, plenty with buckets and prices are now 95-135k, can easily get into one for 100k. Feel in 2yr these will be 85-115k so very safe on depreciation if you buy an older and higher miles example as in like 15-25k miles.

991.2 can get manual but I’d still go PDK and seen a stunning red one for sale for 144k been for sale a while surprised it’s not gone as cheapest 991.2 on market but goes to show they need to drop lower. These will fall quite a bit I feel so suspect in 2yr they shall be 115-150k range.

991.1 GT3 RS seen a stunning purple one at RPM for 150k that is tempting but not sure these are a bit like Performante could rocket again or could keep falling.


One thing about buying a GT3 which is not great it renders my M3 pretty useless so I’d probably sell the M3 and then pay the GT3 off within a year.

So as I don’t want to sell M3 it’s another factor steering me towards Huracan. :)
 
Dis86 said:
@Gibbo

Re-written the first para. Feel free to use or cut as you wish - it just doesn't quite read right to me at the minute.

For sale is my faultless 2016 Jaguar F-Type SVR which I purchased December 2017. I am the 2nd owner of this car, the 1st was Jaguar's managing director who mainly used the car for a motorway commute. With the first 16,000 miles being predominately motorway miles, I have since used the car as my daily commute and fun weekend car, with the mileage now at 26,500 continuing to increase as the vehicle is still in use.

The car has following optional extras:

Second point is the plate - might be worth mentioning that you're keeping it (if indeed you are).

Love the pics and it's gonna be a shame to see it leave the forums :( I blame Kindai.
Click to expand...


Thank you, dropped that update in and just found nicer images so going to upload some of those instead.

Lambo is not 100% yet, there is a good chance but this is GT3 and 458 on cards too and though very unlikely the 570S is still in the listings, but they just scare me as a 570S be 50p this next time year. :D
 
Vita said:
458. It has to be done.

@kindai do you have to pay the balloon payment or can you just give the car back?
Click to expand...


Depends on lender, if I go interest free lender, options are:
- Pay the balloon, own the car
- Hand car back to dealer, they will buy back at trade or below and then give you difference back.
- Inform lender your not going to pay balloon a couple months before hand, advertise, sell car, pay balloon or get buyer to pay balloon
- Re-finance the balloon with lender


Are pretty much the options.
 
NickXX said:
This all seems very odd. It makes no sense going down more expensive finance paths when you could just remortgage your property to cheaply release equity.

The only reason I can see that you wouldn’t do this is if you don’t actually own your property, or if your car is worth more than your house.

You’ve also mentioned ‘interest free’ finance- what is this?
Click to expand...

It was all explained pages back myself.
I’ve also had some remortgage options too after that suggestion and there does seem a further saving but it’s certainly more involving that just taking out PCP but on the flip side I could borrow upto nearly 500k and spread it over 25yr not that I will as that would be stupid as interest amount is large on such a sum.

I need to sell my car, then find the car I want and then decide if I want to do PCP and pay around 5k interest on borrowing circa 70k or take an interest only remortgage for 5yr and pay circa 3k interest.

Need to sell my car and find a car first, then work out the numbers exactly.

It’s insightful as to just how many options there for buying a car new or used.

Of course nothing beats cash!
 
200sols said:
Best way is to buy on PCP for the insentives, and then settle with cash within 14 days :D
Click to expand...

Yep done that before, but generally on a much lower purchase price.
Generally such incentives do not apply to 150k cars, the PCP is just a route into said cars for those who either don't have 150k to put into the car or would rather keep their cash aside working for them as it makes them more money to do so that way.
 
Blackhawk47 said:
Remortgaging might be an option but I guess if life goes **** up then the risk of not keeping up with the mortgage payments and risk of losing the roof over your head simply isn't worth it?

I'd much rather go the PCP/finance route if this is the case.
Click to expand...


Just sell the car as you own it outright by re-mortgaging, then pay off mortgage.
 
Firestar_3x said:
You can't borrow more than your house is worth :p
Click to expand...

Was just using the online form which ask a few questions about value which I entered at 200k, salary, monthly outgoings etc, it then comes back with lenders and they offered 487k, did not try applying of course as nowhere near that is required.
So in this instance said providers do seem to be offering more than property is worth, makes no sense.

Not that it matters as if I go remortgage route I shall just be requesting no more than 100k.
 
You must log in or register to reply here.
Back
Top Bottom