Negotiating with a Ferrari Main dealer

Negotiating with a Ferrari Main dealer

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Francois de La Rochefoucauld

331 posts

43 months

Wednesday 8th July 2020
quotequote all
Ha! The yellow is an acquired taste, but in the flesh it did look fantastic! Car presents as new as well.

The test drive was about half and hour or so unaccompanied, salesmen was in a BMW in front leading the way. Very civilised way of doing it.

Coxey

183 posts

72 months

Sunday 20th September 2020
quotequote all
Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers

Saweep

5,835 posts

151 months

Sunday 20th September 2020
quotequote all
Is it your first Ferrari?

Ime they always try the high apr trick on first timers as they (probably rightly) think you’re so excited you’ll pay anything.

They will go lower when you point it out to them.

Ferruccio

1,507 posts

84 months

Sunday 20th September 2020
quotequote all
Coxey said:
Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers
Assuming you have some property equity, you can mortgage owner occupier residential at <2%.

R8Reece

1,123 posts

54 months

Sunday 20th September 2020
quotequote all
Coxey said:
Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers
Looks very high. Seen figures of 5/6% mentioned on here before.

LordOfTheManor

1,015 posts

76 months

Sunday 20th September 2020
quotequote all
Avoid the London dealership as they are too lazy and busy with the COVID thing !

Saweep

5,835 posts

151 months

Sunday 20th September 2020
quotequote all
LordOfTheManor said:
Avoid the London dealership as they are too lazy and busy with the COVID thing !
I think they opened about 2 months later than the mavericks here in the shires!

Sarnie

6,954 posts

174 months

Sunday 20th September 2020
quotequote all
Coxey said:
Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers
£60k down, £109k to finance at £804pm......and then in 36 months time, still £109k to pay??

Saweep

5,835 posts

151 months

Monday 21st September 2020
quotequote all
Sarnie said:
Coxey said:
Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers
£60k down, £109k to finance at £804pm......and then in 36 months time, still £109k to pay??
It's basically an interest only agreement.

The big question is will a dealer offer 109 for a 488 in 3 years?

you'd think the answer is yes...but these Ferrari agreements don't have guaranteed future values.

Durzel

9,778 posts

133 months

Monday 21st September 2020
quotequote all
It's painful when you see it spelled out like that.

£60k down, which just vanishes.

£28,947.96 / £804.11 per month to rent the car for 3 years, or £88,947.96 / £2,470.78 per month if you haven't got the £109k balloon payment at the end.

In the context of how much it would cost to hire a 488 it doesn't seem so bad, but at the same time it does expose just how much you're spending if you aren't buying outright and/or happy to get locked in to the PCP model.

I would not bet money on a Ferrari dealer offering £109k cash for the car in 3 years, though I don't imagine their offer would be considerably lower.

Francois de La Rochefoucauld

331 posts

43 months

Monday 21st September 2020
quotequote all
8.9% is way to much. I got 4.2% through Lombard.

I think FFS got down to circa 6% with very little effort on my part.

Cheib

20,272 posts

140 months

Tuesday 22nd September 2020
quotequote all
So it’s costing £60k + £29752.07 to run a 488 for 37 months ? Clearly the car might be worth more than £109k but it also might be worth less. It’s probably a £145k trade car right now so my guess is that’s about where it ends up.

Have to say I think that’s a very expensive way to run a car.

I’d wait a couple of months and see what manufacturers are willing to do to shift cars over winter. There were some very cheap lease deals around last year.

911Thrasher

2,566 posts

164 months

Tuesday 22nd September 2020
quotequote all
Cheib said:
So it’s costing £60k + £29752.07 to run a 488 for 37 months ? Clearly the car might be worth more than £109k but it also might be worth less. It’s probably a £145k trade car right now so my guess is that’s about where it ends up.

Have to say I think that’s a very expensive way to run a car.

I’d wait a couple of months and see what manufacturers are willing to do to shift cars over winter. There were some very cheap lease deals around last year.
BOOM £2,425 per month to be exact + insurance and servicing /fuel/consumables (i suppose)...expensive rental assuming it is 109k£ worth to the dealer at the end indeed!

i believe a lot of people indeed are getting them on finance but really are probably sacrificing so so much just to be seen driving a Ferrari or any other sports car.

Kyodo

668 posts

89 months

Tuesday 22nd September 2020
quotequote all
911Thrasher said:
I believe a lot of people indeed are getting them on finance but really are probably sacrificing so so much just to be seen driving a Ferrari or any other sports car.
This 100%. I know we all have our personal priorities but I think that if the numbers look even half scary then the answer is to buy an older Ferrari (or other marque) that you'll actually own and cherish.

Durzel

9,778 posts

133 months

Tuesday 22nd September 2020
quotequote all
The only way it feels palatable to me is if he buys the car at the end, because then his payments towards it haven't been for naught. That's not really the PCP way though, and - sad to say - it can be how some people get into cars they would have no hope of affording otherwise.

~£800 a month rental to be seen in a 488 doesn't seem so bad if you forget you just flushed £60k down the toilet.

(I know PCP works for people, and it can be more prudent than using capital, not making a judgement about finance as a vehicle)

Taffy66

4,463 posts

67 months

Tuesday 22nd September 2020
quotequote all
The problem with this finance is entirely to do with the very high 8.9% APR which accounts for the £28,974.96 charges..Everything else is irrelevant as it applies to buying it outright with cash..The APR needs to be around 6% APR at the most otherwise the interest is crippling..

footsoldier

1,907 posts

157 months

Tuesday 22nd September 2020
quotequote all
I know you can get sub 5% from FFS if they want to

Ferruccio

1,507 posts

84 months

Tuesday 22nd September 2020
quotequote all
And <2% secured on property.

Roof down

292 posts

91 months

Tuesday 22nd September 2020
quotequote all
Durzel said:
It's painful when you see it spelled out like that.

£60k down, which just vanishes.

£28,947.96 / £804.11 per month to rent the car for 3 years, or £88,947.96 / £2,470.78 per month if you haven't got the £109k balloon payment at the end.

In the context of how much it would cost to hire a 488 it doesn't seem so bad, but at the same time it does expose just how much you're spending if you aren't buying outright and/or happy to get locked in to the PCP model.

I would not bet money on a Ferrari dealer offering £109k cash for the car in 3 years, though I don't imagine their offer would be considerably lower.
I think looking at this it says to mind that if you cannot afford to buy it either out right, or in a straightforward way, such as 60 to 100 k down and straight simple hp then you cannot really afford it, or you should not buy such things full stop.
And I cannot afford it and certainly would not be happy with such a deal, its madness. just my thoughts.

Taffy66

4,463 posts

67 months

Tuesday 22nd September 2020
quotequote all
footsoldier said:
I know you can get sub 5% from FFS if they want to
I asked my dealer about the 5% APR through FFS and he said it only applied to GTC4 Lussos and subsided by Ferrari..

Edited by Taffy66 on Tuesday 22 September 16:41