GT - To finance or buy?

[keepersball]

Hi All

I am after some advice if possible? I recently bought a 2017 Ghibli. My brother has always loved the GT and seeing my ghibli this has given him the prod to take the plunge.

He wants to have the experience of owning the GT for what will probably be a year (before kids etc) his situation is he has £50k of savings which he can use to buy the car if needed.

My question is 2 fold ...

1. are there any advantages to financing the car vs buying outright? E.g putting in £30k and financing £20k or is he better off just buying the car?

2. assuming a purchase price of £50k for. 2016 GT with 6k miles on the clock and assuming he will keep it for a year and put 8k miles on it - could anyone have a rough guess at what depreciation to factor in? Obviously current Covid situation may have implications but just an idea would be hugely helpful.

Thanks all

 

[safrane]

There are... if it is finaced and there is something wrong with it the finace Co have an interest in getting it fixed.

 

[Ewan]

Interest rates are so low that financing can make sense, especially given the extra back-up this provides.

Not sure I'd spend all £50k though. Why does he not just dip his toe into GT ownership with maybe a 2014 model GT Sport at around £35k? After all, the more he spends, the more deprecation he's likely to suffer. Have him chat to Dicky Grace.

 

[JJbing]

If he isn't keeping it for awhile, I'd have to agree with Ewan.

 

[Contigo]

Interest rates are so low that financing can make sense, especially given the extra back-up this provides.

Not sure I'd spend all £50k though. Why does he not just dip his toe into GT ownership with maybe a 2014 model GT Sport at around £35k? After all, the more he spends, the more deprecation he's likely to suffer. Have him chat to Dicky Grace.

90% of all finance deals are being rejected right now just like Mortgage approvals are down. Finance companies aren't really interested right now with all the uncertainty.

 

[Bladerunner]

Interest rates are so low that financing can make sense, especially given the extra back-up this provides.

Not sure I'd spend all £50k though. Why does he not just dip his toe into GT ownership with maybe a 2014 model GT Sport at around £35k? After all, the more he spends, the more deprecation he's likely to suffer. Have him chat to Dicky Grace.

I was thinking (and would recommend) exactly the same...spending an extra £10-15k will get you the same car with fewer miles and a little younger.

Spend less, get a 2013/2014 facelift GTS and keep the rest for a rainy day...or a post lockdown party!

 

[ChrisQP09]

Interest rates are so low that financing can make sense, especially given the extra back-up this provides.

Not sure I'd spend all £50k though. Why does he not just dip his toe into GT ownership with maybe a 2014 model GT Sport at around £35k? After all, the more he spends, the more deprecation he's likely to suffer. Have him chat to Dicky Grace.

Agreed! I dont think there are many 14 plate GTs at £35k though. Might be lucky with a 11/12 plate with 25k-30k mile

 

[Bladerunner]

Not far off the mark...saw this one at Autoshield having the clutch/service done.
Marios said the previous owner had lost a fortune in depreciation during their 2 year ownership.

Interior might not be to everyone’s taste;


I just found a great car on Auto Trader:
https://www.autotrader.co.uk/classified/advert/201907109924479?atmobcid=soc4

Also this one with a few more miles;

I just found a great car on Auto Trader:

https://www.autotrader.co.uk/classified/advert/202002187462219

 

[Lavazza]

I bought a 2009 GTS MC, I really enjoy it. Sure, I've spent a bit on maintenance (who hasn't?). But I really like the F1 robotised manual transmission. I'm never going to lose my shirt with it and I'm not afraid of putting miles on it - isn't that what a GT is about?

 

[Andyk]

As Ewan said not sure I would spend 50k on a GT as that still has some falling to do and with all the uncertainty and potential recession he could lose a big chunk of money....but who knows.......Safer to buy a 35k one probably as it may lose less.....35 to 50k gets you a face lift car these days so a Sport and I don't think they changed anything on the Sport so potentially a 35/40k car will be the same as a 50k car. Although the last model is now getting close to 50k if he prefers the latest model....

 

[bigbob]

Good advice here. Keeping any prestige car for just a year will cost a lot if you buy it from a dealer - easy to drop £10k. Better to buy an older one but buy it privately to reduce the margin component of the drop.

Finance versus cash all depends on what you would do with the cash otherwise. Interest rates might be low but depreciation is the real cost.

As a final thought, Maserati Coupes’ are brilliant family cars. I bought my first when kids came along as a replacement for a two seater. Mrs BB has always had an estate mind!

 

[Sam McGoo]

I'm not one for car loans and buy my cars outright.
As others have said, it depends what he does with the rest of the his savings. If he gets a low interest loan, and invests his cash in something that that beats the loan interest, then happy days.

But not many people are so money savy or might not have the time or motivation to do that.

What works for me, is to get a new credit card with the longest interest free period on purchases and cash I can get (between 12 to 26 months normally) and use it for the deposit.
That way:

1. You get some protection from the credit card company (if within the criteria)
2. It's an interest free loan for that period
3. Use the equivalent cash to save/invest/buy premium bonds until you need to pay off the card. And hopefully earn a bit with it.

Also, as others have said, if he knows its going to be short term, buying one that has less potential depreciation would be the best idea.
But as bigbob recommended, it is actually a very good family car. That's why I bought mine as well as it has 4 usable seats and the baby/toddler seat fits nicely.
So he might actually want to keep it!

 

[Ali355]

Not an owner (yet) but my plan is to combine the two. My budget will be around £30k (hopefully by early 2021 the 2013 facelifts will be in budget). I’ll have £20ish k in savings and I’m hoping to get a loan for the remainder. The simple thinking in my head is the loan repayment mirrors the depreciation for the 18/24 months I plan to own the car, so when I come to sell I’ll get the bulk of ‘my’ outlay back. I know that’s a very naive way of looking at things but man maths was never my strong suit (failed accountant!)
Interested in forum consensus on where the ‘sweet spot’ of depreciation/reliability/price is. My ideal car is a 2013 S auto, dark exterior, light interior 35-45k miles.

 

[Andyk]

Not an owner (yet) but my plan is to combine the two. My budget will be around £30k (hopefully by early 2021 the 2013 facelifts will be in budget). I’ll have £20ish k in savings and I’m hoping to get a loan for the remainder. The simple thinking in my head is the loan repayment mirrors the depreciation for the 18/24 months I plan to own the car, so when I come to sell I’ll get the bulk of ‘my’ outlay back. I know that’s a very naive way of looking at things but man maths was never my strong suit (failed accountant!)
Interested in forum consensus on where the ‘sweet spot’ of depreciation/reliability/price is. My ideal car is a 2013 S auto, dark exterior, light interior 35-45k miles.

Don't see why not as some are at 35k now and there is that blue one at 29k so by 2021 you should have a good pick of facelift cars.

 

[Hawk13]

Unless you can get a fantastic finance deal, you are often better off with a personal loan than finance. And if you are not buying outright, it's is just a matter of doing the sums and seeing what you are accepted for.

IMO, if you are already going into a purchase with questions about residuals, you shouldn't be dropping £50k on a car. Nobody really knows and the world is even more uncertain now than it was a few months ago.

Almost a year ago I paid a shade over £50k for a 2 year old car from a main dealer to give you a reference point.