Best of the Best - take the cash equivalent?
Discussion
Purtely idle speculation at this point but something to consider in the unlikely event.
I've played a couple of times and noticed the winners are always pictured by the car but do they always take the car rather than the cash equivalent?
Or, more specifically, is it better to take the cash equivalent.
For example, Alfa Giula QV has a cash equivalent of £50,000
The list price (before options) is £62,500 (what car you actually get, and the opportunity to add options is a separate question but one I'd like to know the answer to)
Currently 2017 QV's are on PH for an average of 50,000 (excluding the two outliers at £65k and £45k) presumably with some options fitted.
On that basis, you'd break even if you had the car (with no options) for one year and then sold it.
I appreciate that may be a high depreciation model. So what about an M4
Well current list is £61k
2017 cars are selling for £44k
Cash alternative is £49,000
So in this example, you'd be better off taking the cash, buying a year old M4 and keeping the £5k in your pocket.
The options you get on the new car if you opt to take it could be key with any model. I mean, you could get a year old Giulia QV with carbon ceramic brakes for the cash equivalent price. But if you went fot the new car you'd have to fork out £5,500 of your own money. That's before you go for metallic paint (£700, competizione red is £2,500) or any "packs" at a grand a piece.
I've played a couple of times and noticed the winners are always pictured by the car but do they always take the car rather than the cash equivalent?
Or, more specifically, is it better to take the cash equivalent.
For example, Alfa Giula QV has a cash equivalent of £50,000
The list price (before options) is £62,500 (what car you actually get, and the opportunity to add options is a separate question but one I'd like to know the answer to)
Currently 2017 QV's are on PH for an average of 50,000 (excluding the two outliers at £65k and £45k) presumably with some options fitted.
On that basis, you'd break even if you had the car (with no options) for one year and then sold it.
I appreciate that may be a high depreciation model. So what about an M4
Well current list is £61k
2017 cars are selling for £44k
Cash alternative is £49,000
So in this example, you'd be better off taking the cash, buying a year old M4 and keeping the £5k in your pocket.
The options you get on the new car if you opt to take it could be key with any model. I mean, you could get a year old Giulia QV with carbon ceramic brakes for the cash equivalent price. But if you went fot the new car you'd have to fork out £5,500 of your own money. That's before you go for metallic paint (£700, competizione red is £2,500) or any "packs" at a grand a piece.
There are gaming rules regarding the awarding of cash equivalents so they can’t take the micky and it doesn’t look like they try. At a guess I would say they base their CE on the nearest, near round number to their unit cost which I think would be perfectly legitimate.
As for whether to take the cash or prize, that’s really a crude equation between a winner’s average net income v true cost of running the car each year. Ie, a chap who earns £20k and has outgoings that nearly match that would be imprudent to try and run such an expensive car for a year. Common sense would suggest taking the cash prize as it is pretty much three year’s net income and no ongoing cost and then use some of the money to hire some fun cars a few times etc.
Conversely, someone earning much more can more easily take the view of the car being a fun opportunity to drive something they wouldn’t have ever bought for themselves as the running costs are easily absorbed and the opportunity cost of the depreciation isn’t a significant loss.
So, gaming regulation ensures the cash alternative is kosher and the final choice is really down to personal circumstances combined with intelligence.
As for whether to take the cash or prize, that’s really a crude equation between a winner’s average net income v true cost of running the car each year. Ie, a chap who earns £20k and has outgoings that nearly match that would be imprudent to try and run such an expensive car for a year. Common sense would suggest taking the cash prize as it is pretty much three year’s net income and no ongoing cost and then use some of the money to hire some fun cars a few times etc.
Conversely, someone earning much more can more easily take the view of the car being a fun opportunity to drive something they wouldn’t have ever bought for themselves as the running costs are easily absorbed and the opportunity cost of the depreciation isn’t a significant loss.
So, gaming regulation ensures the cash alternative is kosher and the final choice is really down to personal circumstances combined with intelligence.
A chap I used to work with won an Aston Martin V8 Vantage. He took the cash. I remember thinking at the time that he could probably have kept it for a year and still expected to recover the cash equivalent.
I seem to recall he was about to extend his house at the time and it avoided him having to borrow the money. He was a family man too, so a 2-seat car probably wouldn't have been used much (makes you wonder why he entered, but I'm sure he's glad he did).
I seem to recall he was about to extend his house at the time and it avoided him having to borrow the money. He was a family man too, so a 2-seat car probably wouldn't have been used much (makes you wonder why he entered, but I'm sure he's glad he did).
I used to play BOTB regularly, and ran through this theoretical dilemma in my head quite often, on the way to or from the pub. On the one hand, I'd want to take the car because I'd probably never go out and buy whatever exotic thing the prize was, so it'd be one opportunity to get one, drive it for a year and probably break even. On the other hand, I don't really do the kind of journeys that would justify having something flash like the prize cars, so I probably wouldn't get much use out of it, so that would point me to the cash as I'd otherwise be insuring and servicing a car I'm not getting the value out of. Fortunately, or unfortunately, I never had to decide.
Other pub-journey dilemmas included the thorny issue of - if I win £4m on the lottery, how can I possibly spread that across banks and building societies so as to keep it below the FSCS compensation level. Another one I was saved from having to experience.
Other pub-journey dilemmas included the thorny issue of - if I win £4m on the lottery, how can I possibly spread that across banks and building societies so as to keep it below the FSCS compensation level. Another one I was saved from having to experience.
Edited by droopsnoot on Thursday 13th December 10:56
If you look at their accounts, BOTB reported around £13m in turnover for their last financial year, and reported cost of sale at around £5.5m.
I'm not 100% certain that the turnover figure is only the sum of all the tickets they sell, nor can I say that their cost of sale is only the sum of all the prizes issued. However, I would think it representatives broadly the right scale of the values.
On that basis, for every £1 "bet" they are paying out approximately £0.42
Gambling isn't my thing, but if you want to make a bet would be better using a FOBT.
I'm not 100% certain that the turnover figure is only the sum of all the tickets they sell, nor can I say that their cost of sale is only the sum of all the prizes issued. However, I would think it representatives broadly the right scale of the values.
On that basis, for every £1 "bet" they are paying out approximately £0.42
Gambling isn't my thing, but if you want to make a bet would be better using a FOBT.
Oh it’s mere idle speculation - as one user said it’d be on the way to the pub calculations.
When I do have a go though I tend to think about the practicality if I did win which potentially makes the dilemma of cash versus car even harder.
I usually have a Discovery, E63AMG estate and / or the aforementioned Giulia all of which are practical enough for me to run for a year. Or even longer in the Discovery case, a many years to come family wagon.
I don’t bother with the F488, Lamborghini etc as they’d be totally impractical to own and financial ruinous even if the car itself were free.
Anyway, will update should I win 😁
When I do have a go though I tend to think about the practicality if I did win which potentially makes the dilemma of cash versus car even harder.
I usually have a Discovery, E63AMG estate and / or the aforementioned Giulia all of which are practical enough for me to run for a year. Or even longer in the Discovery case, a many years to come family wagon.
I don’t bother with the F488, Lamborghini etc as they’d be totally impractical to own and financial ruinous even if the car itself were free.
Anyway, will update should I win 😁
I typically play for cars I would keep.. M2, M4, RS4 etc etc but every now and then I'll have a punt on one of their top end cars. This week I'm playing for the new NSX. If I win I'd either take the cash or sell the car. Whatever gets me the most cash.
Then i'd buy something naughty and bank the rest.
More often than not i play to own the car.
Then i'd buy something naughty and bank the rest.
More often than not i play to own the car.
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