Will Corona effect the Supercar Market

[Soleith]

MDL111 said:

av185 said:

MDL111 said:

Soleith said:

av185 said:

Interesting.

'Finance allows people who cannot really afford fast metal to do so in instalments.'

Wonder what the pro pcpers make of that lol.

Yeah I did have a mini-chortle at that. Fundamentally most methods of financing are geared towards the bulk of the market which may not have the cash to purely fund a car upfront, that much said, two other factors worth keeping in mind:

1. Global interest rates are at historic lows and 0% deals do exist (my current albeit not supercar Audi A8 is on a 0% PCP, why wouldn't you?! It's basically free money).

2. It's been nudgenudgewinkwinkknowwhatimeanknowwhatimean indicated to me that using manufacturer finance can help to get onto some invite only manufacturer lists for limited cars. Whether there's actually any truth in that or if it's a coin toss between you and another person with the same buying history but one of you uses manufacturer finance and the other doesn't or whether it was just a dealer trying to flog finance is unclear to me.

Ad 2 - I think Ferrari gives you points for using finance (and so they should given they make more money off of you), so you will move up the list vs an otherwise identical cash buyer - my understanding anyway

Yep same as most manufacturers and there is nothing stopping you taking the finance option then paying it off in full with no penalty shortly after taking delivery to keep the dealer happy and you earn brownie points too lol.

Trouble is Ferrari amongst others have been pushing Lease Purchase on the unsuspecting as a finance vehicle which unlike PCP leaves the punter solely liable for the inevitable GFV shortfall as many will in time no doubt find out to their substantial cost.

Yeah I don’t understand all the financing options - I understood my FFS financing as a loan secured by the car where I am liable to repay it at the end just like any other loan (was a used car though)

I think fundamentally it's down to:

1. Hire purchase - deposit and the remaining balance spread over x monthly payments.
2. PCP - deposit at start, balloon at end (or the option to just hand the car back and walk away), remaining balance spread over x monthly payments.
3. Lease purchase - Deposit at start, balloon at end, balance spread over x monthly payments, no option to hand car back and walk away.

There's also balanced payments which I've not really looked into that much but seems like a spread bet on interest rates.

[Soleith]

s2000db said:

They also said that ‘vulnerable manufacturers won’t survive’...

Unfortunately, two come to mind immediately imo..

Let me guess, Ferrari and Lambo?! XD

[MDL111]

Soleith said:

MDL111 said:

av185 said:

MDL111 said:

Soleith said:

av185 said:

Interesting.

'Finance allows people who cannot really afford fast metal to do so in instalments.'

Wonder what the pro pcpers make of that lol.

Yeah I did have a mini-chortle at that. Fundamentally most methods of financing are geared towards the bulk of the market which may not have the cash to purely fund a car upfront, that much said, two other factors worth keeping in mind:

1. Global interest rates are at historic lows and 0% deals do exist (my current albeit not supercar Audi A8 is on a 0% PCP, why wouldn't you?! It's basically free money).

2. It's been nudgenudgewinkwinkknowwhatimeanknowwhatimean indicated to me that using manufacturer finance can help to get onto some invite only manufacturer lists for limited cars. Whether there's actually any truth in that or if it's a coin toss between you and another person with the same buying history but one of you uses manufacturer finance and the other doesn't or whether it was just a dealer trying to flog finance is unclear to me.

Ad 2 - I think Ferrari gives you points for using finance (and so they should given they make more money off of you), so you will move up the list vs an otherwise identical cash buyer - my understanding anyway

Yep same as most manufacturers and there is nothing stopping you taking the finance option then paying it off in full with no penalty shortly after taking delivery to keep the dealer happy and you earn brownie points too lol.

Trouble is Ferrari amongst others have been pushing Lease Purchase on the unsuspecting as a finance vehicle which unlike PCP leaves the punter solely liable for the inevitable GFV shortfall as many will in time no doubt find out to their substantial cost.

Yeah I don’t understand all the financing options - I understood my FFS financing as a loan secured by the car where I am liable to repay it at the end just like any other loan (was a used car though)

I think fundamentally it's down to:

1. Hire purchase - deposit and the remaining balance spread over x monthly payments.
2. PCP - deposit at start, balloon at end (or the option to just hand the car back and walk away), remaining balance spread over x monthly payments.
3. Lease purchase - Deposit at start, balloon at end, balance spread over x monthly payments, no option to hand car back and walk away.

There's also balanced payments which I've not really looked into that much but seems like a spread bet on interest rates.

Thanks - couldn’t even tell you which ones are offered in Germany. Finance on sth that I could bin and not be insured made me nervous, so paid it off (you never know what happens on a track day)

[neverlifted]

I'm looking out to see what happens with the FF, R8, V12 Vantage S and 570S/GT.

[Soleith]

neverlifted said:

I'm looking out to see what happens with the FF, R8, V12 Vantage S and 570S/GT.

Suspect you'll be in luck with the 570's before long mate...

[Saweep]

MDL111 said:

Soleith said:

av185 said:

Interesting.

'Finance allows people who cannot really afford fast metal to do so in instalments.'

Wonder what the pro pcpers make of that lol.

Yeah I did have a mini-chortle at that. Fundamentally most methods of financing are geared towards the bulk of the market which may not have the cash to purely fund a car upfront, that much said, two other factors worth keeping in mind:

1. Global interest rates are at historic lows and 0% deals do exist (my current albeit not supercar Audi A8 is on a 0% PCP, why wouldn't you?! It's basically free money).

2. It's been nudgenudgewinkwinkknowwhatimeanknowwhatimean indicated to me that using manufacturer finance can help to get onto some invite only manufacturer lists for limited cars. Whether there's actually any truth in that or if it's a coin toss between you and another person with the same buying history but one of you uses manufacturer finance and the other doesn't or whether it was just a dealer trying to flog finance is unclear to me.

Ad 2 - I think Ferrari gives you points for using finance (and so they should given they make more money off of you), so you will move up the list vs an otherwise identical cash buyer - my understanding anyway

Ferrari told me a year ago I could only have an F8 if I used FFS. No other purchase methods were acceptable.

I had only bought 2 used cars from them at that point; I'm sure it would be a different story for Mr "buys every model cash and has an F40 in the garage" though.

Bet they're regretting that stance to customers now; I got so sick of their bullst I don't think I'd ever buy another again...and I love Ferraris!

[Petrus1983]

Saweep said:

I got so sick of their bullst I don't think I'd ever buy another again...and I love Ferraris!

I imagine this sums up their future.

[Pvapour]

Got offered an un-registered AMG GTR roadster at £45k off list yesterday.

[marky7seven]

I must be doing something wrong, I've contacted a few dealers now regarding R8, AMG GT R and FF, and I can't get anyone to move on list price. 3 cars I've called about had just been sold, so it can't be that bad out there yet.

[av185]

Pvapour said:

Got offered an un-registered AMG GTR roadster at £45k off list yesterday.

Where from?

[So]

marky7seven said:

I must be doing something wrong, I've contacted a few dealers now regarding R8, AMG GT R and FF, and I can't get anyone to move on list price. 3 cars I've called about had just been sold, so it can't be that bad out there yet.

I've seen a few Bentleys disappearing from main dealer websites, whilst others still hang around, I also had an email from the dealer principal of one dealership last week asking me if I'd be interested in a car he had.

I think that despite some places saying they are closed, they are in fact still selling cars. I also think that at the high end some buyers are not massively bothered about the financial consequences of COVID.

[LaurasOtherHalf]

Not a supercar by any stretch of the imagination but interesting chat on the M4 thread. Comp pack cars are being offered with delivery miles, pre registered at £43k at main dealers.

If that's indicative of where the performance market is going anyone brave enough to put their money where their mouth is is going to have an interesting ride.

[av185]

LaurasOtherHalf said:

Not a supercar by any stretch of the imagination but interesting chat on the M4 thread. Comp pack cars are being offered with delivery miles, pre registered at £43k at main dealers.

If that's indicative of where the performance market is going anyone brave enough to put their money where their mouth is is going to have an interesting ride.

Pre registered and outgoing model so no surprise as they are vastly overpriced anyway.

Interestingly bought a new good spec manual e92 in March 2009 last crisis for £41k so c same percentage discount.

[russy01]

LaurasOtherHalf said:

Not a supercar by any stretch of the imagination but interesting chat on the M4 thread. Comp pack cars are being offered with delivery miles, pre registered at £43k at main dealers.

If that's indicative of where the performance market is going anyone brave enough to put their money where their mouth is is going to have an interesting ride.

I don’t disagree, I don’t think performance cars are going to fare well.
But, these deals were end of last year. Not corona related, more to do with overstocks of an outgoing model and BMWs stack ‘em high 0% deals they often do.

In 2018 I bought the outgoing X5 40d in similar circumstances for the wife to drive. (0% with 20% discount on stock car).

[Soleith]

marky7seven said:

I must be doing something wrong, I've contacted a few dealers now regarding R8, AMG GT R and FF, and I can't get anyone to move on list price. 3 cars I've called about had just been sold, so it can't be that bad out there yet.

That's surprising to me, even a quick bash on carwow gets you 11k off an AMG and depending on the R8 model up to 20k off. I spoke to my local Audi and they were taking 15k off standard R8's without even being pushed that hard, asked for more and the main guy there told me to wait until we got back to work and they see how bad sales are, more may be available then. Also told me there is a shipment of about 15 R8's still owend by Audi UK sitting on a dock somewhere unsold but that they can't allocate them yet.

Edit, carwow offer on a GTR now includes a 17k discount.

Edited by Soleith on Wednesday 13th May 08:21

[marky7seven]

Soleith said:

marky7seven said:

I must be doing something wrong, I've contacted a few dealers now regarding R8, AMG GT R and FF, and I can't get anyone to move on list price. 3 cars I've called about had just been sold, so it can't be that bad out there yet.

That's surprising to me, even a quick bash on carwow gets you 11k off an AMG and depending on the R8 model up to 20k off. I spoke to my local Audi and they were taking 15k off standard R8's without even being pushed that hard, asked for more and the main guy there told me to wait until we got back to work and they see how bad sales are, more may be available then. Also told me there is a shipment of about 15 R8's still owend by Audi UK sitting on a dock somewhere unsold but that they can't allocate them yet.

Edit, carwow offer on a GTR now includes a 17k discount.

Edited by Soleith on Wednesday 13th May 08:21

Sorry, I was talking about used, I should have mentioned that important fact. I got offered a new Hell Green AMG GTR for £138k. But no discount on used yet, might because they have new stock to shift first. Has the R8 been discounted? as that what it said on carwow yesterday.

[LaurasOtherHalf]

russy01 said:

LaurasOtherHalf said:

Not a supercar by any stretch of the imagination but interesting chat on the M4 thread. Comp pack cars are being offered with delivery miles, pre registered at £43k at main dealers.

If that's indicative of where the performance market is going anyone brave enough to put their money where their mouth is is going to have an interesting ride.

I don’t disagree, I don’t think performance cars are going to fare well.
But, these deals were end of last year. Not corona related, more to do with overstocks of an outgoing model and BMWs stack ‘em high 0% deals they often do.

In 2018 I bought the outgoing X5 40d in similar circumstances for the wife to drive. (0% with 20% discount on stock car).

The difference now is that they are selling them at a cash price of £43k which wasn't the case last year on the 0% finance deal as far as I recall.

[ghost83]

On broadspeed £15,800 off a m4

Would the dealer then give you the 12k finance deposit contribution on top of that?

As that would make the car basically 40k

Surely they wouldn’t give you 27k off a M4??

[EC2]

LaurasOtherHalf said:

Not a supercar by any stretch of the imagination but interesting chat on the M4 thread. Comp pack cars are being offered with delivery miles, pre registered at £43k at main dealers.

If that's indicative of where the performance market is going anyone brave enough to put their money where their mouth is is going to have an interesting ride.

I was looking at a six month old zero miles pre-reg M4 albeit non Comp spec Nov last year and it was £43.5k. They are now old cars and they are just getting rid of them. I had a test drive in low temps and it was a real handful on summer tyres. Wrong time of year to have been shopping really!

[SFTWend]

marky7seven said:

Sorry, I was talking about used, I should have mentioned that important fact. I got offered a new Hell Green AMG GTR for £138k. But no discount on used yet, might because they have new stock to shift first. Has the R8 been discounted? as that what it said on carwow yesterday.

In answer to the OPs original question I'd have said "yes or course they will get hit". But looking at CC bid figures I'm not so sure now as these appear aligned to pre pandemic sold prices (not advertised asking prices) in what was already a falling depressed market for many makes and models.