Used car finance
Discussion
Hi all
Forgive me if its a daft question just very curious, does anyone know if pcp or lease purchase type products are available for vehicles over 3 years old?
For example, Say a 2004/2005 DB9 for 33k ish - over 3 years probably would only lose 13k maximum. Significantly less than newer cars at that price point. Is there a way to finance only that 13k depreciation on a car that old?
I know about massive running costs - lets ignore those, just curious about financing.
Thanks
Forgive me if its a daft question just very curious, does anyone know if pcp or lease purchase type products are available for vehicles over 3 years old?
For example, Say a 2004/2005 DB9 for 33k ish - over 3 years probably would only lose 13k maximum. Significantly less than newer cars at that price point. Is there a way to finance only that 13k depreciation on a car that old?
I know about massive running costs - lets ignore those, just curious about financing.
Thanks
I have talked to these people before , but never actually had to use them.
http://www.oraclefinance.co.uk/aston-martin/
http://www.oraclefinance.co.uk/aston-martin/
nickfrog said:
Why would it have to be a car finance specialist ? PCP is an expensive product anyway, why would you want to saddle yourselves with that.
Just use a personal loan at around 5% or piggy back your (re-)mortgage at half that.
Because my income has increased vastly, although I can (hypothetically) place a large deposit (possibly up to 10k) it seems a bit daft to be taking a loan out for the total price of a vehicle when the cost could be vastly reduced by financing the depreciation only.Just use a personal loan at around 5% or piggy back your (re-)mortgage at half that.
I also don't have a mortgage, nor do I want to be saddling myself with one at this stage.
No kids, early in my career, no worries or commitments. I just think it would be nice to own a dream car before I have more than myself to look after (when I may not be able to justify it until they're grown up) - provided I am by no means overstretching myself, I also can always sell a car swiftly should my situation change (it would have to go very horribly wrong)
This is all hypothetical at the moment, however i'm interested as to what products are on offer - so I can investigate and if it comes to it, apply man-maths
Looked at a pcp for a new mercedes c-class which was lovely and extremely tempting to aim for, but would be interested what I could do with an older vehicle.
Also, really don't want to hear what else I can do with 10k, I've spent too long doing that. For various reasons I'm ready to treat myself, even for just a few years
http://www.fast-car-finance.co.uk/
I've heard good things said about these guys on here before (never used them myself though).
I've heard good things said about these guys on here before (never used them myself though).
PCP is available on used cars but not as old as the DB9 you're considering - you may be better off consider a longer term hire purchase (perhaps 60 months) to keep your monthly payments to an affordable level. Assuming the agreement is in your own name rather than through a company it'll be regulated so you can pay off additional lump sums if you wish and lower your monthly payments / shorten the term, or settle the whole agreement at any time and benefit from a regulated settlement figure.
I can offer PCP's on cars up to 5 years old at the beginning of the term and 9 years old at the end which is about the best in the market as far as I'm aware (feel free to PM me for quotes)
Cheers, Richard.
I can offer PCP's on cars up to 5 years old at the beginning of the term and 9 years old at the end which is about the best in the market as far as I'm aware (feel free to PM me for quotes)
Cheers, Richard.
They are available, I looked into it.
To cut to the chase, there are fees and the Apr is so high it's not worth it.
By the time you've paid the fees and extras it's almost the same price as getting a loan for the whole car.
I found it much cheaper to get a three year loan than a 2 year PCP.
Normally, PCP is subsidised by the manufacturer and dealer - this is lost on second hand sales.
To cut to the chase, there are fees and the Apr is so high it's not worth it.
By the time you've paid the fees and extras it's almost the same price as getting a loan for the whole car.
I found it much cheaper to get a three year loan than a 2 year PCP.
Normally, PCP is subsidised by the manufacturer and dealer - this is lost on second hand sales.
Speak to Tony at Supercar Finance, http://www.supercarfinance.co.uk/ 0845 094 0911 and he'll be able to sort you out.
Tell him Mark at Malton sent you.
Tell him Mark at Malton sent you.
A DB9 at £33k is probably a very good buy for a three year ownership. I lost £17k on mine over three years buying from a dealer and selling to trade on a much newer car. I cant imagine DB9's will ever drop below early 20's.
If you aren't selling in a hurry in 3 years you may get lucky.
If you aren't selling in a hurry in 3 years you may get lucky.
Simond S said:
A DB9 at £33k is probably a very good buy for a three year ownership. I lost £17k on mine over three years buying from a dealer and selling to trade on a much newer car. I cant imagine DB9's will ever drop below early 20's.
If you aren't selling in a hurry in 3 years you may get lucky.
Was it as pricey to run as youd expect? If you aren't selling in a hurry in 3 years you may get lucky.
Simond S said:
A DB9 at £33k is probably a very good buy for a three year ownership. I lost £17k on mine over three years buying from a dealer and selling to trade on a much newer car. I cant imagine DB9's will ever drop below early 20's.
If you aren't selling in a hurry in 3 years you may get lucky.
Was it as pricey to run as youd expect? If you aren't selling in a hurry in 3 years you may get lucky.
crosseyedlion said:
Because my income has increased vastly, although I can (hypothetically) place a large deposit (possibly up to 10k) it seems a bit daft to be taking a loan out for the total price of a vehicle when the cost could be vastly reduced by financing the depreciation only.
But you are still financing the whole value (less deposit) even on a PCP or lease.Dr Jekyll said:
But you are still financing the whole value (less deposit) even on a PCP or lease.
Yes, but only (theoretically) paying for the depreciation.Whilst I appreciate you never truly own the vehicle in a PCP scheme, the reduced monthly payments would mean a larger financial safety margin and greater financial freedom for the duration of the agreement.
If I took out a conventional loan- once it was sold, I would only be dividing the sale amount by the number of monthly payments and discounting them by that amount leaving a figure not dissimilar to pcp or lease purchase, but I would have actually had to pay much more for the duration. Right now I would rather just pay for the depreciation for a vehicle and save up separately - I don't mind if the price of this breathing room is a slightly total cost.
Like I say, this is hypothetical. But I will be buying my next vehicle using a method like the above if possible (PCP, LP, Loan with balloon)
crosseyedlion said:
Yes, but only (theoretically) paying for the depreciation.
But paying interest on the whole amount, and in fact more than with a personal loan because the average balance outstanding is higher (i.e., in month 35 of a PCP you might owe £20k and be paying interest on that, whereas in month 35 of a 36-month personal loan for £30k you would only owe £950 or so).Secondly, old cars can go bang. If you have the engine go bang and you can exercise your s.99 termination rights, the finance company might find themselves settling a £20k balance in exchange for a £10k engineless DB9.
Thirdly, it's a bit specialist; a DB9 will still retain substantial value at 12 years old but it's still a nine-year-old car in the same way as a Peugeot 407 is. This means you need some pretty skilled underwriters to ensure that loans are always secured against substantial assets.
How long would you have done a PCP for?
If you plan a 3 year PCP, then just take 5 year loan with the balance outstanding at the end of 3 years being the balloon payment of a PCP. Or take a 6 year loan, or a 7 year loan - so long as the outstanding balance at the end of your intended ownership period is greater than your estimated value of the car then all should be fine. Just do a spreadsheet of varying ownership periods, varying loan periods and estimated residual values factoring in personal loan interest rates. I suspect it will be a lot cheaper than a PCP, and considerably more flexible.
If you plan a 3 year PCP, then just take 5 year loan with the balance outstanding at the end of 3 years being the balloon payment of a PCP. Or take a 6 year loan, or a 7 year loan - so long as the outstanding balance at the end of your intended ownership period is greater than your estimated value of the car then all should be fine. Just do a spreadsheet of varying ownership periods, varying loan periods and estimated residual values factoring in personal loan interest rates. I suspect it will be a lot cheaper than a PCP, and considerably more flexible.
JQ said:
How long would you have done a PCP for?
If you plan a 3 year PCP, then just take 5 year loan with the balance outstanding at the end of 3 years being the balloon payment of a PCP. Or take a 6 year loan, or a 7 year loan - so long as the outstanding balance at the end of your intended ownership period is greater than your estimated value of the car then all should be fine. Just do a spreadsheet of varying ownership periods, varying loan periods and estimated residual values factoring in personal loan interest rates. I suspect it will be a lot cheaper than a PCP, and considerably more flexible.
This is probably the best way to go.If you plan a 3 year PCP, then just take 5 year loan with the balance outstanding at the end of 3 years being the balloon payment of a PCP. Or take a 6 year loan, or a 7 year loan - so long as the outstanding balance at the end of your intended ownership period is greater than your estimated value of the car then all should be fine. Just do a spreadsheet of varying ownership periods, varying loan periods and estimated residual values factoring in personal loan interest rates. I suspect it will be a lot cheaper than a PCP, and considerably more flexible.
The people doing PCP have to make a profit somewhere.
That's going to be based on the Apr and some gamble on car resale value - plus a fee.
By taking a longer loan your avoiding the fee, getting a lower Apr.
Most people PCP a new car for a few years hassle free motoring.
A used PCP won't have this -
You'll have to maintain the car yourself, and I guessing any buyback value is only guaranteed if the car has been 'adequately maintained'.
You still have all the risk of a private purchase.
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