F360 Finance Question For The Financial Bods

[132]

I am considering a F360 purchase this week and for the first time I am considering some sort of finance. The majority of people I have spoken have told me that the best way to finance this type of car is via PCP with balanced payments. I intend to keep the car for no more than 12-18 months.

The advice one broker gave me was: Put in as little deposit and extend the payments over the longest possible period, and agree the highest possible balloon, even though I am selling the car after 12-18 months…

I have no problem putting down a 5-20% deposit. Does this advice make sense?

Many thanks.

[bad company]

132 said:

I am considering a F360 purchase this week and for the first time I am considering some sort of finance. The majority of people I have spoken have told me that the best way to finance this type of car is via PCP with balanced payments. I intend to keep the car for no more than 12-18 months.

The advice one broker gave me was: Put in as little deposit and extend the payments over the longest possible period, and agree the highest possible balloon, even though I am selling the car after 12-18 months…

I have no problem putting down a 5-20% deposit. Does this advice make sense?

Many thanks.

I would be concerned that the broker has advised you to borrow as much as possible to as to inflate his commission from the finance company. I would go for a bank loan or a traditional hire purchase agreement putting in as high a deposit as you can afford.

[Paracetamol]

bad company said:

132 said:

I am considering a F360 purchase this week and for the first time I am considering some sort of finance. The majority of people I have spoken have told me that the best way to finance this type of car is via PCP with balanced payments. I intend to keep the car for no more than 12-18 months.

The advice one broker gave me was: Put in as little deposit and extend the payments over the longest possible period, and agree the highest possible balloon, even though I am selling the car after 12-18 months…

I have no problem putting down a 5-20% deposit. Does this advice make sense?

Many thanks.

I would find a loan that has little to no penalties, no fees for documents and a low rate as possible...the rest is up to you but be warned you will not have any consumer credit protection so make sure of the terms of early settlement
I would be concerned that the broker has advised you to borrow as much as possible to as to inflate his commission from the finance company. I would go for a bank loan or a traditional hire purchase agreement putting in as high a deposit as you can afford.

[sjhoward1974]

Surely you will end up 'upside down' to coin a well used phrase if you follow the brokers advice of little deposit long term?

[132]

The way he described it was to have as little in the car is possible. When I sell, there will be a penalty of 2% of the outstanging capital. Hopefully, the value of the car should not fall too much over 12 months, so should cover the residual capital.

By 'Upside down', do you mean negative equity?

[neil-f]

How have you financed your fleet to date as you seem to have quite a collection from your profile?

[132]

I have been on a 'reduction programme' over the last year and now the F355 to the 330ci have been sold. Rightly or wrongly, they were all purchased for cash. However, as with most people, I now have a much better use for the capital.

[CUE99T]

132, who is telling you that mate?

Anyway you have a PM for a recommendation and am not on commission in here........