How to buy an expensive car!
15 November 2010, 05:24 PM
#151
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He is doing a deal that suits him and I don't see any problem with it.
I do take task with his justification though, in terms of total cost of deal and the 'lack of depreciation' as that is mostly what he is paying in his rental.
Much simpler to say I can afford £600 pcm and want a Golf RS.
Sorted
I do take task with his justification though, in terms of total cost of deal and the 'lack of depreciation' as that is mostly what he is paying in his rental.
Much simpler to say I can afford £600 pcm and want a Golf RS.
Sorted
15 November 2010, 05:30 PM
#152
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Interesting but risky game Trout. It takes some knack (and luck) picking that low depreciation or even appreciating vehicle, and there are a lot of uncertain variables in today's world. So are you going to do it?
15 November 2010, 05:48 PM
#153
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As I say John it is a risk - however history supports the brave...
996 GT3 RS was around £90k new - now fetching £55-65k for a decent one - 65% residual over six years
997.1 GT3 RS £95k new - now fetching £75k - 79% residual over three years - and bear in mind the 997.1 GT3 RS has suffered from not being that special and being sold right in the middle of the banking crisis.
The 997.2 is regarded as pretty much one of the finest cars Porsche have made and a significant step up from the base GT3. It is also the last of a line and maybe the last analogue GT3.
996 GT3 RS was around £90k new - now fetching £55-65k for a decent one - 65% residual over six years
997.1 GT3 RS £95k new - now fetching £75k - 79% residual over three years - and bear in mind the 997.1 GT3 RS has suffered from not being that special and being sold right in the middle of the banking crisis.
The 997.2 is regarded as pretty much one of the finest cars Porsche have made and a significant step up from the base GT3. It is also the last of a line and maybe the last analogue GT3.
15 November 2010, 05:51 PM
#154
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And on the latter point - every post? Don't be ridiculous, I sometimes post up about the nanny as well
15 November 2010, 05:57 PM
#155
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An example deal would be: -
£100,000 purchase price
£80,000 financed
£50,000 residual
£1,057 pcm
£8,083 interest
This is based on current LIBOR rate which could rise medium to long term.
Porsche UK will give a much higher GFV even over three years but the lower pcm hides a hideous interest rate.
My two observations are - I would never want to tie up this much capital in a car and whilst there is a risk, there are very few cars of this value where this makes any sense other than financial suicide. It really is a how much can I afford to pay to play. I am guessing a GT3 RS will be worth 85% barring a financial catastrophe again and so TCO will be around £23k over three years.
Just a shade more than a Golf RS
£100,000 purchase price
£80,000 financed
£50,000 residual
£1,057 pcm
£8,083 interest
This is based on current LIBOR rate which could rise medium to long term.
Porsche UK will give a much higher GFV even over three years but the lower pcm hides a hideous interest rate.
My two observations are - I would never want to tie up this much capital in a car and whilst there is a risk, there are very few cars of this value where this makes any sense other than financial suicide. It really is a how much can I afford to pay to play. I am guessing a GT3 RS will be worth 85% barring a financial catastrophe again
and so TCO will be around £23k over three years.Just a shade more than a Golf RS
I don't understand the figures.
You put down £20k deposit.
Then you pay 12x3x1057 = £38052
Total paid after 3 years is £58052. What happens now? You hand the car back?
15 November 2010, 05:59 PM
#156
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15 November 2010, 06:02 PM
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If you are mad yes! Sell it before the end of the deal or pay the balloon. Based on the figures above there could be £35k equity remaining in the car.
I put the figures up as an illustration - it is clearly upsetting people that every post is about my potential car purchase
With no balloon the same deal would give
£100,000 value
£80,000 to finance
£2,365 pcm
£5,157 total interest
I put the figures up as an illustration - it is clearly upsetting people that every post is about my potential car purchase
With no balloon the same deal would give
£100,000 value
£80,000 to finance
£2,365 pcm
£5,157 total interest
15 November 2010, 06:11 PM
#159
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If you are mad yes! Sell it before the end of the deal or pay the balloon. Based on the figures above there could be £35k equity remaining in the car.
I put the figures up as an illustration - it is clearly upsetting people that every post is about my potential car purchase
With no balloon the same deal would give
£100,000 value
£80,000 to finance
£2,365 pcm
£5,157 total interest
I put the figures up as an illustration - it is clearly upsetting people that every post is about my potential car purchase
With no balloon the same deal would give
£100,000 value
£80,000 to finance
£2,365 pcm
£5,157 total interest
How bloody well dare you spend your money on something so frivolous as a car in these times of austerity.
We don't want to know. Really, we don't.
Looking forward to a sit in it at the next Malton meet
15 November 2010, 06:15 PM
#160
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Entirely subject to the GFV set and what the market will pay, although the GFV will of course dictate what the monthly payment amount is as it will dictate what amount you are financing.
15 November 2010, 06:20 PM
#162
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And on the latter point - every post? Don't be ridiculous, I sometimes post up about the nanny as well
15 November 2010, 06:24 PM
#163
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I still don't get your point - other than have a poke
He is trying to justify it as some great financial transaction - whereas all he is really doing is working out how much he can spend and buys a car he likes. Just like I am doing
He is trying to justify it as some great financial transaction - whereas all he is really doing is working out how much he can spend and buys a car he likes. Just like I am doing
15 November 2010, 06:28 PM
#164
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No, using Trout's figures, you pay he £50k final payment and sell it for £85k, netting a £35k "profit" to off set against the £58,052 cost, hence Trout's £23k estimate.
Entirely subject to the GFV set and what the market will pay, although the GFV will of course dictate what the monthly payment amount is as it will dictate what amount you are financing.
Entirely subject to the GFV set and what the market will pay, although the GFV will of course dictate what the monthly payment amount is as it will dictate what amount you are financing.
Porsche's proposition is that you can buy a £120k car for £800pcm rental. But all you doing is paying interest and depreciation.
As I posted above - the historical values of RSs give some comfort in a high potential resale.
15 November 2010, 06:29 PM
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15 November 2010, 06:43 PM
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15 November 2010, 07:00 PM
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15 November 2010, 07:02 PM
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15 November 2010, 07:10 PM
#172
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OK, get it now. However I think the trade in value of a three year old GT3 RS would be more like £75k, there is a 2007 one for sale on the Porsche website for £79k. Don't forget by the time you come to sell the new 911 will be out and so have a small drag on values. Still good retained value over all though.
What will the RS cost once specced £110k? So £35k in depreciation, then there is quite a significant chance that interest rates will move against you over the next three years. So that £5k in interest could easily become £7-8k? Then there is the lost opportunity of £2300/per month ie could pay a very nice mortgage on a property somewhere (if one felt that was the right thing to do)
So in deprec and interest alone you could be £43k down over three years, not taking into account lost opportunity value. Still very good for such a high end car but perhaps not quite the financial no brainer you were saying?
But if was thinking of buying a GT3 RS I would be telling myself (and more importantly the wife) exactly the same thing
Actually you almost convinced me that it makes financial sense for me to buy one as well
What will the RS cost once specced £110k? So £35k in depreciation, then there is quite a significant chance that interest rates will move against you over the next three years. So that £5k in interest could easily become £7-8k? Then there is the lost opportunity of £2300/per month ie could pay a very nice mortgage on a property somewhere (if one felt that was the right thing to do)
So in deprec and interest alone you could be £43k down over three years, not taking into account lost opportunity value. Still very good for such a high end car but perhaps not quite the financial no brainer you were saying?
But if was thinking of buying a GT3 RS I would be telling myself (and more importantly the wife) exactly the same thing
Actually you almost convinced me that it makes financial sense for me to buy one as well
15 November 2010, 07:12 PM
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15 November 2010, 07:25 PM
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15 November 2010, 07:40 PM
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Well ive not seen a rant like that for a while !!!!
I can only apologise Mitchy son .There are some on here who only see it their way ,maybe jealousy,envy ,whatever ,who knows .
Each to their own I guess .You sound like you know what your doing so Crack on son !!!!
15 November 2010, 07:52 PM
#176
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OK, get it now. However I think the trade in value of a three year old GT3 RS would be more like £75k, there is a 2007 one for sale on the Porsche website for £79k. Don't forget by the time you come to sell the new 911 will be out and so have a small drag on values. Still good retained value over all though.
What will the RS cost once specced £110k? So £35k in depreciation, then there is quite a significant chance that interest rates will move against you over the next three years. So that £5k in interest could easily become £7-8k? Then there is the lost opportunity of £2300/per month ie could pay a very nice mortgage on a property somewhere (if one felt that was the right thing to do)
So in deprec and interest alone you could be £43k down over three years, not taking into account lost opportunity value. Still very good for such a high end car but perhaps not quite the financial no brainer you were saying?
But if was thinking of buying a GT3 RS I would be telling myself (and more importantly the wife) exactly the same thing
Actually you almost convinced me that it makes financial sense for me to buy one as well
What will the RS cost once specced £110k? So £35k in depreciation, then there is quite a significant chance that interest rates will move against you over the next three years. So that £5k in interest could easily become £7-8k? Then there is the lost opportunity of £2300/per month ie could pay a very nice mortgage on a property somewhere (if one felt that was the right thing to do)
So in deprec and interest alone you could be £43k down over three years, not taking into account lost opportunity value. Still very good for such a high end car but perhaps not quite the financial no brainer you were saying?
But if was thinking of buying a GT3 RS I would be telling myself (and more importantly the wife) exactly the same thing
Actually you almost convinced me that it makes financial sense for me to buy one as well
997.1 RS was £95k new, and given the time it went on sale there were discounts in the market so the depreciation is nowhere near as steep as you imply.
997.1 RS is not well loved by the Porcshe community and not regarded as worth the premium over the GT3 so the fact it has held up relatively well is a good sign,
996 RS actually rose in value when the 997 came out - so a new model is not necessarily a bad thing for a 911. The same happened with the 993 GT2 - and prices are still rising.
I am confident that the 997.2 will retain 80% and it could be more. Six month old cars are still selling at list (including options). There is one discounted car in the market - but the dealer is dodgy and the car is questionable.
15 November 2010, 08:11 PM
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