Another defector

Rwc13 said:

Except that the balloon is closer to £40k and the expected residual after 24 months at no more than 5000 miles a year is expected to be more like £55k, so realistic cost more like £10k

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Bargain, it is very nice

It all still doesn't add up to me. Someone somewhere is not doing so well or the depreciation is just very very low. It sounds like the end user is getting a great deal as above. To drop only 10k on a 2013 DB9 in 2 years is a great deal.

Forgive my distrust but these kind of arrangements start reminding of the Lehman Brothers debacle. Everyone wins until somewhere somewhere is left holding the hot potato then they don't lose as they go bust or the average Joe is left carrying the can.

It is all about creating new products and instruments to complicate things beyond the likes of my simple little brain. Must be my cynical nature these days after years of battering's.

It is all a bit like Dragons Den for me. I just don't get it or can't get on-board or trust it all or the industry creating it so I'm out.

- You still know the total the car will cost you should you want to own it at the end of the agreement (and the car industry relies on most owners being unable or unwilling to do this so they will sell them another car using any excess over GFV to fund the deposit for the next one).

- You still have to be prepared to eat your deposit and monthly payments should the market go tits up. If you have a guaranteed future value as most agreements do these days then you are at least afforded that protection for and thus know that this is your worst case scenario, but most GFVs are set conservatively low to avoid such scenarios and of course ensure you have that deposit for the next car they want to sell you.

- You have many ways to skin this cat but you are always paying for the depreciation and finance costs, there is no magic wand. As ever it is about finding the right car at the right point on the depreciation curve and that it is a car the market will still want when you exit. As Felonius points out, if you get this right you can be in a 100K+ car for less overall cost than a typical new car at 40-60K. But there is still a cost and if you practise bangernomics or similar you will never beat that for value for money and you take the sensible head prize. But if you have itches to scratch then this method of finance gets you in the game.

Me? I buy my classics outright as they are just part of a portfolio. They ALWAYS lose money though (if you take overall costs into account not just their resale value), they are just more fun than bits of paper over which you have no control. My 'proper' car is always financed. I tend to go with lowest possible deposit (since this is dead money) and a GFV I am comfortable I will more than cover at the end. The monthlies are then what the monthlies are and that is pretty much your scary depreciation unless you set the GFV really low. At the end I always technically buy the car (even if selling it in the same breath to cover the GFV). I never use it as a bargaining tool to buy my next. I do everything separately. Agree price to buy replacement car. Sell existing car (maybe to the dealer I am buying the new one off but maybe not). Finance the car (maybe from the dealer I am buying the new one off but maybe not). Otherwise they can tie you in knots robbing Peter to pay Paul on Part-Ex versus purchase price, finance deals etc. Whatever way you do it running a car is expensive but there are ways to buy something out of the ordinary for the same overall cost of the ordinary.

rockits said:

Thanks Andy/Dickie.

So I'm not confused and the costs I have suggested are the same as what Andy has said? So seems like circa £900 per month? I'll give it a miss thanks

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It all depends how much you earn and how much you are willing to spend on a car for the enjoyment. As you said each to his own. It’s a no brainer for me and I don’t give it a seconds thought. I couldnt handle the stress of having 8 cars and taxing and insuring / repairing washing and maintaining them. I even forget to report number plate changes on my 2 cars. It’s not financially sensible to have any of these super cars - I just work harder to make sure I don’t feel guilty and the loss is unnoticed. I have a mental amount I am willing to go up to on the deposit and that’s it. When you think about most peoples mortgages who have these supercars- 20k is a spec in the ocean

iainw said:

It all depends how much you earn and how much you are willing to spend on a car

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LOL....not a lot and not a lot

I understand for some in a better financial position than me anything up to £1k per month is great value really if you like your cars and have a really nice one. I had issues with even getting a mortgage when we moved and again 2 years later on re-mortgaging so spending more per month on anything is just not such a viable option at the moment. Believe it or not that is without them even knowing about school fees which somehow they missed!

We are just trying to finalise a pre-planning app for a house build so I have to be as frugal as I can with cars at the moment.

I do really like my cars but have had lots of other draws on my earned cash for a while and at the moment. In maybe 3 years if all goes well I might go mental and do something really silly!! Might begin with F and end in F

I might even join the AM party For the record I think both yours and Roberts cars are lush. I'd have either in a heart beat.

I understand your point of view totally. And it’s infinitely less selfish and more sensible! I do pay private school fees but I occasionally feel guilty I am not putting more aside for my daughter. It often passes quickly though when I search on autotrader!

rockits said:

I might even join the AM party For the record I think both yours and Roberts cars are lush. I'd have either in a heart beat.

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Thanks Dean. Spent the day slowly cleaning it to my standard, cleaning all the nooks and crannies that nobody else does, polishing a few areas where, under my garage lights, you could see some marks or slightly duller spots in the paint - It’s my way of getting to really know a car - and making a list of small imperfections that over time I will remedy. It really is a beautiful piece of artwork. There are details that you only really appreciate as you go through this process. Tomorrow, I will get a coat of wax/sealant on it. Once I’ve got the outside paintwork just right, I will get the underneath waxoyled and the outside diamond ceramic coated in the New Year.

iainw said:

I understand your point of view totally. And it’s infinitely less selfish and more sensible! I do pay private school fees but I occasionally feel guilty I am not putting more aside for my daughter. It often passes quickly though when I search on autotrader!

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Glad you understand....I thought I was totally nuts not just a little so. I have 2 lots of fees but possibly it may drop down to one next year....maybe even none in 3 years. Holy cow all of a sudden I would have a whacking chunk I have been used to spending suddenly available. That could introduce lots of really seriously selfish thoughts!!

However it is likely to go elsewhere or more likely allow me to wind down a bit or change career a little.

My issue is mainly a mind one as I have never spent more than £24k on a vehicle ever. That was a work pool vehicle including VAT! I was brought up in a working class environment with strict understanding on the value of money and living efficiently and comfortably within your means. Even when we have more it is often saved or invested rather than spent. One day I will get to make the jump up to the next level. I have enough to keep me happy so won't complain.

Rwc13 said:

Thanks Dean. Spent the day slowly cleaning it to my standard, cleaning all the nooks and crannies that nobody else does, polishing a few areas where, under my garage lights, you could see some marks or slightly duller spots in the paint - It’s my way of getting to really know a car - and making a list of small imperfections that over time I will remedy. It really is a beautiful piece of artwork. There are details that you only really appreciate as you go through this process. Tomorrow, I will get a coat of wax/sealant on it. Once I’ve got the outside paintwork just right, I will get the underneath waxoyled and the outside diamond ceramic coated in the New Year.

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Good work Maybe some pics would be in order soon then. I bought a little but decent steam cleaning thing a while back as it looked ideal and very useful for lots of nooks and crannies that are hard to get cleaned on some cars. Not sure you need that so much at your starting point though is that DB9 must be pretty much there already.

rockits said:

Glad you understand....I thought I was totally nuts not just a little so. I have 2 lots of fees but possibly it may drop down to one next year....maybe even none in 3 years. Holy cow all of a sudden I would have a whacking chunk I have been used to spending suddenly available. That could introduce lots of really seriously selfish thoughts!!

However it is likely to go elsewhere or more likely allow me to wind down a bit or change career a little.

My issue is mainly a mind one as I have never spent more than £24k on a vehicle ever. That was a work pool vehicle including VAT! I was brought up in a working class environment with strict understanding on the value of money and living efficiently and comfortably within your means. Even when we have more it is often saved or invested rather than spent. One day I will get to make the jump up to the next level. I have enough to keep me happy so won't complain.

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My upbringing was the same. Small house in Manchester- parents put it all into education- few if any luxuries and a second hand Volvo was the order of the day. Both me and my brother did medicine at Cambridge. I end up with a car addiction , he drives a 10 year old Ford Focus. Nature or nurture hey? The world is a funny place. Life’s too short- spend your hard earned on whatever makes you smile- FWIW I would go FF or AM when the school fees disappear

rockits said:

Good work Maybe some pics would be in order soon then. I bought a little but decent steam cleaning thing a while back as it looked ideal and very useful for lots of nooks and crannies that are hard to get cleaned on some cars. Not sure you need that so much at your starting point though is that DB9 must be pretty much there already.

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The interior on that looks stunning. I love the cream / black constrasts. Only AM can do leather like that. I can’t stop stroking it

Careful, that can make you go blind ☺️

That would be so tragic... it’s so easy on the eye too! Admit it- you have stroked your new seats more than a few times since your purchase. And I bet it attracts positive attention from all quarters

I’ve spent all afternoon stroking various bits of the car, seats included. Everything’s a bit blurry......

Do you stroke it more than your Maserati’s...

rockits said:

I do really like my cars but have had lots of other draws on my earned cash for a while and at the moment. In maybe 3 years if all goes well I might go mental and do something really silly!! Might begin with F and end in F

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F*** off? That's what my bank would say if I went to them with a good idea about a car. Last time I asked they did, anyway.

iainw said:

Do you stroke it more than your Maserati’s...

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I’ll keep you posted, but I think it’s highly likely

I agree with Robert, you don’t know it till you clean, I often think that is how I should buy a car, turn up with my 2 buckets, clean it, then point out all the deficiencies.. only problem is giving out a load of free car washes....

Amazing how satisfying it is to dig out 5 years of leaf debris gunk from around/under the boot/bonnet hinges........or is that just me and Dave?