Vanquish finance
Discussion
I had an unsolicited offer come through on email today for the new Vanquish and thought people might be interested in seeing what the costs look like if financed.
OTR cash: £392k
Dep: £49k
Dealer contribution: £41k
Monthly: £3,999 x 24 (based on 6250 miles pa)
Optional final: £257k
Total: £442k
Over £135k (>£6k per month) if you decide to walk away. Or, put another way, £10/mile if you max out the mileage.
Gen 2 Vanquish was far from cheap, but the above puts into context how much prices have risen.
OTR cash: £392k
Dep: £49k
Dealer contribution: £41k
Monthly: £3,999 x 24 (based on 6250 miles pa)
Optional final: £257k
Total: £442k
Over £135k (>£6k per month) if you decide to walk away. Or, put another way, £10/mile if you max out the mileage.
Gen 2 Vanquish was far from cheap, but the above puts into context how much prices have risen.
It's certainly big numbers. In my case I only do 3k miles pa in the Vanquish so you'd be doubling the cost per mile.
What did strike me was the dealer contribution and the fact that it related to a stock vehicle. It would not be a surprise to see AM wanting to get any speculative builds (which I thought they'd given up doing?) off the books and cash in the bank.
What did strike me was the dealer contribution and the fact that it related to a stock vehicle. It would not be a surprise to see AM wanting to get any speculative builds (which I thought they'd given up doing?) off the books and cash in the bank.
Big numbers for sure and despite the Dealer Contribution of a shade over 10% I struggle to see why anyone would want to take up that offer. There are plenty of barely used examples out there and if it’s a stock car they are offering I don’t really see the appeal. I wonder what they would take as a cash offer, no finance involved at all, because as you say, money on the books is desperately needed. Imho I think it’s quite clear that the car is too expensive and it’s also quite clear that they aren’t being built to order, which unfortunately seems to be the case across the range, even though the cars themselves are very good indeed. 
BRM.
BRM.
Minglar said:
Big numbers for sure and despite the Dealer Contribution of a shade over 10% I struggle to see why anyone would want to take up that offer. There are plenty of barely used examples out there and if it s a stock car they are offering I don t really see the appeal. I wonder what they would take as a cash offer, no finance involved at all, because as you say, money on the books is desperately needed. Imho I think it s quite clear that the car is too expensive and it s also quite clear that they aren t being built to order, which unfortunately seems to be the case across the range, even though the cars themselves are very good indeed.
BRM.
The finance will be through a third party and the full loan value will be transferred to the AM dealer on completion of the contract so from a cash perspective it makes no difference to AM if you finance or pay cash, they get all the money on day 1, although AML rules would make it a little more work to take cash over a finance option.BRM.
M1AGM said:
Minglar said:
Big numbers for sure and despite the Dealer Contribution of a shade over 10% I struggle to see why anyone would want to take up that offer. There are plenty of barely used examples out there and if it s a stock car they are offering I don t really see the appeal. I wonder what they would take as a cash offer, no finance involved at all, because as you say, money on the books is desperately needed. Imho I think it s quite clear that the car is too expensive and it s also quite clear that they aren t being built to order, which unfortunately seems to be the case across the range, even though the cars themselves are very good indeed.
BRM.
The finance will be through a third party and the full loan value will be transferred to the AM dealer on completion of the contract so from a cash perspective it makes no difference to AM if you finance or pay cash, they get all the money on day 1, although AML rules would make it a little more work to take cash over a finance option.BRM.
Minglar said:
M1AGM said:
Minglar said:
Big numbers for sure and despite the Dealer Contribution of a shade over 10% I struggle to see why anyone would want to take up that offer. There are plenty of barely used examples out there and if it s a stock car they are offering I don t really see the appeal. I wonder what they would take as a cash offer, no finance involved at all, because as you say, money on the books is desperately needed. Imho I think it s quite clear that the car is too expensive and it s also quite clear that they aren t being built to order, which unfortunately seems to be the case across the range, even though the cars themselves are very good indeed.
BRM.
The finance will be through a third party and the full loan value will be transferred to the AM dealer on completion of the contract so from a cash perspective it makes no difference to AM if you finance or pay cash, they get all the money on day 1, although AML rules would make it a little more work to take cash over a finance option.BRM.
Familymad said:
Everything Stroll seems to touch turns to dust. Best model range for decades but unable to sell at the right price or in enough volume to make money. It s really worrying for the workers and one of our most iconic motoring brands.
That's it. You can't sell a car worth £250K for £350K just by calling it ultra luxury. Many products fail because their champions believe their own BS. Obviously if the price was lower they'd sell more, but would they make a profit? It's a tough corner. And arguably, though I appreciate Aston has special rules, if you can't sell a product for a profit why are you making it?Simpo Two said:
... if you can't sell a product for a profit, why are you making it?
Because B&M and Aston Martin have been operating exactly that way for 113 years, and have enjoyed doing it for most of that time.
AML should not be viewed as a conventional business. It is more a collection of very talented artistic engineers, creating cars that we adore, but in reality operating more like a charity, with funds being very kindly donated by benefactors (the shareholders).
On the cash / credit aspect - I thought dealers can make more money, when a customer uses the dealer's credit scheme.
AML should have already been paid by the dealer for that stock car. Dealer stocking finance is usual after paying the manufacturer.
Minglar said:
I wonder what they would take as a cash offer, no finance involved at all, because as you say, money on the books is desperately needed.
BRM.
I always buy with cash. Dealers do not like this at all as they lose money on the finance kick backs. When negotiating it is best to tell them about cash after you have the price. They usually assume you want finance, so just nod when they give you those numbers and then when the deal is there, pay cash. BRM.
RSbandit said:
Even the really wealthy are reticent to burn £100k to own one of these for 12 months staggeringly expensive but the Ferrari 12c is a similar price are F shifting alot of them?
Are the residuals/ levels of depreciation comparable? It's the depreciation that forms much of the cost regardless of how you fund the purchase. Shifting a lot doesn't matter provided there is sufficient demand for them used to keep prices high / depreciation low.
Saw it first hand with our Taycan when, initially, used prices were over list before completely collapsing. At 2 y/o we'd have seen virtually no depreciation. Then got to the stage where there was 80% depreciation (based on offers made when looking at trade in) to then, at 3 y/o being unable to get any trade in offer at all. All, almost certainly, due to massive over supply vs demand in the used market.
You can finance a car & pay the finance off in the first month and the dealer can't stop you (if they push you to finance the car) - a friend has done this numerous times with different dealers.
The finance deal isn't sharp enough IMO given the current market & there's probably another 5-10% to work on if the OP is prepared to play the dealer off against others & be patient. I'd be speaking to the local supercar main dealers to see what they're offering (Ferrari trimmed their production numbers back last year btw).
The finance deal isn't sharp enough IMO given the current market & there's probably another 5-10% to work on if the OP is prepared to play the dealer off against others & be patient. I'd be speaking to the local supercar main dealers to see what they're offering (Ferrari trimmed their production numbers back last year btw).
LooneyTunes said:
... Saw it first hand with our Taycan when, initially, used prices were over list before completely collapsing. At 2 y/o we'd have seen virtually no depreciation. Then got to the stage where there was 80% depreciation (based on offers made when looking at trade in) to then, at 3 y/o being unable to get any trade in offer at all. All, almost certainly, due to massive over supply vs demand in the used market.
It was interesting how people's perceptions developed.
Leaving aside the financial inducements to artificially encourage buying, at the beginning some motorists were keen to be part of the revived (battery cars were dominant from 1895 to 1910) EV introduction.
We were told how much simpler the vehicles are, just a battery and a motor with hardly any need for servicing. To drive 100 miles would only cost pennies and maintenance would be very cheap.
After several years there was a more widespread realisation that battery cars are in fact mind blowingly complex. A huge number of different complex electrical components are involved. The main battery needs to be kept within an operating temperature range. Those coolant systems are in various different forms. If the liquid version develops very a leak, there can be expensive consequenses.
I suppose the sequence you describe, must be connected with many people gradually concluding, that buying a used EV does involve more expensive risks than they had previously realised.
Edited by Jon39 on Sunday 29th March 09:15
Davil said:
Minglar said:
I wonder what they would take as a cash offer, no finance involved at all, because as you say, money on the books is desperately needed.
BRM.
I always buy with cash. Dealers do not like this at all as they lose money on the finance kick backs. When negotiating it is best to tell them about cash after you have the price. They usually assume you want finance, so just nod when they give you those numbers and then when the deal is there, pay cash. BRM.
Jon39 said:
It was interesting how people's perceptions developed.
Leaving aside the financial inducements to artificially encourage buying, at the beginning some motorists were keen to be part of the revived (battery cars were dominant from 1895 to 1910) EV introduction.
We were told how much simpler the vehicles are, just a battery and a motor with hardly any need for servicing. To drive 100 miles would only cost pennies and maintenance would be very cheap.
After several years there was a more widespread realisation that battery cars are in fact mind blowingly complex. A huge number of different complex electrical components are involved. The main battery needs to be kept within an operating temperature range. Those coolant systems are in various different forms. If the liquid version develops very a leak, there can be expensive consequenses.
I suppose the sequence you describe, must be connected with many people gradually concluding, that buying a used EV does involve more expensive risks than they had previously realised.
Making EV’s attractive to those able to buy via company structures (which, incidentally, we did not) through low BIK etc stimulated huge demand. No such incentives existed for the second, private, owner of which (quite understandably) there were very few willing/able to pay strong money for a second hand premium EV - hence price falls.
We were fortunate insofar as I’d foreseen the possibility of this happening so had put it on a PCP with largest possible deposit, treating the residual interest as payment for a “put” option to get rid of the car at a known value in three years. People operating as more typical PCP buyers, relying on the “equity” left in the vehicle to fund their next one, may have been hit harder.
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