CSL depreciation over the next 3 years?

CSL depreciation over the next 3 years?

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hughjayteens

Original Poster:

2,029 posts

275 months

Wednesday 10th September 2008
quotequote all
I know that no-one has a crystal ball for things like this, but am considering a CSL on finance which will have a balloon payment in 3 years time, and I am just curious as to what people think the values might be by then.

If I spent say £30k on a car with 35k miles, put down a 10% deposit, did 12k miles a year, the balloon payment I am being quoted is circa £12k. I would like to think that even with 70k miles on the clock, a car as rare as the CSL *should* be worth considerably more than £12k in the 3 years time, but what is the general consensus of opinion?

Cheers

Chris

RMac

347 posts

228 months

Wednesday 10th September 2008
quotequote all
Have a word with Oracle finance - they are a broker and are vey good people to deal with. I dealt with Natalie.

I have a £20k Baloon after 2 years. I am basically just paying interest only!

It was a doddle to set up.

Really chuffed.

TheForceV4

543 posts

194 months

Wednesday 10th September 2008
quotequote all
I wont comment on finance as I know nothing of it however what i will say is that even with the economy just so a csl will be worth more than 12grand in quite a few years to come...or your money back lol!

hughjayteens

Original Poster:

2,029 posts

275 months

Wednesday 10th September 2008
quotequote all
RMac said:
Have a word with Oracle finance - they are a broker and are vey good people to deal with. I dealt with Natalie.

I have a £20k Baloon after 2 years. I am basically just paying interest only!

It was a doddle to set up.

Really chuffed.
It was Oracle I spoke to today oddly enough - the 10% deposit and 12k balloon after 3 years were the first figures they came up with (11% APR was a bit steeper than I expected though - monthly payments are circa £440). Can I ask what your figures are (email me if preferred)

houlbt

738 posts

272 months

Thursday 11th September 2008
quotequote all
Yes... in all fairness I think 12k in three years is a resonably safe bet.

RMac

347 posts

228 months

Thursday 11th September 2008
quotequote all
I borrowed £20k & the baloon is £20k in 2 years. The APR is sub 10% and I pay about £150pm (it may be £170! I can;t remember)

The car had done 26k miles when I bought it and based on me doing 8k p/a i think.

I guess we are a little further into a recession now than we were a few months ago but it is secured finance and base rate hasn't gone up. I can imagine value predictions could have gone down a bit.

The Finance was placed through Lombard & they sent someone out to inspect the car. It was a private sale.

hughjayteens

Original Poster:

2,029 posts

275 months

Thursday 11th September 2008
quotequote all
RMac said:
I borrowed £20k & the baloon is £20k in 2 years. The APR is sub 10% and I pay about £150pm (it may be £170! I can;t remember)

The car had done 26k miles when I bought it and based on me doing 8k p/a i think.

I guess we are a little further into a recession now than we were a few months ago but it is secured finance and base rate hasn't gone up. I can imagine value predictions could have gone down a bit.

The Finance was placed through Lombard & they sent someone out to inspect the car. It was a private sale.
That works out at 9% APR if my brain is still working, which is noticeable improvement on 11%. Hadn't considered such a large balloon, but as I will probably only want to keep the car 2 years and am hopeful values should stay firm, it is an interesting way to look at things. Hmmm, maybe a 996GT3 is worth a look!!

RMac

347 posts

228 months

Thursday 11th September 2008
quotequote all
GLOL - yes they are - they have great baloons on them. I know of a few people that are not absolutely loaded who have gt3 rs's financed this way.

It is staggering what you can get into for relatively little monthly outlay if you can chose low depreciating cars.

gilford

713 posts

205 months

Monday 15th September 2008
quotequote all
CSL will be worth well over £12k in 3 years bud, no need to worry about that!

£30k on one now with 35k miles on it, very steep in todays market! Go over to mtorque, a good few examples for sale there from £26k upwards smile

bennno

12,734 posts

276 months

Tuesday 16th September 2008
quotequote all
RMac said:
I borrowed £20k & the baloon is £20k in 2 years. The APR is sub 10% and I pay about £150pm (it may be £170! I can;t remember)


Are you sure, that's a very unusual lending profile assuming a £26k buy price with a residual value of c.80% after 2yrs and no capital repayment over the term?

Bennno

RMac

347 posts

228 months

Wednesday 17th September 2008
quotequote all
Hi Benno, as the one who has the loan, I am pretty sure.

Many years ago a pal of mine bought a caterham which had a higher residual on it at the end of the loan than he borrowed initially making monthly payments negligible.


bennno

12,734 posts

276 months

Wednesday 17th September 2008
quotequote all
Good for you, sounds like a guaranteed way in to negative equity for those who cannot afford to repay the realistic depreciation any car will experience in todays economic climate.

If the 80% is a guaranteed residual then the above doesnt apply and please let me have their number.

Bennno

Edited by bennno on Wednesday 17th September 18:46

RMac

347 posts

228 months

Wednesday 17th September 2008
quotequote all
Benno - as stated above - it is through Oracle finance. They are a broker. The finance is placed through Lombard. They advertise in autocar and Evo Magazine. They are easily found on the interweb - try google.