Thoughts on this lease quote please?

[belfry]

New Vantage 8 speed auto

Model Vantage Auto
On the road cash price^ £124,900.00
Term of Agreement 36 Months
35 monthly payments of £1,099.00
Customer Deposit £12,000.00
Aston Martin Contribution‡ £8,000.00
Retailer Contribution‡ £14,927.61
Total deposit £34,927.61
Amount of Credit £89,972.39
Representative APR 6.50%
Optional final payments** £66,347.08
Option to purchase fee*** £0.00
Total amount payable £139,739.69
Rate of interest 6.5% APR (Fixed)
Excess mileage charge 31.75p per mile (ex. VAT)
Maximum Annual Mileage 6,000
Total charge for credit £14,839.69

[abzmike]

That’s a PCP not a lease isn’t it?
6.5% looks on the high side to me.

[Aldhun]

My local AMD has sent me the same offer.

If they offered sensible interest rates it might make some sense but the AM and AMD deposits are offest by crazy interest rates

[Jon39]

Aldhun said:

If they offered sensible interest rates it might make some sense but the AM and AMD deposits are offest by crazy interest rates

Don't feel to bad about that interest rate.
Aston Martin are paying a far higher rate than that, for their own borrowings.

[Djit]

December 2019 was £1000 down and £1000 per month. It was too good an offer that backfired on AML and resulted in a massive (marketing bonus payments) hole in the end of year accounts, and will continue to have repercussions for some time for Vantage values (today’s discount being tomorrow’s depreciation...). The winners were those lucky enough to bag a car. However it’s a great benchmark. This deal looks £11k richer on the face of it. I think a sensible deal is somewhere in between. IMHO.

[belfry]

The £66k optional final payment was interesting. Is the effectively the GFV figure?

It’s odd that Aston provide these interest rates at a time of super low rates and to a sophisticated customer base.

[Dicko_4]

I've been keeping an eye on new Vantage deals. Which dealer offered this please? Was the car a stock car? If so was it reduced to £124,900 before dealer contribution etc?

Thanks

John

[cayman-black]

Djit said:

December 2019 was £1000 down and £1000 per month. It was too good an offer that backfired on AML and resulted in a massive (marketing bonus payments) hole in the end of year accounts, and will continue to have repercussions for some time for Vantage values (today’s discount being tomorrow’s depreciation...). The winners were those lucky enough to bag a car. However it’s a great benchmark. This deal looks £11k richer on the face of it. I think a sensible deal is somewhere in between. IMHO.

This was the only worthwhile deal.

[Robert-q32ja]

Hope AML arent stocking up on unsold cars again!

£50,465 for 3 years is cost (assuming you dont exceed mileage). There are lease threads on here that quantity good pcp deals and 50/125 or 40% sounds poor value. But it is an AMV and when has value ever appeared in the owning experience!

Much lower GFV than the Dec19 deal (but car would be 3 years old not 2). Think most Dec19 deals were £24-26k and CFV over £90k!

There is a brand new one (privately owned) for sale for £111k (with the round steering wheel) and many 2 plus year olds for £80-90k in the dealer network - many have been around a while now.

Feels expensive is my thought.

If I was buying one now I would use £111k (might take decent reduction as it has been for sale for a couple of week) of cash lying about (or borrow against mortgage for 2%) and get the private one (dark blue is a fabulous colour on the new AMV) or get a 2 year old one.

[Big Ry]

FWIW, I would NEVER borrow against my house to buy a depreciating asset, that's the route to misery in my book.......which I suspect a number of people have found out over the past 12 months.

Each to their own of course

When it comes to Vantage deals, whilst I know they need to sell new cars in order for used cars to exist, I must admit I'd find it very hard to buy any new AML at the moment, as the kick in the balls they all take on day one is too much to make any financial sense in my book, unless you can of course negotiate a really really good deal.

The £1k / £1k deal was a cracker though, and made sense as the overall cost of custodianship seemed very reasonable.

[Dewi 2]

Robert-q32ja said:

£50,465 for 3 years is cost (assuming you dont exceed mileage). There are lease threads on here that quantify good pcp deals and 50/125 or 40% sounds poor value.

Much lower GFV than the Dec19 deal (but car would be 3 years old not 2). Think most Dec19 deals were £24-26k and CFV over £90k!

Although I have never used PCP, the various figures are fascinating.
The bargain PCP deals in November/December 2019, did reveal using that PCP, cost the user considerably less than the depreciation suffered by an outright owner over the same period.

I am learning the jargon now.

50/125 (40% 3 years)
24/90 ..(27% 2 years)

When I bought my car it had a new list of £101k and was retailed at just under 3 years old for £58k.
I guess the trade-in (actual value) would have been maybe £50k
Therefore for the first owner in PCP language

51/101 (50% 3 years)

For me though it then becomes roughly;

23/58 (40% 9 years)

I am happy with that.
Proof once again, that buying at 2 or 3 years old, is perhaps a financial ideal.

Edited by Dewi 2 on Wednesday 3rd March 12:44

[belfry]

I own my DB7 and DB9 but I cannot imagine that I will want to actually own a new AM Vantage in the next 5 years. This is why I was looking at lease deals. It seems more financially prudent to lease the vehicle over 3 years at a cost of £50k rather than buying the car outright and the difference between the suggested purchase price and the suggested future value (125-66 = £59k).

[macdeb]

Not sure if I'm reading this right and apologies if so as I mean no offence but, are people saying it's acceptable to lease a car for 3 years at a cost of £50k?

Edited by macdeb on Wednesday 3rd March 20:40

[Phil74891]

macdeb said:

Not sure if I'm reading this right and apologies if so as I mean no offence but, are people saying it's acceptable to lease a car for 3 years at a cost of £50k?

Edited by macdeb on Wednesday 3rd March 20:40

I’m no expert but in very simple terms, using this example, you’re 9k better off by leasing it for three years, rather than buying it outright and selling after the same period. You’re basically amortizing the depreciation over that period. You also have the opportunity to do something else with the cash - if you have it.

Not something I would do, but I’ve always saved up, paid cash, bought nearly new and kept cars for a long time.

It makes sense (I think) if you like to enjoy a new car every three years.

[KevinBird]

Think of it as a purchase with phased payments and a guaranteed buy back figure at the end of the period. Fixed cost, risk free funding, what’s not to like?

Also you can settle at anytime with minimal penalties

I’ve used PCP (it’s actually an HP derivative) on some of my fun and all of my daily cars for years, highly recommended

Edited by KevinBird on Thursday 4th March 09:02

[EC2]

belfry said:

I own my DB7 and DB9 but I cannot imagine that I will want to actually own a new AM Vantage in the next 5 years. This is why I was looking at lease deals. It seems more financially prudent to lease the vehicle over 3 years at a cost of £50k rather than buying the car outright and the difference between the suggested purchase price and the suggested future value (125-66 = £59k).

But the new price is not £125k, it’s £102k in your forecast so just take the finance deal and pay it off after a few weeks.

[Jon39]

When Aston Martin chuck in £35 million, to shift stock stock - go for it.

Otherwise, be very wary of PPD schemes (peddlers promoting debt).

Is that sound advice ?

[Minglar]

Jon39 said:

When Aston Martin chuck in £35 million, to shift stock stock - go for it.

Otherwise, be very wary of PPD schemes (peddlers promoting debt).

Is that sound advice ?

To most of the older posters on here it probably is Jon (me included). I haven’t used a PCP for a car since 2005, but that’s my personal choice. All my cars are paid for and are slowly depreciating. What you have to remember is that a lot of youngsters nowadays don’t really have much interest in cars, particularly expensive sports cars. The few that do see a car as a disposable asset that they are happy to fund on a monthly basis. Just look at the vloggers etc (although I acknowledge they do get some freebies) But it is just a different mindset to how we feel. It is another monthly outgoing along with the mortgage or the rent, the mobile phone, etc etc. The same sort of people probably don’t save very much or contribute to their pensions. I’m not saying it’s right or wrong, but imho I think it’s how the younger generation currently thinks. Surely it’s a rare beast that walks in to an AM dealer and pays list in cash for a new car now? I did exactly that in 2007, but how many on here would consider paying list price for a new AM now, after seeing what has happened in the last eighteen months or so? To attract the new younger buyers they harp on about so often, AM have to offer this type of deal. I know you hate PCPs and have been vocal on the subject in the past but as with most things car related, times are changing, even though these sorts of deals have been around for a long time. Whether it’s sensible or not depends on each individuals personal circumstances, and everyone has their own attitude to risk, leverage, and indebtedness. Simple as that really.

Best Regards

Minglar

Edited by Minglar on Thursday 4th March 11:44

[RMDB9]

I would not see the need to PCP a future heirloom.

Is the new Vantage a future heirloom?

Or some thing you would like to replace with its facelift (a few more horsepowerings, stiffer suspension, weird special edition "launch colour") in 3 years down the line?

[Jon39]

RMDB9 said:

I would not see the need to PCP a future heirloom.

Is the new Vantage a future heirloom?

Or some thing you would like to replace with its facelift (a few more horsepowerings, stiffer suspension, weird special edition "launch colour") in 3 years down the line?

I think you are speaking with coded language.