Financing supercars?

[Shmee150]

I'm curious, what sort of percentage of cars that leave Ferrari/Lamborghini and other exotic showrooms are financed?

Nationally 70% of new cars are bought on finance, I imagine far far fewer supercars are bought that way or am I completely off the mark and you can't even buy these cars on finance deals?

Tim

[AndrewW-G]

probably still around 70%, lots of people can afford the payments, but havent got the liquid cash to buy outright and there are lots more who for various reasons a lease agreement makes more sense than an outright purchase. A number of years ago all the UK Ferrari finance was handled by what was Capital Bank (now IIRC part of HBOS) with the same teams also doing the finance for Porsche

Edited by AndrewW-G on Tuesday 2nd March 17:43

[Shmee150]

AndrewW-G said:

probably still around 70%, lots of people can afford the payments, but havent got the liquid cash to buy outright and there are lots more who for various reasons a lease agreement makes more sense than an outright purchase. A number of years ago all the UK Ferrari finance was handled by what was Capital Bank (now IIRC part of HBOS) with the same teams also doing the finance for Porsche

Edited by AndrewW-G on Tuesday 2nd March 17:43

Oh wow, I had no idea! What sort of minimum deposits do they ask then? If you wanted to put down say £50k on something about £150k do they turn their noses up in disgust? Or is that actually reasonable? (obviously assuming one could afford the repayments)

Tim

[jonny5]

Shmee150 said:

AndrewW-G said:

probably still around 70%, lots of people can afford the payments, but havent got the liquid cash to buy outright and there are lots more who for various reasons a lease agreement makes more sense than an outright purchase. A number of years ago all the UK Ferrari finance was handled by what was Capital Bank (now IIRC part of HBOS) with the same teams also doing the finance for Porsche

Edited by AndrewW-G on Tuesday 2nd March 17:43

Oh wow, I had no idea! What sort of minimum deposits do they ask then? If you wanted to put down say £50k on something about £150k do they turn their noses up in disgust? Or is that actually reasonable? (obviously assuming one could afford the repayments)

Tim

typically 10% upwards dependent on credit risk/rating and income/exposure

[toohuge]

Shmee150 said:

AndrewW-G said:

probably still around 70%, lots of people can afford the payments, but havent got the liquid cash to buy outright and there are lots more who for various reasons a lease agreement makes more sense than an outright purchase. A number of years ago all the UK Ferrari finance was handled by what was Capital Bank (now IIRC part of HBOS) with the same teams also doing the finance for Porsche

Edited by AndrewW-G on Tuesday 2nd March 17:43

Oh wow, I had no idea! What sort of minimum deposits do they ask then? If you wanted to put down say £50k on something about £150k do they turn their noses up in disgust? Or is that actually reasonable? (obviously assuming one could afford the repayments)

Tim

I would imagine that they would be pretty happy to receive that as a deposit. I have been asked for 10k for the new merc SLS, for new Ferrari's (599, California) 20k.

Edited by toohuge on Tuesday 2nd March 18:32

[Shmee150]

toohuge said:

I would imagine that they would be pretty happy to receive that as a deposit. I have been asked for 10k for the new merc SLS, for new Ferrari's (599, California) 20k.

Edited by toohuge on Tuesday 2nd March 18:32

Wow, awesome. Well the SLS is what I am pining for in about 2 years time, I think the waiting list is about a year though, so a while before placing an order. Needless to say it's nice to know that it can be financed if it's too much to pay outright.

Cheers all for the replies.

Tim

[kryten22uk]

toohuge said:

I would imagine that they would be pretty happy to receive that as a deposit. I have been asked for 10k for the new merc SLS, for new Ferrari's (599, California) 20k.

Thats just the deposit that the dealer wants to make sure you're not wasting their time. For finance you can have nothing, even negative deposit. i.e. they are happy to transfer finance from one car to another even if you have negative equity.

[Dav_s]

Interesting!!

Never financed a car before, but in order to keep my cash readily available for other opportunities, I think I might go down this road with my next toy.

Any firm in particular recommended for super car finance?

[amir_j]

Dav_s said:

Interesting!!

Never financed a car before, but in order to keep my cash readily available for other opportunities, I think I might go down this road with my next toy.

Any firm in particular recommended for super car finance?

After factoring in the significant depreciation aspect (unless its the next enzo) along with finance charges, your other opportunities would have to be pretty good!

[Dav_s]

amir_j said:

Dav_s said:

Interesting!!

Never financed a car before, but in order to keep my cash readily available for other opportunities, I think I might go down this road with my next toy.

Any firm in particular recommended for super car finance?

After factoring in the significant depreciation aspect (unless its the next enzo) along with finance charges, your other opportunities would have to be pretty good!

Eh?
What I meant was keep my cash free to invest in something I'll see a return on, say property, and take finance for a car.

[Shmee150]

^ that sounds like a good shout to me.

Another question, and this may sound really silly, does anybody know where do you actually buy an SLS? Is it like the SLR that you have to head to Brooklands or will any Merc dealer do?

Thanks

[amir_j]

Dav_s said:

amir_j said:

Dav_s said:

Interesting!!

Never financed a car before, but in order to keep my cash readily available for other opportunities, I think I might go down this road with my next toy.

Any firm in particular recommended for super car finance?

After factoring in the significant depreciation aspect (unless its the next enzo) along with finance charges, your other opportunities would have to be pretty good!

Eh?
What I meant was keep my cash free to invest in something I'll see a return on, say property, and take finance for a car.

I know, and I am saying the logic does not compute.

The finance isn't going to be at 0% like a ford fiesta id assume,so how much do you expect to net gain by buying property? And if making money is a priority than surely you would buy used as the depreciation is £££'s.

[Dav_s]

amir_j said:

Dav_s said:

amir_j said:

Dav_s said:

Interesting!!

Never financed a car before, but in order to keep my cash readily available for other opportunities, I think I might go down this road with my next toy.

Any firm in particular recommended for super car finance?

After factoring in the significant depreciation aspect (unless its the next enzo) along with finance charges, your other opportunities would have to be pretty good!

Eh?
What I meant was keep my cash free to invest in something I'll see a return on, say property, and take finance for a car.

I know, and I am saying the logic does not compute.

The finance isn't going to be at 0% like a ford fiesta id assume,so how much do you expect to net gain by buying property? And if making money is a priority than surely you would buy used as the depreciation is £££'s.

My last big investment (big by my standards anyway) has doubled in value in the 18 or so months I've owned it.
By having cash readily available I feel I'm in a position to move fast if and when something worthwhile comes up.

And I would be taking finance on a used super car, thus avoiding some/most of the depreciation - fiance isn't just available on new cars FYI.

Hope that helps.

[amg master]

Shmee150 said:

^ that sounds like a good shout to me.

Another question, and this may sound really silly, does anybody know where do you actually buy an SLS? Is it like the SLR that you have to head to Brooklands or will any Merc dealer do?

Thanks

you can order your sls from your nearest dealer, the deposit was 10k first then another 10k to show that you are serious about the car to confirm your order.

they will be sending customers who have given the 20k deposit to brooklands sometime in march where they will have some sls amgs on show in various colours and specs.

sometime after that you will get your build slot date and estimated delivery time.

[Shmee150]

amg master said:

you can order your sls from your nearest dealer, the deposit was 10k first then another 10k to show that you are serious about the car to confirm your order.

they will be sending customers who have given the 20k deposit to brooklands sometime in march where they will have some sls amgs on show in various colours and specs.

sometime after that you will get your build slot date and estimated delivery time.

Am I right about the time scales of about a year or do we not know yet? Do you know?

I'm heading to Geneva in a few days, hopefully get a proper look at it, and obviously the competitors of course...

[amg master]

Shmee150 said:

amg master said:

you can order your sls from your nearest dealer, the deposit was 10k first then another 10k to show that you are serious about the car to confirm your order.

they will be sending customers who have given the 20k deposit to brooklands sometime in march where they will have some sls amgs on show in various colours and specs.

sometime after that you will get your build slot date and estimated delivery time.

Am I right about the time scales of about a year or do we not know yet? Do you know?

I'm heading to Geneva in a few days, hopefully get a proper look at it, and obviously the competitors of course...

i think this years allocation is sold out,

some dealers are saying 2012 for next available cars.

my dealer has told me that i should have a early car so we will see.

the launch is june or july this year.

[LamboBrum]

Thats just the deposit that the dealer wants to make sure you're not wasting their time. For finance you can have nothing, even negative deposit. i.e. they are happy to transfer finance from one car to another even if you have negative equity.
[/quote]

Really? I honestly can't remember this happening since the crunch. Not that the finance companies are aware of anyway! I'm sure there's a little going on but the risk is just too great. Dealers also won't want to 'lump and bump' the figures as they've too much to lose if it goes wrong.

i.e. car is worth £100K, invoiced at £120K because of px negative equity, then engine falls out 2 months later, they have to pay £120K, not £100K - not for me thanks!

[kryten22uk]

LamboBrum said:

i.e. car is worth £100K, invoiced at £120K because of px negative equity, then engine falls out 2 months later, they have to pay £120K, not £100K - not for me thanks!

Whats it got to do with the dealer? Nothing.

The shortfall isnt made up by the new car price, the new car is still 100k, its just that the punter owes the finance company 120k. If engine falls out 2mths later, dealer pays back 100k under warranty, and punter left with original 20k deficit to the finance company. The finance company is at risk from this over-finance agreement, but its their way of trying to avoid you invoking the right to terminate -ve equity on the previous agreement anyway after you have paid 50% of the total payable at outset.

[ted 191]

kryten22uk said:

LamboBrum said:

i.e. car is worth £100K, invoiced at £120K because of px negative equity, then engine falls out 2 months later, they have to pay £120K, not £100K - not for me thanks!

Whats it got to do with the dealer? Nothing.

The shortfall isnt made up by the new car price, the new car is still 100k, its just that the punter owes the finance company 120k. If engine falls out 2mths later, dealer pays back 100k under warranty, and punter left with original 20k deficit to the finance company. The finance company is at risk from this over-finance agreement, but its their way of trying to avoid you invoking the right to terminate -ve equity on the previous agreement anyway after you have paid 50% of the total payable at outset.

Isn`t that only on regulated agreements ?

[kryten22uk]

ted 191 said:

Isn`t that only on regulated agreements ?

Yes. But then just about all car finance is regulated nowadays. Used to be much more limited.