1, 12, 4, 9, 2, 11, 6, 7, 3, 10, 5, 8

[SDK^]

Sounds like the owner can’t afford to sell it, or continue the monthly payments.

The Sheriff's are warming their van up

 

[wesley]

Let's say you bought for £250k with £25k down, on HP with a balloon of £160k. You'd be paying £2.5k-£3k/month on a deal like that (keeping the balloon high to get the monthlies lower).
The car might now only be worth £140k. At the end of the term you need to to pay the balloon (£160k) so that means sell the car *and* find 20k. Normally the idea is to be realistic/conservative with the balloon, to avoid being in the negative equity situation like this, but I can imagine some companies have been pushing the boat as far as they can go by setting the balloon higher and the keeping the monthly payments lower... kicking the can down the road so to speak.

Thought the whole point of PCP is the GMFV . Guarantee minimum future value. To stop getting in debt at the end of finance deal

 

[Mercenary Keyboard Warrior]

Thought the whole point of PCP is the GMFV . Guarantee minimum future value. To stop getting in debt at the end of finance deal

On a PCP as long as you make all the payments you cant end up debt, if the car is worth less than the GFV you hand it back and walk away

 

[Basher]

On a PCP as long as you make all the payments you cant end up debt, if the car is worth less than the GFV you hand it back and walk away

As long as you pay half, you can't lose - as you can VT once you're past the halfway point (in payment terms, not time).

 

[Mercenary Keyboard Warrior]

As long as you pay half, you can't lose - as you can VT once you're past the halfway point (in payment terms, not time).

True but for most PCPs the halfway point is within a few months of the full term so its somewhat mute
Although minimum deposit and depreciation like a peugeot you may get there a lot quicker lol

 

[mid_gen]

Buying a Lambo on finance....recipe for disaster. If you can't buy it cash you can't afford it imo!

Funnily enough I just found an old picture of 16yr old me turning up at my school leaver's ball in a family friends' Countach (red ofc)....love lambos

 

[kindai]

If you can't buy it cash you can't afford it imo!

Can say that for any car yet most take them out on finance. The difference is simply a multiple of cost.

 

[Vita]

You're right @Vita

I see. It’s a very crappy situation to be in i guess. Probably talking daft money in cash to release the car so essentially he’s snookered for a while unless someone wants to pay over the odds.

I’m sure something better is out there for the money.

 

[Gibbo]

Buying a Lambo on finance....recipe for disaster. If you can't buy it cash you can't afford it imo!

Funnily enough I just found an old picture of 16yr old me turning up at my school leaver's ball in a family friends' Countach (red ofc)....love lambos

Supercars or just expensive cars are all nearly purchased on finance, just like house purchases are financed.
When I purchased the Ferrari they actually tried to talk me out of a large deposit, informing me that was not normal as most customers prefer to pay a smaller deposit and have a higher monthly as most buyers are of two types, they cannot afford a bigger deposit or easily could do but their cash works better for them invested and will return more than the cost of interest.

So most people buying expensive cars do so in finance simply because they either cannot afford to buy outright or they can but their cash is better invested elsewhere.

I myself prefer a balance, I prefer a low monthly and to invest cash, as such I made a larger deposit but kept some money aside, so the final payment would always be below the value of the car could ever reach even if I'd put 100k miles on it and crashed it into Halfords Ripspeed department I would never be in negative equity.

 

[Scrutinize]

Private Car purchases are a liability unless you are specifically re-hiring them out and have regular income generating profit. Even if you buy for cash, it's not an asset.

As such, putting more of your cash into them than necessary is a futile exercise. PcP, HP, Lease options all make sound financial sense, too many don't understand why though.

However, big caveat here; if you don't have the free cash to settle any negative equity / ETPs at any stage in the term without worring about it, then quite simply you can't afford it and you don't have your money working for you.

Leasing them makes much more sense presuming you are putting your capital to better use.

Unless you are buying purely as an appreciating asset which is still a limited market to make good returns and ties cash up longer term. On low or zero depreciating cars where you are still running them (insurance, maintenance etc) and at the end of ownership if in total it has cost more than you get back then....still a liability.

@kindai plenty more lambos about, just up your budget.

 

[Chris1712]

Ouch, wouldn't like to be in his shoes. I know these HP + Balloon aka Lease Purchase aka Balanced Payment Scheme etc. are risky and typically reserved for UHNW / Business / SPV etc. but to be on the wrong of one must be pretty scary.

Was it SoR? Nothing the dealer can do? Private? I'm sure it just means a better car will come up soon, sure you'll find one.

 

[mid_gen]

Supercars or just expensive cars are all nearly purchased on finance, just like house purchases are financed.
When I purchased the Ferrari they actually tried to talk me out of a large deposit, informing me that was not normal as most customers prefer to pay a smaller deposit and have a higher monthly as most buyers are of two types, they cannot afford a bigger deposit or easily could do but their cash works better for them invested and will return more than the cost of interest.

So most people buying expensive cars do so in finance simply because they either cannot afford to buy outright or they can but their cash is better invested elsewhere.

I myself prefer a balance, I prefer a low monthly and to invest cash, as such I made a larger deposit but kept some money aside, so the final payment would always be below the value of the car could ever reach even if I'd put 100k miles on it and crashed it into Halfords Ripspeed department I would never be in negative equity.

I'll rephrase If you don't have the liquid assets or cash to cover the sticker price, you shouldn't be buying lambos.

In these days of zero interest and ridiculous stock markets it's undoubtedly makes more sense to borrow and put your cash to use elsewhere...

 

[Jonnycoupe]

Agreed on never buying new, unless its a limited edition or limited numbers or you know future values will be strong or its a car you never plan on selling. Otherwise buying new means you experience a lot of depreciation and you have to refrain from spanking it as you have to run it in.

Brilliant from the bloke whos just bought a new car.

 

[m@rty]

Brilliant from the bloke whos just bought a new car.

Did you bother to read past the first line? Stop being lazy.

 

[Jonnycoupe]

Did you bother to read past the first line? Stop being lazy.

Thanks for the contribution.

 

[Jonnycoupe]

Thought the whole point of PCP is the GMFV . Guarantee minimum future value. To stop getting in debt at the end of finance deal

Problem is it’s a curve that means you are negative equity at the start!

 

[wedrum]

Hmmmmm I'm with gibbo the right one will come along.

Not the best time of year to buy but you never know.

As a daily yeh **** it why not

 

[Dominic-Toretto]

Brilliant from the bloke whos just bought a new car.

Did you actually read his full post, or stop after the first 5 words and decide to post your asinine comment?

 

[Jonnycoupe]

He knows I’m just winding him up. This is me flirting with Gibbo, didn’t realise he had a protection detail.

I thought the other chap was mad when he mentioned first sentence when I had quoted 2 sentences, but you’ve stepped it up with 5 words.

PS. in my book never and two isn’t the same number

 

[naefeart]

I’d try and see if I could get in touch with the agent representing the bank, and buy the car even cheaper.