Balloon Value???

[m3changing]

If you were buying an M400 on a finance deal with a final balloon payment, what sort of residual do you think would be reasonable after 36 or 48 months?

[m12_nathan]

£20

Especially when the M12-2 is launched

[m3changing]

...and when would that be?

[m12_nathan]

Who knows, but I'm willing to bet it won't be too long. Lee Noble has a car entered in Britcar called M12-2:

www.msttiming.com/result.asp?table=52563rc1bce&round=brandsgp.gif

It just does not make sense for them to have a traverse and longditudal engine install into the same chassis so I'm sure the M14 layout will make it to an M12 replacement of some sort.....

[joust]

Given the delay on the M14 I have a feeling that there isn't going to be too much similar between the M12 and M14.

Re-engineering the M12 to take a new engine wouldn't make financial sense without changing the rest, so if there is a M12-2 it's probably not going to have much in common with the M12.

Finally, remember that the press have reported that Noble is looking for finance for a third model, so, as always with cars, if you worry about what may or may not be released next, then don't ever buy a car!

As for residuals, I generally set mine around 45% after 3 years, gives a good balance between the rate and the ability to just "rollover" at the end.

Any decent finance company will be able to find the best "overall" figure, if the one you are talking to won't, then email me for details of an excellent company that I do all my cars with.

J

[m3changing]

Joust

Thanks for that. They've said 35% - hence my asking.

I'm not overly bothered about it because ultimately it keeps equity in the car of course, but I just wondered more than anything.

Thanks again.

[joust]

The trick is, as with all finance deals, is to work out the "simple return rate", i.e. the amount, that if you put the money in the bank and left it there for n years, that it would be worth.

Compare that to compound of the cash in the bank and you'll get your answer. I've always found a range of 40-50% gives the best "nett" answer, and as I've said many times, I always finance cars as I can "always" gain given my other investments in my wide portfolio over what I have to pay to the finance company.

If you are down at 35% I'd question the finance company's skills - on a car like the Noble (and I've done two, one 2.5 the week after the 3.0l car was announced.....) you need somone skilled to get you the best gross AND nett deal.

Again, email me if you want a decent company that understands high performance cars and can represent the correct facts to the underwriter.

J

[jdh1]

joust said:

The trick is, as with all finance deals, is to work out the "simple return rate", i.e. the amount, that if you put the money in the bank and left it there for n years, that it would be worth. Compare that to compound of the cash in the bank and you'll get your answer. I've always found a range of 40-50% gives the best "nett" answer, and as I've said many times, I always finance cars as I can "always" gain given my other investments in my wide portfolio over what I have to pay to the finance company. If you are down at 35% I'd question the finance company's skills - on a car like the Noble (and I've done two, one 2.5 the week after the 3.0l car was announced.....) you need somone skilled to get you the best gross AND nett deal. Again, email me if you want a decent company that understands high performance cars and can represent the correct facts to the underwriter. J

I recognise all those words as coming from the English language. I know what they all mean - unless you put them in that order. And then they may just as well be Icelandic. If I wasn't so disgustingly rich that I don't have to worry about such matters, that could be the cause of some concern

[micknall]

Chris,

Two points:

1. Noble currently offers its own finance package, based on a balloon which is considerably more generous than what you've been quoted. The figures are in the series of ads we're running in the press at the moment - I'm at home, so I don't have them to hand. If you want more info, please call me on 01455 844 052 on Monday or e-mail me via my profile.

2. As much as I respect the views and comments of all who contribute on this forum, there are times when misleading information is put forth. Lee Noble's decision to call the Britcar racer 'M12-2' was made so that people were not fooled into thinking that the car was a carbon-copy of the road car - which it clearly isn't. Furthermore, I can confirm that we are NOT considering a direct replacement for the M12/M400 series. As you know, the next car we launch will be wholly different to the M12 and will be in a different price category.

Simon Hucknall
Press Officer
Noble Automotive Ltd.

[diceman]

Thanks for clarifying this Simon

Thats very good news to hear after just putting a deposit down on a new M400

[m3changing]

Thanks for the finance info Simon.

As it happens I changed my view on how best to do this and the funds are now all in place.

I just need the right car now.