F40 for £1k per month + fuel.......... Would You?
Discussion
The Man Maths.
Purchase price £330k, raised againt an unencumbered BTL at 3.89% = £12,837pa
As BTL's value at purchase was greater than £330k, interest can be offset against rental income there-by effectively reducing cost of interest by 40% = £7,702.20pa
Insurance = £3k
Servicing = £1,500
Total £12,200pa = £1,017pcm
Yes i'd still have the £330k to repay but F40's aren't a depreciating asset, so when/if (?)
i get bored with it i could sell and repay the loan.
There's even a chance if values continue to rise that i'd re-coup my £1k pcm outlay.
I'd be mad not too wouldn't I?
Purchase price £330k, raised againt an unencumbered BTL at 3.89% = £12,837pa
As BTL's value at purchase was greater than £330k, interest can be offset against rental income there-by effectively reducing cost of interest by 40% = £7,702.20pa
Insurance = £3k
Servicing = £1,500
Total £12,200pa = £1,017pcm
Yes i'd still have the £330k to repay but F40's aren't a depreciating asset, so when/if (?)
i get bored with it i could sell and repay the loan. There's even a chance if values continue to rise that i'd re-coup my £1k pcm outlay.
I'd be mad not too wouldn't I?
I wouldn't. Imagine having to pay back 330k after something disastrous happened - economy tanks forcing down prices of luxury collectibles...you damage it in such a way that you devalue it by 80k, you need to get out quickly but find that selling it is a lot slower than buying it....etc. that's just me though. I prefer to buy cars outright and be able to enjoy them without having the feeling that there's a dark (finance) cloud hovering over me the whole time. It's for this reason I drive a 430 and not a 458! That being said, I have no idea of your financial circumstances so do what makes you happy without bringing stress and worry into your life!
100 IAN said:
The Man Maths.
Purchase price £330k, raised againt an unencumbered BTL at 3.89% = £12,837pa
As BTL's value at purchase was greater than £330k, interest can be offset against rental income there-by effectively reducing cost of interest by 40% = £7,702.20pa
Insurance = £3k
Servicing = £1,500
Total £12,200pa = £1,017pcm
Yes i'd still have the £330k to repay but F40's aren't a depreciating asset, so when/if (?) i get bored with it i could sell and repay the loan.
There's even a chance if values continue to rise that i'd re-coup my £1k pcm outlay.
I'd be mad not too wouldn't I?
The reality check (once you get close to buying):Purchase price £330k, raised againt an unencumbered BTL at 3.89% = £12,837pa
As BTL's value at purchase was greater than £330k, interest can be offset against rental income there-by effectively reducing cost of interest by 40% = £7,702.20pa
Insurance = £3k
Servicing = £1,500
Total £12,200pa = £1,017pcm
Yes i'd still have the £330k to repay but F40's aren't a depreciating asset, so when/if (?)
i get bored with it i could sell and repay the loan. There's even a chance if values continue to rise that i'd re-coup my £1k pcm outlay.
I'd be mad not too wouldn't I?
But if I drive it then the value will start dropping and I'll not get my £330k back...
Yes it might be worth £330k but most likely it would have to be sold via a dealer and they will take £20k or more...
What happens if some dozy pensioner T-bones me at a junction and wipes £50k off the value of the car at a stroke?
What happens if the engine goes pop or other major mechanical failure?
What happens if the Eurocrisis explodes properly and the market for classic supercars drops through the floor?
Of course, none of the above needs to happen and you could spend just £1000 a month. Or if you kept it long enough the value might go up enough to cover all your costs. Depends upon personality type. For me the potential risk in the scenario above would make me worry and spoil the pleasure of owning the F40. But then other people like gambling and I don't.
The main two issues here are clearly:
1) To sell this kind of car you either need an established prestige dealership, or you need to pay such a dealership a spread of c.10% (GBP33k) to sell it for you.
2) If you do any significant milage to the car, then it will depreciate.
Other risks on economy and all, also relevant of course, but 1) and 2) are guaranteed costs, rather than potential risks.
Nice try... if you have the money however, then I encourage you to enjoy!
1) To sell this kind of car you either need an established prestige dealership, or you need to pay such a dealership a spread of c.10% (GBP33k) to sell it for you.
2) If you do any significant milage to the car, then it will depreciate.
Other risks on economy and all, also relevant of course, but 1) and 2) are guaranteed costs, rather than potential risks.
Nice try... if you have the money however, then I encourage you to enjoy!
Why are people discussing selling it?
By the time you're 60 it'll be at RM auctions for a couple of 10s of millions and youll have driven one of the all time greats.
Do it.
Although just to let you know if I sit a car, the value goes instantly up, honest, so I want/better have, a ride in it.
By the time you're 60 it'll be at RM auctions for a couple of 10s of millions and youll have driven one of the all time greats.
Do it.
Although just to let you know if I sit a car, the value goes instantly up, honest, so I want/better have, a ride in it.
SimonOcean said:
The main two issues here are clearly:
1) To sell this kind of car you either need an established prestige dealership, or you need to pay such a dealership a spread of c.10% (GBP33k) to sell it for you.
2) If you do any significant milage to the car, then it will depreciate.
Other risks on economy and all, also relevant of course, but 1) and 2) are guaranteed costs, rather than potential risks.
Nice try... if you have the money however, then I encourage you to enjoy!
Not a chance you'd be charged 10% to sell this type of car.1) To sell this kind of car you either need an established prestige dealership, or you need to pay such a dealership a spread of c.10% (GBP33k) to sell it for you.
2) If you do any significant milage to the car, then it will depreciate.
Other risks on economy and all, also relevant of course, but 1) and 2) are guaranteed costs, rather than potential risks.
Nice try... if you have the money however, then I encourage you to enjoy!
at 330k its the long in the tooth 68k km car anyway, so its not going to be a mileage sensitive beast for normal miles, and the general consensus is as they're passing 25 yrs old now, mileage will matter less than condition.. that and the earliest ones can now be imported in to the US which will push up the available market and thus demand.
You only live once.. if you have the means to fix a popped engine (£20-30k) then I'd say go for it.. I thoroughly enjoy mine, there is a reason they hold such a place in petrol-head hearts.
Davo456gt said:
confused by the comments about damage, and being t-boned by pensioners - isn't that what insurance is for ? particular on a car like this ?
a crash damaged repaired car, even if repaired back to good, will still be worth a lot less than an undamaged original car, let alone the general problems of repairing / obtaining original spares for a car like this.The histories do get lost on all of the cars over time, it very unlikely to do the damage that would cause it to be a recorded incident and an F40 is an easily rebuildable car without anyone being any the wiser it had a smash in the side.
Although buying it the way you are talking about is nuts IMHO. Don't forget the cost of tanks etc. Mine blew a turbo and ended up in flames but was rebuilt and not recorded it the time even when they were around £150k and I'd bet that car's current owner is unaware of it.
Although buying it the way you are talking about is nuts IMHO. Don't forget the cost of tanks etc. Mine blew a turbo and ended up in flames but was rebuilt and not recorded it the time even when they were around £150k and I'd bet that car's current owner is unaware of it.
Life is very short, sometimes a lot shorter than you expect. If you can do it, do it and enjoy it every moment you can. It's a omplete waste of time and energy buying a car and not putting miles on it. That should be one of the conditions of sale.
Drive it or print a poster to put on your wall and let someone else drive it
Drive it or print a poster to put on your wall and let someone else drive it
JamieBeeston said:
I've just had a full service and clutch change for just a little more (clutch part excluded!)
So if you overlook all the other annoying "little" jobs that always seen to crop up whenever you get a Ferrari within 100 meters of a garage then the regular servicing is cheap...
I salute the blokeconomics behind that double think! Brilliant. ;-)
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