Hi, 1st post here - looks like a great board for the RRS!

How do you guys generally finance your vehicles?

Presumably the majority of cars are financed as it seems silly to tie up so much capital in a depreciating asset?

I'd be looking at putting round about a £20k deposit in for whichever way it can be done with a view to coming out of the deal after about 2yrs (45k mls later) and still having round about £10k deposit to go into the next car.

I've had a few quotes back from a dealer on a £55k car (RRS Supercharger 4 months old with 2800mls). Basically the deal looked like this:

4yr Deal @ £971/month with a £17k deposit (no balloon - straight loan).
Projected value (by the dealer) for the car after 2yrs (48k mls) is £20k
After 2yrs the finance agreement would cost me £24k to settle, which leaves me with a shortfall of £4k to find. So effectively i'm -£14k down on where I wanted to be in the 1st place!

Surely there are better ways to finance these machines than this, and for less outlay each month?

Also would consider one of the diesel versions if this would make a significant difference to monthly payments.

Would be greatful of your own experiences/advice if possible.

Thanks in advance!

Ice.

Hi ICE man..
Do not walk into that deal.. man that is horrendous..

The residual value of my diesel after four years is around 19k, so a 2 year old SC with a residual of £20k... MY GOD... !! www.carfinance.net quotes the SC value to be around 29k mark after two years, and i would say that would be a minimum value really provided the market doesn't fall out of the bottom of our RRS's.

Straight HP i.e the way you are getting quotes for on the above example is an expensive way of doing it on a monthly payment basis, but at least you don't have a balance/balloon at the end of the term to mess around with. But some woudl argue that, this is not a good thing. Why finance and pay off the balance, when you clearly would want to change after two years and get yourself into another car with a minimum of 10k equity left.

Send me your name and number by PM, i can have someone give you a call, who can go through some options with you. I swear by this bloke and reccomend him to all our clients also, so i know he will look after you on this. Were these quotes from a LR dealer by the way?

I found the RRs easy and very effective to finance, as its got such a high residual, it was even pulling in less of a monthly installment then a 535d which was 9 k less!

By financing you can minimise your overall cost on the car and the cash tied up in a depreciating asset as you said, and kind of drip feed the deal woith the monthly installments, and use your hard earned cash elsewhere where it may give you a better return and possibly make you some extra cash!

Kam100,

Cheers for that, you have a PM!

The above figures were quoted by 'Guy Salmon' dealers. TBH the sales guy tried his best but had to keep ringing someone up to get figures etc, so it didn't inspire me with confidence - especially considering the value of the car!!

Thanks again, but if anyone else has some figures they can remember or dig out i'd be greatful to see some of them.

Cheers again!

iCE.

I financed my RRS TDV6SE with metallic paint (£40550) over 4 years with balloonfor £535 per month. I paid 10% cash deposit. LR dealer organised finance (not Land Rover) @7.4% APR. I have it on 6000 miles per year - already at 3500 after 2 months but I'll cross that bridge...
Also looked at ML320cdi and E-class 320cdi estate apart from them not being as special the finance was much worse.

In all the best finance package I have ever negotiated and I have done a few.

Do it now before the residuals change!

Meant to say, insurance cost me £245 per year from 'More Than'.

I appear to be reading beween different posts but my 'more than' insurance did not require a tracker.

Iceman,

I looked at all sorts of finance when I got mine. As I'm self employed I looked at both private finance and company finance - leasing, HP, PCP and straight forward personal loans.
I opted for HP over 36 months, but with a final baloon payment of £20,650. The car should be worth at least £25K in three years time, so at the end of the term, I either sell the car to pay the £20,650 dept or if I want to keep the car I take out another loan to finance this. I've never kept a car more than 2 years before, so I figured I would sell the RRS when it was 3 years old. Hopefully I'll upgrade to a TDV8!
With HP there are no mileage restrictions which is a big advantage. I was looking at leasing with a capping of 10k miles per annum. However, we're using the car much more now (as it is such fun ) so I'm glad I didn't take that route. The car is six months old and already done 8k miles.

I've financed both our new vehciles through the Bank of Scotland (you don't have to bank with them). I've got a good contact there and she's also sorted out some of my customers too. If you want her details, let me know. Matt
-------------------------------------------
RRS ownership for 1 yr, then D3 for 2 yrs. Then cut back to old bangers and working my way back up through two Peugeots in 6 months. Now got Saab 9-5 2.3t and enjoying the performance!

Iceman - let me be your wingman this time

You should be getting a flat rate of about 3% - 4% and when you apply this to a PCP/HP etc etc and the documentation fees are added in it will distort the final APR which will come out at anything between 6.5% - 9% APR..... so ask the F&I person what is the flat rate. Check that they are not automatically adding Payment protection to your monthly payment. ( do you really need this ) - if you are off work & things are that bad - sell the car!

I bought a Supercharged from new . I looked at all the options and from memory I would say ( with your figures ) you should be paying under £500 a month if you are putting £20k-£22K into the deal. I would also suggest opting for an annual mileage that is reflective of what you expect to do and add some...... it wont really make much difference to your overall monthly cost/payment so go for 12 - 15000 mpa ( this is a good average ) unless you are a high miler?

The sport is definately one of the better bets with regard to depreciation & I would second some of the other comments re not putting all your cash into a straight HP deal

Good look[/img] 
" WITH MORE EXTRAS THAN A HOLLYWOOD EPIC "

Im looking at picking up a RRS 4.2 SC soon and have been trying to get decent quotes...

this is one I am considering

£60,000 car



Deposit of £12000



48 payments of £825 per month.

balloon £20500

Thats a decent 4 year balloon and a decent APR rate by the looks of it..
Was that LR?
Did u give my man a shout in the end?

Hi Kam, didnt call your guy as I didnt have the details

I got the quote from
classicandsportsfinance.com
A guy called Rob, very good.

Cheers

Rich

Hi Rich, i did send them to you before im sure??
Oh well, you have another PM now.
Good luck with it..

I contacted the Guy who Kam recommends and found him to be very competitive price-wise and also offers good advice on the best way to finance your purchase.

In the end I went with LR finance, but used the quote from Kams contact to negotiate a much better deal. Would definitely consider using this guy next time - although I might consider contacting him a little earlier than four days before I'm due to pick up the car though!!

Thanks to all of you for your input on this matter, however the cost of owning a SC for 2 years (even with a £20k deposit over a 4yr deal) it is cost prohibitive (for me anyway).

The best residual values i've had (even told they're optimistic) after 2yrs/48k mls would be around the £20k mark.. With approx a £20k to settle at the end of 2yrs.

So to put this into perspective.

£58,000 purchase price.
£800/pm (approx)
Sell after 2yrs for £20k
Repay £20k to settle finance
NET result - total loss of £20k deposit and £800pm for 2yrs.

Therefore car has cost approx. £1635pm to own.

This figure is actually more than a brand new Porsche 997C2S @ £75k which worked out at just under £1200pm!

If anyone else can throw a different light onto this i'd be glad to hear it!! Howver after speaking to two different finance companies (inc. Kam's referral) this would appear to be the case.

So, off to get a 1yr old X5 4.8is for £450pm and come out of the deal with approx. £6.5k of my deposit left in 2yrs time.

Total cost of the X5 ownership is:

£47,000 Purchase Cost
£20,500 deposit
£450/month for 24months
Sell @ £24k in 2yrs/48kmls
Payback £17.5k settlement figure.

X5 4.8is Cost of ownership = Loss of £13.5k deposit + £450/pm x 24 = £1010/pm.

As you can see there is a lot of difference here so I think i'm going to take my chances with the X5...

Thanks again for all your input.

Iceman.

Do you really want a X5?  2005 Zambezi TDV6 - Gone but not forgotten
2009 Alaska TDV8 - Gone and much missed.



WINNER - 2009 �Idler Of The Year� Award
Runner Up - 2009 �Just Doing What It�s Designed To Do� Award


DO NOT CLICK HERE!