Ferrari Financial Services

[wineman02]

kbf1981 said:

Depends what else you're using the money for - tbh if you got a rate of 4.9% APR or so (possible), then it's cheap money.

I am no financial genius (probably the opposite!) but if I was a company I would not lend someone £180k to finance a depreciating asset for a 4.9% return. There must be a ton of ways for finance companies to get a better return that this or am I missing something? I am sure only a minute % of the population would be offered rates that low anyway.

[propaganda]

The fact that the asset is depreciating is not the Finance providers problem, they hedge against this anyway by ensuring there is a sufficient deposit to cushion them in the event of trouble. If they do their homework properly then it is a relatively risk free proposition, and excellent at much higher APRs

[kbf1981]

wineman02 said:

kbf1981 said:

Depends what else you're using the money for - tbh if you got a rate of 4.9% APR or so (possible), then it's cheap money.

I am no financial genius (probably the opposite!) but if I was a company I would not lend someone £180k to finance a depreciating asset for a 4.9% return. There must be a ton of ways for finance companies to get a better return that this or am I missing something? I am sure only a minute % of the population would be offered rates that low anyway.

I got offered that rate - I'd guess they see it as low risk as my credit score is very good, and they're being paid 4.9% APR (whatever that is flat) whilst borrowing at 0.5% (or whatever Libor was at the time).

If you earned 2-3% profit on someone else's money you'd do it all day I guess - so long as there was no risk.

[f1ten]

UK's car depreciation is higher than the rest of europe for the very reason so many people here finance cars. would be interesting to hear what percentage of phers actually dont use the drip. personally the idea of paying monthly for something that is depreciating is not my idea of fun. I suspect that if you have a guaranteed end of contract value then its a bit more understandable.
I probably shouldnt say this but that is why in this country you can see a chav driving a 60k car which you just wouldnt see in Germany. If you go even further in to the nordic countries with their big import tax it gets even less chance!

however i guess the positive side is that UK has about the highest number of tasty machines on the street!

[kbf1981]

f1ten said:

UK's car depreciation is higher than the rest of europe for the very reason so many people here finance cars. would be interesting to hear what percentage of phers actually dont use the drip. personally the idea of paying monthly for something that is depreciating is not my idea of fun. I suspect that if you have a guaranteed end of contract value then its a bit more understandable.
I probably shouldnt say this but that is why in this country you can see a chav driving a 60k car which you just wouldnt see in Germany. If you go even further in to the nordic countries with their big import tax it gets even less chance!

however i guess the positive side is that UK has about the highest number of tasty machines on the street!

But if you compare here to the States, far more people own than lease. In the States.... leasing is *the* way people buy cars - at every level, from Ford's to Ferrari's. They even advertise their lease rates online:

http://www.lambonb.com/LeaseSpecial.html

Many people out there do earn a better return than 5% on their money, thus making finance cheap.

[kbf1981]

Just to back up the above, here are some deals on Aventadors: http://www.luxury4play.com/lamborghini/113846-lamb...

[propaganda]

f1ten said:

Personally the idea of paying monthly for something that is depreciating is not my idea of fun. I suspect that if you have a guaranteed end of contract value then its a bit more understandable.

It depreciates regardless of whether it is financed or not.

With the American finance system at least you know the full costs of ownership. No nasty surprises or negative equity.

[ODRALLAG]

MartinTorque said:

Ferrari Financial Services will discount a car to match a finance deal? I cant see that. They are nothing to do with the dealers. In fact they arent even part of Ferrari UK.

Sorry for bringing this back from the dead, picked this thread from a search.
So FFS are nothing to do with ferrari? Who owns FFS then?

[johnnyreggae]

Google easily led to this "As a wholly owned subsidiary of Ferrari SpA, we provide an exclusive service from our offices here in the UK."

[ODRALLAG]

Thanks for that, I thought that was the case

[traxx]

They have an office in the UK but the actually Ferrari company you deal with are based in Germany
(or at least this was the situation when I last dealt with them)