McLaren Finance Questions.

[LaurasOtherHalf]

petjam said:

I thought on a lease purchase you had to pay the GFV to keep it at the end of the term. Is that not how it works?

It was my understanding you had to pay the “balloon” no matter what on a Lease Purchase (not GFV as it’s known on a PCP).

So if it’s worth less than the balloon, tough luck-you need to pony up the balloon or at least sell the car and pony up any difference that’s left.

There is no hand it back and walk away option.

[petjam]

The cheap lease deals on these were hand it back at the end. The finance was all underwritten by Santander, on mine GFV was £167k.

I don't know how lease works at the end whether you even get the option.

[Crazy4557]

These deals, I believe, were all PCP based rather than lease with differing GFV's. Mine has a GFV that in todays market will give me some return if I bought it and sold on but then what could you ever replace it with at this price point.

[Fezzamania]

The cheap monthly payments with min deposit will have GFVs in excess of the cars current retail value so in all reality will be handed back.

If you put in a bigger deposit you may have some equity but TBH would of lost more money in effect than those just walking away.

Values have bounced back from the low point of £130k but there are simply way too many cars for
a niche product for residuals to remain strong

[petjam]

Crazy4557 said:

These deals, I believe, were all PCP based rather than lease with differing GFV's. Mine has a GFV that in todays market will give me some return if I bought it and sold on but then what could you ever replace it with at this price point.

I think they were all lease, mine certainly was.

[Fezzamania]

If they are not PCP with a GFV ( which i was led to believe was the case ) there are going to be some huge balloon payments required with even the car sale leaving a shortfall that the owner is responsible for.
Ouch !
They will also struggle to refinance them without a large deposit so getting out now at a high would be the best outcome rather than running the term.

Mclaren or whoever financed them set the GFVs way too high with no chance of leaving enough equity to get into another new car.
If all these cars get handed back I wonder who will be underwriting the losses.

[Crazy4557]

Fezzamania said:

The cheap monthly payments with min deposit will have GFVs in excess of the cars current retail value so in all reality will be handed back.



Values have bounced back from the low point of £130k but there are simply way too many cars for
a niche product for residuals to remain strong

Compared to what other similar car, how many 458/488 Spiders/Performante's are there compared to a 600LT Spider? It's all about demand at the time they hit the market and in the current market then I don't think there will be a glut, I am quite certain most will be snapped up.
They are by far the best car available at that price point for driving if not polishing.

[Fezzamania]

Crazy4557 said:

Compared to what other similar car, how many 458/488 Spiders/Performante's are there compared to a 600LT Spider? It's all about demand at the time they hit the market and in the current market then I don't think there will be a glut, I am quite certain most will be snapped up.
They are by far the best car available at that price point for driving if not polishing.

Agree its a great car at yesterday's prices but if you paid list, holy st batman you have done £100k.

Its a niche product and LTs cant be compared to regular production cars really.
For the brand and demand Mclaren built too many and didnt limit the volumes which is such a shame as if they had built 1500 worldwide instead of 3500 they would have held their value better.

All that said its worth what its worth and better than a 458/488 IMHO

[Sarnie]

petjam said:

I think they were all lease, mine certainly was.

No, they are PCP deals, hence the ability to walk away.......

[Streetbeat]

Seems to be a few lt owners commenting obviously, so whats your plans gents, hand back, re finance or other?

[tyrrell]

I know of a car that’s just gone back to a McLaren dealer a few months early, the owner came away with about £7k of equity after Santander paid off.

[Backagain]

It’s the eternal renter conundrum. McLaren would rather you didn’t buy at the end of the agreement. They would rather you re rent. If you can’t afford the car ( buy outright ) it’s far more profitable for McLaren to keep reeling you in on a rental.

[kingkelly]

Im 5months off my 3 year deal on a 570s ending on a PCP with McLaren finance. Does anyone have any experience with ending a deal early with them? Im keen to get into a 720s and have a deposit ready to go, so wondered if its worth calling them and seeing if theyd be up for taking the car back early if it was to do anther deal with them on the 720s?

Obviously want to avoid having to pay silly money to end it, i might as well wait the 5months and cough up the remaining monthly payments. Car is 11k miles under what was in the agreement and in immaculate condition.

Worth calling them? Anyone with similar experience?

Cheers

[Sarnie]

kingkelly said:

Im 5months off my 3 year deal on a 570s ending on a PCP with McLaren finance. Does anyone have any experience with ending a deal early with them? Im keen to get into a 720s and have a deposit ready to go, so wondered if its worth calling them and seeing if theyd be up for taking the car back early if it was to do anther deal with them on the 720s?

Obviously want to avoid having to pay silly money to end it, i might as well wait the 5months and cough up the remaining monthly payments. Car is 11k miles under what was in the agreement and in immaculate condition.

Worth calling them? Anyone with similar experience?

Cheers

Just sell it privately.......

[andymc]

I'm browsing cars on Autotrader and it's saying PCP not available?

[macdeb]

Backagain said:

It’s the eternal renter conundrum. McLaren would rather you didn’t buy at the end of the agreement. They would rather you re rent. If you can’t afford the car ( buy outright ) it’s far more profitable for McLaren to keep reeling you in on a rental.

As with every other car maker as you're just paying the depreciation whilst parked on the drive.

[Crazy4557]

kingkelly said:

Im 5months off my 3 year deal on a 570s ending on a PCP with McLaren finance. Does anyone have any experience with ending a deal early with them? Im keen to get into a 720s and have a deposit ready to go, so wondered if its worth calling them and seeing if theyd be up for taking the car back early if it was to do anther deal with them on the 720s?

Obviously want to avoid having to pay silly money to end it, i might as well wait the 5months and cough up the remaining monthly payments. Car is 11k miles under what was in the agreement and in immaculate condition.

Worth calling them? Anyone with similar experience?

Cheers

I called up Santander in August and was given a settlement figure with no mention of penalties just the amount owed up to the day and didn't seem loaded compared to the monthlies outstanding until; the agreement ended.
I say give them a call and see what they say

[Puzzles]

How are people financing used McLarens? I'm really tempted to pick up one of these 600lts.

Edited by Puzzles on Saturday 2nd October 22:21

[kingkelly]

Puzzles, at the moment the finance deals arent great. The finance companies have removed a lot of risk by offering really low GFVs at the end of the contract.

I've got a 720s spider 2020 plate and by June 2024 with just over 17k miles they are saying GFV of £98k. If you can buy that car for 98k in 3years i dread to think what price 570s, 600LTs will be.

A few years ago they had some cracking deals on PCP for 600LT spiders, small deposit and about £1k a month. Sadly not anymore.

[andrew]

kingkelly said:

Puzzles, at the moment the finance deals arent great. The finance companies have removed a lot of risk by offering really low GFVs at the end of the contract.

I've got a 720s spider 2020 plate and by June 2024 with just over 17k miles they are saying GFV of £98k. If you can buy that car for 98k in 3years i dread to think what price 570s, 600LTs will be.

A few years ago they had some cracking deals on PCP for 600LT spiders, small deposit and about £1k a month. Sadly not anymore.

the new car deals a few years ago were disguised list price discounts
this post will make for interesting reading in three years' time