997 Turbo @ Dealership
Discussion
Hi All,
I've wanted a 997 Turbo since they first came out and as i don't have the £40k+ on hand to buy one outright I was wondering what kind of offers they do at the dealers regarding financing around the £40-£45k price range.
Are they competitive and what kind of payment plans would be on offer.
I would be very very interested if anyone has any first hand experience with this.
Thanks again.
I've wanted a 997 Turbo since they first came out and as i don't have the £40k+ on hand to buy one outright I was wondering what kind of offers they do at the dealers regarding financing around the £40-£45k price range.
Are they competitive and what kind of payment plans would be on offer.
I would be very very interested if anyone has any first hand experience with this.
Thanks again.
There are various packages that they will try and sell to you but make sure you look at the TOTAL cost and not just the monthly figures.
An example with fictional figures to explain....
New car = £40000 (Price of car)
Deposit = £5000
Guaranteed future value (Balloon payment) = £15000 (What the car will be worth after 4 years and x miles)
Credit total = £30000 (what you are borrowing)
£30k / 48 months = £650pm (Figures dependent on % rate and many other factors)
Total Cost to Own = Deposit + Monthly Payments + Balloon payment = £51200
An example with fictional figures to explain....
New car = £40000 (Price of car)
Deposit = £5000
Guaranteed future value (Balloon payment) = £15000 (What the car will be worth after 4 years and x miles)
Credit total = £30000 (what you are borrowing)
£30k / 48 months = £650pm (Figures dependent on % rate and many other factors)
Total Cost to Own = Deposit + Monthly Payments + Balloon payment = £51200
- All the above is an example only and should not be used to make any sort of financial planning. It has only been posted in order to see an example of the kind of packages available*
V8KSN said:
There are various packages that they will try and sell to you but make sure you look at the TOTAL cost and not just the monthly figures.
An example with fictional figures to explain....
New car = £40000 (Price of car)
Deposit = £5000
Guaranteed future value (Balloon payment) = £15000 (What the car will be worth after 4 years and x miles)
Credit total = £30000 (what you are borrowing)
£30k / 48 months = £650pm (Figures dependent on % rate and many other factors)
Total Cost to Own = Deposit + Monthly Payments + Balloon payment = £51200
If the cars worth 15 at the end, 15 from 40 is 25k, so he should be borrowing 25 not your claimed 30k ???An example with fictional figures to explain....
New car = £40000 (Price of car)
Deposit = £5000
Guaranteed future value (Balloon payment) = £15000 (What the car will be worth after 4 years and x miles)
Credit total = £30000 (what you are borrowing)
£30k / 48 months = £650pm (Figures dependent on % rate and many other factors)
Total Cost to Own = Deposit + Monthly Payments + Balloon payment = £51200
- All the above is an example only and should not be used to make any sort of financial planning. It has only been posted in order to see an example of the kind of packages available*
sykotoyRS4 said:
If the cars worth 15 at the end, 15 from 40 is 25k, so he should be borrowing 25 not your claimed 30k ???
You forgot the deposit, so it's actually only £20k being borrowed and repaid BUT another £15k (the balloon) is on loan in full the whole time, on which interest will be charged.sykotoyRS4 said:
If the cars worth 15 at the end, 15 from 40 is 25k, so he should be borrowing 25 not your claimed 30k ???
It's different to that too isn't it?Car is £40k and deposit is £5k.
You borrow £35k but only repay £20k plus interest (on all) by way of monthly payments if the agreed future value is £15k. At the end, you then repay the £15k or walk away depending on the deal.
edited as Goose beat me to it!
mrdemon said:
and the end of the day it will cost you 50k for a 40k car if you finance it.
Or £50k for a £40k car if you pay £40k in cash.Because your £40k would be worth £50k if you kept it and invested it sensibly.
Either way financed, or cash purchse, a £40k car costs you £50k.
It's wrong to look at the interest charged on the loan and not consider the lost interest on your cash if you have the money.
I never was very good at math 
Cars as we all know are (generally) depreciating assets and whichever way you look at it you will lose money on them.
Mostly the money is lost through depreciation though that loss can be compounded if you have to pay to borrow money to buy the depreciating asset in the first place.
Some people can make this work, others can't. Depends entirely on the individual and their own financial position.
My point above still stands though, the OP needs to look at the total cost and not be blindsided by the salesman with low monthly payments and a low deposit.
Cars as we all know are (generally) depreciating assets and whichever way you look at it you will lose money on them.
Mostly the money is lost through depreciation though that loss can be compounded if you have to pay to borrow money to buy the depreciating asset in the first place.
Some people can make this work, others can't. Depends entirely on the individual and their own financial position.
My point above still stands though, the OP needs to look at the total cost and not be blindsided by the salesman with low monthly payments and a low deposit.
The figures for my car although not a turbo are as follows:
Cost of car £40000.
Deposit £18000
Amount to finance: £22000.....made up as follows:
48 payments of £366......£17568
One final balloon payment of £10000
Total paid back therefore is £27568
So total cost to borrow is £5568 .
Over four years of course with the option of paying the full amount outstanding at any particular time and greatly reducing the cost of borrowing.
Hope this helps.
Dave
Cost of car £40000.
Deposit £18000
Amount to finance: £22000.....made up as follows:
48 payments of £366......£17568
One final balloon payment of £10000
Total paid back therefore is £27568
So total cost to borrow is £5568 .
Over four years of course with the option of paying the full amount outstanding at any particular time and greatly reducing the cost of borrowing.
Hope this helps.
Dave
Chippy99 said:
Or £50k for a £40k car if you pay £40k in cash.
Because your £40k would be worth £50k if you kept it and invested it sensibly.
Either way financed, or cash purchse, a £40k car costs you £50k.
It's wrong to look at the interest charged on the loan and not consider the lost interest on your cash if you have the money.
Do you have some suggestions for getting a no-risk profit of £10K from £40K principle in just 4 years please?Because your £40k would be worth £50k if you kept it and invested it sensibly.
Either way financed, or cash purchse, a £40k car costs you £50k.
It's wrong to look at the interest charged on the loan and not consider the lost interest on your cash if you have the money.
regardless of how you choose to formulate the finance, just make sure that the APR level is acceptable.
They will probably start at between 9-10% APR, but will generally negotiate down to 7-7.5%
Obviously, the larger the balloon, or longer the credit agreement, the more interest that will be payable - so just looking at total cost is not necessarily indicative of which is the better finance deal.
I.E. £40K over 3 years with zero balloon, will have a lower total cost at 10%APR, than £40K over 4 years with a £10K balloon at 7% APR. The 7% deal is still a better finance deal in terms of the price of the money - and if you are likely to trade out within a year or so, will also cost you less in total.
They will probably start at between 9-10% APR, but will generally negotiate down to 7-7.5%
Obviously, the larger the balloon, or longer the credit agreement, the more interest that will be payable - so just looking at total cost is not necessarily indicative of which is the better finance deal.
I.E. £40K over 3 years with zero balloon, will have a lower total cost at 10%APR, than £40K over 4 years with a £10K balloon at 7% APR. The 7% deal is still a better finance deal in terms of the price of the money - and if you are likely to trade out within a year or so, will also cost you less in total.
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