Cost of big finance.

[MCFastybloke]

i have never been one for the finance, but now have a fancy to buy a car way out of my debit card. Without troubling the dealership and them thinking im a prospect at this time,could somebody who recently spent this kinda of money intimate what payments i might expect

car is 92k and i want to put 20-30 in over 3 years at which time i will down size into something more practical.

 

[st13phil]

There’s a good illustrative PCP finance calculator on the carwow site.

You will need to provide an estimate of the final value and the APR.

 

[MCFastybloke]

Thanks i will have a look now.

 

[E53AMG]

Make sure you are sitting down [emoji6]

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[Deleted member 6183]

A bit unrelated but I have a client who has financed a Ferrari, considering the amount outstanding his payments are tiny, I understand this is because the balloon reflects very little depreciation so he is only paying interest and the anticipated depreciation amounts to very little if anything.

Cool eh?

 

[MCFastybloke]

The PCP with the residual final payment thing makes it much cheaper than i expected.

 

[c63chris]

People get very sniffy about PCP but it is an efficient way to finance a car especially if you don’t have the capital or want it tied up in a depreciating asset

 

[st13phil]

People get very sniffy about PCP

There's nothing to be sniffy about, so long as people understand the basis of the financial arrangement they’re using.

Unfortunately, it seems that a large proportion of the people who finance by way of PCP's don’t understand how it works and are astounded at the end of the term to find out that they own precisely nothing.

 

[ash59fifty-uk]

Giz a job?

 

[pmcgsmurf]

Nothing wrong with PCP as has been said if you know what your doing.

We got a couple of Skoda's that work out way cheaper (after Skoda (VW) contribution) to buy at the end of 30 months than if we had put the cash in.

One of the lads also wanted a brand new sporty Seat Leon, happy to pay £200 per month and hand it back (Monday past) after 24 months as his contribution wouldn't even cover the depreciation if he'd bought it.
He did get charged £35 for a ding on an alloy which ain't half bad.

 

[slade1]

I rather buy an older second hand car and pay cash.

 

[Scott_F]

Is the car new ?

If so, I would be far more concerned about depreciation on a £92k car than the cost of finance.

When you downsize after 3 years it will make your eyes water.

 

[MCFastybloke]

I rather buy an older second hand car and pay cash.

this has been our way for years and years and will continue long after out 11 year old estate passes.
i simply havent got the readies at this time.

 

[MCFastybloke]

Is the car new ?

If so, I would be far more concerned about depreciation on a £92k car than the cost of finance.

When you downsize after 3 years it will make your eyes water.

car is 2018 and has lost 25k already

 

[E53AMG]

There's nothing to be sniffy about, so long as people understand the basis of the financial arrangement they’re using.

Unfortunately, it seems that a large proportion of the people who finance by way of PCP's don’t understand how it works and are astounded at the end of the term to find out that they own precisely nothing.

And have lost their original deposit if the residual was unrealistic or they have minor damage to the vehicle...

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[Yex]

A bit unrelated but I have a client who has financed a Ferrari, considering the amount outstanding his payments are tiny, I understand this is because the balloon reflects very little depreciation so he is only paying interest and the anticipated depreciation amounts to very little if anything.

Cool eh?

A guy in the car group I frequent has had quite a few Ferrari’s over the years I’ve known him and is awaiting delivery of his new 488 spyder. He pays cash for his but frequently sells them for a lot more than the invoice price back to the dealer when his next one arrives. If you could do the same with one on finance I can see why the residual is so high and monthly payments so low when compared to list price when delivered. First world problem

 

[Fady]

Can be interpreted as - you just need a raise the cash to buy your first Ferrari and then a dealer will effectively pay you to drive it around for a bit. LOL!