finance for not-new 911
Discussion
johnfm said:
Any idea who may be best source of finance for a 1999 GT3?
Cheers
Speak to these guys.
www.classicandsportsfinance.com/
Tel 07050 139 381
They finance all exotica, tell them Dion sent you.
Regards
saxmund said:
So why might a firm like classicandsportsfinance.com be better than just trawling the internet for the best rate on a personal loan? No axe to grind, just curious.
Well, in my case they allowed me to take a balloon payment at the end of the period which reduces my monthly payments quite considerably (and I've set the balloon low enough that I am expecting/hoping there will be enough equity left to be a deposit on the next car). Also, the product is really flexibile - I can overpay / pay off early / reduce the balloon by a bit or in total whenever I want with no penalty.
If monthly cost was not an issue I'd go for the northern rock loan without a doubt but of course the folk on here running these cars range from those who have 3 or 4 exotic cars and have paid cash for all of them through to those like me who are realising a dream and have to take a more practical view of our finances. It's just an alternative way of funding and is right for me! Of course, an alternative would be to take a personal loan over, say, 5 years with a view to paying it off after 3 years - sort of achieves the same as the balloon payment idea, but there is a limit to how many personal loans one man can have (if you know what I mean!).
A personal loan would have you paying off 100% of the car over, say, 5 yrs. I expect a GT3 to still be worth >30k in 5 yrs time, though lets be conservative and say £25k.
I would rather just finance the £25k depreciation than the whole £45k purchase price.
Re: mortgage and extension - I can do that - and pay low %, but my banker amy be a bit pissed off when he sees me in a nice car!
I suppose I'm just being impatient. I should realy wait until next year when a couple of projects come to fruition - but as a friend just told me, next year I'll tie that money up in something else and there'll never be a 'good' time to blow £45k on a GT3.
I would rather just finance the £25k depreciation than the whole £45k purchase price.
Re: mortgage and extension - I can do that - and pay low %, but my banker amy be a bit pissed off when he sees me in a nice car!
I suppose I'm just being impatient. I should realy wait until next year when a couple of projects come to fruition - but as a friend just told me, next year I'll tie that money up in something else and there'll never be a 'good' time to blow £45k on a GT3.
I hadn't realised you could get balloon payments with 3rd party finance... worth thinking about, might get me that 911 just a bit quicker (and/or may mean I can afford to keep the current car as well).
Sometimes I think I ought to wait until I have the cash as well... but with current interest rates, you're actually paying relatively little extra to have something now rather than waiting for it.
Sometimes I think I ought to wait until I have the cash as well... but with current interest rates, you're actually paying relatively little extra to have something now rather than waiting for it.
The problem with extending your mortgage, is that you end up paying for it over the remaining time of the mortgage, the rate may be lower, but you end up paying more interest.
Of course if you cannot afford to pay full amount back over five years, you have no option.
If you only want to pay for the depreciation during the course of your ownership, you will end up paying interest on the rest of it during that time.
Personally I would take the loan, but then I couldn't afford a GT3 anyway. IMO
S
Of course if you cannot afford to pay full amount back over five years, you have no option.
If you only want to pay for the depreciation during the course of your ownership, you will end up paying interest on the rest of it during that time.
Personally I would take the loan, but then I couldn't afford a GT3 anyway. IMO
S
gfreeman said:
Go to your mortgage lender. Tell 'em its for an extension.... to your grin. Aren't these the cheapest source of funds???
agreed. makes the most business sense. get an mortgage extension on a fixed rate basis with minimal lock in period so you can pay it all off easily and quickly when you come to sell the car.
for heavens sake don't tie up large amounts (ie > £10k) of your own money into a depreciating asset. it's simply not working for you!
Rob_T said:
for heavens sake don't tie up large amounts (ie > £10k) of your own money into a depreciating asset. it's simply not working for you!
bizarre way of looking at it!
unless you can borrow money cheaper than you can return on it. and if you can do that then you really dont need to worry about financing a car.
>> Edited by francisb on Wednesday 21st December 14:38
francisb said:
for heavens sake don't tie up large amounts (ie > £10k) of your own money into a depreciating asset. it's simply not working for you!
bizarre way of looking at it!
unless you can borrow money cheaper than you can return on it. and if you can do that then you really dont need to worry about financing a car.
>> Edited by francisb on Wednesday 21st December 14:38
Thats what I thought. If you have £50k in the bank but borrow £50k at say 6% to buy the car, your cash needs to earn over 10% return to make it worthwhile(assuming you are a 40% taxpayer)
A 10%+ return is not easy these days
I obtained a quotation from Classic & Sports finance recently to fund the purchase of another DeTomaso and found them to be pretty decent and more importantly for those with a taste in bizarre motors more than happy to fund it, in that respect they are pretty much unique.
The issue of whether or not to tie your own cash up in a depreciating asset or not comes down in part to what it is you do for a living and how you invest your money.
If like me you’re a bricks and mortar sort of bloke I know damn well I can use £50k more effectively in another project than I can sat on the drive. Use a competitive development funding source into a well conceived project bought ‘off market’ and the £50k becomes £100k 12 months later. This we know as a good thing.
That said, there comes a time when its time to enjoy the fruits of your labours and buy another set of wheels so when the 993 goes its replacement will probably not be financed. My reasoning for this is purely because I’ve put up with all the bloody objectors to the planning application that made me the loot and I like to think the cars that make it worthwhile are wholly mine and not the banks.
Down to personal circumstance but certainly Classic & Sports Finance are worth a stab, my best advice though is to get them to quote the rate as with the balanced payments scheme they operate it may not be that clear what the true rate actually is.
The issue of whether or not to tie your own cash up in a depreciating asset or not comes down in part to what it is you do for a living and how you invest your money.
If like me you’re a bricks and mortar sort of bloke I know damn well I can use £50k more effectively in another project than I can sat on the drive. Use a competitive development funding source into a well conceived project bought ‘off market’ and the £50k becomes £100k 12 months later. This we know as a good thing.
That said, there comes a time when its time to enjoy the fruits of your labours and buy another set of wheels so when the 993 goes its replacement will probably not be financed. My reasoning for this is purely because I’ve put up with all the bloody objectors to the planning application that made me the loot and I like to think the cars that make it worthwhile are wholly mine and not the banks.
Down to personal circumstance but certainly Classic & Sports Finance are worth a stab, my best advice though is to get them to quote the rate as with the balanced payments scheme they operate it may not be that clear what the true rate actually is.
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