Financing a V8 V

[SCO]

Hello all,

Does anyone have any recommendations for financing a V8?

I'm looking at a purchase price of about £72, deposit of £30k and monthly payments of £500 over 3 years with some sort of balloon at the end.

I've never done a balloon finance deal before, any thoughts?

Many thanks

Steve

[cytefx]

there are a lot of places that can finance the cars, the issue that I am having at present is not with finding people that will finance the purchase, but finding somebody that will sell me the car in the first place, without requiring a 50% - 100% non refundable deposit

[rich1231]

mine is for sale

[_TC]

SCO said:

Hello all,

Does anyone have any recommendations for financing a V8?

I'm looking at a purchase price of about £72, deposit of £30k and monthly payments of £500 over 3 years with some sort of balloon at the end.

I've never done a balloon finance deal before, any thoughts?

Many thanks

Steve

Rob Johnson at Sports and classic finance. www.classicandsportsfinance.com

[cytefx]

Sorry should of been more specific, my plans are to buy a LHD car in a RHD world as i am planning to move to a LHD world in the future and do not like the idea of being hit twice for depreciation.

Also the colour that I want is not really suited to rainy England, but I really like morning frost its just the dealers do not see a market for a LHD morning frost car in the UK (have to agree but I want the car for a long duration and to move abroard with me when I go)

Finacing and buying a black/ grey one is fine but they do not like my specification. Never thought that I would say its quite hard to give them my money on a sensiable deposit

[Murph7355]

I would be very, very surprised if you find what you're looking for. At all (unless you buy it new).

Everything you're looking for will be (a) difficult to find on one vehicle and (b) likely be considered a depreciation nightmare/uncertainty by any finance firm.

Where are you considering moving to and when?

[Murph7355]

PS To the o/p, also try : [e-mail].

[cytefx]

Its a move to spain in a couple of years, I have been in contact with Nick, he can help on the finance its just I dont feel right putting down 50% - 100% and then having to wait 6 months for a car.

I am waiting to hear back if another dealer will do it for less deposit on the order. Normally they ask for 5K on a vehicle order, I don't mind 10K but between 45K and 90K, with no rebate on the interest is not good in my opinion.

[Murph7355]

cytefx said:

Its a move to spain in a couple of years, I have been in contact with Nick, he can help on the finance its just I dont feel right putting down 50% - 100% and then having to wait 6 months for a car.

I am waiting to hear back if another dealer will do it for less deposit on the order. Normally they ask for 5K on a vehicle order, I don't mind 10K but between 45K and 90K, with no rebate on the interest is not good in my opinion.

I would guess they're concerned about you bailing on the order and the chances of getting the car sold if you did (reckon there may only be one person wanting white and LHD round these parts ). 5k wouldn't cover it.

If you were to buy a decent resale proposition now I doubt you'd lose that much money in 2yrs. And in 2yrs' time you'd be able to look on the Continent for what you want when you're over there (later model car, perhaps more poke, more available in the colour you want etc etc) and you'll have had 2yrs of absolute fun over here...

[cytefx]

I know I am the only mad one here.... but I just adore that colour, my plan it to keep the car for ever, it could be that I just wait and keep saving so one day I can go in and put the money down in one.

I wil keep looking cheers,

[andy355]

heres some pics of a morning frost one at a usa dealer. they are ever so cheap over there by the way, in the region of 120-125k usd new. no idea if its same spec as euro bar the speedo or not. or what the taxes would be

http://www.astonmartinca.com/show_listing.php?veh_...

[Murph7355]

andy355 said:

...no idea if its same spec as euro bar the speedo or not. or what the taxes would be...

I believe (in the UK) you pay 10% duty, then 17.5% tax. I think it would then need SVA'ing on arrival and various other shenanigans.

Without the SVA, your 125kUSD car is now a 162kUSD one. Or around 81k (assuming you can get a decent f/x deal). Add shipping, SVA costs and myriad other headaches and against a UK base price of around 82.5k for a new RHD version with no history of sea sickness, sitting around in quarantine and what have you, and you have an expensive LHD Vantage - it's probably not sensible sourcing from the US

I could be wrong on the duty bit, but don't think I'm that far out. I think it can be avoided if you buy and register the car over there, use it for 6mths then import it. But that is also hassle laden.

I suspect international pricing on these is pretty level save for taxation. And it's hard to avoid the latter.

BTW, I quite like Morning Frost myself. However, I do think that white shades have a limited shelf life - trendy as anything at the moment (or 6mths ago anyway) but I reckon they'll date like a cheap nylon suit with flared pants. Which is going to seriously hurt cars painted that colour a few years down the road.

Unless you live in Japan or South Africa where white cars appear to have always been all the rage.

[limpsfield]

I thought I would bring this back to the top because I would like some advice/opinion on financing an Aston Martin V8.

I am planning on buying one in July just before I turn 40...no mid life crisis honest. I will be buying second hand and I will be looking around the £60/£65k mark.

I was thinking of paying £40k cash "real money" then borrowing £25k as a personal loan over four years with an APR yet to be confirmed of let's say around 7.5%.

What I would like opinions on are things like should I still consider some sort of leasing option with a balloon at the end? One arguement is if I put down a smaller deposit on a lease I could then make better use hopefully of the cash left in the bank. What concerns me about a lease is what happens if I want to get out early, or what actually happens at the end when the balloon is due - can I just pay it and that's it the car's mine.

I have never leased a car before and I have been putting off and off the purchase of an Aston on the grounds I really can't afford it but now I can - it's just overcoming the fact that I don't like parting with money! Any opinions and alternative avenues for paying for it gratefully received. I am a PAYE employee so financing through my own company isn't an option.

Thanks

[matc]

limpsfield said:

I thought I would bring this back to the top because I would like some advice/opinion on financing an Aston Martin V8.

I am planning on buying one in July just before I turn 40...no mid life crisis honest. I will be buying second hand and I will be looking around the £60/£65k mark.

I was thinking of paying £40k cash "real money" then borrowing £25k as a personal loan over four years with an APR yet to be confirmed of let's say around 7.5%.

What I would like opinions on are things like should I still consider some sort of leasing option with a balloon at the end? One arguement is if I put down a smaller deposit on a lease I could then make better use hopefully of the cash left in the bank. What concerns me about a lease is what happens if I want to get out early, or what actually happens at the end when the balloon is due - can I just pay it and that's it the car's mine.

I have never leased a car before and I have been putting off and off the purchase of an Aston on the grounds I really can't afford it but now I can - it's just overcoming the fact that I don't like parting with money! Any opinions and alternative avenues for paying for it gratefully received. I am a PAYE employee so financing through my own company isn't an option.

Thanks

What I would suggest would be to use a much smaller deposit, say 10% and leave the rest of the money in savings accounts earning a reasonable return. Then look at a Personal Contract Plan on the balance with a Guaranteed Future Value (balloon) at the end of your desired term 2/3 years. If as you mentioned you want to leave the contract early you just obtain a settlement figure from the finance company in the same way you do with a personal loan, as all of these agreements are now regulated you will not be penalised on settling early (usualy 1-2 moths interest). At the end of the agreement when the GFV is due you effectively have 4 options:

Hand the car back to the finance company if it is worth less than the outstanding balance, which could happen if the credit crunch takes hold.

Pay the Balloon off and keep the car.

Re-finance the balloon with the current lender.

P/X the car somewhere and take any equity over and above the GFV figure.

The APR's are usually a bit higher on these agreements, but to be honest the APR figure doesn't mean anything, you need to be looking at the flat rate, like you would with a mortgage etc. I would suggest at the moment with a bit of negotiation a flat rate of about 4-4.5% would be achievable depending on the age of the car. There are quite a few specialist lenders out there that I would imagine would be more than happy to give you a quote based on a car you find.

HTH

[limpsfield]

matc said:

What I would suggest would be to use a much smaller deposit, say 10% and leave the rest of the money in savings accounts earning a reasonable return. Then look at a Personal Contract Plan on the balance with a Guaranteed Future Value (balloon) at the end of your desired term 2/3 years. If as you mentioned you want to leave the contract early you just obtain a settlement figure from the finance company in the same way you do with a personal loan, as all of these agreements are now regulated you will not be penalised on settling early (usualy 1-2 moths interest). At the end of the agreement when the GFV is due you effectively have 4 options:

Hand the car back to the finance company if it is worth less than the outstanding balance, which could happen if the credit crunch takes hold.

Pay the Balloon off and keep the car.

Re-finance the balloon with the current lender.

P/X the car somewhere and take any equity over and above the GFV figure.

The APR's are usually a bit higher on these agreements, but to be honest the APR figure doesn't mean anything, you need to be looking at the flat rate, like you would with a mortgage etc. I would suggest at the moment with a bit of negotiation a flat rate of about 4-4.5% would be achievable depending on the age of the car. There are quite a few specialist lenders out there that I would imagine would be more than happy to give you a quote based on a car you find.

HTH

matc thanks for taking the time to give such a full response.

A couple of other questions. If I use a real example I've seen tonight at HWM Aston in Walton on Thames - figures off the top of my head.

Car cost is £64k Deposit is £15k then first payment of £924 then 35 (I think, maybe 36) of £725. APR is 11.7% I think through RBS - definitely 11 something.

Let's say a year into it I want to get out. Do I then have to pay off the full outstanding repayments due and hand the keys back?? May as well just keep it to the end - or do they come up with a fair value for the car at that point in time and then come up with a settlement.

Can you expand on the APR point you mentioned - why this doesn't mean anything for these sort of agreements?

Thanks

edited to add - future value is 37,700 I think

Edited by limpsfield on Wednesday 9th April 23:29

[matc]

limpsfield said:

matc thanks for taking the time to give such a full response.

A couple of other questions. If I use a real example I've seen tonight at HWM Aston in Walton on Thames - figures off the top of my head.

Car cost is £64k Deposit is £15k then first payment of £924 then 35 (I think, maybe 36) of £725. APR is 11.7% I think through RBS - definitely 11 something.

Let's say a year into it I want to get out. Do I then have to pay off the full outstanding repayments due and hand the keys back?? May as well just keep it to the end - or do they come up with a fair value for the car at that point in time and then come up with a settlement.

Can you expand on the APR point you mentioned - why this doesn't mean anything for these sort of agreements?

Thanks

edited to add - future value is 37,700 I think

Edited by limpsfield on Wednesday 9th April 23:29

If you wanted to get out of it after a year you would have to get a settlement figure which will be calculated exactly the same way as a HP agreement settlement would be calculated i.e. they will take the total amount of payments outstanding and then work out an interest rebate based upon how many payments you have made and then give you the figure. If you were looking to sell the car privately you would have to clear the finance before you sold it, but if you p/x it at a dealer they will give you the equity towards your next car and clear the finance for you.

Make sure what you have been quoted is a PCP and not an HP Balloon agreement where you don't have a guaranteed future value, just a balloon that you are liable to pay and negates the options I outlined above. The reason dealers quote HP balloon agreements is the cost of money (to them) is lower and they make more money out of it, also the balloon can be set artificially high to lower your monthly payments; but the problem with this is you could well end up in a negative equity situation in a couple of years time. They also usually set these up as personal loans which means they are not regulated agreements and as such are not secured against the vehicle but against you personally, you also wont have the benefit of 1/2's and 1/3rd's.

The reason that the APR is not a good tool to use for comparison against the usual personal loans is because the interest is offset on the balloon. What you really need to find out from the dealer is what the flat rate of finance is, they should be more than happy to divulge this information.

[orbit123]

In a very similar position myself - looking to buy my first Aston (and first car over £35k). I've always tried to pay cash or maybe take a small bank loan thats paid back over a year or 2.
I'm thinking the PCP idea makes sense given the Aston cost (looking at used one about £65 - £70k). I could use the money elsewhere I think to better gain than having it tied up in car.
I like the idea of some safeguard against prices dropping like a stone too - credit crunch and fuel costs etc.

I can't understand the maths though or how they come up with GFV (future value). Deal I'm looking at is:
Purchase price: £67k, my deposit £20k. This then followed by 24 payments of £493 and final payment of £45k (which is the GFV they've come up with).

Car is a March 06 with 8k on clock.

Mentioned above there are finance companies that could do PCP (separate from the dealer with the car). Anyone gone down this route before?

thanks.

[matc]

orbit123 said:

In a very similar position myself - looking to buy my first Aston (and first car over £35k). I've always tried to pay cash or maybe take a small bank loan thats paid back over a year or 2.
I'm thinking the PCP idea makes sense given the Aston cost (looking at used one about £65 - £70k). I could use the money elsewhere I think to better gain than having it tied up in car.
I like the idea of some safeguard against prices dropping like a stone too - credit crunch and fuel costs etc.

I can't understand the maths though or how they come up with GFV (future value). Deal I'm looking at is:
Purchase price: £67k, my deposit £20k. This then followed by 24 payments of £493 and final payment of £45k (which is the GFV they've come up with).

Car is a March 06 with 8k on clock.

Mentioned above there are finance companies that could do PCP (separate from the dealer with the car). Anyone gone down this route before?

thanks.

With the deal they've quoted you your monthly payments are pretty much only just covering the interest i.e £67k car, £20k Deposit, £47k balance financed, £45 balloon. This means your paying £11823 of which only £2k is capital so your paying £9823 in interest which seems like quite a lot to me over the 2 years. As I mentioned above you need to ask what the flat rate is you have been quoted.

With regards to the way the balloon is calculated every finance company will look at cars differently and they will obviously take into account the amount of miles you have stated your planning on doing over the contract period, so you need to get this as accurate as possible. It is anyones guess as to what the actual value of the car will be in 2 years time, but you've got to realise that you won't get your £20k deposit back at the end of the agreement; so this purchase could potentially cost you £31823 over 2 years which is far too expensive IMO!! I think I would probably recommend putting in a smaller deposit and putting the £20k in a high interest account and making the monthly payments from there; this should then reduce the total amount you have to pay.

[orbit123]

It does sound terrible when you put it like that. If the car depreciates £20k over next 2 years then thats a £20k hit no matter what way I finance it. The extra £10k is the price to pay for borrowing and also for having a guaranteed future value.
I've looked at various options on the PCP of putting in less and paying more each month - seems a bit swings and roundabouts though with total paid over the 2 years roughly the same.

Does it seem realistic that a £67k April 2006 model Vantage with 8000 miles on it will be worth £45k in April 2010 with 18000 miles on it - I think this seems about right.
Does £67k seem like the right price just now?!

All help and advice much appreciated.

[rich1231]

orbit123 said:

It does sound terrible when you put it like that. If the car depreciates £20k over next 2 years then thats a £20k hit no matter what way I finance it. The extra £10k is the price to pay for borrowing and also for having a guaranteed future value.
I've looked at various options on the PCP of putting in less and paying more each month - seems a bit swings and roundabouts though with total paid over the 2 years roughly the same.

Does it seem realistic that a £67k April 2006 model Vantage with 8000 miles on it will be worth £45k in April 2010 with 18000 miles on it - I think this seems about right.
Does £67k seem like the right price just now?!

All help and advice much appreciated.

Thats expensive, no doubt about it.

email me and i will let you know the dealer bids on mine when i went through my quarterly attempt at selling it before just hanging onto it a while longer