McLaren Finance Questions.
Discussion
Fully agree sarnie it's my job I know what the differences are but what I'm trying to say is that whichever option you choose it's once in the same to the finance company in terms of the end result. You've handed the car back and they don't like it regardless of rights etc ive consistently been told this by several different reps that it's discouraged even if there is equity in the car as its a pain for them to deal with.
Under any normal circumstances if a customer came to me for example with a Lotus and they were looking to get out of it it's Christmas time for me as I have a motivated seller and probably will pay less for the stock. McLaren's are different because you can't really find anyone to buy them. It's interesting because there must be a good few people out there who will be better off handing cars back. I guess we will hear if they struggle to get the same terms on a new car later on.
Under any normal circumstances if a customer came to me for example with a Lotus and they were looking to get out of it it's Christmas time for me as I have a motivated seller and probably will pay less for the stock. McLaren's are different because you can't really find anyone to buy them. It's interesting because there must be a good few people out there who will be better off handing cars back. I guess we will hear if they struggle to get the same terms on a new car later on.
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!
And that's from a guy whom has been there and bought the t-shirt.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!
I would of guessed you would of been a prime candidate for a 600LT moving on from your current mac.
Its a poor show if Mac are currently offering 35k off 600lt spider list....where does that leave the early buyers from launch that would of managed minimal or no discount?
If they just realistically priced the cars from new rather than huge original price followed by offering eye watering discounts down the line, it would install more confidence and better p/x valuation which would therefore encourage repeat business.
With the factory having to keep producing, although probably slower than usual, the dealers are forced more or less to take their agreed wholesale stock. The dealers are financed to the max. Every unsold car in stock is theoretically a bag of cash sitting on site that they need to bank to pay the bills. The Dealer Principles and so on down the chain are being pushed hard by both the factory and their own head offices, and probably shouting for assistance from the factory. I should imagine dealer/factory/head office meetings are tense.
At this time a cashed up customer gets a good deal. However, a customer who can just about make the man maths work due to a tempting factory finance deal from McL may well be the one helping to refinance McLaren.
At this time a cashed up customer gets a good deal. However, a customer who can just about make the man maths work due to a tempting factory finance deal from McL may well be the one helping to refinance McLaren.
Am pretty sure this particular deal only applied to the very last few LT's they have wanted to move on - this is not for all cars and not for every single McLaren moving forward so a bit of an anomaly. It is no different to what Porsche have done at the end of a model cycle, even when they do a mid life update moving from a Gen 1 to a Gen 2 model or when moving to a new model altogether, eg. 991 to 992 most recently. They offered some blinding deals on late 991 cars to shift stock ahead of the 992 coming out.
With regards to GFV - I really don't see how a company can look at you negatively or try to refuse to take the car back if the car is in negative equity - you have a contract with them. They do their sums and calculations and aren't stupid, they are also making money off the interest form the credit they're lending you. This happens with a number of cars, not just McLarens - as an example, it's happened recently with my sisters Discovery Sport, when she spoke to the finance company about what to do, they even offered it to her at the market rate which was less than the GFV she had from the start of the term. In the end, she gave it back and has now taken out a new agreement with the same company - so she has not been blacklisted or having them refuse to deal with her again.
On another note, something I was thinking about this the other day; let's say the GFV was £120k and at the end of the term the car was worth £100k, could you say to the dealer/finance company, I'll give the car back but I'd be happy to buy it straight back off you at the £100k market value?
With regards to GFV - I really don't see how a company can look at you negatively or try to refuse to take the car back if the car is in negative equity - you have a contract with them. They do their sums and calculations and aren't stupid, they are also making money off the interest form the credit they're lending you. This happens with a number of cars, not just McLarens - as an example, it's happened recently with my sisters Discovery Sport, when she spoke to the finance company about what to do, they even offered it to her at the market rate which was less than the GFV she had from the start of the term. In the end, she gave it back and has now taken out a new agreement with the same company - so she has not been blacklisted or having them refuse to deal with her again.
On another note, something I was thinking about this the other day; let's say the GFV was £120k and at the end of the term the car was worth £100k, could you say to the dealer/finance company, I'll give the car back but I'd be happy to buy it straight back off you at the £100k market value?
Obafemi09 said:
With regards to GFV - I really don't see how a company can look at you negatively or try to refuse to take the car back if the car is in negative equity - you have a contract with them. They do their sums and calculations and aren't stupid, they are also making money off the interest form the credit they're lending you. This happens with a number of cars, not just McLarens - as an example, it's happened recently with my sisters Discovery Sport, when she spoke to the finance company about what to do, they even offered it to her at the market rate which was less than the GFV she had from the start of the term. In the end, she gave it back and has now taken out a new agreement with the same company - so she has not been blacklisted or having them refuse to deal with her again.
They can't because it's a GFV set by the finance company....which was my point above when Fridaypassion is telling people that they are one and the same thing, which they aren't. You can invoke your rights to VT a car, which naturally they don't want you to but you are legally able to do so, so yes if you did that I'd expect them to not look favourably on that client if you returned to them.......plenty of other providers available though!GT4RS said:
Sarnie, I have to agree with all of the above.
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?
Hopefully the prices do come down.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?
Then maybe people who aren't millionaires could buy one.
While I can't and probably wouldn't ever be able to afford a £180k car, I could possibly within the foreseeable future afford a £90k one.
Cars should not be bought as investments.
xjay1337 said:
Hopefully the prices do come down.
Then maybe people who aren't millionaires could buy one.
While I can't and probably wouldn't ever be able to afford a £180k car, I could possibly within the foreseeable future afford a £90k one.
Cars should not be bought as investments.
IMO I think this is probably the problem and why prices are falling as much as they are. In all honesty these cars should only be bought by millionaires (as they generally were up until c15 years ago) but the manufacturers realise its a numbers game and the only way they can keep production up is to incentivise with finance packages and balloon payments to make them appear more attainable.Then maybe people who aren't millionaires could buy one.
While I can't and probably wouldn't ever be able to afford a £180k car, I could possibly within the foreseeable future afford a £90k one.
Cars should not be bought as investments.
However you buy/rent it we know it’s going to cost a minimum £50k over 2 years, if not more- that’s close two £100k gross earnings to pay for a toy. This is no different to every council semi having a new 3 series/Audi/Merc on the drive. People kidding themselves they can afford a new premium car; only are a bigger scale. That said, if you are totally comfortable with the cost of renting I.e. you can afford to buy cash no problem but instead want the peace of mind of a GFV, then some of these figures look very attractive in that you already know what the worst case scenario is going to be.
Obafemi09 said:
On another note, something I was thinking about this the other day; let's say the GFV was £120k and at the end of the term the car was worth £100k, could you say to the dealer/finance company, I'll give the car back but I'd be happy to buy it straight back off you at the £100k market value?
This depends on the finance company and whether they have some sort of deal with the manufacturer. The PCP on my Tesla is up next May. There's no way it will be worth the GFV. I'd quite like to buy it back at market value but I'm told by other owners that the finance company (Alphera) won't negotiate. It's speculated that Tesla have underwritten the loss so no benefit to Alphera doing a deal.With regard to fridaypassion's arguments about handing back at the end of the term he's kinda missing that the whole point of a PCP is that you (and the finance company) assume you'll hand it back at the end of the term and that the finance company are assuming the risk for greater than expected depreciation.
I think I've finished banging my head on the table now lol. Finance companies are assuming that you will do another deal. Hardly and finance deals run their course. They aren't going to roll ot the red carpet after 2 years and lap up 10 of neg on a car. It's interesting to hear that Tesla are propping up the market in that way. Somehow I don't think McLaren are although done of tge GTVs I've seen I'm not so sure....
fridaypassion said:
I think I've finished banging my head on the table now lol. Finance companies are assuming that you will do another deal. Hardly and finance deals run their course. They aren't going to roll ot the red carpet after 2 years and lap up 10 of neg on a car. It's interesting to hear that Tesla are propping up the market in that way. Somehow I don't think McLaren are although done of tge GTVs I've seen I'm not so sure....
most lessors hate an early terminationbut, as you say, they do expect it
and they'd love the opportunity to get their money back on another deal with you
some companies still won't touch electric cars ( fears of knackered batteries knackering the rv ), hence tesla's troubles
fridaypassion said:
I think I've finished banging my head on the table now lol. Finance companies are assuming that you will do another deal. Hardly and finance deals run their course. They aren't going to roll ot the red carpet after 2 years and lap up 10 of neg on a car. It's interesting to hear that Tesla are propping up the market in that way. Somehow I don't think McLaren are although done of tge GTVs I've seen I'm not so sure....
Blimey you have been banging on here, giving your expert opinion, for the past 6? months about buying/not buying a Mac - enough - get one bought and enjoy yourself 
- life is too shortMatty3 said:
Blimey you have been banging on here, giving your expert opinion, for the past 6? months about buying/not buying a Mac - enough - get one bought and enjoy yourself - life is too short
Guilty as charged I can't deny. I was very close back in May. Manchester had an offer they didn't accept on that orange pre reg one. I think it sold in August. The market for them has mix a mix of fascination and horror this year for sure. I hope with a bit of political certainty the market will stabilise. My (1st world) problem is I have a few cars and not enough time to drive them as it is. Im just just setting off to buy another (classic) . At the moment I have a none depreciating little collection of stuff but admittedly the doors don't go up on any of them - life is too short as we are at the moment I would probably want to sell my Evora to make space for a 570 and I wouldn't really want to do that just right now. We will see. fridaypassion said:
Matty3 said:
Blimey you have been banging on here, giving your expert opinion, for the past 6? months about buying/not buying a Mac - enough - get one bought and enjoy yourself - life is too short
Guilty as charged I can't deny. I was very close back in May. Manchester had an offer they didn't accept on that orange pre reg one. I think it sold in August. The market for them has mix a mix of fascination and horror this year for sure. I hope with a bit of political certainty the market will stabilise. My (1st world) problem is I have a few cars and not enough time to drive them as it is. Im just just setting off to buy another (classic) . At the moment I have a none depreciating little collection of stuff but admittedly the doors don't go up on any of them - life is too short as we are at the moment I would probably want to sell my Evora to make space for a 570 and I wouldn't really want to do that just right now. We will see. - I know the market is still rather uncertain - who knows what will happen next year?
650spider said:
Juno said:
650spider said:
Wow!
You don't happen to know anyone with a GT3RS do you?
I think that Taffy bloke has one!You don't happen to know anyone with a GT3RS do you?
anyway both of us have a deep rooted interest in the Mclaren drive and performance on offer,were both car guys!The purpose of the post is factual,you need to take out the personal side of it
Quote the 179k 600LT should be cheaper pro rata, makes sense to me
Ans: No actually not the case because I’m getting a £35k discount off a new one, that clearly answers the question and clears up why the nearly new delivery miles car is not cheaper
Response to all cars are dropping in value is not true supported by a factual post, car sold over list, some still do!
It’s got nothing to do whether who owns one, just quoting the facts
The OP has pointed out during he debate why a new car might be cheaper
Edited by Juno on Wednesday 18th December 16:07
Bit of a thread revival but I'm looking to get into a 600LT, preferably a spider. I saw people mention PCP deals working out around ~£45k over 2 years with the 'hand it back and walk away' option.
Does anyone know if that's still the case, or if there are deals like that still floating around?
Does anyone know if that's still the case, or if there are deals like that still floating around?
Silly question but who picks up the bill for all the cars that get returned that have ended up being below the GFV?
Is it the dealer or the finance company ?
If it is the finance company are they going to be keen on doing these kind of high GFV PCP deals in the future as they will have had fingers burnt on cars not hitting GFV
Also once the car like a Mclaren is returned to the finance company for whatever reason what do they do with them ?
Sid
Is it the dealer or the finance company ?
If it is the finance company are they going to be keen on doing these kind of high GFV PCP deals in the future as they will have had fingers burnt on cars not hitting GFV
Also once the car like a Mclaren is returned to the finance company for whatever reason what do they do with them ?
Sid
The finance company in the first instance will bear the negative however I can't see how with the figures I was quoted last year they can't be manufacturer backed in some way.
So just over a year ago I did almost buy a 570. The headline price stripping out the PX was 126k however the GTV was something crazy like 102k which I knew 100% would be more than it could possibly be worth after 2 years. I predicted 80k. It was a cool rental for 2 years but I couldn't burn 50k in depreciation and payments. The deals were crazy it was 20k down and £600 per month.
In the end I got a 458 which is a bit more of a conservative gamble on depreciation. I have an 82k balloon. Bought recently so post covid I didn't think that was too bad.
So just over a year ago I did almost buy a 570. The headline price stripping out the PX was 126k however the GTV was something crazy like 102k which I knew 100% would be more than it could possibly be worth after 2 years. I predicted 80k. It was a cool rental for 2 years but I couldn't burn 50k in depreciation and payments. The deals were crazy it was 20k down and £600 per month.
In the end I got a 458 which is a bit more of a conservative gamble on depreciation. I have an 82k balloon. Bought recently so post covid I didn't think that was too bad.
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