Financing 600LT or 720s

[Northernboy]

12pack said:

A specific observation on the OPs point about tax liability on investments that would have to be liquidated to pay in cash. I expect you realize the investment valuation is only paper, until you do liquidate, so essentially you are only noting the gain you make on the tax liability between the time that you liquidate to buy the car, and the time you actually finally liquidate, perhaps during retirement,

Financing a car or paying cash is hardly a new case - it is well modeled. Financing with GFV only makes sense if you must have a new car every 3 years. In every other case, cash is king.

I do understand that, in theory, a lease firm could negotiate enough of a discount with a manufacturer that the lease could work out cheaper, but it seems to be rare that that’s the case. I’ve also not seen an example where the interest rate charged is lower than the risk-adjusted expected return from investments.

I was once given a 10,000 deposit contribution in exchange for borrowing 4,000 of the car’s price on finance. I’ve no idea why that made sense to the dealer, but apparently it did. Other than that though I prefer to buy using savings, and I choose which cars I can consider based on that.

[macdeb]

Northernboy said:

12pack said:

A specific observation on the OPs point about tax liability on investments that would have to be liquidated to pay in cash. I expect you realize the investment valuation is only paper, until you do liquidate, so essentially you are only noting the gain you make on the tax liability between the time that you liquidate to buy the car, and the time you actually finally liquidate, perhaps during retirement,

Financing a car or paying cash is hardly a new case - it is well modeled. Financing with GFV only makes sense if you must have a new car every 3 years. In every other case, cash is king.

I do understand that, in theory, a lease firm could negotiate enough of a discount with a manufacturer that the lease could work out cheaper, but it seems to be rare that that’s the case. I’ve also not seen an example where the interest rate charged is lower than the risk-adjusted expected return from investments.

I was once given a 10,000 deposit contribution in exchange for borrowing 4,000 of the car’s price on finance. I’ve no idea why that made sense to the dealer, but apparently it did. Other than that though I prefer to buy using savings, and I choose which cars I can consider based on that.

^^^^ This. I'm old school, I save then buy, I know what I can afford and what I can't and know exactly where I stand. (and it's mine)

Edited by macdeb on Saturday 30th January 20:13

[12pack]

macdeb said:

^^^^ This. I'm old school, I save then buy, I know what I can afford and what I can't and know exactly where I stand. (and it's mine)

Edited by macdeb on Saturday 30th January 20:13

And indeed that brings up another point. Have young acquaintance who made a made a big deal about Lambo ownership before he was 30 - Instagram YT etc.

In fact the car was leased for a year and returned. To me, a lessor is not an owner.

[TP321]

12pack said:

And indeed that brings up another point. Have young acquaintance who made a made a big deal about Lambo ownership before he was 30 - Instagram YT etc.

In fact the car was leased for a year and returned. To me, a lessor is not an owner.

Contract Hire is definitely not ownership. Leasing and HP with a balloon is as you do have the option to buy it at the end...even though most people don’t as by then they fancy something new

[650spider]

I genuinely have no interest whatsoever how someone is paying for what they drive about in; bought outright, finance or leasing.

As I posted before, have a car by whatever means you are financially comfortable with.
There is no right or wrong way, just what suits the individual.

We are custodians of cars; you lease it, you give it back....you buy it then you sell it...same net result which is at least by some means you actually had it rather than dreamt about it.

Dissappointed with the poster earlier that made with the 'idiot' post.

If you get into your dream car by buying outright...Great; if you do it by monthly payment...Great.

I have had supercars i have bought outright and I have had some i financed; didn't phase me either way.

I don't see what the fuss is about.

[OldAndTired]

If you are referring to me with regards the idiot comment then you completely misunderstood my post.

I gave 5 perfectly valid reasons for finance.

I only accused someone of being an idiot if they thought by using finance they weren’t putting cash into a depreciating asset.

That is said so many times (youtube “stars” use that phrase thousands of times and it is wrong, idiotic and misleading) and I am afraid is completely idiotic and shows that person has absolutely no understanding of finance.

You are NOT AVOIDING putting cash into a depreciating asset just because you use someone else’s money to borrow, via financing. It’s still cash that you have to pay back!

Edited by OldAndTired on Sunday 31st January 14:03

[xcentric]

ttexige said:

Gfv is really good on a 650s with Santander. My 650s is costing me £650 a month with a 10% deposit. It was £1500 a month on the 570s. I couldn’t believe the price for a 650s so snapped the deal up. Mclaren finance was not a very good deal when I asked although this was October last year.

I can’t see the 650s dropping that much to be honest, seems the best value deal on any super car at the minute.

Tried to talk to Santander to get a quote, but they only deal with dealers - where did you go to get this? It's very good!

Edited to add - I mean, which dealer uses them and sells McLaren?

Edited by xcentric on Monday 1st February 16:50

Edited by xcentric on Monday 1st February 16:51

[marky7seven]

650spider said:

I genuinely have no interest whatsoever how someone is paying for what they drive about in; bought outright, finance or leasing.

As I posted before, have a car by whatever means you are financially comfortable with.
There is no right or wrong way, just what suits the individual.

We are custodians of cars; you lease it, you give it back....you buy it then you sell it...same net result which is at least by some means you actually had it rather than dreamt about it.

Dissappointed with the poster earlier that made with the 'idiot' post.

If you get into your dream car by buying outright...Great; if you do it by monthly payment...Great.

I have had supercars i have bought outright and I have had some i financed; didn't phase me either way.

I don't see what the fuss is about.

@650spider well said!!!!

[ttexige]

xcentric said:

ttexige said:

Gfv is really good on a 650s with Santander. My 650s is costing me £650 a month with a 10% deposit. It was £1500 a month on the 570s. I couldn’t believe the price for a 650s so snapped the deal up. Mclaren finance was not a very good deal when I asked although this was October last year.

I can’t see the 650s dropping that much to be honest, seems the best value deal on any super car at the minute.

Tried to talk to Santander to get a quote, but they only deal with dealers - where did you go to get this? It's very good!

Edited to add - I mean, which dealer uses them and sells McLaren?

I didn’t buy off a mclaren dealer but I’m sure a mclaren dealer could use them if you asked. When I was buying a Ferrari at the main dealer they used Ferrari finance but also gave me a quote using Santander. I guess they have more profit using certain company’s but if you ask them to try Santander I can’t see why they wouldn’t.

I bought my car off an independent dealer, wasn’t looking to buy at the time but the right car come up at the right price.

Edited by xcentric on Monday 1st February 16:50

Edited by xcentric on Monday 1st February 16:51