Bored at work...maybe i am dreaming....then again it might not even be a possibility..

I'm currently looking (dreaming!) at purchasing a high end sports car (to me!). 360, 911, AMV8 etc....

I'm in a bit of a pickle. Most of my money is tied up in stocks, property and other investments. I am loathe to sell anything inorder to raise the cash.

In terms of liquidity, say I have £20k at my disposal for a deposit.

I was to buy a £45k car. I put a deposit down of £20k and finance the remainder.

When i come to sell it. Would ALL the finance have to be paid of beforehand????

This is what my wife reckons....

Surely not everyone out there is buying high end cars with straight cash. I find i can use my cash better elsewhere. Hence my reason for not realizing the full £50k for the car purchase.

In short. How the heck do i go about putting a £20k deposit on a £50k, and sell the thing if i want to at a later date.

I have been advised to extend a mortgage i have on a buy-to-let..

When i come to sell it. Would ALL the finance have to be paid of beforehand????

Not necessarily - the buyer (whether private or dealer) may be willing to deal directly with your finance company to settle the outstanding balance.

Failing that, yeah, you'd have to take out a loan for the amount, sell the car, then pay the loan off with the proceeds.

A lot of expensive (new) cars are leased rather than bought outright.

PCPs can be a good way to purchase a new car as there is often a decent incentive from the manufacturer, but don't put too big a deposit in though. I bought my A4 with a low rate finance PCP and the manufacturer also put something towards the deal. On top of this you are free to haggle with the dealer too This won't work as well with second hand cars though :(

PCP as Lady E says.

For example (all figures are for example and NOT to be taken as gospel)

Audi A4 3.0TDi Quattro Avant with Options £43k

Minus £20k deposit Leaves £23k to finance

Guaranteed Min Future Value of car after 3 years £11k

Amount to finance £12k (£43k minus deposit & minus GMFV)

Over 3years on low rate finance would be around £320-350 pcm.

Stick to the terms of the deal and you can hand the car in at any point and walk away with any cash left in it once finance is cleared, trade in every year for a new one or reach the end of the term and pay off the GMFV. Only time it becomes a problem is when you do more than the agreed mileage (usually 10k per annum) and you get charged then per mile you are over.

I was going to do this but the Wife kindly pointed out that she didn't want to put £Xk into a car when i could get a Skoda vRS Estate to do everything the Audi does for half the price. So i now have an Anthracite vRS Estate on order instead :'(

We used to recommend to customers that they don't put more than 33% of the cars value into a PCP as a deposit. Ithink Audi might have a cap on the amount too?

PCP as Lady E says.

For example (all figures are for example and NOT to be taken as gospel)

Audi A4 3.0TDi Quattro Avant with Options £43k

Minus £20k deposit Leaves £23k to finance

Guaranteed Min Future Value of car after 3 years £11k

Amount to finance £12k (£43k minus deposit & minus GMFV)

Over 3years on low rate finance would be around £320-350 pcm.

Stick to the terms of the deal and you can hand the car in at any point and walk away with any cash left in it once finance is cleared, trade in every year for a new one or reach the end of the term and pay off the GMFV. Only time it becomes a problem is when you do more than the agreed mileage (usually 10k per annum) and you get charged then per mile you are over.

I was going to do this but the Wife kindly pointed out that she didn't want to put £Xk into a car when i could get a Skoda vRS Estate to do everything the Audi does for half the price. So i now have an Anthracite vRS Estate on order instead :'(

So car costs £35k in total????

Buy a cheaper car and pay off your debts. Why p*ss 30 grand up the wall when you've got debts? When they're paid off, you can buy the car for cash and get a better deal.

So car costs £35k in total????

No it still costs £43k. But you only pay out £32k

You have put £20k (for example) into the car so that leaves £23k to find/finance.

The GMFV is what Audi gaurantee to pay you after 3 years for the car as a minimum. As long as you stick to the 10,000miles. As they know this they remove that from the finance as they know one way or another they will get that money. Either your going to pay it at the end of the agreement or they sell it on when you trade it in for a new one etc.

So it leaves you with £12k to finance over 3 years.

After 3 years you will have paid (not assuming any interest) £32k for the car (Deposit + Finance)

There is still an outstanding £11k to pay. BUT as long as you haven't done anymore than 30k miles thats the minimum you would get from Audi as a trade in on the car (or if you hand in and walk).

That make sense?

Ooh one important thing with respect to PCP and mileage is it often helps to underestimate your annual mileage on the PCP slightly. This is because if you do say 10K a year, your GFV will be say £XXXX, but if you go over this you will be charged at a fixed amount for miles over and the cost per mile is similarish to the reduced GFV that a higher mileage declaration would incur. I.e. if you said you did 15K a year, your GFV would be say £XXXX minus Y pence per mile. This isn’t as bad a it sounds, because….

If you said you will do 15K a year (GFV £XXXX minus Y pence per mile) but only do say 10K per year, then you will still have the lower GFV figure (and hence higher payments) and if you hand the car back will have lost the difference between the higher figure and the lower (minus Y pence per mile) figure. It probably won’t matter if you do low miles, but I do 20K+ a year, so I set my figure a couple of thousand miles a year low.

Hope that makes sense.

Edited 21 April, 201115 yr by Lady Elanore

No it still costs £43k. But you only pay out £32k

You have put £20k (for example) into the car so that leaves £23k to find/finance.

The GMFV is what Audi gaurantee to pay you after 3 years for the car as a minimum. As long as you stick to the 10,000miles. As they know this they remove that from the finance as they know one way or another they will get that money. Either your going to pay it at the end of the agreement or they sell it on when you trade it in for a new one etc.

So it leaves you with £12k to finance over 3 years.

After 3 years you will have paid (not assuming any interest) £32k for the car (Deposit + Finance)

There is still an outstanding £11k to pay. BUT as long as you haven't done anymore than 30k miles thats the minimum you would get from Audi as a trade in on the car (or if you hand in and walk).

That make sense?

Apologies i meant £32k!!!!

Thanks for the informative responses guys..

Buy a cheaper car and pay off your debts. Why p*ss 30 grand up the wall when you've got debts? When they're paid off, you can buy the car for cash and get a better deal.

:( You're a long time dead. I say go for it if you want to, it's your money and I assume you are a grown up Beancounter. If you have saved £20K then you must have some fiscal astuteness.

If you have saved £20K then you must have some fiscal astuteness.

Or a Wife like mine who insists we save for

Rainy Days

Cows Farting

Cloudy Weather

Martians landing

Zombies coming

:dull:

Oh and just in case :rofl:

:( You're a long time dead. I say go for it if you want to, it's your money and I assume you are a grown up Beancounter. If you have saved £20K then you must have some fiscal astuteness.

Only live once and all that.....

Or a Wife like mine who insists we save for

Rainy Days

Cows Farting

Cloudy Weather

Martians landing

Zombies coming

:dull:

Oh and just in case :rofl:

Talking of cows farting, I see that the Bloodhound 1000mph car is said to produce the same amount of greenhouse gas per run, as 3.5 lactating cows!! Not sure if they will eliminate 3.5 cows to offset their attempt however?

Talking of cows farting, I see that the Bloodhound 1000mph car is said to produce the same amount of greenhouse gas per run, as 3.5 lactating cows!! Not sure if they will eliminate 3.5 cows to offset their attempt however?

I could use some beef actually for a BBQ

you can buy the car for cash and get a better deal.

IME, that's not often the case these days - as the dealers are usually getting some form of commission on finance packages, they'll often be willing to knock more off the screen price of the car itself as they know they'll make it up on the finance.

If you can haggle sufficiently, you can get (amount to finance)+(interest) to be the same as (cash price), so effectively giving you 0% finance...

I'm still not sure what this thread is about. The OP asked about buying a nice car used and the VAG-noscenti are talking about dull German cars on drugs.

Imho I wouldn't want to buy a car with outstanding finance and I'd definitely use a reputable dealer and proper HPI checks to confirm. Call me a pussy but I wouldn't spend anywhere near that money in a private sale

Edited 21 April, 201115 yr by 'daiking'

Where in the OP opening post does he state a used car? Your assuming by the cars he listed he wanted a used one. However I just pointed out how he could afford a car within his price range (£45k) and used a £43k Audi as an example.

Just because you find something dull doesn't mean others will. Life would be very boring if we all had the same tastes and opinions!

£50K is around M3, 1M and RS5 sort of territory

"High end sports car" and examples given were 360, 911 & AMV8.

I rest my case :p

Bored at work...maybe i am dreaming....then again it might not even be a possibility..

I'm currently looking (dreaming!) at purchasing a high end sports car (to me!). 360, 911, AMV8 etc....

I'm in a bit of a pickle. Most of my money is tied up in stocks, property and other investments. I am loathe to sell anything inorder to raise the cash.

In terms of liquidity, say I have £20k at my disposal for a deposit.

I was to buy a £45k car. I put a deposit down of £20k and finance the remainder.

When i come to sell it. Would ALL the finance have to be paid of beforehand????

This is what my wife reckons....

Surely not everyone out there is buying high end cars with straight cash. I find i can use my cash better elsewhere. Hence my reason for not realizing the full £50k for the car purchase.

In short. How the heck do i go about putting a £20k deposit on a £50k, and sell the thing if i want to at a later date.

I have been advised to extend a mortgage i have on a buy-to-let..

Been there, keep the VRS it's more fun per £.

Extending mortgages on buy to lets I also looked at. Tax man (if he knows) will want to use original value of mortgage for tax purposes, so you'll lose out.

My advice would be to stop dreaming and enjoy a cheaper fun car.

I nearly bought a Nissan GTR. But the sums don't add up and I want to be comfortable in later life, not have a status symbol parked on the drive costing 10k+ a year.

In your example of putting down 20k on a 45k car you're looking at something like £760 per month repayments over 36 months on top of the the deposit. Plus running costs.

Are you going to get that kind of value out of it?

To me that's another couple of buy to lets you'll have for the rest of your life.

Not a fan of PCP as they usually keep the GMFV low so you have a little deposit for next time, meaning you pay more in the short term.

Oh, and anything with a balloon payment generally involves you paying interest on that lumptoo, so you are paying an interest % on that amount that is outstanding for the whole time of the deal. Which means higher costs.

If you fancy a change, you could always get a (cheaper) toy or two.

That's what I did and other than the work hack (Greenline II) they are all paid off. Feels better than being committed to £££ every month.

"High end sports car" and examples given were 360, 911 & AMV8.

I rest my case :p

AMV8 loses it for you :p

often PCPs attract low rates and deposit contributions that no other finance arrange does, hence they work out cheaper than Bank loans and HP. I used to sell Primeras on a PCP, which has so much incentive, that I could sell the car effectively at less than 0% finance and still have all the money in the car for profit ALWAYS let a salesman talk you through the finance options as there may be a pleasant surprise in it. Plus you can haggle over PCPs that aren't manufacturer supported. Check the bottom line and see which finance method is in reality the cheapest. Used cars however, don't usually work out so cheap on PCPs as they attract no 'sweeteners' from the manufacturer and as mentioned earlier, you still have to pay some interest on the GFV lump.

Edited 21 April, 201115 yr by Lady Elanore

Keep the Fabia & spend the £20K on a speedboat/yacht/flying lessons/adventure holiday(s)/pushbike blah, blah, blah.

There are plenty of toys that are far more fun than a car & they're usually cheaper as well.

most important thing to remember with a PCP is whatever your deposit is into your finance agreement with the first car you buy, you have to have the same deposit into the next car too keep the payments around the same. So if you put £20k deposit into the first car, then you need to have £20k going into the next one too. this means you need either another £20k going into it, or the car has to be worth £18k ish over its gfv.