Financing a used supercar
Discussion
Chaps, advice required here. For years, I have bought everything outright (well, except for my house). Had a horror of debt etc. But next year, I'll be buying another property, and need to liquidate the fleet, which is due a change anyway. y years of Morgan ownership leaves one a bit institutionalised (if pretty happy).
I'll keep 20-30k in cash from them, and I could either buy a £30k car (boring) or somehow finance something a bit more exciting (I was thinking ferrari 360/430, to scratch an itch). Monthly income is good and will remain so (not leveraging up big time for the house purchase, hence liquidating assets to get cash into it), but obviously I would rather not spunk everything away in interest, and would like to repay whatever loan I take.
What are my options? Is it as simple as a loan? Or are there cheaper ways to do it? Securing against properties (i.e. borrowing against them) is not something I would like to do.
Any advice from owners out there who have done this would be great.
Otherwise, I'm going to find something large, German and with a big "62" badge on it and lease it from one of the deals on the leasing thread. But I'd rather have a Ferrari.
I'll keep 20-30k in cash from them, and I could either buy a £30k car (boring) or somehow finance something a bit more exciting (I was thinking ferrari 360/430, to scratch an itch). Monthly income is good and will remain so (not leveraging up big time for the house purchase, hence liquidating assets to get cash into it), but obviously I would rather not spunk everything away in interest, and would like to repay whatever loan I take.
What are my options? Is it as simple as a loan? Or are there cheaper ways to do it? Securing against properties (i.e. borrowing against them) is not something I would like to do.
Any advice from owners out there who have done this would be great.
Otherwise, I'm going to find something large, German and with a big "62" badge on it and lease it from one of the deals on the leasing thread. But I'd rather have a Ferrari.
Edited by Harry Flashman on Friday 3rd October 16:42
Harry Flashman said:
Chaps, advice required here. For years, I have bought everything outright (well, except for my house). Had a horror of debt etc. But next year, I'll be buying another property, and need to liquidate the fleet, which is due a change anyway. y years of Morgan ownership leaves one a bit institutionalised (if pretty happy).
I'll keep 20-30k in cash from them, and I could either buy a £30k car (boring) or somehow finance something a bit more exciting (I was thinking ferrari 360/430, to scratch an itch). Monthly income is good and will remain so (not leveraging up big time for the house purchase, hence liquidating assets to get cash into it), but obviously I would rather not spunk everything away in interest, and would like to repay whatever loan I take.
What are my options? Is it as simple as a loan? Or are there cheaper ways to do it? Securing against properties (i.e. borrowing against them) is not something I would like to do.
Any advice from owners out there who have done this would be great.
Otherwise, I'm going to find something large, German and with a big "62" badge on it and lease it from one of the deals on the leasing thread. But I'd rather have a Ferrari.
Get yourself Classic Cars magazine for the next few months.I'll keep 20-30k in cash from them, and I could either buy a £30k car (boring) or somehow finance something a bit more exciting (I was thinking ferrari 360/430, to scratch an itch). Monthly income is good and will remain so (not leveraging up big time for the house purchase, hence liquidating assets to get cash into it), but obviously I would rather not spunk everything away in interest, and would like to repay whatever loan I take.
What are my options? Is it as simple as a loan? Or are there cheaper ways to do it? Securing against properties (i.e. borrowing against them) is not something I would like to do.
Any advice from owners out there who have done this would be great.
Otherwise, I'm going to find something large, German and with a big "62" badge on it and lease it from one of the deals on the leasing thread. But I'd rather have a Ferrari.
Edited by Harry Flashman on Friday 3rd October 16:42
Loads of stuff there about what to buy and what not to buy, whats likely to be going up in value, etc, etc.
http://www.classiccarsmagazine.co.uk/
2manycars said:
thelawnet said:
What % are you paying on the mortgage? Can't you just stick another £50k onto the mortgage?
The real cost of a mortgage, after inflation, over 25 years, is pretty cheap.
Yeah, until you read that for every £1 borrowed you pay back £2.01The real cost of a mortgage, after inflation, over 25 years, is pretty cheap.
I'm not sure I would feel comfortable with the finance aspect, and no, this isn't just a post so I can say mine isn't on finance; I'm coming taking the assumption that financing the gap means you won't likely have a reserve in case anything goes wrong, which it will, as these things aren't built like your average family car. Things will go wrong and cost you money.
Anything outside of a Ferrari warranty seems to be a waste of money with the general - and in my opinion correct - concenus being that you are best to keep £4k or so in a pot for a year, over and above servicing, or have the means to pay £1k/£2k off the bat in case something needs doing.
Anything outside of a Ferrari warranty seems to be a waste of money with the general - and in my opinion correct - concenus being that you are best to keep £4k or so in a pot for a year, over and above servicing, or have the means to pay £1k/£2k off the bat in case something needs doing.
1/ Second legal charge on mortgaged property
2/ non secured loan, ultimately may / will become secured if default so option 1 as lower rate etc
3/ add to mortgagee, as stated
4/ BEST SOLUTION.... add to mortgagee as additional borrowing, pay off over a reduced time frame from mortgagee and gain near mortgagee rate of interest... beer token in the post.
2/ non secured loan, ultimately may / will become secured if default so option 1 as lower rate etc
3/ add to mortgagee, as stated
4/ BEST SOLUTION.... add to mortgagee as additional borrowing, pay off over a reduced time frame from mortgagee and gain near mortgagee rate of interest... beer token in the post.
2manycars said:
thelawnet said:
What % are you paying on the mortgage? Can't you just stick another £50k onto the mortgage?
The real cost of a mortgage, after inflation, over 25 years, is pretty cheap.
Yeah, until you read that for every £1 borrowed you pay back £2.01The real cost of a mortgage, after inflation, over 25 years, is pretty cheap.
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