[perrin21]

Also, ignore the stupid offers you see for low APR loans. most people dont get them. The consensus is that if you have a great credit rating you will get great rates, this is NOT true in the slightest. Representative offers are there to get you in. only 50% of perople accepted for a loan have to be offered the advertised deal. sounds like a lot when you think about it. But in reality its not. Look at the wording. 50% of people accepted for a loan (any loan). so 100 people apply, (65% are declined outright, unfortunately thats because more people who cant get credit always apply) that leaves 35 people. 17 people get the offer but the rest get a rate offer higher than advertised. so 17 out of 100. not good.

Great credit rating customers are low profit for banks and they are not interested in you. they want Good credit customers who will get to the end of the loan and not pay it off early. No loan says you wil get the offer subject to credit status alone, it always says subject to underwriting criteria. This means they are targeting a certain demographic. If you are an upstanding individual with no mortgage and high earning job, you dont need the money so we will give the money to someone who does with a low risk of bankruptsy and a high chance of continuing to the end of the term with the odd late payment we can charge a fee for or even hike up the rate. Thats how banks think. Never assume they are stupid.

Furthermore, avoid the interest free credit card farce. Whats interest free about a 3.5% handling fee? and if you are ever late on a payment they will remove the offer leaving you with standard credit rates and god knows how much borrowing being charged on.

Just something to add to your thoughts.

 

[perrin21]

a quick real world offer calculation that most people would get would be 4.5% (Flat, Base Rate) HP borrowing £30,000

3 yrs = £945 P/M
4 yrs = £737.50 P/M
5 yrs = £612.50 P/M

You would also be charged £150 doc fees at each end most likely £300 total.

However you would have termination rights in the loan (check the dealer doesn't put you on a personal loan and ask the question, do i have VT rights? he will know exactly what you're asking.

You wont have any restriction or penalty on how much you can overpay on the finance at any time so on average for every £1000 you lump off on top of your payment it will reduce your payment by about £25 per month and the interest is recalculated on whats left. Hope this helps.. You could get an offer like this from most dealers. Ask for it, push and don't accept a lesser offer. car loans are easier to get because they are securred against the car.

The APR on the above offer would be between 9 and 11% approx.

 

[perrin21]

At the risk of stating the blindingly obvious, paying £250 capital off per month means it'll take you 10 years to pay the £30k back. Your payments may not even keep up with the depreciation leaving you with a higher mortgage than when you started if you sell the car later. Depending on the deposit of course.

Yes, it's cheap. But I'd say you need to be paying off £500 plus interest at least so you are not getting into negative equity and paying the car off over five years.



If going down that route you have two main options. HP or PCP.

I find HP costs around 12% on top of what you borrow, if you spread the cost over three years.
So £36k will leave you with repayments of around £1120 per month.
Over five year's it'll be around 19%, so £714 per month for £36k.

On a PCP you will get shafted.
This is only an option (disclaimed - in my opinion) for people that don't have the resources to buy the car any other way.
As you defer a large percentage of the cost until the end in a balloon, you end up paying interest on that lump of capital for the whole time of the loan.
So you pay much more in interest, but get lower month repayments.
But as you are not building up any capital in the vehicle you could be stuck in this situation for a long time if you keep wanting a nice car. Because when you sell the car and pay off the balloon you are still not going to have a decent deposit for the next one.

With the running costs of a GT-R I am of the opinion that if you need to go the PCP route you need to ask yourself if you can really afford the car.



For me a decent deposit is the way to go.

Not totally accurate, PCP works for cars with high Guaranteed minimum future values but isnt suitable for cars that depreciate quickly. It follows many of the traits of a lease. The higher the residual the lower the payments because the car is worth more at the other end. Remember you always have the option of trading it in for more then the future finance value. the final value is really just a settlement amount. PCP is for people wanting to change their car more frequently but in terms of total overall cost its not much different to HP and often isnt at all. 3yr PCP generally (not always) works out the same payment per month as a 5YR HP deal. I would stick with 5 year HP and exercise your VT rights if required any time after 2.5 years knowing you don't have to declare mileage.

 

[perrin21]

HP is really easy to calculate.

Base rate x number of years.
4.5 x 3 = 13.5 (Total interest percentage)

Ammount of borrowing divided by 100

36000 / 100 = 360

Multiply the Two
360 x 13.5 = Total interest charged = £4860

Add Total interest charged to the ammount you want to borrow and divide by the years in months.

£36000 + £4860 = £40860

£40860 / 36 (months) = £1135 per month.

Remember to add the doc fees lol £300. Just tell the dealer you have already been offered 4.5% and he will eventually do it even though his commission is pretty much gone. Volume is still important to him and he wont want to say no to a £36k deal.

 

[CT17]

Not totally accurate, PCP works for cars with high Guaranteed minimum future values but isnt suitable for cars that depreciate quickly. It follows many of the traits of a lease. The higher the residual the lower the payments because the car is worth more at the other end. Remember you always have the option of trading it in for more then the future finance value. the final value is really just a settlement amount.

But the balloon/future value is still attracting interest charges for the whole time of the loan?

I believe so, which is why I personally don't like them.

 

[MattGTR750]

Perrin you are awesome now lol

 

[perrin21]

But the balloon/future value is still attracting interest charges for the whole time of the loan?

I believe so, which is why I personally don't like them.

That is correct but the total calculation is identical to 5 yr hp.remember the car covers the final payment but only if you hand it back. The only reason dealers like PCP is because it makes you do something in 3 years and hopefully that means buying another car off them.

 

[Caveman]

The other real cost with the GTR that you MUST consider on top of the normal associated running costs, is the additional cost of modding. With the best will in the world, the GTR is so conducive to mods, and there is such a plethora of parts available for the car, that you will find it impossible not to continually 'tinker' with the car, and empty your bank balance in the process. That is one area which scares me about the GTR, as I can easily afford to run one, but I fear how the temptation to mod will slowly bankrupt me.

I know this seems like a secondary concern, but I think that this is a REAL consideration...

Mart.

 

[CT17]

That is correct but the total calculation is identical to 5 yr hp.remember the car covers the final payment but only if you hand it back. The only reason dealers like PCP is because it makes you do something in 3 years and hopefully that means buying another car off them.

Lots of good info Perrin.

My reasoning has always been that as HP means you are eating away the capital the overall charges are lower as (on average) there is far more money owing on a PCP over the same term (due to balloon) so the interest is higher.

 

[perrin21]

Lots of good info Perrin.

My reasoning has always been that as HP means you are eating away the capital the overall charges are lower as (on average) there is far more money owing on a PCP over the same term (due to balloon) so the interest is higher.

its all eating away at the capital because the GMFV is the Settlement figure. The only difference is they give the option of taking the car at the end. In essence you are financing the depreciation. Ive always preferred HP as its simpler, has less restrictions of use, and with VT rights you can still hand it back anyway lol

 

[perrin21]

Perrin you are awesome now lol

You have no idea how much this made my day Cheers Buddy.

 

[mpaver]

Same here.

It's getting the right balance between having what you want and not having it because you are planning for the future.

I used to do the latter too much, now I'm enjoying the finer things in life a bit more.

Sorry again, the forum hasn't sent me any notices again about all these replies. But on your point, I have spent 11 years in education inc. a masters which also brought huge debts, then knuckling down in work for the years after that even having to move abroad for work, and have basically always been sacrificing the "good things in life" to get to where I am. That brings me to the present, where all my salary also goes on supporting the family, so I still never see any of my cash or the "good things". To be honest, I'm getting to the point now where I want to say F*ck it, I want what I want, and I've worked bloody hard to get it. Once the debts are gone, it's "my time".

Since I was around 16, there's only been a few things on my life's shopping list, 1. an okay'ish house, 2. a wife, 3. A SKYLINE/GTR!!!

Anyways, there you go, rant over

 

[perrin21]

Sorry again, the forum hasn't sent me any notices again about all these replies. But on your point, I have spent 11 years in education inc. a masters which also brought huge debts, then knuckling down in work for the years after that even having to move abroad for work, and have basically always been sacrificing the "good things in life" to get to where I am. That brings me to the present, where all my salary also goes on supporting the family, so I still never see any of my cash or the "good things". To be honest, I'm getting to the point now where I want to say F*ck it, I want what I want, and I've worked bloody hard to get it. Once the debts are gone, it's "my time".

Since I was around 16, there's only been a few things on my life's shopping list, 1. an okay'ish house, 2. a wife, 3. A SKYLINE/GTR!!!

Anyways, there you go, rant over

Clear your debts first. When you do the Skyline you want it to be perfect. Trust me and dont be worried about all the people who tell you they are 25-30 with a GTR. Im sure most are either lying or have a GTR badge on the back of their Fiesta. Dont be in a rush to live your dream. Once you have you need to find something else to dream about.

 

[JapFreak786]

Perrin you are awesome now lol

I agree! Thank you for taking the time for your posts very much appreciated!!

 

[SamboGrove]

Totally agree. Work hard - play hard

This.

I've stretched myself to afford my GTR. I'm a young-ish chap, saving for a wedding, and nearer the start of my mortgage term than the end of it. But my GTR makes me happy. I see it everyday when i leave for work and when i get back i can go for a hoon if the weather's nice.

I work hard so i can enjoy life,not just squirrel it away for the future. The worlds ending tomorrow by the way so everybody get out there tonight and have a blast!

 

[mpaver]

This.

I've stretched myself to afford my GTR. I'm a young-ish chap, saving for a wedding, and nearer the start of my mortgage term than the end of it. But my GTR makes me happy. I see it everyday when i leave for work and when i get back i can go for a hoon if the weather's nice.

I work hard so i can enjoy life,not just squirrel it away for the future. The worlds ending tomorrow by the way so everybody get out there tonight and have a blast!

Amen. Couple more years and I'll be able to change the "owned" list on the left.