Re : Toyota GR Yaris - official!
Discussion
Toltec said:
If you could buy outright then minimal deposit, I noticed you could set it at £1, with max GFV keeps more of your capital where you can try and earn some money on it.
That would be the way to do it if you could afford the monthly payments - a cash ISA comes to mind, which may be the only sure way to protect your 'capital'.Either way leveraging the 0% deal may be the way forward to maximise your cash flow.
IMO, it simply doesn't make sense to make an outright purchase when 0% deals are available.
There are two different approaches to maximising the 0% deal, depending on what you mean by “maximising”. Assuming you’re going to pay off the GFV at the end of the PCP period, anyway.
Approach 1 is have the highest GFV. That way you defer paying money for as long as possible which means you’re maximising your borrowing (as you still have the money) *but* you have the largest GFV to pay at the end which—if you don’t have the cash—you’ll have to take out another loan for. That loan won’t be at 0% so this approach may cost more overall by the time you’ve paid off the car.
Approach 2 is to have the lowest GFV. That way you’re paying the most money off which isn’t maximising your borrowing as you’re paying more of your money to Toyota sooner. However, at the end of the period the GFV you need to pay is lower which means subsequent loan costs will be reduced, so this may cost less overall.
Ultimately if you’re going to pay the GFV off with cash then approach 1 makes the most sense; if you’re going to pay it off with a second loan then approach 2 is better. In either case, paying as small a deposit as possible with higher monthly payments is more efficient use of your money.
This assumes that inflation is positive and/or that you make interest on money you have, otherwise the whole point is essentially moot.
To illustrate let’s assume you have £30k on finance. Say you choose approach 1 and your GFV is £18k then at the end of two years you still have the most money in your pocket (£18k) but if you have to pay this off with a loan at, say, 3% over 3 years then you’d pay £850 in interest on that loan. If you chose approach 2 and your GFV is £12k then you have the least money in your pocket (£12k) but if you paid it off with a loan at 3% over 2 years for similar monthly payments the you’d only pay £340 in interest.
Approach 1 is have the highest GFV. That way you defer paying money for as long as possible which means you’re maximising your borrowing (as you still have the money) *but* you have the largest GFV to pay at the end which—if you don’t have the cash—you’ll have to take out another loan for. That loan won’t be at 0% so this approach may cost more overall by the time you’ve paid off the car.
Approach 2 is to have the lowest GFV. That way you’re paying the most money off which isn’t maximising your borrowing as you’re paying more of your money to Toyota sooner. However, at the end of the period the GFV you need to pay is lower which means subsequent loan costs will be reduced, so this may cost less overall.
Ultimately if you’re going to pay the GFV off with cash then approach 1 makes the most sense; if you’re going to pay it off with a second loan then approach 2 is better. In either case, paying as small a deposit as possible with higher monthly payments is more efficient use of your money.
This assumes that inflation is positive and/or that you make interest on money you have, otherwise the whole point is essentially moot.
To illustrate let’s assume you have £30k on finance. Say you choose approach 1 and your GFV is £18k then at the end of two years you still have the most money in your pocket (£18k) but if you have to pay this off with a loan at, say, 3% over 3 years then you’d pay £850 in interest on that loan. If you chose approach 2 and your GFV is £12k then you have the least money in your pocket (£12k) but if you paid it off with a loan at 3% over 2 years for similar monthly payments the you’d only pay £340 in interest.
Edited by gr-eg on Saturday 4th July 05:09
Inflation means you want your own outgoings to be delayed as much as possible - the ideal is as small a deposit as possible, monthly payments as low as possible, and the highest GFV.
That way, when you come to pay the GFV it will be worth 'less' due to the effects of inflation, and as it's a percentage you want the portion of the value that is reduced by inflation to be as big as possible.
You can also then have the money work for you in the meantime via other investments, further offsetiing
That way, when you come to pay the GFV it will be worth 'less' due to the effects of inflation, and as it's a percentage you want the portion of the value that is reduced by inflation to be as big as possible.
You can also then have the money work for you in the meantime via other investments, further offsetiing
Boxhiller said:
Me too. .....and mine's never going anywhere near a circuit so no Circuit Pack for me. 
Ideal way would be to decide based on use case + test drive + ownership duration. If it's any good (little doubt in that), ours might well be a 10y+ keeper so plenty of time to tweak to taste. On the other hand, the pack is decent value. €4.5k for the diffs, slightly lighter wheels (still the wrong colour and would need a paint job right away), and very good (but also very sticky) tyres. I'm a bit torn actually. Boxhiller said:
shoestring7 said:
I"m old, so can no longer be arsed with hard suspension on the crappy roads that we have to drive on in the UK..
Me too. .....and mine's never going anywhere near a circuit so no Circuit Pack for me.
Beefstah said:
Inflation means you want your own outgoings to be delayed as much as possible - the ideal is as small a deposit as possible, monthly payments as low as possible, and the highest GFV.
That way, when you come to pay the GFV it will be worth 'less' due to the effects of inflation, and as it's a percentage you want the portion of the value that is reduced by inflation to be as big as possible.
You can also then have the money work for you in the meantime via other investments, further offsetiing
what's inflation?That way, when you come to pay the GFV it will be worth 'less' due to the effects of inflation, and as it's a percentage you want the portion of the value that is reduced by inflation to be as big as possible.
You can also then have the money work for you in the meantime via other investments, further offsetiing
Leon R said:
Put my deposit down today. They say september for the first ones to test drive.
It's all very vague from dealer to dealer it seems, I emailed mine Friday after reading about a brochure in this thread and to also ask about delivery dates, told no brochures and no word on delivery dates, yet a lad on the Focus RS site put a deposit down yesterday and was told January next year before he,d see a car, God I'd wish they all had the same song sheet!!!kentbloke said:
It's all very vague from dealer to dealer it seems, I emailed mine Friday after reading about a brochure in this thread and to also ask about delivery dates, told no brochures and no word on delivery dates, yet a lad on the Focus RS site put a deposit down yesterday and was told January next year before he,d see a car, God I'd wish they all had the same song sheet!!!
I was told by Toyota last week that dealers will have demo's from October and all orders will be delivered at the same time noone will have the car weeks/months before anyone else and that this will likely be Jan next year.Boxhiller said:
shoestring7 said:
I"m old, so can no longer be arsed with hard suspension on the crappy roads that we have to drive on in the UK..
Me too. .....and mine's never going anywhere near a circuit so no Circuit Pack for me.
The minor controls had a cheap nasty feel too, but I guess that’s only to be expected.
Save Ferris said:
I’d say they do, but some dealers are making educated guesses, or reading between the lines, based on their experience of working with Toyota.
Yeah point taken, I've delt with some salesman/dealerships in the past that are actually "car" people and have their finger on the pulse of their products.kentbloke said:
Yeah point taken, I've delt with some salesman/dealerships in the past that are actually "car" people and have their finger on the pulse of their products.
I’m back at work tomorrow, off furlough. So I’ll find out the latest, and update here with an concrete information, and perhaps a little guesswork!shoestring7 said:
I’ll put money down subject to a test drive. I sat in a vanilla Yaris; driving position was hopeless for my 6’1”; the seat was too high and the wheel didn’t extend close enough. As a result my knee banged on the rim when I lifted it off the clutch and h&t not really possible. I hope the GR4 is different or that’s me oot.
The minor controls had a cheap nasty feel too, but I guess that’s only to be expected.
That is likely to be a key decider for me as well, it is why I didn't buy an mx5 and mk3 mr2. The minor controls had a cheap nasty feel too, but I guess that’s only to be expected.
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