Car and Finance again
Discussion
Possibly a general question but relates to Ferrari F430.
Say one was going to buy F430 or anything car really, is there a general rule of thumb of how much you should be earning in relation to the monthly finance payments?
For example, the payments on a new F430 PCP 10% down comes to £2250 per month apparently, does one need to bring in 100x this per annum ie £225,000 to be able to afford realistically this purchase.
Anyone got any experience, advice?
regards,
would very much appreciate
PS - Buyer has no mortgage, children or any commitments really.
Say one was going to buy F430 or anything car really, is there a general rule of thumb of how much you should be earning in relation to the monthly finance payments?
For example, the payments on a new F430 PCP 10% down comes to £2250 per month apparently, does one need to bring in 100x this per annum ie £225,000 to be able to afford realistically this purchase.
Anyone got any experience, advice?
regards,
would very much appreciate
PS - Buyer has no mortgage, children or any commitments really.
holtender_01 said:
Possibly a general question but relates to Ferrari F430.
Say one was going to buy F430 or anything car really, is there a general rule of thumb of how much you should be earning in relation to the monthly finance payments?
For example, the payments on a new F430 PCP 10% down comes to £2250 per month apparently, does one need to bring in 100x this per annum ie £225,000 to be able to afford realistically this purchase.
Anyone got any experience, advice?
regards,
would very much appreciate
PS - Buyer has no mortgage, children or any commitments really.
Not a Ferrari owner (Yet) but after reading many similar posts and from personal experiences I would advise that it depends on your priorities.Say one was going to buy F430 or anything car really, is there a general rule of thumb of how much you should be earning in relation to the monthly finance payments?
For example, the payments on a new F430 PCP 10% down comes to £2250 per month apparently, does one need to bring in 100x this per annum ie £225,000 to be able to afford realistically this purchase.
Anyone got any experience, advice?
regards,
would very much appreciate
PS - Buyer has no mortgage, children or any commitments really.
If it is your priority to own an expensive supercar then you would make the sacrifices necessary to own and use one.
I have been a student for the last 4 years (haven't worked), have a new house, wife and kids, but rather than keep myself in beer and cigs, I decided it was a priority to buy and run a nice car. So I bought a 3 litre BMW.
My friends at uni can't understand how I can afford to buy one and run it but it costs no more than the money they spend on living; £250 a month on cigs, £200 a month on beer and god knows how much on designer clothes, all of which I abstain from.
Speak to Andy King or Louise Julian at www.oraclefinance.co.uk
There is no hard and fast rule. Example being £100k 997TT 30% deposit 24months £460pm
Mention Pitstop and they will waive any document fees associated with the finance agreement.
There is no hard and fast rule. Example being £100k 997TT 30% deposit 24months £460pm
Mention Pitstop and they will waive any document fees associated with the finance agreement.
simonspider posted a answer to this question a while back as he worked in underwriting.
A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
lambogenie said:
simonspider posted a answer to this question a while back as he worked in underwriting.
A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
I also think they can look at your assets and see if your personal wealth was more than the car then if you never paid they could sue you for the money and most likely get it.A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
CUE99T said:
lambogenie said:
simonspider posted a answer to this question a while back as he worked in underwriting.
A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
I also think they can look at your assets and see if your personal wealth was more than the car then if you never paid they could sue you for the money and most likely get it.A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
bromers2 said:
CUE99T said:
lambogenie said:
simonspider posted a answer to this question a while back as he worked in underwriting.
A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
I also think they can look at your assets and see if your personal wealth was more than the car then if you never paid they could sue you for the money and most likely get it.A rough rule of thumb used to be that you need 2 x the disposable income avalable of the car payments every month.
Thus if the car payment is 2250 then you need to have a provable disposable income of 4500 a month.
Disposable income is usually taken as the money you have left after you have paid all commitments that you could not get out of i.e - mortgage/rent, council tax, utilities, credit cards, insurance etc.
Primarily the underwriters are looking at risk on the vehicle in terms of what you owe vs what the vehicle is worth (thats taken care of with the deposit), then they look at things like flight risk, how likely you are simply to abscond with the car - for that they look at stability in terms of your electoral role history, are you a homeowner, how long you have been with your bank and in your current home. Then they look at your ability to pay, have you had any credit problems, how much luquid cash you maintain in your bank and savings, how much income you have coming in.
TBH finance companies are unlikely to get anything from your assets if they have to take you to court over a debt, the most probable outcome for a default is a CCJ with a order of payment for whatever you owe at a payment level you can afford to pay with the interest frozen. its very unlikely they are going to convince a judge to get bailiffs involved in getting your personal property or assets unless you absoloutly refused to pay in which case you may end up in bankruptcy proceedings.
But i should say that car finance is in a decline, and the finance houses are fighting for business, most of the ID checking, statements etc is FSA money laundering regs and fraud avoidance, they actually want to lend you the money if they at all can, if you are a higher risk they will usually still offer you a deal but just charge you more interest.
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