Discussion
I test drove a used 2007 model a few weeks back and asked for a finance quote. I was told an HP deal over 48 months with a £10k deposit would be c£840 a month. I wanted to do lease purchase with balloon to get the monthlies down. I have c£10k deposit with c£600 a month to spend but i was told they can't do lease purchase with balloon on a car that age.
Anyone else done lease purchase with balloon on an approved used? whats the deal here? i didnt realise you couldnt do lease purchase on used over 2 years old - i've always done lease purchase on my cars but never bought older than 2 years so never heard of this.
Whats the experience here?
Thanks
Anyone else done lease purchase with balloon on an approved used? whats the deal here? i didnt realise you couldnt do lease purchase on used over 2 years old - i've always done lease purchase on my cars but never bought older than 2 years so never heard of this.
Whats the experience here?
Thanks
Cash. yeah unfortunately i don't have £50k sitting around!
The balloon route is not a silly idea if you do it properly and know what you are buying / what finance you are signing up to. Or at least no more silly than buying a new vantage in cash and throwing £30k away in a year?? I went into my CSL with £4k deposit, £29k loan with £12,500 balloon over 4 years, worked out £475 a month. i'll walk with £10k when i sell in a few months. Now i could've saved for 2 years and driven a £4k fiesta instead, then ploughed my savings into a depreciating asset but what use is that? yes yes theres interest but it allows people with little capital to get straight into decent cars.
Anyway, having done some more research it appears the finance companies are forecasting the residuals on 2006 models to be £15,000 in 4 years time. Whether that is realistic or not is the chance you take. I happen to think its not a bad number, given the low number of vantages about they'll be relatively sort after at some point and i'd have thought they'd be higher than that. If i can sell a 6 year old CSL that was £60k new for £25k then you'd have thought an 8 year old v8 vantage would be worth more than £15k. Again, the right cars will stand you in good stead when it comes to future residuals.
The reality of the situation is that the finance companies have really toughened up on balloons because of the ridiculous deals some people were signing up to - and rightly so. I don't know, looks like i'll have to be without a car for a while once i've sold the CSL and then go in with a higher deposit to get the monthlies down. Or get a cheaper car. Balls.
The balloon route is not a silly idea if you do it properly and know what you are buying / what finance you are signing up to. Or at least no more silly than buying a new vantage in cash and throwing £30k away in a year?? I went into my CSL with £4k deposit, £29k loan with £12,500 balloon over 4 years, worked out £475 a month. i'll walk with £10k when i sell in a few months. Now i could've saved for 2 years and driven a £4k fiesta instead, then ploughed my savings into a depreciating asset but what use is that? yes yes theres interest but it allows people with little capital to get straight into decent cars.
Anyway, having done some more research it appears the finance companies are forecasting the residuals on 2006 models to be £15,000 in 4 years time. Whether that is realistic or not is the chance you take. I happen to think its not a bad number, given the low number of vantages about they'll be relatively sort after at some point and i'd have thought they'd be higher than that. If i can sell a 6 year old CSL that was £60k new for £25k then you'd have thought an 8 year old v8 vantage would be worth more than £15k. Again, the right cars will stand you in good stead when it comes to future residuals.
The reality of the situation is that the finance companies have really toughened up on balloons because of the ridiculous deals some people were signing up to - and rightly so. I don't know, looks like i'll have to be without a car for a while once i've sold the CSL and then go in with a higher deposit to get the monthlies down. Or get a cheaper car. Balls.
Edited by stevenleith on Saturday 9th January 10:29
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