Vantage Deal, New Owners, All Positive!
Discussion
[quote=GTSJOE]The 2 year future value on the PCP deal is close to £93,000, I can’t see a 12,000 mile 2019 Vantage being worth more than £80,000 in 2 years time. What Aston seem to be doing is a sale & lease back of their stock? Seems that way as they will end up owning the car in 2 years time, the loss per car could be approx £65,000! [/
Why would the loss be 65k ? It didn’t cost Aston 140k to build the cars.
Why would the loss be 65k ? It didn’t cost Aston 140k to build the cars.
Loss is probably the wrong terminology. £65,000 is the opportunity cost. £40,000 off the retail price of the car. The residual value in the finance contract is probably £25,000 overvalued, I.E balloon is far too generous which is one of the reasons why the monthly payments are artificially low.
hashluck said:
If you are prepared to put £15K-£20K (depending on haggle factor) down you could be in a DB11 for less than £1k a month as well.
If you put £15K down on a Vantage then repayments are less than £700 a month.
Servicing included and all OTR costs included. 0% APR on the DB11
Interesting, and tempting. If you put £15K down on a Vantage then repayments are less than £700 a month.
Servicing included and all OTR costs included. 0% APR on the DB11
I guest reviewed a DB11 V8 for Autocar Malaysia/Singapore a few weeks ago, and loved it.
Note the article is tailored for South East Asian tastes, and this is the first time I have ever done such a thing, so be gentle ...
https://autocarmalaysia.com/2019/12/18/aston-marti...
Buzz Killington said:
Gross over simplification here, but when you are a plc cash is king. Nehative cash flow = slow painful death. If a quick cash injection is what is required, selling of a bunch of stock that is not moving makes a bunch o sense. Esp if you are courting new Investors that happen to be Strolling about.
This. They needed the cash and had a load of stock sitting around - totally suits to sell it and book the flows before month, quarter and year-end.cayman-black said:
These deals have been great but now this Vantage is a £100-110k car who would pay more?
This is now the problem. The box has been opened and its very hard to then close it and try and restore higher pricing confidence.Aston clearly felt they had to do it with all their cash flow problems.
Sadly similar has happened at McLaren as they have been throwing money at cars to get them out the door. All it does is devalue the brand and p
s off many existing customers who paid close to list price only to take a massive depreciation hit.
This will then cause an uncertainty with professional buyers and wise private buyers of used cars.
To be fair many mainstream cars companies are doing similar, BMW, Volvo are two that spring to mind with their somewhat discount now and worry about residuals later approach to flooding the market.
s off many existing customers who paid close to list price only to take a massive depreciation hit. This will then cause an uncertainty with professional buyers and wise private buyers of used cars.
To be fair many mainstream cars companies are doing similar, BMW, Volvo are two that spring to mind with their somewhat discount now and worry about residuals later approach to flooding the market.
cayman-black said:
These deals have been great but now this Vantage is a £100-110k car who would pay more?
Surely a car is worth what the market will pay rather than what the manufacturer would like. So, these cars didn't sell at £140K but sell well at £100K - ergo, they are a £100K car, period.Fair play to AM for accepting that fact and moving accordingly, but there is a concern that the buyers are only doing so because they think they are getting a great deal. If it was set at £100K originally, would they be jumping at this deal quite so ardently I wonder?
I think they would as £1000 a month is great value for the car. If it was a £100k car the GFV would be much lower resulting in higher monthly costs. As I mentioned Alphera finance are potentially the losers in this deal unless Aston Martin are going to help with the negative equity.
Having owned the previous Vantage the new model is something I would swap my 911 for but at the moment I am just watching values as the cost to change is shrinking weekly as Porsche do such a good job of managing values.
As for Ferrari values, that party is rapidly coming to an end, 488’s are down to £150k.
Having owned the previous Vantage the new model is something I would swap my 911 for but at the moment I am just watching values as the cost to change is shrinking weekly as Porsche do such a good job of managing values.
As for Ferrari values, that party is rapidly coming to an end, 488’s are down to £150k.
Ex Boy Racer said:
cayman-black said:
These deals have been great but now this Vantage is a £100-110k car who would pay more?
Surely a car is worth what the market will pay rather than what the manufacturer would like. So, these cars didn't sell at £140K but sell well at £100K - ergo, they are a £100K car, period.Fair play to AM for accepting that fact and moving accordingly, but there is a concern that the buyers are only doing so because they think they are getting a great deal. If it was set at £100K originally, would they be jumping at this deal quite so ardently I wonder?
Please excuse my generalisation, but has the big attraction for new customers, not been the '£100k price', but the 'only £1,000 per month'.
After 2 years, they will probably move on to another bargain monthly offer.
The plan has certainly worked well for AML's Q4 figures, but I suspect the new customers may not be like buyers of the past 15 years, many of whom became loyal repeat Aston Martin customers, several times over. Do you remember my bought more than once topic? The repeat buyer numbers were surprising.
Edited by Jon39 on Tuesday 31st December 12:10
AML has not “sold” these discounted cars before the end of the 24 months period. They have merely rented them out as they bear the risk of the residual payment. Consequently the “ownership” does not change until the moment when the rental deal ends and the rental contract holder either pays the residual and takes ownership or dumps the car. This all looks like a desperate move from a so-called premium brand.
Edited by hornbaek on Tuesday 31st December 14:50
V12andV8 only said:
yep new vantage collected just before christmas from jct leeds
they had a cosmos orange available as well
great car , i dont know why i did not try it before
scorpus red as the sun rises in yorkshire
Congratulations on the new car.they had a cosmos orange available as well
great car , i dont know why i did not try it before
scorpus red as the sun rises in yorkshire
There are now two scorpus red ones in Yorkshire 😊
My missed went with this deal. Car was £153k list (has carbons), we insured it for that. One month upfront £1050, followed by 23 months £1050. First year RFL included plus free servicing. Second year RFL our cost .
Contractual deal is dealer paid £106.5k and GFV is £89,000. So just over 30% discount to dealer, no idea who Takes hit if car is below £89k in 2 years time but we will hand back . Our car registered yesterday , see it next week.
Contractual deal is dealer paid £106.5k and GFV is £89,000. So just over 30% discount to dealer, no idea who Takes hit if car is below £89k in 2 years time but we will hand back . Our car registered yesterday , see it next week.
hornbaek said:
AML has not “sold” these discounted cars before the end of the 24 months period. They have merely rented them out as they bear the risk of the residual payment. Consequently the “ownership” does not change until the moment when the rental deal ends and the rental contract holder either pays the residual and takes ownership or dumps the car. This all looks like a desperate move from a so-called premium brand.
If they haven't sold them now then 2019 Revenues (P&L account) and sales figures would take a big hit. Maybe selling in new stock at lower prices to replace PCP offloads.Edited by hornbaek on Tuesday 31st December 14:50
Must have taken a hit to margin now for cash and 2019 sales numbers. Maybe shipping the last few out the door now for this financial year
hornbaek said:
AML has not “sold” these discounted cars before the end of the 24 months period. They have merely rented them out as they bear the risk of the residual payment. Consequently the “ownership” does not change until the moment when the rental deal ends and the rental contract holder either pays the residual and takes ownership or dumps the car. This all looks like a desperate move from a so-called premium brand.
They would have been sold to the company doing the finance I imagine .i don’t think any manufacturers do their own finance (although they may be group companies ) Edited by hornbaek on Tuesday 31st December 14:50
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