10.3% APR on 86.4K?

[exigepete]

The initial message was deleted from this topic on 08 October 2010 at 21:10

[ringram]

expensive. buy a cheaper car
Thats 20x BOE rate.

[Phooey]

Sounds too high to me mate - is this from the OPC on that GT3 RS? If you are buying the car from a dealer, have a word with Jamie at http://www.performancecarfinance.co.uk/ . I guarantee you he will nail that APR.

Have a play with these calculators - the LIBOR based one is interesting http://carfinancecalc.com/broombroom/

Also, Jamie gets some sparkling reviews on 911UK, plenty of happy customers

[Phooey]

Car Price £ 114,400.00
Deposit £ 28,000.00
Loan £ 86,400.00
Term in months 36
Miles p.a. 10,000
Typical Base Rate (based on current libor rate) 5.95 %
Average Monthly Repayments £ 1,169.13
Estimated Final Payment £ 57,200.00
Total interest paid £ 12,888.69
Total Paid inc deposit £ 127,288.69 295
Additional finance admin and document fees £ 295.0


This was done based on the LIBOR calculator. The bit you need to know is - it's going to cost you approx £4k in interest per each year of the 3 you have the loan for.

I'm not experienced in the world of finance either, so i'm expecting one of the experts to come and shoot me down soon for mis-quoting

[exigepete]

Cheers Phooey, you read my mind! Hows the GT3 search going? You gonna go to Silverstone Porsche Sunday Service on 17th Oct? Would be good to meet an have a chat!

[Phooey]

exigepete said:

Cheers Phooey, you read my mind! Hows the GT3 search going? You gonna go to Silverstone Porsche Sunday Service on 17th Oct? Would be good to meet an have a chat!

Hi pete, still waiting on a few things r.e. the car search. If i can make the Porsche service i will certainly let you know.

I take it you are still toying with the idea of the Leicester car? Have you been to view it yet?

Back to the finance - i would sit down with the OPC and make it clear you will only buy the car if the *whole* deal is right, and this includes the finance side of it. I still think Jamie will beat what they offer you, and don't be afraid to use a third party to arrange the borrowing for you - he is well experienced in sorting out the finance for and to the dealers.

Just been reading this months EVO mag, where they put the RS against the 458. The RS is one very special car

[uuf361]

Phooey said:

Sounds too high to me mate - is this from the OPC on that GT3 RS? If you are buying the car from a dealer, have a word with Jamie at http://www.performancecarfinance.co.uk/ . I guarantee you he will nail that APR.

Have a play with these calculators - the LIBOR based one is interesting http://carfinancecalc.com/broombroom/

Also, Jamie gets some sparkling reviews on 911UK, plenty of happy customers

+1 - talk to Jamie - his rates are excellent plus he's a really nice and easy guy to deal with too

[Phooey]

Just another option.

Obviously take proper advice on this, but look into the option of borrowing through your mortgage if you have one. It might be the cheapest form of borrowing the money in the short term. I have an Offset mortgage and have currently overpaid heavily over the past 5 years - my drawdown reserve is very healthy = =

[exigepete]

Thanks for the advice and tips Phooey and UUF361. I am still out the country so haven't been to view it yet, hopefully will be back in the UK late on the 5th. Then I can make some real progress on this front other than loads of emails!

Just seen another car has come up on the Approved Used List, but its without Clubsport spec, ie leather/alcantara seats and no roll cage, who would spec or buy an RS without a roll cage as its part of the character!

[Phooey]

exigepete said:

Just seen another car has come up on the Approved Used List, but its without Clubsport spec, ie leather/alcantara seats and no roll cage, who would spec or buy an RS without a roll cage as its part of the character!

Price seems ok..... if you are not fussed about having the front lift.

[DonkeyApple]

exigepete said:

10.3% is what I have been offered on 86.4k credit with a 28k deposit on a car I'm looking at over three years. What do you think? Good bad/rate? I'm not the most experienced in finance hence the questions, advise, opinions please! Quote is from a main dealer.

Sorry, but this is insane. Paying over £25k more for a car which you can't afford in the first place!!!!!

At what point is it a smart idea to pay £140K for something worth £115K which in 3 years will probably be worth say £75k.

I just don't get this type of logic. There was a time when only gay men lived like this

[Dupont666]

DonkeyApple said:

exigepete said:

10.3% is what I have been offered on 86.4k credit with a 28k deposit on a car I'm looking at over three years. What do you think? Good bad/rate? I'm not the most experienced in finance hence the questions, advise, opinions please! Quote is from a main dealer.

Sorry, but this is insane. Paying over £25k more for a car which you can't afford in the first place!!!!!

At what point is it a smart idea to pay £140K for something worth £115K which in 3 years will probably be worth say £75k.

I just don't get this type of logic. There was a time when only gay men lived like this

And bringing it back down to earth, how many people do you know doing average work for an average wage (circa £32k) settle for a £10k because its what they can afford... very few!! I doubt many even have cash lying around to buy it outright.

now lets look at the figures:

£28k of £115k just under 25% with 75% on finance.

not many people I know from back home can afford to put 25% down on a car wether it was a £10k car which would cost them £13-14k (30-40% more than the car) but the OP is paying only 18% more so not too bad. ramp up the price to a £20k - £30k car for the keeping up with the Jones and it gets worse.

But its the OPs money and he wants to so I dont see the issue of saying its crazy when in fact it looks a far better deal than most people get, just the figures are higher.

Plus the main point is, if you have £140k in an account I would rather £110k was working for me, making more than the finance it was costing me rather than placing all my cash into one thing.... That makes no financial sense.

[DonkeyApple]

Dupont666 said:

DonkeyApple said:

exigepete said:

10.3% is what I have been offered on 86.4k credit with a 28k deposit on a car I'm looking at over three years. What do you think? Good bad/rate? I'm not the most experienced in finance hence the questions, advise, opinions please! Quote is from a main dealer.

Sorry, but this is insane. Paying over £25k more for a car which you can't afford in the first place!!!!!

At what point is it a smart idea to pay £140K for something worth £115K which in 3 years will probably be worth say £75k.

I just don't get this type of logic. There was a time when only gay men lived like this

And bringing it back down to earth, how many people do you know doing average work for an average wage (circa £32k) settle for a £10k because its what they can afford... very few!! I doubt many even have cash lying around to buy it outright.

now lets look at the figures:

£28k of £115k just under 25% with 75% on finance.

not many people I know from back home can afford to put 25% down on a car wether it was a £10k car which would cost them £13-14k (30-40% more than the car) but the OP is paying only 18% more so not too bad. ramp up the price to a £20k - £30k car for the keeping up with the Jones and it gets worse.

But its the OPs money and he wants to so I dont see the issue of saying its crazy when in fact it looks a far better deal than most people get, just the figures are higher.

Plus the main point is, if you have £140k in an account I would rather £110k was working for me, making more than the finance it was costing me rather than placing all my cash into one thing.... That makes no financial sense.

Seeing as the finance rate is 10% and that is on already taxed income, what kind of return would you need to be getting, guaranteed, on an annual basis and then pay tax on for it to make more sense?

If you can answer that question then you'll realise that anyone who can achieve that wouldn't need to borrow to buy a car as they would be minting it royally

The 'My capital is better employed elsewhere' arguement never stacks up

I am fully aware that I seem to stand alone on PH with my view but no one has yet come forward with a credible reason that would cover most cases.

[exigepete]

DonkeyApple said:

Dupont666 said:

DonkeyApple said:

exigepete said:

10.3% is what I have been offered on 86.4k credit with a 28k deposit on a car I'm looking at over three years. What do you think? Good bad/rate? I'm not the most experienced in finance hence the questions, advise, opinions please! Quote is from a main dealer.

Sorry, but this is insane. Paying over £25k more for a car which you can't afford in the first place!!!!!

At what point is it a smart idea to pay £140K for something worth £115K which in 3 years will probably be worth say £75k.

I just don't get this type of logic. There was a time when only gay men lived like this

And bringing it back down to earth, how many people do you know doing average work for an average wage (circa £32k) settle for a £10k because its what they can afford... very few!! I doubt many even have cash lying around to buy it outright.

now lets look at the figures:

£28k of £115k just under 25% with 75% on finance.

not many people I know from back home can afford to put 25% down on a car wether it was a £10k car which would cost them £13-14k (30-40% more than the car) but the OP is paying only 18% more so not too bad. ramp up the price to a £20k - £30k car for the keeping up with the Jones and it gets worse.

But its the OPs money and he wants to so I dont see the issue of saying its crazy when in fact it looks a far better deal than most people get, just the figures are higher.

Plus the main point is, if you have £140k in an account I would rather £110k was working for me, making more than the finance it was costing me rather than placing all my cash into one thing.... That makes no financial sense.

Seeing as the finance rate is 10% and that is on already taxed income, what kind of return would you need to be getting, guaranteed, on an annual basis and then pay tax on for it to make more sense?

If you can answer that question then you'll realise that anyone who can achieve that wouldn't need to borrow to buy a car as they would be minting it royally

The 'My capital is better employed elsewhere' arguement never stacks up

I am fully aware that I seem to stand alone on PH with my view but no one has yet come forward with a credible reason that would cover most cases.

Hello again all! Getting some much better quotes in from some finance specialists.

No offence DonkeyApple but you don't know me or my financial situation!

Edited by exigepete on Monday 27th September 16:39

[DonkeyApple]

exigepete said:

DonkeyApple said:

Dupont666 said:

DonkeyApple said:

exigepete said:

10.3% is what I have been offered on 86.4k credit with a 28k deposit on a car I'm looking at over three years. What do you think? Good bad/rate? I'm not the most experienced in finance hence the questions, advise, opinions please! Quote is from a main dealer.

Sorry, but this is insane. Paying over £25k more for a car which you can't afford in the first place!!!!!

At what point is it a smart idea to pay £140K for something worth £115K which in 3 years will probably be worth say £75k.

I just don't get this type of logic. There was a time when only gay men lived like this

And bringing it back down to earth, how many people do you know doing average work for an average wage (circa £32k) settle for a £10k because its what they can afford... very few!! I doubt many even have cash lying around to buy it outright.

now lets look at the figures:

£28k of £115k just under 25% with 75% on finance.

not many people I know from back home can afford to put 25% down on a car wether it was a £10k car which would cost them £13-14k (30-40% more than the car) but the OP is paying only 18% more so not too bad. ramp up the price to a £20k - £30k car for the keeping up with the Jones and it gets worse.

But its the OPs money and he wants to so I dont see the issue of saying its crazy when in fact it looks a far better deal than most people get, just the figures are higher.

Plus the main point is, if you have £140k in an account I would rather £110k was working for me, making more than the finance it was costing me rather than placing all my cash into one thing.... That makes no financial sense.

Seeing as the finance rate is 10% and that is on already taxed income, what kind of return would you need to be getting, guaranteed, on an annual basis and then pay tax on for it to make more sense?

If you can answer that question then you'll realise that anyone who can achieve that wouldn't need to borrow to buy a car as they would be minting it royally

The 'My capital is better employed elsewhere' arguement never stacks up

I am fully aware that I seem to stand alone on PH with my view but no one has yet come forward with a credible reason that would cover most cases.

Hello again all! Getting some much better quotes in from some finance specialists.

No offence DonkeyApple but you don't know me or my financial situation!

Edited by exigepete on Monday 27th September 16:39

Non taken.

Just struggling to learn why it is that people would chose to pay considerably more for something than they need to.

No one has yet put forward a really good reason so I'm still intrigued.

[exigepete]

I agree and don't intend to pay more than I need to hence why I started the thread, from the info recieved I am now looking at a much better APR figure.

Yes, it will cost me a lot of money and yes I will loose money, but unless you are dealing in classic Ferrari's all cars as I am sure you are well aware always loose money!

I am in a position at the moment where I can afford to tickle my itch that is fast cars. Single, earning a decent tax free wage and working abroad for six months of the year, so I have to enjoy my time off to balance things out.

Cars are my life and I do have a tendancy to let my heart rule my head, but not totally!

[DonkeyApple]

exigepete said:

I agree and don't intend to pay more than I need to hence why I started the thread, from the info recieved I am now looking at a much better APR figure.

Yes, it will cost me a lot of money and yes I will loose money, but unless you are dealing in classic Ferrari's all cars as I am sure you are well aware always loose money!

I am in a position at the moment where I can afford to tickle my itch that is fast cars. Single, earning a decent tax free wage and working abroad for six months of the year, so I have to enjoy my time off to balance things out.

Cars are my life and I do have a tendancy to let my heart rule my head, but not totally!

I suspect you are the first person on PH to answer honestly.

If you are only here for 6 months of the year why not lease a different car for when here and then not have to worry about the upkeep and depreciation while away? This would allow you to come home to a different car each time and have the fun while away of deciding what it'll be.

[exigepete]

Have looked into leasing and supercar clubs before but being as I am 27 most companies aren't interested.

Plus what would I put my private plate on!

[NoelWatson]

DonkeyApple said:

I am fully aware that I seem to stand alone on PH with my view .

I always though the same thing as well.

[DonkeyApple]

NoelWatson said:

DonkeyApple said:

I am fully aware that I seem to stand alone on PH with my view .

I always though the same thing as well.

What, that I stand alone?