THE 50K CHALLENGE: NEW MUSTANG ON THE WAY, BUT WOULD 50K BE BETTER SPENT ON ANOTHER MARQUE?

[wedrum]

Seems like solid reasoning behind a £100,000 car purchase.

GT3 is his dream car he's already upped his budget for the jag.
think everyone is bored with you on motors.

 

[thewanted]

You dont get to set the balloon payment. It's based simply on the value of the car at the end of the agreement.

You can lower the GFV on a new car purchase. I've never asked for a second hand car though.

 

[Gibbo]

I've done some thinking and need to do more thinking.

Will drive the SVR, if it blows my socks off, I will sit and watch their values for a few weeks/months. 80k is over my budget by 20k.

Also depreciation is a worry, but I suppose only if I decide to sell it but it is definitely a consideration.

To my having so much in finance/balloon seems a bit crazy, I know for some people financing a car so heavily might be the normal thing to do, but for me its not and even though a GT3 could be done, I'd be talking another 60k on top of the Jaguar, that is a huge amount more and the only positives from it is yes a GT3 is likely to not change much in value and yes it is a dream car. But in fairness to the F-Type it was great fun and with a big loud V8 and AWD it might be a very capable and fun road car then I thoroughly enjoy.

Also as we are now talking 80k, please feel free to show some other possibilities, though not sure much out there, seems the next step is 100k plus and I simply just don't want those levels of finance, it might sound stupid but if I buy a car I want to do that, BUY IT, feel like its mine and not that I only own a 3rd of it, I need to be owning over half of it from day one and as such the absolute maximum cash value I want to dropping on the car is 40-50k. 20k finance is fine, this was why my budget was 60k, 40k plus 20k, but I do not mind a 20k balloon at the end or however it works out. So 40K down, 2-3yr monthly payment, plus 15-20k balloon or there abouts which makes 80k car more possible with no crazy balloon at the end.

Though Jag guys were saying to switch it around, lowest monthly payment, biggest balloon, to which I argued surely means I just pay more interest which they said would be the case.

I've also spoken to a couple of guys I know who specialise in car finance as Jaguar list at 8.9% and said they'd do me a good deal at 7.9%, LOL, to which not too impressed by. But no rush, need to digest it all and drive the SVR first to see if I really love it.

As 80k is also R8 V10 S-Tronic money too! So must not jump to quick, give it some thought and enjoy the Golf.

Though anyone wants a Golf R 3DR Lapiz blue, could be for sale sooner than expected.

 

[mikeh501]

theres not many cars your not going to lose a bucket load of cash on tbh..... the f-type will depreciate 10k a year on a good day. its not special enough to avoid it. It would be cheaper to buy a GT3 over 3 years id guess. Be interesting to do the math.

With PCP's the only advantage is to reduce a monthly finance payment. Any deposit you put into the car is the first thing to be eroded by depreciation, leaving you with close to zero (usually enough to fund a new deposit) at the end of the term. However if you change cars often, choose cars which further through the depreciation curve (2-3yrs old) and dont epicly depreciate then that initial deposit can be in effect transferred from car to car because the vehicle is worth more than you owe. Also, you can indeed get a PCP on a second hand car. Sometimes it isnt worth it because a) the % rate is usually slightly higher on second hand, and b) new cars usually get manufacturer support/discounts which you wont find on a second hand car.

All that being said...... if you can find a car which basically doesnt depreciate much, then PCP it. Your only really supporting the depreciation + % interest, of which there wont be much. Go ask Porsche what a PCP looks like on a GT car. It would be interesting to know what value they place on it after 3 years (GFV).

 

[kindai]

Hmm, with new budget, maybe a hellcat or a a vette??

 

[mikeh501]

theres not many cars your not going to lose a bucket load of cash on tbh..... the f-type will depreciate 10k a year on a good day. its not special enough to avoid it. It would be cheaper to buy a GT3 over 3 years id guess. Be interesting to do the math.

With PCP's the only advantage is to reduce a monthly finance payment. Any deposit you put into the car is the first thing to be eroded by depreciation, leaving you with close to zero (usually enough to fund a new deposit) at the end of the term. However if you change cars often, choose cars which further through the depreciation curve (2-3yrs old) and dont epicly depreciate then that initial deposit can be in effect transferred from car to car because the vehicle is worth more than you owe. Also, you can indeed get a PCP on a second hand car. Sometimes it isnt worth it because a) the % rate is usually slightly higher on second hand, and b) new cars usually get manufacturer support/discounts which you wont find on a second hand car.

All that being said...... if you can find a car which basically doesnt depreciate much, then PCP it. Your only really supporting the depreciation + % interest, of which there wont be much. Go ask Porsche what a PCP looks like on a GT car. It would be interesting to know what value they place on it after 3 years (GFV).

Just checking PH and there is a great supercar funding thread on there. Interesting from people who are doing it on serious metal. https://www.pistonheads.com/gassing/topic.asp?h=0&f=206&t=1703131

 

[crinkleshoes]

You can lower the GFV on a new car purchase. I've never asked for a second hand car though.

Yes you can lower it, but you can't increase it.

 

[crinkleshoes]

I've done some thinking and need to do more thinking.

Will drive the SVR, if it blows my socks off, I will sit and watch their values for a few weeks/months. 80k is over my budget by 20k.

Also depreciation is a worry, but I suppose only if I decide to sell it but it is definitely a consideration.

To my having so much in finance/balloon seems a bit crazy, I know for some people financing a car so heavily might be the normal thing to do, but for me its not and even though a GT3 could be done, I'd be talking another 60k on top of the Jaguar, that is a huge amount more and the only positives from it is yes a GT3 is likely to not change much in value and yes it is a dream car. But in fairness to the F-Type it was great fun and with a big loud V8 and AWD it might be a very capable and fun road car then I thoroughly enjoy.

Also as we are now talking 80k, please feel free to show some other possibilities, though not sure much out there, seems the next step is 100k plus and I simply just don't want those levels of finance, it might sound stupid but if I buy a car I want to do that, BUY IT, feel like its mine and not that I only own a 3rd of it, I need to be owning over half of it from day one and as such the absolute maximum cash value I want to dropping on the car is 40-50k. 20k finance is fine, this was why my budget was 60k, 40k plus 20k, but I do not mind a 20k balloon at the end or however it works out. So 40K down, 2-3yr monthly payment, plus 15-20k balloon or there abouts which makes 80k car more possible with no crazy balloon at the end.

Though Jag guys were saying to switch it around, lowest monthly payment, biggest balloon, to which I argued surely means I just pay more interest which they said would be the case.

I've also spoken to a couple of guys I know who specialise in car finance as Jaguar list at 8.9% and said they'd do me a good deal at 7.9%, LOL, to which not too impressed by. But no rush, need to digest it all and drive the SVR first to see if I really love it.

As 80k is also R8 V10 S-Tronic money too! So must not jump to quick, give it some thought and enjoy the Golf.

Though anyone wants a Golf R 3DR Lapiz blue, could be for sale sooner than expected.

Try to consider it like equity rather than debt... or at least a balance of costs.

That £125k GT3 will probably still be worth £100k in 3 years.

That £80k Jag will be lucky to hit £40k in 3 years.

So the GT3 will "cost" you £8k/year... the Jag over £12k/year - maybe more.

You don't pay interest on the balloon. Bigger balloon = lower monthly and lower interest.



As a very very rough estimate on figures:

£80k Jag
£25k balloon
£40k down
£20k finance

7.9% = £623/month
Finance cost = £2,500 in interest

Car depreciation = £40k

Cost of ownership (no maint) = £42,500 over 3 years or £14k/year or £1,200/month


£125k GT3
£60k balloon
£40k down
£25k finance

7.9% = £780/month
Finance cost = £3,000 in interest

Car depreciation = £25k

Cost of ownership (no maint) = £28,000 over three years or £9.3k/year or £780/month

Just under 2/3 of the cost to you to get you in your dream, the more expensive, GT3 vs SVR

 

[crinkleshoes]

theres not many cars your not going to lose a bucket load of cash on tbh..... the f-type will depreciate 10k a year on a good day. its not special enough to avoid it. It would be cheaper to buy a GT3 over 3 years id guess. Be interesting to do the math.

With PCP's the only advantage is to reduce a monthly finance payment. Any deposit you put into the car is the first thing to be eroded by depreciation, leaving you with close to zero (usually enough to fund a new deposit) at the end of the term. However if you change cars often, choose cars which further through the depreciation curve (2-3yrs old) and dont epicly depreciate then that initial deposit can be in effect transferred from car to car because the vehicle is worth more than you owe. Also, you can indeed get a PCP on a second hand car. Sometimes it isnt worth it because a) the % rate is usually slightly higher on second hand, and b) new cars usually get manufacturer support/discounts which you wont find on a second hand car.

All that being said...... if you can find a car which basically doesnt depreciate much, then PCP it. Your only really supporting the depreciation + % interest, of which there wont be much. Go ask Porsche what a PCP looks like on a GT car. It would be interesting to know what value they place on it after 3 years (GFV).

From my experience, they go well under what the market price will be... but it's understandable they want to reduce their risk.

 

[scaza]

I know it's basically an overpriced C63. But my god the AMG GT is a great looking car if your upping the budget.

 

[kindai]

The other thing, have you considered an ultima? I know it basically ticks none of your boxes... but, would certainly be something wayyyyyyyy out there.

 

[crinkleshoes]

The other thing, have you considered an ultima? I know it basically ticks none of your boxes... but, would certainly be something wayyyyyyyy out there.

I already suggested that

 

[[TW]Fox]

You don't pay interest on the balloon

You pay interest on the total amount borrowed which includes the balloon?

 

[Gibbo]

You pay interest on the total amount borrowed which includes the balloon?

Correct, what Jaguar told me anyway.

Is the SVR going to be worth only 40k in 3yr? Even the first edition RWD 500PS convertibles are still selling over 40k and over 3yr old and they are not special or limited edition.
If its going to still half in value that really puts me off.

 

[kindai]

Is the SVR going to be worth only 40k in 3yr? Even the first edition RWD 500PS convertibles are still selling over 40k and over 3yr old and they are not special or limited edition.
If its going to still half in value that really puts me off.

GMFV's are massively lower than they were after the crash when people would buy a 200k lambo, with a gmfv of 180k... (ok over the top, but making a point). When the crash happened and these cars sunk to 120k the finance companies lost millions, now they err on the side of ridiculous.

A mate of mine just got a GTR, 50k window price, 3 year term, GMFV of 10k.

We all know GTR's arent going below 35-40k even for early models.

 

[Vita]

Get a GT3 and be done. At least you'll be truly happy.

 

[Kenai]

Even if the Jag didn't tank, I can't imagine it will compete with the sort of residuals you could expect from a GT3

 

[Jonnycoupe]

Indeed look at harris and his GT3 4.0RS flipping!

Just have a test drive anyway if the SVR. it’s the duality of a road car that I think is where they work especially when you have the focus’d car.

Let’s be honest if the cost is a concern a year old R car offers nearly the same event for 70% of the cost and far less depreciation exposure.

 

[Scrutinize]

The Jag SVR are not targeted at the sorts of buyers who are worrying about depreciation.

I have clients who own (in a loose sense) these sorts of cars inc the Jag SVR, Aston Martins etc. Most simply lease them. The lease on these is only a couple of k down then 1200-1500pm.

They are also properly wealthy people. Not just from earnings & bonuses but from land, inheritance, developments, multiple businesses and investments.

Owning one of these isn't even viewed as a cost to them.

I'm not saying it's out of reach or shouldn't be considered but there are alternatives which muster much stronger residuals and a different focus like the Porsche.

 

[Simon]

Some very sensible posts in here. Good work.