New Vantage?

[AdamV12V]

Jon39 said:

For 'younger buyers' I pictured under 30, and so wondered how many there might be, with a spare £150,000.

Old school thinking Jon, that's not how your average <30yr old thinks. He has no intention of buying the car, and the price of £150,000 is therefore largely irrelevant.

Take a look at the £150k example for the V8 DB11 on the AM Finance page https://global.astonmartin.com/en-gb/ownership/fin...

DB11 (V8) Representative Example

Term of Agreement: 24 months
On the road cash price: £149,655.00
Total Deposit: £27,570.53
Option To Purchase Fee: £1.00
Optional Final Rental: £97,044.28
[b]23 Monthly Payments: £1,495.00
Customer Deposit: £27,570.53
Total Amount of Credit: £122,084.47
Total Amount Payable: £159,000.81
APR: 5.9%

So all he needs to find is £27,570 and £1495 per month which is a damn site easier to get his head around than finding £150k and actually ending up with an asset he owns and would have to sell later! The fact he has £97k to pay at the end is irrelevant as he has zero intention of ever doing that, he will simply move on to the next PCP deal.

[RobDown]

AdamV12V said:

Old school thinking Jon, that's not how your average <30yr old thinks. He has no intention of buying the car, and the price of £150,000 is therefore largely irrelevant.

Take a look at the £150k example for the V8 DB11 on the AM Finance page https://global.astonmartin.com/en-gb/ownership/fin...

DB11 (V8) Representative Example

Term of Agreement: 24 months
On the road cash price: £149,655.00
Total Deposit: £27,570.53
Option To Purchase Fee: £1.00
Optional Final Rental: £97,044.28
[b]23 Monthly Payments: £1,495.00
Customer Deposit: £27,570.53
Total Amount of Credit: £122,084.47
Total Amount Payable: £159,000.81
APR: 5.9%

So all he needs to find is £27,570 and £1495 per month which is a damn site easier to get his head around than finding £150k and actually ending up with an asset he owns and would have to sell later! The fact he has £97k to pay at the end is irrelevant as he has zero intention of ever doing that, he will simply move on to the next PCP deal.

Except I'm guessing he (or Charlotte, one of the two) gets the dealer to make part of the deposit contribution through a discount. I know it doesn't appeal to many readers in this forum, but almost 90% of new car sales in the UK are now done this way

[anonymous-user]

AdamV12V said:

Jon39 said:

For 'younger buyers' I pictured under 30, and so wondered how many there might be, with a spare £150,000.

Old school thinking Jon, that's not how your average <30yr old thinks. He has no intention of buying the car, and the price of £150,000 is therefore largely irrelevant.

Take a look at the £150k example for the V8 DB11 on the AM Finance page https://global.astonmartin.com/en-gb/ownership/fin...

DB11 (V8) Representative Example

Term of Agreement: 24 months
On the road cash price: £149,655.00
Total Deposit: £27,570.53
Option To Purchase Fee: £1.00
Optional Final Rental: £97,044.28
[b]23 Monthly Payments: £1,495.00
Customer Deposit: £27,570.53
Total Amount of Credit: £122,084.47
Total Amount Payable: £159,000.81
APR: 5.9%

So all he needs to find is £27,570 and £1495 per month which is a damn site easier to get his head around than finding £150k and actually ending up with an asset he owns and would have to sell later! The fact he has £97k to pay at the end is irrelevant as he has zero intention of ever doing that, he will simply move on to the next PCP deal.

The big question is how much equity will be in the car after 24 months? After shelling out roughly £63K in deposit and monthly payments you would hope there is a fair amount of equity to take forward!

[raceboy]

garyhun said:

The big question is how much equity will be in the car after 24 months? After shelling out roughly £63K in deposit and monthly payments you would hope there is a fair amount of equity to take forward!

If you're lucky, enough to pay for the next deposit.

[anonymous-user]

garyhun said:

The big question is how much equity will be in the car after 24 months? After shelling out roughly £63K in deposit and monthly payments you would hope there is a fair amount of equity to take forward!

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

[RL17]

soofsayer said:

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

They are paying a bit more but if the cars still sort after and with a waiting list you buy it and sell it for a profit for the the next deposit.

If the depreciation is horrible you walk away. Assume that balloon/balance payments are pitched low to protect finance co.

It's a 42% drop over 24 months - looks a high drop compared to DB11 launch editions - so probably not going to cost all that much more than buying outright. Just need to make sure you can put short term finance in place for buy option or a deal at a dealer (or a broker when switch marques etc).

[Bobajobbob]

What's the real cost? £13,000 of interest + any depreciation in the car?

[Big Ry]

I'd wager that after two years you wouldn't find any dealer willing to offer more than the balloon payment to take it off your hands, so it's basically renting it for a total of £2625 a month.

As has already been said, it's the mindset of people today unfortunately. Everybody wants everything right now, with very little appreciation or understanding of what it's actually costing them, it's only the monthly payment they care about. When you're young I can sort of see that, but the day will come when they will suddenly realise they've spent a lifetime paying for things, yet don't actually have an asset to their name.

Of course, there are other people who know exactly what they're are doing and this kind of finance works for them........however I would guess they're in the minority of buyers.

Edited by Big Ry on Tuesday 27th March 13:52

[HBradley]

soofsayer said:

garyhun said:

The big question is how much equity will be in the car after 24 months? After shelling out roughly £63K in deposit and monthly payments you would hope there is a fair amount of equity to take forward!

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

I suppose it means you have can have a new car every couple of years with minimum deposit.

[dbs2000]

soofsayer said:

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

^ This, I'm obviously old school with these things or not rich enough. Unless I could make the 100k balloon work for me and return more than the 63k to borrow the car over 2 years (63% return) I'd not go near those prices.

[Big Ry]

I'm just a cynical bd when it comes to PCP schemes. Stupidly I used them three times, a BMW 318 Cab (E36), BMW 330 Cab, and lastly an SL350. On all three occasions I more or less handed the keys back at the end. In the case of the SL it was actually worth even less then the balloon, so they lost out.

I'm sure if you're doing this on some cars it works, but I've been bitten enough times to know I'd rather have a cheaper car I can buy than a flash one I'm leasing, then at least I'll have some sort of asset at the end.

Horses for courses though I know.

[AMDBSVNick]

dbs2000 said:

soofsayer said:

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

^ This, I'm obviously old school with these things or not rich enough. Unless I could make the 100k balloon work for me and return more than the 63k to borrow the car over 2 years (63% return) I'd not go near those prices.

So you buy it cash and then flog it 24 months later back to the dealer. What do you reckon that might cost you

[anonymous-user]

Being one of these young'uns whom are frowned upon for using finance for cars, it's a pity that finance has the reputation it does - though specifically I guess the bigger issue people have is the belief that if you cant afford to buy the car outright, you don't deserve to be in it as it's not yours and you obviously cannot afford it.

At the very highest level though, it's not unheard for those with the cash to buy say a Vanquish S, outright, instead elect to finance it. £238k in one lump, or a 10% min deposit, and spend the rest of the cash on a few buy to let properties and let the rental income do the work for you.

In the case of the new Vantage, the residuals are currently terrible, therefore most finance quotes come in with quite depressing monthlies (£1700 and up, with a big chunk of a deposit). It's not very appealing as a result, so while it's aimed at younger buyers, they'd have to really, really want one, and getting approval for that level of finance is a task in some cases. In 18 months time with cars in circulation, it might be a different story, but my gut feeling is the new car wont hold its value that well to start with, and the old car wont appreciate in value anywhere near as quickly as owners hope it might. I hope I'm wrong on both counts.

At this moment in time there's much better cars to be getting into if you have one eye on residuals.
Youth of today, signing out

[anonymous-user]

AMDBSVNick said:

So you buy it cash and then flog it 24 months later back to the dealer. What do you reckon that might cost you

A lot!

You would save £10k of interest (unless you are able to get a better return with the cash in your pocket).... and not buying on a pcp (or other scheme) you are not committed to the end date. So you might want to keep the car for longer and see the curve flatten, reducing the overall annual hit.

[anonymous-user]

HBradley said:

soofsayer said:

garyhun said:

The big question is how much equity will be in the car after 24 months? After shelling out roughly £63K in deposit and monthly payments you would hope there is a fair amount of equity to take forward!

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

I suppose it means you have can have a new car every couple of years with minimum deposit.

If there's no equity after 2 years that is actually a huge deposit every 2 years

[AMDBSVNick]

soofsayer said:

A lot!

You would save £10k of interest (unless you are able to get a better return with the cash in your pocket).... and not buying on a pcp (or other scheme) you are not committed to the end date. So you might want to keep the car for longer and see the curve flatten, reducing the overall annual hit.

No argument there but we now live in a society where people simply do not "keep" things. How many people do we all know who swap to the latest iPhone when there is absolutely nothing wrong with the current version.

For the record I'm far from young, I own my Aston but I rent the Disco and MINI as I have absolutely no desire to keep them longer than 3 years. The kids see to that

[HBradley]

garyhun said:

HBradley said:

soofsayer said:

garyhun said:

The big question is how much equity will be in the car after 24 months? After shelling out roughly £63K in deposit and monthly payments you would hope there is a fair amount of equity to take forward!

I cant get my head around why anyone would pay £63k to borrow a car for 2 years (or a bit less if there is some equity left).

I suppose it means you have can have a new car every couple of years with minimum deposit.

If there's no equity after 2 years that is actually a huge deposit every 2 years

With these deals there's generally an agreed value at the end of the 2 years which, as long as you don't trash it or break the mileage limit, provides an element of security. It's all voodoo to me anyway!!

Edited by HBradley on Tuesday 27th March 15:19

[Jeweller70]

I'm not young or old but have no compulsion to own depreciating assets.

Cars depreciate (or appreciate) at the same rate whether they are owned, leased or rented.

I have had some amazing deals on cars I knew would never be worth the balloon (Most AMG Mercs) so therefore the manufacturer is discounting the car.

In the case shown I could keep 100k capital make a good return on a classic car, peer to peer lender, equity, property or something else that may do better or worse but I have the capital to use.

I own cars that I feel will appreciate but usually PCP my daily.

Bear in mind if you feel as most inflation will increase and you lock in a good rate now (you can get 4-5% with good credit) then the value of money due to inflation will mean the cost of finance is actually less. Remember Cash as an asset depreciates as well.

I have a new Vantage on order and may or may not finance this is not the issue, the main issue I have is that will be not be a good investment, but I still want it!

Just my PoV, will all have choice there is no right or wrong. A dealer told me approaching 70% of Ferrari are now financed so I expect AM to be similar, if not it wont survive on a base of customers who have the cash at hand.

[Bobajobbob]

What would be the total cost over the two years if:
1) Car appreciates by £50K
2) Car maintains its original value
3) Car loses £50k

?

[Big Ry]

NFC 85 Vette said:

Being one of these young'uns whom are frowned upon for using finance for cars, it's a pity that finance has the reputation it does - though specifically I guess the bigger issue people have is the belief that if you cant afford to buy the car outright, you don't deserve to be in it as it's not yours and you obviously cannot afford it.

At the very highest level though, it's not unheard for those with the cash to buy say a Vanquish S, outright, instead elect to finance it. £238k in one lump, or a 10% min deposit, and spend the rest of the cash on a few buy to let properties and let the rental income do the work for you.

That's certainly not what I meant. I use finance to buy cars sometimes, however I won't use PCP schemes, I'll use more conventional finance.

I think what people are saying, is that a some people are buying things which in reality they cannot really afford, but using stretched finance methods to do so. All they're looking at is the monthly number and nothing else.

I honestly think at some point there will be a real clampdown on PCP's....it's a racket I tell you