New 997 Ordered - anyone else out there?
Discussion
Amusingly because the dealers get kick-backs from the finance divisions, they now prefer to sell you a car with finance than to sell you the car outright. The issue today more often than not which will dictate your discount (if any) is do you have a part-exchange.
I am lucky enough to be able to buy the new car outright but I have also been trying to decide whether its worth looking at the finance options. I actually own an X5 and Z4 outright and I could probably use the Z4 as the deposit finance the rest on a PCP deal and hang onto the X5 as a utility vehicle and over 2 or 3 years still spend the same as I would have to add to the 2 cars to buy it outright.
Hmmmm - that will also solve my manual or auto dilema. Mind you I do like the idea of owning things outright rather than being a slave to the finance company.
I am lucky enough to be able to buy the new car outright but I have also been trying to decide whether its worth looking at the finance options. I actually own an X5 and Z4 outright and I could probably use the Z4 as the deposit finance the rest on a PCP deal and hang onto the X5 as a utility vehicle and over 2 or 3 years still spend the same as I would have to add to the 2 cars to buy it outright.
Hmmmm - that will also solve my manual or auto dilema. Mind you I do like the idea of owning things outright rather than being a slave to the finance company.
Interesting debate this one. I've heard a similar story regarding the Ferrari market.
A friend of mine put it like this. Yes he can buy the 100k car for cash, but it's a lot to put in a depreciating asset (liability). So he put £25k on the car and £75k deposit on a buy to let with mortgage for the rest. Tenant pays the interest on the mortgage (and then some), while his £75k grew at the property inflation rate of that area. More than covered the depreciation of the Ferrari and he couldn't be happier.
Obviously timing is crucial and right now may not work out so well, but the theory holds for other investments rather than putting it all in the car.
A friend of mine put it like this. Yes he can buy the 100k car for cash, but it's a lot to put in a depreciating asset (liability). So he put £25k on the car and £75k deposit on a buy to let with mortgage for the rest. Tenant pays the interest on the mortgage (and then some), while his £75k grew at the property inflation rate of that area. More than covered the depreciation of the Ferrari and he couldn't be happier.
Obviously timing is crucial and right now may not work out so well, but the theory holds for other investments rather than putting it all in the car.
johnny senna said:
It's also much better to borrow on a mortgage at 5% if you need to borrow.
Guy
I still can't get my head around putting a car on the mortgage, but this is exactly what MY financial adviser did recently. He won't spend 25 years paying for the car of course, he will pay it off over 3 years or whatever, he is just taking advantage of the low interest rates available on mortgages.
Flip, it actually seems sensible.
Another way is to buy the car with say 50% cash and a 'sizeable' overdraft which can be balance transerfered onto 0% credit cards and flipped from one car to the next every few months.
paulmc said:
Interesting debate this one. I've heard a similar story regarding the Ferrari market.
A friend of mine put it like this. Yes he can buy the 100k car for cash, but it's a lot to put in a depreciating asset (liability). So he put £25k on the car and £75k deposit on a buy to let with mortgage for the rest. Tenant pays the interest on the mortgage (and then some), while his £75k grew at the property inflation rate of that area. More than covered the depreciation of the Ferrari and he couldn't be happier.
Obviously timing is crucial and right now may not work out so well, but the theory holds for other investments rather than putting it all in the car.
I did give this kind of thing some thought. The fella in the OPC said to me that it wasn't a good idea to have 65 grand of your own money in a car, you would be best basically renting the car and getting your money invested elsewhere. But I am crap at investments/wheeler-dealering, I just go to work, go home and that's it. As long as I can afford to live well and I have a good pension to look forward to, I can't be arsed with anything else. I have enough to think about at work.
Anyway, I was down at the OPC today having a chat about the 997. I was given a very tasty hardback book on the thing, lovely. The lead time is about 12 months in Newcastle. I certainly couldn't afford one before then anyway......unless I completely change my mind and do the balloon thing.......no, no I mustn't.
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