increase mortgage to buy dream car?
Discussion
its a no brainer for me. I could keep the Gallardo for another 5 years and still get my money back. what all of you negative people a forgetting is that nobody buys a car for 3 years then stops and has nothing.
If I keep my Lambo for 15 years I have had a LAMBORGHINI for 15 years at 3% and its still worth 60k. I would have probably bought 3 to 4 cars in the same period on finance at a silly finance rate and they would at the end be worth nothing or at most 5 grandish. First option a lambo or second option say a Audi TT or 3 series beemer or two.
Also, now that the balloon payment on the lambo is paid for, I can chop it in and get the next level car up and carry on!!! another 10 years should see me into an Aventador!!! that's the plan anyway ;-)
If I keep my Lambo for 15 years I have had a LAMBORGHINI for 15 years at 3% and its still worth 60k. I would have probably bought 3 to 4 cars in the same period on finance at a silly finance rate and they would at the end be worth nothing or at most 5 grandish. First option a lambo or second option say a Audi TT or 3 series beemer or two.
Also, now that the balloon payment on the lambo is paid for, I can chop it in and get the next level car up and carry on!!! another 10 years should see me into an Aventador!!! that's the plan anyway ;-)
Edited by dodgydelboy75000 on Friday 1st July 14:08
Edited by dodgydelboy75000 on Friday 1st July 14:28
Edited by dodgydelboy75000 on Friday 1st July 14:40
The OP has the same idea as I have. I "need" an R8 for a European road trip (or 2). It will be cheaper to buy and sell in 6 months than hire (if I buy in Winter and sell in Summer to take advantage of seasonal supply/demand). Money - further advance on a 2nd property I have that has gone up in value.
The key to this thread is whether you borrow the money and keep the car indefinitely, or repay it by selling the car after a period of time.
The key to this thread is whether you borrow the money and keep the car indefinitely, or repay it by selling the car after a period of time.
Pistachio said:
Sell current house buy smaller house use difference to finance supercar.
Putting it on your mortgage is very expensive way unless you intend to pay it off early.
Lots of views on how to manage money - but this one doesn't stack up. Selling a house incurs legal, agency and removal costs; buying a smaller one costs stamp duty. Going from a £400k house to a £300k will cost £20k which you'll never see again. If you borrow £80k @ 3.5% that's £2700 (a year) and you can still live in the bigger house while you own the supercar for 8 years.Putting it on your mortgage is very expensive way unless you intend to pay it off early.
Hi Guys,
I have done it a few years back I bought a Ferrari 599gtb had 50k in the bank and borrowed 40k, the car is paid off now and I still have and love the car as from day one. Have done trips to Italy and traveled around Europe. A big plus point is that the car has gone up in value so its making me money. I was scared first when i took the car out for a run thinking I need to pay for this for 4 years but now i look back it the best move I ever done.
U can't loose money,,,U money is not gaining anything at the bank now any way and u can't take it with u....( Egyptians have tried and failed it) .go for it I say.
Mutske
I have done it a few years back I bought a Ferrari 599gtb had 50k in the bank and borrowed 40k, the car is paid off now and I still have and love the car as from day one. Have done trips to Italy and traveled around Europe. A big plus point is that the car has gone up in value so its making me money. I was scared first when i took the car out for a run thinking I need to pay for this for 4 years but now i look back it the best move I ever done.
U can't loose money,,,U money is not gaining anything at the bank now any way and u can't take it with u....( Egyptians have tried and failed it) .go for it I say.
Mutske
Edited by mutske on Saturday 2nd July 12:01
I did this 17 years ago. Bought a house which I refurbished so had lots of equity. Was on a flexible mortgage which had a 'kitty' I could dip into with no costs so bought a 911! Still got it and theoretically worth 3 times what I paid so probably beaten house inflation but the experience has been absolutely priceless and I would do it again in a heartbeat - but I was single then!!
In this current time of rock bottom interest rates I'm making moves to pay it off, not take from it. Each to their own though.
I suppose if it's something that will appreciate in value then it's not a bad thing. F355 bought a few years ago then sell now and repay the mortgage with interest.
I suppose if it's something that will appreciate in value then it's not a bad thing. F355 bought a few years ago then sell now and repay the mortgage with interest.
C8LNJ said:
In this current time of rock bottom interest rates I'm making moves to pay it off, not take from it. Each to their own though.
I suppose if it's something that will appreciate in value then it's not a bad thing. F355 bought a few years ago then sell now and repay the mortgage with interest.
Agreed, I'll wait until the car market stalls, or down grade my house in 7-8 years and pick an R8 or similar up then. However I'm in the process of getting made redundant at the moment so shortly down grading to an e61 to keep the house going. I suppose if it's something that will appreciate in value then it's not a bad thing. F355 bought a few years ago then sell now and repay the mortgage with interest.
I'm toying with this at the moment. Sell my TVR and add £50k from various sources possibly incl. a tiny mortgage bump (I'm on a low LTV). Buy a Gallardo or maybe even a Murci. I think good examples will go up in price over the next 5-10 years. I've had the TVR since 2004 so I keep my toys a while.
The Moose said:
adingley84 said:
Well ive followed my own advice and done some mortgage maths...taking advantage of new lower fixed rate mortgages, I could borrow an additional £19.5k over the same remaining term and pay £3 LESS per month. (Calculations include the £1000 setup fee which I'd add onto the mortgage.
So my choices are:
1. £20k 'free money' to buy a fitting replacement for the Forester XT when the time comes
2. Buy a banger with the trade in value of the Fox + some cash
I genuinely can't see a downside to option 1. (I stand to be corrected obviously)
If you didn't increase your borrowings, how much would the monthly amount reduce, or more importantly if you were to keep the payments the same, how much sooner would you be able to pay off your mortgage?So my choices are:
1. £20k 'free money' to buy a fitting replacement for the Forester XT when the time comes
2. Buy a banger with the trade in value of the Fox + some cash
I genuinely can't see a downside to option 1. (I stand to be corrected obviously)
That's the downside.
Edited by adingley84 on Monday 4th July 18:55
swerni said:
The Moose said:
The reality is however if you own a house with a mortgage and have bought a car 'for cash', you've effectively loaned against the house to buy it.
Spot on, many don't seem to grasp this. Man maths can play a part but if you want to buy a 4 series beemer for 30k and 4yrs later that's your choice but your likely to have lost nearly 15
-20k. Spend 80k on gallardo...4 years later sell for 80k. If you end up selling for 60k you're no worse off than the beemer. Excluding running costs of course;)
Edited by R36vw on Sunday 3rd July 21:41
R36vw said:
You could say that about many things like buying that pint down the pub but there's not a return on that apart from maybe a hangover. Difference is that with a lot of these vehicles, they've appreciated more than what the mortgage rate has been. Above all its been bloody good fun. Life's about making choices. Look back when your 80 and have no regrets, as long as your not reckless you're going to have one big smile....and that's not because you've pi$$Ed yourself ??
Man maths can play a part but if you want to buy a 4 series beemer for 30k and 4yrs later that's your choice but your likely to have lost nearly 15
-20k. Spend 80k on gallardo...4 years later sell for 80k. If you end up selling for 60k you're no worse off than the beemer. Excluding running costs of course;)
I don't think I could ever do such a thing for a rapidly depreciating asset such as a new 'normal' car. However, the only reason I'm thinking about it is that certain supercars will go up in value - maybe an £80k Gallardo will be worth £100 or £120k in 10 years time. Maybe more. Plus I get massive enjoyment from it.Man maths can play a part but if you want to buy a 4 series beemer for 30k and 4yrs later that's your choice but your likely to have lost nearly 15
-20k. Spend 80k on gallardo...4 years later sell for 80k. If you end up selling for 60k you're no worse off than the beemer. Excluding running costs of course;)
Edited by R36vw on Sunday 3rd July 21:41
Car markets are strange things - but the main issue with super cars is people rarely take running costs into account.
Cars like F430, 360, Gallardo, Murci, have all gone up a good 20-40% in the last 2 years which is great but if you go back to 09/10 they were tanking and still costing £4k+ PA to run. That means to actually make a profit you would need the cars to be worth a LOT more than what they ever will be. Only the super rare stuff tends to actually turn a real profit. Even then its a lot of risk.
Still, we don't buy cars to make money (mostly) we buy them to enjoy
Cars like F430, 360, Gallardo, Murci, have all gone up a good 20-40% in the last 2 years which is great but if you go back to 09/10 they were tanking and still costing £4k+ PA to run. That means to actually make a profit you would need the cars to be worth a LOT more than what they ever will be. Only the super rare stuff tends to actually turn a real profit. Even then its a lot of risk.
Still, we don't buy cars to make money (mostly) we buy them to enjoy
red_slr said:
Car markets are strange things - but the main issue with super cars is people rarely take running costs into account.
Cars like F430, 360, Gallardo, Murci, have all gone up a good 20-40% in the last 2 years which is great but if you go back to 09/10 they were tanking and still costing £4k+ PA to run. That means to actually make a profit you would need the cars to be worth a LOT more than what they ever will be. Only the super rare stuff tends to actually turn a real profit. Even then its a lot of risk.
Still, we don't buy cars to make money (mostly) we buy them to enjoy
Agreed, going in eyes open and aware of running costs. Need to gauge when to take the plunge carefully.Cars like F430, 360, Gallardo, Murci, have all gone up a good 20-40% in the last 2 years which is great but if you go back to 09/10 they were tanking and still costing £4k+ PA to run. That means to actually make a profit you would need the cars to be worth a LOT more than what they ever will be. Only the super rare stuff tends to actually turn a real profit. Even then its a lot of risk.
Still, we don't buy cars to make money (mostly) we buy them to enjoy
dodgydelboy75000 said:
its a no brainer for me. I could keep the Gallardo for another 5 years and still get my money back. what all of you negative people a forgetting is that nobody buys a car for 3 years then stops and has nothing.
If I keep my Lambo for 15 years I have had a LAMBORGHINI for 15 years at 3% and its still worth 60k. I would have probably bought 3 to 4 cars in the same period on finance at a silly finance rate and they would at the end be worth nothing or at most 5 grandish. First option a lambo or second option say a Audi TT or 3 series beemer or two.
Also, now that the balloon payment on the lambo is paid for, I can chop it in and get the next level car up and carry on!!! another 10 years should see me into an Aventador!!! that's the plan anyway ;-)
You don't happen to own a casino? If I keep my Lambo for 15 years I have had a LAMBORGHINI for 15 years at 3% and its still worth 60k. I would have probably bought 3 to 4 cars in the same period on finance at a silly finance rate and they would at the end be worth nothing or at most 5 grandish. First option a lambo or second option say a Audi TT or 3 series beemer or two.
Also, now that the balloon payment on the lambo is paid for, I can chop it in and get the next level car up and carry on!!! another 10 years should see me into an Aventador!!! that's the plan anyway ;-)
ex1 said:
A couple of years ago I was going to buy a 550 Ferrari for £40k to sit alongside my 3.2 911. I decided not to buy the 550 and sold the 911. I bought 2 buy-to-lets and thought I had made a wise choice for the future.
I have a nice income from the BTL's but the 2 cars have risen more than £150k which would have been tax free and I would have experienced a V12 Ferrari.
You can't second guess this stuff. Just do it.
Done this, and couldn't agree more that worth doing, with 2 pieces of advice:I have a nice income from the BTL's but the 2 cars have risen more than £150k which would have been tax free and I would have experienced a V12 Ferrari.
You can't second guess this stuff. Just do it.
1. Don't expect to make a profit. I bought a 550 Maranello from Europe last March in the hope of keeping it a year and if lucky get out of it without costing me anything (just had full cambelt service etc at the time of purchase so no expected maintenance), and enjoyed the road trip along the route napolean etc and thrill of first Ferrari!
2. Choose the car very carefully, go with head not heart. Heart would have gone for F430, head said 550 first F355 second.
As it turned out I sold it a month ago to wbac.com for double what I paid, and now have a £15/month mortgage on the offset plus equity sat there to buy anything else I fancy at 2% interest. Thanks to brexit stupidity may never be able to repeat it, so glad I did when had a sniff of an opportunity. Good luck all.
pfoster said:
Done this, and couldn't agree more that worth doing, with 2 pieces of advice:
1. Don't expect to make a profit. I bought a 550 Maranello from Europe last March in the hope of keeping it a year and if lucky get out of it without costing me anything (just had full cambelt service etc at the time of purchase so no expected maintenance), and enjoyed the road trip along the route napolean etc and thrill of first Ferrari!
2. Choose the car very carefully, go with head not heart. Heart would have gone for F430, head said 550 first F355 second.
As it turned out I sold it a month ago to wbac.com for double what I paid, and now have a £15/month mortgage on the offset plus equity sat there to buy anything else I fancy at 2% interest. Thanks to brexit stupidity may never be able to repeat it, so glad I did when had a sniff of an opportunity. Good luck all.
Good to read another success story! 1. Don't expect to make a profit. I bought a 550 Maranello from Europe last March in the hope of keeping it a year and if lucky get out of it without costing me anything (just had full cambelt service etc at the time of purchase so no expected maintenance), and enjoyed the road trip along the route napolean etc and thrill of first Ferrari!
2. Choose the car very carefully, go with head not heart. Heart would have gone for F430, head said 550 first F355 second.
As it turned out I sold it a month ago to wbac.com for double what I paid, and now have a £15/month mortgage on the offset plus equity sat there to buy anything else I fancy at 2% interest. Thanks to brexit stupidity may never be able to repeat it, so glad I did when had a sniff of an opportunity. Good luck all.
You must have had a great year driving 1 550.I'm way to risk averse, but wish I had bought a manual 456 a couple of years ago - I certainly won' be getting one now!
Must admit my mortgage equity is something I have always said I would never use, apart from use as a deposit for our next house. After reading the thread I do see it can be sensible (if you want a nice car and could afford it).
But then I think how much more can gt3 , gallardos and houses them selves to up?
At the moment I'm about to load right up on mortgage debt (if we do move) simply because we can buy a significantly bigger house with much more opportunity with almost the same monthly payment as we are making now, even when rates go up its affordable. This is only because I don't have a pension, the wife does but I want to have the opportunity to buy somewhere and develop it over some years and hopefully make a gain like we did in the current house, but a bigger one. That and live in a nice house.
But then I think how much more can gt3 , gallardos and houses them selves to up?
At the moment I'm about to load right up on mortgage debt (if we do move) simply because we can buy a significantly bigger house with much more opportunity with almost the same monthly payment as we are making now, even when rates go up its affordable. This is only because I don't have a pension, the wife does but I want to have the opportunity to buy somewhere and develop it over some years and hopefully make a gain like we did in the current house, but a bigger one. That and live in a nice house.
So basically the only real losers in all this are those that worked hard to pay off their mortgage (when interest rates were higher) and then worked equally hard to build up a decent amount of savings (when interest rates are lower) only to now find that they've been priced out of buying their dream car because the debt junkies have created a bubble market.
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