Supercar decisions.

[TheKC]

Hi guys, just a little bit about me first. I've just turned 28 last week. I run my own Business, and make a nice amount of money for myself. Recently married and paying a mortgage too.

Now that I'm closing in on 30, I was thinking about a supercar. I've looked into the McLaren 540 or 570. I wanna go put down a deposit on one a few weeks prior my 30th. I know some of you are thinking it's still a while, but I figured I'd do all research now and save myself of any shocks etc later.

Now I don't have £160k+ lying around. But I was thinking of a hire purchase? Around £35k deposit and £1000 monthly payments.

As I've never had a supercar before, I was wondering if would be the right way to go about it? Or if there is anything else I should consider?

Thanks

[lucido grigio]

TheKC said:

Recently married

Or if there is anything else I should consider?

Thanks

Ask the wife first.

Or maybe not.

[TheKC]

lucido grigio said:

TheKC said:

Recently married

Or if there is anything else I should consider?

Thanks

Ask the wife first.

Or maybe not.

Haha, I think she likes the idea of riding around in a McLaren. Plus I'm in her good books for now, the Gucci handbag helped! 😫😫

[RSTurboPaul]

Are you definitely sure your business is going to survive the 2/3/4/5 years you'd be tied into a PCP / Hire Purchase scheme?

Are you happy paying what would be a considerable amount of interest on top of the original price?

How long would it take you to save the £160k+ to buy outright?


I would contend that if you waited 2-3 years and saved the cold hard cash, so you had 160-large in your pocket, you would perhaps view the purchase differently - i.e. think what that really not very small pile of money could buy you - pay off (a large amount of) your mortgage and gain the long-term security of a guaranteed roof over your family's heads, perhaps buy your first house(s) in a property portfolio, pay for a good Private School education for your kids, make a sizeable contribution to your pension pot, etc etc.

Buying on credit just makes one not think about the actual total amount of money at the end, which devalues the item you are buying because it's 'easy' to get now rather than having patience.


All IMHO, of course

[TheKC]

Thanks for taking the time out to reply. All very good points to consider. That's why I've started taking into consideration all these small points from now. Gives me plenty of time to think about it.

[Dblue]

Definitely consider buying a year or two old car rather than a new one, easy enough to finance this sort of car with a decent balloon bringing it inside your budget. However the hit on a new car of this type is a lot of money and you aren't covering the depreciation in your payments.Bear in mind you have a dealer margin on a car of this type of 10 grand or more.So if you need to or want to get out you'll be able to without doing huge amounts of dosh.


A car thats 2 years old may well hold its value , even appreciate if your lucky and the cost of must have spec items will make your eyes water. Let someone else pay for all that carbon and fancy wheels

[TheKC]

Thank you very much for the help.

It's got me thinking, possibly I could buy a used McLaren. Save me about £40k like suggested above. What I was thinking was, I only want it for around 3 years before kids etc grow up then switch to a family friendly car. It's always been a dream to own a supercar since my teens. Maybe if I was to sell it after 3 years, I could actually get my money back? Or most of it. Anyone ever done this? Any advise?


Thanks

[davek_964]

TheKC said:

Thank you very much for the help.

It's got me thinking, possibly I could buy a used McLaren. Save me about £40k like suggested above. What I was thinking was, I only want it for around 3 years before kids etc grow up then switch to a family friendly car. It's always been a dream to own a supercar since my teens. Maybe if I was to sell it after 3 years, I could actually get my money back? Or most of it. Anyone ever done this? Any advise?


Thanks

If the plan is for 3 years, then I echo the comments above - buying new would be madness unless you have money to burn - that's where you get the majority of depreciation, and the car will be worth a lot less at the end of that 3 years.
Used makes a lot of sense over that period. If you want McLaren, there is a limited to how used you can go, although I doubt you'd lose much on an earlier 12C over that period. If you buy right, you can even make money - my 360 is worth ~50% more than I paid 3.5 years ago.

[Ayahuasca]

TheKC said:

paying a mortgage

I don't have £160k

was thinking of a hire purchase

I don't want to piss on your chips, by are you sure you want to waste resources on a super flash car that you cannot really afford? Not meant nastily, and it is your life, but it is probably not a wise financial decision and as a businessman you must see this.

[RSTurboPaul]

TheKC said:

Thank you very much for the help.

It's got me thinking, possibly I could buy a used McLaren. Save me about £40k like suggested above. What I was thinking was, I only want it for around 3 years before kids etc grow up then switch to a family friendly car. It's always been a dream to own a supercar since my teens. Maybe if I was to sell it after 3 years, I could actually get my money back? Or most of it. Anyone ever done this? Any advise?


Thanks

Does it have to be a McLaren?

V12 Vantage should hold value quite nicely and be a lot of fun...

[davek_964]

RSTurboPaul said:

Does it have to be a McLaren?

V12 Vantage should hold value quite nicely and be a lot of fun...

Quick - and I wouldn't mind owning one - but not sure that ticks the supercar box?

[CaptainSensib1e]

I'm sure you'll have already thought about this, but have you budgeted for running costs? I can't imagine these cars are cheap to service, or insure for that matter (especially at 28!). Do you have somewhere off road (and preferably under cover) to keep the car. Will you need another car to have as a run around, as you might want to drive it every day?

[TheKC]

I should of explained my situation a little better I think. Sorry for the confusion. The amount I'm earning right now is completely seperate from my other finances coming in from my family venture. The money coming from the family business which I'm a part of goes towards other investments such a commercial property that we own and building up a larger portfolio. My current salary reflects on just my own personal business which I've gone ahead with. The thing is, I do have £160k but I'd rather spend it on some more property. I'd rather pay monthly and use my money else where. Im also paying a mortgage for my desperate commercial property too. I'm not sure how well this has come out, but that's my situation. Haha

[TheKC]

CaptainSensib1e said:

I'm sure you'll have already thought about this, but have you budgeted for running costs? I can't imagine these cars are cheap to service, or insure for that matter (especially at 28!). Do you have somewhere off road (and preferably under cover) to keep the car. Will you need another car to have as a run around, as you might want to drive it every day?

Funny you should mention that actually, I spoke with an insurance company earlier today which happens to be a tanant of ours and they mentioned about a better deal if I can insure around 6 cars which we do have. Around £2500 they said including a mclaren around £150k

[imahuman118]

The mclaren would depreciate really quickly, I'd suggest investing into a supercar which will hold its value, so try to get a build slot for the next generation 911 gt3 rs. The 991 gt3 rs were going for £100k over sticker when they hit the road. But if you don't care about the depreciation then go for it.

[TheKC]

imahuman118 said:

The mclaren would depreciate really quickly, I'd suggest investing into a supercar which will hold its value, so try to get a build slot for the next generation 911 gt3 rs. The 991 gt3 rs were going for £100k over sticker when they hit the road. But if you don't care about the depreciation then go for it.

See that's what I was thinking? Like I said, I'm going to be waiting around 2 years anyway. So maybe the McLaren may drop a lot more, and I could grab one then? Used that is. The plan is to keep around 3 years or so, before kids arrive etc.

[andrewparker]

There is no way you're going to get a GT3 RS slot without a history of buying new Porsche 911s.

[TheKC]

andrewparker said:

There is no way you're going to get a GT3 RS slot without a history of buying new Porsche 911s.

What I was thinking too. But a Porsche isn't in the picture for me at the moment.

I was also thinking Ferrari possibly? Maybe a 458? I'm sure they'd plunge in price some more too Within the next 2 years.

[timbo999]

TheKC said:

Now I don't have £160k+ lying around. But I was thinking of a hire purchase? Around £35k deposit and £1000 monthly payments.

Which works out at something over 10 years of repayments... sounds more like a mortgage to me!

[TheKC]

timbo999 said:

Which works out at something over 10 years of repayments... sounds more like a mortgage to me!

I agree, however there's an optional balloon payment at the end from what I know or you can walk away and return the car. Now that other members have mentioned, I may go down the route of a used one instead? Or a different car. Just depends on how stupid I'm willing to be with my money end of the day.