zero percent finance!!

[dem maser]

0% finance!!

I have been told that maserati are doing 0%......
Was speaking to someone yesterday who turned up at my cousins birthday in a GTS in white with the MC kit....Reg number PDL 1 or something similar....guy was on channel 4 secret millionaire but still he tld me he bought it in may and now they are doing 0% so hes got them to change his deal as he just missed out.....

Im not happy as i like the brand being out of reach of most...
A snob ye i know....

A 6k dep gets you in one then 550 per month....

 

[Simon]

So at that rate it will only take 15 years to pay off! There must be some sting in the tail, Ferrari used to do a deal where you paid 50% up front then the other 50% 2 years later interest free.

 

[Andyk]

There will be a big balloon payment at the end of the term no doubt...

 

[conaero]

Can anyone explain more how it works if your in the trade?

I am interested.

Are you saying you put down £6k deposit, have monthly finance of £550, if so how long, balloon payment or can you just chop it back in after a certain time?

 

[dickygrace]

That's £25800 spread over 3 years including deposit. There's the small amount of £60k unaccounted for!

 

[lozcb]

Havent you guys learn't yet , there's always a catch with attractive finance deals , People dont give away money , there in the business of making it not giving it away , read the small print always............................... does it show im old school .........................we have to kill this have it now.............. pay for it later culture


regards loz

 

[conaero]

Fair enough Loz, but I can write it off through the business, sometimes its not worth trying to buy it for the sake of 2 years, basically renting it can work as you can write 100% of it off and save on tax.

Agreed this is not my sort of thing, but in these climates, manufacturers do silly things to get stock shifted, its always worth at least looking at it before dismissing it.

How did the hols to Loz, all nice and rested, or chomping at the bit to get your teeth in to something?

 

[lozcb]

Fair enough Loz, but I can write it off through the business, sometimes its not worth trying to buy it for the sake of 2 years, basically renting it can work as you can write 100% of it off and save on tax.

Agreed this is not my sort of thing, but in these climates, manufacturers do silly things to get stock shifted, its always worth at least looking at it before dismissing it.

How did the hols to Loz, all nice and rested, or chomping at the bit to get your teeth in to something?

Picking up the GS this morning Matt , after it being away 2 weeks away at DL and then having the wheels refurbed whilst on holls for 2 weeks chomping at the bit seems about right, project wise some nice cars on Copart at the mo unfortunately no decent GT for me , not even on the US site , seems to be a svere lack of broken GT or GTS's about in recent months


regards loz

 

[Emtee]

Dem doesn't mention whether the car was new or used.

£550 over 4 years - £26,400 + £6,000 deposit = £32,400.

£80K for a decent spec GTS? - £47,600 outstanding, which can't be too far off the residual at that time?

Could be workable?

 

[urbanmaser]

The best finance deal would be 10% deposit, then 5 years without payments and then an interest free balloon at the end of it. This would give you plenty of time to win the lottery or to find a bank to rob.

Why am I so successful in business and such an asset to this forum???????????

 

[lozcb]

Dem doesn't mention whether the car was new or used.

£550 over 4 years - £26,400 + £6,000 deposit = £32,400.

£80K for a decent spec GTS? - £47,600 outstanding, which can't be too far off the residual at that time?

Could be workable?

Surely Miles that means the car has cost you £32K for 3 years , i cant justify that, when you dont have a car or a brass cent to show for it , it dont compute in my little brain , there play toys for chrisakes , never lost that kind of money on some of the boats ive had,


regards loz

 

[dem maser]

Theres around 40k ballon at the end....
Most people hand the csr in and start again though.....no one pays balloons.....

 

[Emtee]

Surely Miles that means the car has cost you £32K for 3 years , i cant justify that, when you dont have a car or a brass cent to show for it , it dont compute in my little brain , there play toys for chrisakes , never lost that kind of money on some of the boats ive had,


regards loz

Completely agree Loz, but that's how these balloon deals work. You effectively spend 4 years paying for the depreciation.

 

[urbanmaser]

Completely agree Loz, but that's how these balloon deals work. You effectively spend 4 years paying for the depreciation.

Try the stock market

 

[MAF260]

Surely Miles that means the car has cost you £32K for 3 years , i cant justify that, when you dont have a car or a brass cent to show for it , it dont compute in my little brain , there play toys for chrisakes , never lost that kind of money on some of the boats ive had,


regards loz

Only really the same as depreciation though Loz, losing that kind of cash over the same time. Granted you have no car left at the end without paying the balloon off, but I'm not sure it's a bad thing.
To follow this example - you have £80k to spend on a car
1. You pay the full amount up front and own the car outright. It depreciates by c.£30k over 3 years and you are left with a car worth c.£50k which may or may not be easy to sell. There are no guarantees of its value at 3 years old.
2. You buy the car in the way shown above. A few grand down and a few hundred per month. If you had the £80k to pay for the car at the beginning you will only spend c.£30k of it over 3 years, leaving you with decent cash fluidity. After 3 years you have a guaranteed future value which will be unaffected by market conditions and any particular options you may have chosen (orange paint with pink leather and gold wheels!) You can walk away having lost little more money than the depreciation or you can buy the car with the remaining £50k you still have in the bank which has been invested and (hopefully ) grown over 3 years.

I can see why people do this. I don't own my own company so don't know the benefits/angles available, but it seems that many do it this way so it must be beneficial.

 

[lozcb]

Only really the same as depreciation though Loz, losing that kind of cash over the same time. Granted you have no car left at the end without paying the balloon off, but I'm not sure it's a bad thing.
To follow this example - you have £80k to spend on a car
1. You pay the full amount up front and own the car outright. It depreciates by c.£30k over 3 years and you are left with a car worth c.£50k which may or may not be easy to sell. There are no guarantees of its value at 3 years old.
2. You buy the car in the way shown above. A few grand down and a few hundred per month. If you had the £80k to pay for the car at the beginning you will only spend c.£30k of it over 3 years, leaving you with decent cash fluidity. After 3 years you have a guaranteed future value which will be unaffected by market conditions and any particular options you may have chosen (orange paint with pink leather and gold wheels!) You can walk away having lost little more money than the depreciation or you can buy the car with the remaining £50k you still have in the bank which has been invested and (hopefully ) grown over 3 years.

I can see why people do this. I don't own my own company so don't know the benefits/angles available, but it seems that many do it this way so it must be beneficial.

I understand how it works Mark, bit i cant get my head round is having to find that kind of money each month for that term , being self employed all my life ive always kept my overheads down to a minimum because i never really knew what work would bring in the future, i could only ever see months ahead rather than years , so aways steered away from that kind of commitment, in hindsight ive never really been out of work other that what time i wanted to take off , but im sure its been easier without the worry of that kind of committment , perhaps its why i do things slightly differently and old school, least what i have is always mine even if work completely dried up for a few months

regards loz

 

[Easyplan66]

I have had many cars over the years on Personnal Contract Hire and think it is fine when buying average £20k cars but would rather buy a three/four year old car on HP and build up some equity in my cars, as with most things buying at the right price is important and you have no control over that with a new car. Typical example is our new Audi A6 cost £31k on PCP at £460 per month and hand it back after three years and do the same again. My 4200 will be paid for in the next 18 months on a short HP agreement and still worth £14k hopefully then used for a deposit for a GT and do it all again in two/three years. This way I can convince my wife that the monthly payments are a way of saving some cash away and enjoying the car at the same time.

The key to benefiting from a PCP agreement is to implement the 'half and thirds clause' which lets you hand back the car after you have paid half the payments even if the car is worth less than you owe. We have done this on the last three cars we own, that way the finance company takes a share of the depriciation, the dealers wont tell you this unless you ask them.

 

[conaero]

Andrew, that is very informative, thank you.

 

[dem maser]

PCP is the way to go.....almost every car on the road is paid for like this....

People are putting 10k down for the GTR and paying 500 a month.....afyer the three years they can hand the car back, sort out the balloon and keep it or hand it back and use as dep for the next car.....

Not bad as what you loose would be depreciated anyway....
Like mark said you will loose 30k over 3 years anyway.....

 

[dem maser]

The PCP is available on new or used but you get a better deal on NEW.....