increase mortgage to buy dream car?
Discussion
So you want to borrow against your house in what is increasingly looking like a market peak with a long overdue correction in prices highly likely, in order to buy an exotic car in a market that looks even more bubbletastic and is due an even bigger correction in values.
Yeah, go for it.
Yeah, go for it.
I think if someone has a decent LTV% and it’s not going to affect the rate too much it’s pretty sensible. So long as you are not addiong extra years to your mortgage.
If I were to do it I would keep the term the same and soak up the extra ££ per month. Or buy something to try for the short term and once you have tried it it you then pay the sale cash back into your mortgage and assuming the car has not depreciated massively you’re back to where you were.
If I were to do it I would keep the term the same and soak up the extra ££ per month. Or buy something to try for the short term and once you have tried it it you then pay the sale cash back into your mortgage and assuming the car has not depreciated massively you’re back to where you were.
Dont be a mug. Using your mortgage to buy cars is a mugs game. When you start you probably will not be able to stop.
Also 4% loan over 5 yrs is alot cheaper than 2% mortgage over 25 years. Dont kid yourself that you will sell the car in a few years and use the proceeds to put back into the mortgage.
Also 4% loan over 5 yrs is alot cheaper than 2% mortgage over 25 years. Dont kid yourself that you will sell the car in a few years and use the proceeds to put back into the mortgage.
I've seen some willy waving threads on here but this takes things to a new level!
Almost every person seems to have missed the keep it a year, sell it and pay it back off the mortgage bit. Probably because they couldn't type quick enough to put how many expensive cars, numerous properties or successful businesses they have!
The OP has no intentions of using this as a way of permanently financing a car, which would be a very bad idea given the interest over the period of mortgage, but for a year on a fixed and with minimal fees its a relatively cheap way of 'living the dream'
Almost every person seems to have missed the keep it a year, sell it and pay it back off the mortgage bit. Probably because they couldn't type quick enough to put how many expensive cars, numerous properties or successful businesses they have!
The OP has no intentions of using this as a way of permanently financing a car, which would be a very bad idea given the interest over the period of mortgage, but for a year on a fixed and with minimal fees its a relatively cheap way of 'living the dream'
I did it!!!
Borrowed 50k on the mortgage which works out at about £240 a month. Then got another 30k on a pcp with a balloon payment. I spent 80k on a Gallardo Spyder. I've had the car for four years now. the 30k is paid off and to buy the same car now I'm looking at another 5k on the 80k.
So I can sell the car and pay the 50 off when I get bored.!!! ITS BEEN AWSOME!!! best thing I ever did.
It has helped that I only owed 32 on the original mortgage too.
Borrowed 50k on the mortgage which works out at about £240 a month. Then got another 30k on a pcp with a balloon payment. I spent 80k on a Gallardo Spyder. I've had the car for four years now. the 30k is paid off and to buy the same car now I'm looking at another 5k on the 80k.
So I can sell the car and pay the 50 off when I get bored.!!! ITS BEEN AWSOME!!! best thing I ever did.
It has helped that I only owed 32 on the original mortgage too.
dodgydelboy75000 said:
I did it!!!
Borrowed 50k on the mortgage which works out at about £240 a month. Then got another 30k on a pcp with a balloon payment. I spent 80k on a Gallardo Spyder. I've had the car for four years now. the 30k is paid off and to buy the same car now I'm looking at another 5k on the 80k.
So I can sell the car and pay the 50 off when I get bored.!!! ITS BEEN AWSOME!!! best thing I ever did.
It has helped that I only owed 32 on the original mortgage too.
I can't tell you how much I hate you at the moment. Borrowed 50k on the mortgage which works out at about £240 a month. Then got another 30k on a pcp with a balloon payment. I spent 80k on a Gallardo Spyder. I've had the car for four years now. the 30k is paid off and to buy the same car now I'm looking at another 5k on the 80k.
So I can sell the car and pay the 50 off when I get bored.!!! ITS BEEN AWSOME!!! best thing I ever did.
It has helped that I only owed 32 on the original mortgage too.
If its a Porsche with a GT badge (excluding GTS) you cant go wrong! It would most likely pay in appreciation alone to have one over a 2 year period.
As mentioned in the advert if the person pays off in the short term and buys the correct car then its a great and relatively cheap way of doing it. Reality is many will forget to do this and end up financing a car over 10years and that cheapo interest in the short term ends up costing a fortune.
As mentioned in the advert if the person pays off in the short term and buys the correct car then its a great and relatively cheap way of doing it. Reality is many will forget to do this and end up financing a car over 10years and that cheapo interest in the short term ends up costing a fortune.
Let me give you my experience.
12 years ago I borrowed 15k on the mortgage for an E Type. Sold it 11 years later and added a bit more to the mortgage (obviously the mortgage total had shrunk a fair bit by this time) to buy the Vanquish. 12 Months later Vanquish is up by about £20K. At least on paper!!!
I'll let you do the Man Maths. But for me it's a no brainer if you can afford the payments and you buy the right car. Where else can you get a supercar loan at 3%? And the wife thinks its been a great idea too.
I will add I only have a smallish mortgage and I always paid the extra to keep it getting smaller at a reasonable rate. I should still clear the balance in the original 25 year frame.
But wouldn't buy anything that could depreciate by miles. Huge price cars could fall a long way in a recession. Doubt my Vanquish could fall much lower than what I bought it for. It's on 16k miles and really is looking as though it is only 6 moths old.
12 years ago I borrowed 15k on the mortgage for an E Type. Sold it 11 years later and added a bit more to the mortgage (obviously the mortgage total had shrunk a fair bit by this time) to buy the Vanquish. 12 Months later Vanquish is up by about £20K. At least on paper!!!
I'll let you do the Man Maths. But for me it's a no brainer if you can afford the payments and you buy the right car. Where else can you get a supercar loan at 3%? And the wife thinks its been a great idea too.
I will add I only have a smallish mortgage and I always paid the extra to keep it getting smaller at a reasonable rate. I should still clear the balance in the original 25 year frame.
But wouldn't buy anything that could depreciate by miles. Huge price cars could fall a long way in a recession. Doubt my Vanquish could fall much lower than what I bought it for. It's on 16k miles and really is looking as though it is only 6 moths old.
Edited by VanquishRider on Thursday 30th June 21:13
Rick101 said:
Borrowed some money on a personal loan to buy a car earlier this month. Spoke to my bank manager and he advised just use of of the numerous online lenders.
He was right, very very simple application to Nationwide, instant response and money in account the next day!. borrowed about 15K I think and I'm sure it was only around 3.4%.
Didn't need it in the end so paid it back within the cancellation term but was surprised how easy it was.
This is exactly what I do for the daily driver. I always buy a 3 year old just out of warranty and always at Xmas as dealers are easily talked into discount at that time of year as they are desperate to shift some metal.He was right, very very simple application to Nationwide, instant response and money in account the next day!. borrowed about 15K I think and I'm sure it was only around 3.4%.
Didn't need it in the end so paid it back within the cancellation term but was surprised how easy it was.
Last one was a £9K 12 plate Honda Accord that is forecourting at £12k easily everywhere. It only had one issue. Quite heavily stone chipped at the front end. £300 soon fixed that as spray painters are pretty quiet at Xmas too. Even had TVs in the headrests and was equally well specced everywhere else.
Seems like a pretty stupid and expensive way to wave your willy at the neighbours for 12 months. Then you have to have the discipline to pay it all off and put yourself back into the same position as before the purchase.
"I'll just keep it a bit longer" will always be gnawing away at your mind.
"I'll just keep it a bit longer" will always be gnawing away at your mind.
Trabi601 said:
Seems like a pretty stupid and expensive way to wave your willy at the neighbours for 12 months. Then you have to have the discipline to pay it all off and put yourself back into the same position as before the purchase.
"I'll just keep it a bit longer" will always be gnawing away at your mind.
I'll have to at least partially disagree with that."I'll just keep it a bit longer" will always be gnawing away at your mind.
1) Stupid? Could be if it'll get you in trouble, not if you have it under control.
2) Expensive? Compared to cash buying, but not necessarily compared to borrowing money by other methods.
3) Willy waving? I'd like a Gallardo, but not to impress the neighbours, because I'd love one for myself. Some people on here love cars for what they are, not for what they say about themselves.
4) Discipline. See 1). I'd have no problem with this.
If I had the cash to pay off my mortgage and maintain my "emergency fund", I'd seriously consider using the mortgage to finance a Gallardo if it meant I could have one 5 or 10 years sooner.
Edited by VladD on Friday 1st July 15:51
I do have debt borrowings and rather a pleasant car or two in the garage (the values of which are rising - or rather, the value of the tatty green pieces of paper are falling) so I don't want to become all holier-than-thou.
But I would say that I'm sufficiently ancient to remember a few people losing their shirts over a 911 or something trendy doing exactly that back when the 80s collapse happened.
There is no guarantee they can keep the current debt/asset bubble running forever, so be careful if you go that way. Inevitably, you won't repay the mortgage and so that's 300 interest payments, not 36.
I'd also caution that an R8 is too modern to hold its value properly; you might do better with an R8 Gordini, if you can find a good one!
But I would say that I'm sufficiently ancient to remember a few people losing their shirts over a 911 or something trendy doing exactly that back when the 80s collapse happened.
There is no guarantee they can keep the current debt/asset bubble running forever, so be careful if you go that way. Inevitably, you won't repay the mortgage and so that's 300 interest payments, not 36.
I'd also caution that an R8 is too modern to hold its value properly; you might do better with an R8 Gordini, if you can find a good one!
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