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I’m thinking of going for a new ev though not sure which one yet. I have the money to pay cash but I’m concerned about depreciation if ev’s aren’t the future as we’re being told.
Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
bad company said:
I’m thinking of going for a new ev though not sure which one yet. I have the money to pay cash but I’m concerned about depreciation if ev’s aren’t the future as we’re being told.
Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
That’s basically a PCP?Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
Sport_Turismo_GTS said:
bad company said:
I’m thinking of going for a new ev though not sure which one yet. I have the money to pay cash but I’m concerned about depreciation if ev’s aren’t the future as we’re being told.
Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
That’s basically a PCP?Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
bad company said:
Sport_Turismo_GTS said:
bad company said:
I’m thinking of going for a new ev though not sure which one yet. I have the money to pay cash but I’m concerned about depreciation if ev’s aren’t the future as we’re being told.
Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
That’s basically a PCP?Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
PinkHouse said:
Speak to an independent finance broker who would be able to propose this sort of interest-only structure where you pay the deposit covers all the capital up to the GMFV, so essentially all you're doing is paying interest on the final balloon payment. Manufacturer finance arms might be less keen because they make less money in interest payments overall through this structure
What PinkHouse said.Main dealers don’t like doing this, 3-4 years ago I was pondering a new M3 and when asking if I could just put down an amount that was the difference between list and the GFV, the salesman said it wasn’t possible, max was about 15-20% iirc.
What you propose, IMHO, is pointless.
Its not protecting you from the depreciation at all as the GFV is almost certain to be pretty accurate or in the houses favour.
The extra interest you will pay its just not worth it.
Oh and EVs are going to depreciate, I think its just a fact of that market right now. The best thing to do is buy something that depreciates less than others, I am not sure which EV that is but I suspect a quick search on AT for 2 year old EVs might give you some results.
Just my 2ps worth.
Its not protecting you from the depreciation at all as the GFV is almost certain to be pretty accurate or in the houses favour.
The extra interest you will pay its just not worth it.
Oh and EVs are going to depreciate, I think its just a fact of that market right now. The best thing to do is buy something that depreciates less than others, I am not sure which EV that is but I suspect a quick search on AT for 2 year old EVs might give you some results.
Just my 2ps worth.
Not quite right. The amount of deposit won't alter the GFV but it does have an impact on the amount you pay overall - assuming it's not 0% and the interest rate is not dependent on deposit amount The higher the deposit, the less of a loan you will have at any given point before the balloon, and the less interest you'll pay overall.
For example:
For example:
Edited by rix on Saturday 3rd June 03:25
You are not understanding what I am saying, I am saying he has the cash.
The PCP makes it worse no matter which way you cut it.
Assuming the GFV cancels out the extra in interest is IMHO a bad gamble as they dont just make up GFVs they know their market.
Might get lucky, but I think it could cost several grand to throw the dice I dont see the point.
The PCP makes it worse no matter which way you cut it.
Assuming the GFV cancels out the extra in interest is IMHO a bad gamble as they dont just make up GFVs they know their market.
Might get lucky, but I think it could cost several grand to throw the dice I dont see the point.
Ah right, yeah I get you. Definitely depends on how much interest you'd be paying for the benefit of a GFV. For many there is some degree of premium worth paying for thay ability to hand a car back -- known costs for the term etc.
Agree thought that the GFVs are usually pretty spot on so a useful indicator of how much you'll sink in depreciation as a cash purchase.
Agree thought that the GFVs are usually pretty spot on so a useful indicator of how much you'll sink in depreciation as a cash purchase.
gotoPzero said:
You are not understanding what I am saying, I am saying he has the cash.
The PCP makes it worse no matter which way you cut it.
Assuming the GFV cancels out the extra in interest is IMHO a bad gamble as they dont just make up GFVs they know their market.
Might get lucky, but I think it could cost several grand to throw the dice I dont see the point.
I suppose the point is that the GFV provides a safety net. The PCP makes it worse no matter which way you cut it.
Assuming the GFV cancels out the extra in interest is IMHO a bad gamble as they dont just make up GFVs they know their market.
Might get lucky, but I think it could cost several grand to throw the dice I dont see the point.
A "fundamentals" question to the OP...
If you are concerned about depreciation and financing costs (interest etc..), then why on earth are you choosing to buy an EV which is almost certainly going to depreciate far more than a similar priced ICE car? Just choose an ICE car with safe residuals, Porsche etc... pay cash, and enjoy it and life.
If you are concerned about depreciation and financing costs (interest etc..), then why on earth are you choosing to buy an EV which is almost certainly going to depreciate far more than a similar priced ICE car? Just choose an ICE car with safe residuals, Porsche etc... pay cash, and enjoy it and life.
AdamV12V said:
A "fundamentals" question to the OP...
If you are concerned about depreciation and financing costs (interest etc..), then why on earth are you choosing to buy an EV which is almost certainly going to depreciate far more than a similar priced ICE car? Just choose an ICE car with safe residuals, Porsche etc... pay cash, and enjoy it and life.
‘Almost Certainly’!!! Really??? You have a better crystal ball than I can find.If you are concerned about depreciation and financing costs (interest etc..), then why on earth are you choosing to buy an EV which is almost certainly going to depreciate far more than a similar priced ICE car? Just choose an ICE car with safe residuals, Porsche etc... pay cash, and enjoy it and life.
bad company said:
I’m thinking of going for a new ev though not sure which one yet. I have the money to pay cash but I’m concerned about depreciation if ev’s aren’t the future as we’re being told.
Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
Search for 50/50 finance if that's the sort of thing you want. But they're HP schemes rather than leases, and the second 50% payment might not be optional. They're more useful as a cash conversion tool for the dealer, rather than to protect the customer against depreciation.Some years ago I leased a Jaguar on a scheme whereby I paid a large deposit, no monthly payments then either returned the car or paid the balance at the end of the term.
Does anyone know if such a scheme is available now?
Subaru appears to offer one at 0% APR over 12 months, which probably won't be suitable for you (and is the Solterra even eligible?). https://subaru.co.uk/finance-50-50/
If you are worried about depreciation then putting your money in to a new car isn’t a great idea. Trying to second guess the residuals on an EV seems as easy as trying to predict the lottery.
If you are happy to put 50%in then find a used EV that costs the maximum amount of cash you want to put in. No monthlies and worth something when you want to change it.
If you are happy to put 50%in then find a used EV that costs the maximum amount of cash you want to put in. No monthlies and worth something when you want to change it.
If you bank (online) with Halifax once logged in they have a very useful car finance price tool. I think their max deposit is 40% (or an amount that means a minimum £100 a month payment) and rates look to be about 6.9% on a pcp, so half what most dealers would be at. Their final value may be lower than a manufacturers, but the total cost would be less.
Speaking of which this is an interesting example - https://www.marshall.co.uk/volvo/used-cars/1616851...
An electric xc40 p8, the 400bhp one which was £50k+ new. 2 years old £35k and on a 24m pcp the final value is £28,815. At their rates that’s still £7k interest payment over the two years! Halifax is £25k final value, but ‘only’ £3.5 interest.
Speaking of which this is an interesting example - https://www.marshall.co.uk/volvo/used-cars/1616851...
An electric xc40 p8, the 400bhp one which was £50k+ new. 2 years old £35k and on a 24m pcp the final value is £28,815. At their rates that’s still £7k interest payment over the two years! Halifax is £25k final value, but ‘only’ £3.5 interest.
We did exactly what you are proposing in 2019 at Mini main dealer, put in a 50% deposit on a 31k Countryman, got a 10% discount for taking the finance and then paid 5% on the balance over 3 years.
At the end the balloon (around £15k IIRC) was much less than the value so we just paid that and kept the car.
With hindsight it would have been a bit cheaper to just buy the car (always assuming we could have negotiated a similar discount on the new price) but it was worth it for peace of mind.
Our thought was the opposite of yours, that ICE values might collapse, go figure.
All in the car has cost us £187 pcm over the first 4 years which doesn’t seem bad.
At the end the balloon (around £15k IIRC) was much less than the value so we just paid that and kept the car.
With hindsight it would have been a bit cheaper to just buy the car (always assuming we could have negotiated a similar discount on the new price) but it was worth it for peace of mind.
Our thought was the opposite of yours, that ICE values might collapse, go figure.
All in the car has cost us £187 pcm over the first 4 years which doesn’t seem bad.
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