McLaren Finance Questions.
Discussion
fridaypassion said:
One in the same thing to the finance co. A lot of the 570s will be in negative equity when handed back at the end of an agreement too which is a double blow for them. Most will be rolled into another deal before the end of the term so these finance companies offer GTV but don't really expect the cars back. If you had a 100k GTV on a 2017 570 it's probably 70 to 80k trade now so bad news for the underwriters. Obviously McLaren....ahem changed finance providers earlier this year.
They are not one and the same thing.I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
BlackR8 said:
I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
It's about getting into a brand new car and having exact known costs.........anyone thats bought a new McLaren and kept it if for more than two years is likely to have lost more than £40k-£60k..........Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
Sarnie said:
BlackR8 said:
I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
It's about getting into a brand new car and having exact known costs.........anyone thats bought a new McLaren and kept it if for more than two years is likely to have lost more than £40k-£60k..........Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
For me, I do struggle with having to hand over a sizeable deposit with no chance of getting any of it back. I’m looking reduce the upfront amount as much as possible
BlackR8 said:
I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
My total cost for the 600LTS is going to be circa 44k over 2 years, my current 570 spider has lost at least 70k in 20 months plus I still have the added hassle of selling it before the LTS arrives. On top of this I will be able to do double the mileage that I have done in my 570.Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
Yes 40+k is a fair whack but being able to own these kind of cars with very low depreciation was just a short term blip, we are back to normal market conditions now.
5050 said:
My total cost for the 600LTS is going to be circa 44k over 2 years, my current 570 spider has lost at least 70k in 20 months plus I still have the added hassle of selling it before the LTS arrives. On top of this I will be able to do double the mileage that I have done in my 570.
Yes 40+k is a fair whack but being able to own these kind of cars with very low depreciation was just a short term blip, we are back to normal market conditions now.
Looking at this the market seems quite strange in some places, that’s about £60k over list Yes 40+k is a fair whack but being able to own these kind of cars with very low depreciation was just a short term blip, we are back to normal market conditions now.
Surely you should be able to construct an even better deal on a car like this, Its as new so unless Mclaren are stomaching the GFV then this should be cheaper on a pro rata basis???
Edited by Juno on Monday 16th December 19:29
5050 said:
BlackR8 said:
I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
My total cost for the 600LTS is going to be circa 44k over 2 years, my current 570 spider has lost at least 70k in 20 months plus I still have the added hassle of selling it before the LTS arrives. On top of this I will be able to do double the mileage that I have done in my 570.Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
Yes 40+k is a fair whack but being able to own these kind of cars with very low depreciation was just a short term blip, we are back to normal market conditions now.
5050 said:
My total cost for the 600LTS is going to be circa 44k over 2 years, my current 570 spider has lost at least 70k in 20 months plus I still have the added hassle of selling it before the LTS arrives. On top of this I will be able to do double the mileage that I have done in my 570.
Yes 40+k is a fair whack but being able to own these kind of cars with very low depreciation was just a short term blip, we are back to normal market conditions now.
Couldn't you have traded in the 570 spider when you bought the 600?Yes 40+k is a fair whack but being able to own these kind of cars with very low depreciation was just a short term blip, we are back to normal market conditions now.
BlackR8 said:
I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
tbh, probably the most sensible post hereaboutsWouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
one principle of leasing is to move metal by hooking lessees onto short replacement cycles, hence the attractive initial deals
it can also be used to delay a company's woes by moving them years into the future ( ie at the point where the cars not surprisingly aren't worth their balloons )
hth !
andrew said:
BlackR8 said:
I am not familiar with the PCP world, but looking at the numbers whilst they seem attractive on a per month basis, depending on what deal is being quoted you are still sinking £40k-£60k on a car for 2 years and then having to hand the keys back. I might be out of touch but that still a fair whack to 'lose' on a car in 24 months.
Wouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
tbh, probably the most sensible post hereaboutsWouldn't it be better just to buy a lightly used one which whilst not certain I can't see losing that sort of money over 2 years?
one principle of leasing is to move metal by hooking lessees onto short replacement cycles, hence the attractive initial deals
it can also be used to delay a company's woes by moving them years into the future ( ie at the point where the cars not surprisingly aren't worth their balloons )
hth !
Juno said:
The one above is up at £179k and I'm sure with your wallet open at this time of the year it would come at say £165-170k,I don't think that would hit you anywhere near as hard and you can do what miles you like without penalty at the end
I spotted that stunning 600LT spyder a week ago..If i hadn't just bought an RS i'd have bought that car especially with a further £5k to £10K off..Even as it is its a massive £60K less than the Nardo RS..Taffy66 said:
Juno said:
The one above is up at £179k and I'm sure with your wallet open at this time of the year it would come at say £165-170k,I don't think that would hit you anywhere near as hard and you can do what miles you like without penalty at the end
I spotted that stunning 600LT spyder a week ago..If i hadn't just bought an RS i'd have bought that car especially with a further £5k to £10K off..Even as it is its a massive £60K less than the Nardo RS..Juno said:
Looking at this the market seems quite strange in some places, that’s about £60k over list
Surely you should be able to construct an even better deal on a car like this, Its as new so unless Mclaren are stomaching the GFV then this should be cheaper on a pro rata basis???
I see your point but the discounted price on my factory build is not much more than that (185k) so a circa 35k discount. I doubt the numbers would be much different Surely you should be able to construct an even better deal on a car like this, Its as new so unless Mclaren are stomaching the GFV then this should be cheaper on a pro rata basis???
Edited by Juno on Monday 16th December 19:29
Juno said:
Looking at this the market seems quite strange in some places, that’s about £60k over list
Surely you should be able to construct an even better deal on a car like this, Its as new so unless Mclaren are stomaching the GFV then this should be cheaper on a pro rata basis???
Wow! Surely you should be able to construct an even better deal on a car like this, Its as new so unless Mclaren are stomaching the GFV then this should be cheaper on a pro rata basis???
Edited by Juno on Monday 16th December 19:29
You don't happen to know anyone with a GT3RS do you?
Sarnie said:
They are not one and the same thing.
I think we are both right. I understand that they are two different things but both are not great options for the underwriters. A VT at least there will be some set fees. A hand back is really not what they want you to do. Many maccas out there on potentially negative GFVs they aren't going to be writing Christmas cards to people handing 10 or 20k of neg back. In most circumstances with other manufacturers/ providers the GFV is set very low but however they did it the McLaren ones were very optimistic. They will cover the interest with the monthlies but there must be a bit of a hole in those accounts somewhere on some of the deals they have done.
I have been advised in my professional capacity that finance companies don't like end of term handbacks even without negative equity it's one of those things that's an option but perhaps one they really don't want you using. Finance companies aren't car dealers so a car to them just then becomes a headache to turn back into cash. Given that dealers are well stocked terminated cars will probably end up at auctions which are rarely kind to cars in this sector. You can see how they wouldn't exactly welcome the two or 3 year rental. I would still think handing back is rare as it's easier to roll the problems into another deal. It will be interesting to see if the FCA start to prevent that kind of thing as they look to start reining in car finance supposedly next year.
fridaypassion said:
I think we are both right. I understand that they are two different things but both are not great options for the underwriters. A VT at least there will be some set fees. A hand back is really not what they want you to do. Many maccas out there on potentially negative GFVs they aren't going to be writing Christmas cards to people handing 10 or 20k of neg back.
In most circumstances with other manufacturers/ providers the GFV is set very low but however they did it the McLaren ones were very optimistic. They will cover the interest with the monthlies but there must be a bit of a hole in those accounts somewhere on some of the deals they have done.
I have been advised in my professional capacity that finance companies don't like end of term handbacks even without negative equity it's one of those things that's an option but perhaps one they really don't want you using. Finance companies aren't car dealers so a car to them just then becomes a headache to turn back into cash. Given that dealers are well stocked terminated cars will probably end up at auctions which are rarely kind to cars in this sector. You can see how they wouldn't exactly welcome the two or 3 year rental. I would still think handing back is rare as it's easier to roll the problems into another deal. It will be interesting to see if the FCA start to prevent that kind of thing as they look to start reining in car finance supposedly next year.
My point was that you were saying that they were one and the same thing, which they aren't.........and that you would then be negatively treated if you wanted another agreement with that provider.In most circumstances with other manufacturers/ providers the GFV is set very low but however they did it the McLaren ones were very optimistic. They will cover the interest with the monthlies but there must be a bit of a hole in those accounts somewhere on some of the deals they have done.
I have been advised in my professional capacity that finance companies don't like end of term handbacks even without negative equity it's one of those things that's an option but perhaps one they really don't want you using. Finance companies aren't car dealers so a car to them just then becomes a headache to turn back into cash. Given that dealers are well stocked terminated cars will probably end up at auctions which are rarely kind to cars in this sector. You can see how they wouldn't exactly welcome the two or 3 year rental. I would still think handing back is rare as it's easier to roll the problems into another deal. It will be interesting to see if the FCA start to prevent that kind of thing as they look to start reining in car finance supposedly next year.
If you VT a car, you are exercising your right under the Consumer Credit act to terminate a credit agreement when you have paid half of the total amount due to be paid, including interest. Lenders naturally don't want you doing this but they can't stop it.
A GFV is a pre-agreed value determined by the finance company at the outset....they may prefer you to not hand the car back at the end but if it's in negative equity then it's their own calculations that are to blame, not the client.......therefore there would be no basis to treat that client negatively on any future agreements.
It's catch 22......if the providers didn't offer high GFV's then the PCP monthlies wouldn't look attractive.......McLaren are then the first ones to f*ck the market by overloading dealerships with unordered cars, discounting them heavily........cutting the thoats of current owners, the very ones they should be targeting to sell new models too......then they compound things by either refusing PX's or offering eye watering figures knowing that thats what they need to get the car for because they know what they are letting newer cars go out the door for.........sends the second hand market spiralling.......then they refuse to let an indy market grow to look after older cars.....hideous warranty costs...all means that the market for the older 12c's is f*cked also.........amateurs.
Shame, because the cars themselves are superb!
Sarnie said:
My point was that you were saying that they were one and the same thing, which they aren't.........and that you would then be negatively treated if you wanted another agreement with that provider.
If you VT a car, you are exercising your right under the Consumer Credit act to terminate a credit agreement when you have paid half of the total amount due to be paid, including interest. Lenders naturally don't want you doing this but they can't stop it.
A GFV is a pre-agreed value determined by the finance company at the outset....they may prefer you to not hand the car back at the end but if it's in negative equity then it's their own calculations that are to blame, not the client.......therefore there would be no basis to treat that client negatively on any future agreements.
It's catch 22......if the providers didn't offer high GFV's then the PCP monthlies wouldn't look attractive.......McLaren are then the first ones to f*ck the market by overloading dealerships with unordered cars, discounting them heavily........cutting the thoats of current owners, the very ones they should be targeting to sell new models too......then they compound things by either refusing PX's or offering eye watering figures knowing that thats what they need to get the car for because they know what they are letting newer cars go out the door for.........sends the second hand market spiralling.......then they refuse to let an indy market grow to look after older cars.....hideous warranty costs...all means that the market for the older 12c's is f*cked also.........amateurs.
Shame, because the cars themselves are superb!
Sarnie, I have to agree with all of the above. If you VT a car, you are exercising your right under the Consumer Credit act to terminate a credit agreement when you have paid half of the total amount due to be paid, including interest. Lenders naturally don't want you doing this but they can't stop it.
A GFV is a pre-agreed value determined by the finance company at the outset....they may prefer you to not hand the car back at the end but if it's in negative equity then it's their own calculations that are to blame, not the client.......therefore there would be no basis to treat that client negatively on any future agreements.
It's catch 22......if the providers didn't offer high GFV's then the PCP monthlies wouldn't look attractive.......McLaren are then the first ones to f*ck the market by overloading dealerships with unordered cars, discounting them heavily........cutting the thoats of current owners, the very ones they should be targeting to sell new models too......then they compound things by either refusing PX's or offering eye watering figures knowing that thats what they need to get the car for because they know what they are letting newer cars go out the door for.........sends the second hand market spiralling.......then they refuse to let an indy market grow to look after older cars.....hideous warranty costs...all means that the market for the older 12c's is f*cked also.........amateurs.
Shame, because the cars themselves are superb!
The worrying thing now is if McLaren start offering these very attractive pcp deals on new cars it’s only going to make selling a used Mclaren’s even harder. They are in a difficult situation as they can’t give a existing customers strong px values and then heavily discount a new car in the deal.
If Mclaren become more aggressive with their pcp deals it’s only going to have a further effect on used values.
Is there any sign of Mclaren improving / supporting a independent next work yet?
Will / do Mclaren offer trade discount on parts to independent garages?
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