Cash/HP/Leasing - to scratch the itch ?
Discussion
Noticed some of you guys are on Aston number 3 or 12 and wondered what you reckon is the best strategy - buy/HP/Lease - and also buy new/nearly new or out of warranty - change every year , 3 years or just keep it ?
Having forked out £96k cash for my db9 convertible when it was 18 months old and with a history of keeping my cars ( porsche boxster 10 years,Lexus 6 years,Mercedes 7 years - so far )I thought I would just keep it. However , I was made to think when I saw one of you chaps had picked up a car very similar to mine for £50kish at 3 years old and again when I saw how many of us seem to change astons regularly - am I missing a trick and if so what's the best way to do it ?
Having forked out £96k cash for my db9 convertible when it was 18 months old and with a history of keeping my cars ( porsche boxster 10 years,Lexus 6 years,Mercedes 7 years - so far )I thought I would just keep it. However , I was made to think when I saw one of you chaps had picked up a car very similar to mine for £50kish at 3 years old and again when I saw how many of us seem to change astons regularly - am I missing a trick and if so what's the best way to do it ?
My view is that cash is king, and buy privately with FSH. Anything that involves interest or middlemen in offices can only cost you more. By cash I don't mean a suitcase full of crinklies, but instant funds.
Bear in mind also that depreciation is an inverse exponential curve. The older the model/year, the cheaper yuo can get it for. The newer the model/year, the more you will lose.
Bear in mind also that depreciation is an inverse exponential curve. The older the model/year, the cheaper yuo can get it for. The newer the model/year, the more you will lose.
I always buy my cars cash, and a couple of years old. Sure I will still lose a bucketload on this type of car, but I have cut out the initial "new" depreciation, and also cut out any finance costs. I usually buy private but for my AM I bought from a main dealer because I fell in love with the first one I looked at..... and scratched an itch.
always pay cash and normally buy 3-4 years old.........my present DB9 had 1 previous owner and 15 months extended warranty to run......I paid 60k less than the guy I bought it from....at this age I would expect to loose 4-5k a year.........as a car dealer once said to me "the only people who buy new, are rich people and fools"
bought my v8v new for 90k and nearly 3 years on it`s now worth 50k(ish)??my previous db7 i bought 3 1/2 years old for 50k.traded it in for not much less than i bought it for after nearly a year of ownership.with hindsight i wouldn`t say brand new is the way to go.with regards to cash or hp i think it`s down to your personal circumstances.i have my own business where i feel i can utilize and make better use of actual money.90 grand spent on a car with cash means that the money is in a downward spiral from the off.90 grand on a piece of kit that will increase my productivity pays for itself and makes more money.spot deals on containers of product can mean transferring money abroad to get a good deal that in turn can make you more money.i once put a lump sum down on a tvr that was more than 2/3 the value of the car and afterwards thought it wrong because i had locked up cash for no good reason.when i sold the car on i felt that the money had just disappeared,now i know how much disposable income i have each month and am more comfortable using hp coupled with a smaller deposit.the few grand i will pay in interest over the time of the finance doesn`t bother me too much as i know i can make far more money investing in my own business with my own money.
Edited by tuscaneer on Tuesday 1st December 14:57
tuscaneer said:
bought my v8v new for 90k and nearly 3 years on it`s now worth 50k(ish)??my previous db7 i bought 3 1/2 years old for 50k.traded it in for not much less than i bought it for after nearly a year of ownership.with hindsight i wouldn`t say brand new is the way to go.with regards to cash or hp i think it`s down to your personal circumstances.i have my own business where i feel i can utilize and make better use of actual money.90 grand spent on a car with cash means that the money is in a downward spiral from the off.90 grand on a piece of kit that will increase my productivity pays for itself and makes more money.spot deals on containers of product can mean transferring money abroad to get a good deal that in turn can make you more money.i once put a lump sum down on a tvr that was more than 2/3 the value of the car and afterwards thought it wrong because i had locked up cash for no good reason.when i sold the car on i felt that the money had just disappeared,now i know how much disposable income i have each month and am more comfortable using hp coupled with a smaller deposit.the few grand i will pay in interest over the time of the finance doesn`t bother me too much as i know i can make far more money investing in my own business with my own money.
bloody hell that was almost a book Edited by tuscaneer on Tuesday 1st December 14:57
I dont think there is a "best" way as everyones circumstances re usage, ownership and finances will be different
Im sure some business users just rent theirs on the typical PCP deal, give it back every 2-3 years for a new one and pay loads of interest....but if its a business expense who cares...
Personally I do a lot of miles in my cars - usually avg 25-40K miles a year across 2, maybe 3 vehicles. So buying new is just false economy to me, the depreciation hit is huge, to fund a new luxury car, with £2K a month depreciation to burn, thats another £30-40K a year I need to earn, just so I can choose the spec on a new car? mmmm....nah, 2-3 year old is usually fine for me
I was impatient with the Vantage though - I had intended to wait until the 3 year old ones were available for 1/2 price, with <10K miles on (plenty out there from rich owners that change their minds often LOL !) ...but I couldnt resist, and had a good bonus so bought a 12 month old one back in 2007 ...still saved £20K on its list price, but now nearly 3 years later with 44K on the clock its one of those 1/2 priced used examples I would usually buy ...albeit with "high" miles on it
I shall keep it for another couple of years - I dont feel like ive got VFM out of a car unless Ive done 60-80k miles in it ...it keeps the pence per mile down, the more you drive it
useful calculator here for you so you can quickly compare methods/deals that will work out best for you:
http://www.thisismoney.co.uk/cost-of-your-car-calc...
Im sure some business users just rent theirs on the typical PCP deal, give it back every 2-3 years for a new one and pay loads of interest....but if its a business expense who cares...
Personally I do a lot of miles in my cars - usually avg 25-40K miles a year across 2, maybe 3 vehicles. So buying new is just false economy to me, the depreciation hit is huge, to fund a new luxury car, with £2K a month depreciation to burn, thats another £30-40K a year I need to earn, just so I can choose the spec on a new car? mmmm....nah, 2-3 year old is usually fine for me
I was impatient with the Vantage though - I had intended to wait until the 3 year old ones were available for 1/2 price, with <10K miles on (plenty out there from rich owners that change their minds often LOL !) ...but I couldnt resist, and had a good bonus so bought a 12 month old one back in 2007 ...still saved £20K on its list price, but now nearly 3 years later with 44K on the clock its one of those 1/2 priced used examples I would usually buy ...albeit with "high" miles on it
I shall keep it for another couple of years - I dont feel like ive got VFM out of a car unless Ive done 60-80k miles in it ...it keeps the pence per mile down, the more you drive it
useful calculator here for you so you can quickly compare methods/deals that will work out best for you:
http://www.thisismoney.co.uk/cost-of-your-car-calc...
I assume if you are going to buy second hand there is a big drop in value after the three year warranty runs out .
Unfortunately we buy these cars with our hearts as well as our heads and I never manage to wait three years having seen the car I ' need' .
I bought my boxster when it was a year old and ended up paying a premium on the new price - a clear case where buying new would have been a better idea- mind you I still have it 10 years later and it still scratches my itch - same as the wife really, she has lasted 27 years despite high running costs and massive depreciation !!
Unfortunately we buy these cars with our hearts as well as our heads and I never manage to wait three years having seen the car I ' need' .
I bought my boxster when it was a year old and ended up paying a premium on the new price - a clear case where buying new would have been a better idea- mind you I still have it 10 years later and it still scratches my itch - same as the wife really, she has lasted 27 years despite high running costs and massive depreciation !!
.
Thats were I went wrong .....I part Xd my old wife for a newer version and although the new wife handles better and has a lot more speed, .....the new version also needs a regular supply of LV handbags and Louboutin shoes to keep her sweet..the swap cost me about 10 new DB9's......but I'm sure some others have paid more than me for their upgrades !!
Thats were I went wrong .....I part Xd my old wife for a newer version and although the new wife handles better and has a lot more speed, .....the new version also needs a regular supply of LV handbags and Louboutin shoes to keep her sweet..the swap cost me about 10 new DB9's......but I'm sure some others have paid more than me for their upgrades !!
Edited by michael gould on Friday 4th December 09:31
Edited by michael gould on Friday 4th December 09:32
Edited by michael gould on Friday 4th December 09:32
Gassing Station | Aston Martin | Top of Page | What's New | My Stuff