I am being tempted by some offers on the new FFRR.

I initially enquired on a 2 year old 3 litre Vogue at £65850, the finance monthly price was far too much. It transpires that a new one (similar spec) is cheaper due to the lower finance rate and better residual. My local dealer now has two unregistered cars both 3.0 Vogue with £3-£4k off provided they are registered before end of June. I am sorely tempted but it will mean using £20k of my savings.....and negotiating a decent part ex on my 61 plate RRS SdV6.

I know this is hard to answer, but if I got a brand new vogue for £74k and financed it for 3 years, how much of my £20k deposit am I likely to have left at the other end? It does seem that FUll Fats hold their value fairly well.

I need some inspiration !! Dealer is emailing me over the specs, how spec sensitive is the Range Rover?

None. IMHO, putting (big) deposits into balloon finance deals and expecting to see your money again is a mugs game.

Unless you overpay to adjust the finance payments upwards to make the GMFV at least £20k more than the finance offer, which might well mean that the beneficial rated change. Graham

____
Gone: 10MY L320 RR Sport HSE, Ipanema Sand
Gone: 20MY Jaguar iPace HSE, Silicon Silver
Gone: 17MY RR Evoque SE Tech, Loire Blue
Gone: 08MY Discovery 3 XS, Stornoway Grey
Gone: 07MY FFRR TDV8 Vogue, Stornoway Grey

I don't expect to see the full £20k back , but is £10k a possibility? Or £5k. Is it better to put a low deposit in and then pay more in interest? What would be the optimum deposit in a PCP?

My suggestion is to buy a L322 with savings and stay away from finance until you can pay for a L405 with savings. In the long run much cheaper than any finance deal .

I love the L322 and the later ones (2010+) are brilliant IMHO. They do outshine the RRS by quite a bit (again IMHO). MY 2010 5.0 SC Galway green and sand interior!!
Have the Faultmate MSV2 Extreme to be tinkering with the settings etc. !!

I am not interested in an L322. I could afford to pay for the L405 in cash but there is no way I want to tie up that much money in a car. I suppose it's a case of whether I can beat the finance interest rate with some shrewd investing. I am not averse to finance, I found that one LR group in the UK were offering a new L405 at 3% APR rates (Jardine Motors), at that rate you would be nuts to pay out £75k in cash.

Mmmmmm I guess I'm too old school to finance cars.

So in your case I think the answer is partly spreadsheet playing with the various numbers but your key parameter is the residual and that is very crystal ball. To be honest, I have no clue how the L405 will do other than just looking at the current depreciation and maybe comparing it to the L322 over its lifetime (but that was in a completely different economic climate). There is no way to predict how the economy would go (Grexit, Brexit, oil, China etc.) re. consumer confidence and investment returns.

I think if your investments have been doing well over time, than your gut feeling is the best way to go . Have a play with different residuals and see what the sensitivity is with the various finance deals. That should give you a bit more of a feel. But like I said, ultimately it is gut feeling on both residual and economic environment at the time of sale as well as investment succes. MY 2010 5.0 SC Galway green and sand interior!!
Have the Faultmate MSV2 Extreme to be tinkering with the settings etc. !!

No experience of financing cars but my understanding is that the £20k deposit is gone after you pay it at the outset in so much as they don't actually give you any money back at the end?

1. If you don't decide to keep or PX the car, you get nothing back?

2. If you decide to keep the car, you pay the additional amount agreed when you took out the finance deal, ie you still have £50k to pay or whatever the outstanding amount was?

3. Alternately, if you PX the car for another model, your initial £20k would would form part of whatever 'equity' you have left in the car at the point of PX?

The 3% APR deal you refer to appears to be illustrated below. £429/ month is probably very seductive. I would imagine that for many, they will never actually own the car at the end of a deal like this, hence the term 'the never never'.

Thanks, and that was the Jardine motors deal, it is end dated 31 May but still on the website. I might call tomorrow.

I am not bothered about ' owning' a car. I like a decent car and. Value having new for the peace of mind/warranty etc.

The two cars at my local dealer are standard Vogue, one in Indus silver and one in Santorini Black, both have opening pano, front fog lights and privacy. Standard 20" alloys which I am not a fan of, but hey ho. Birth in at £75090 with a £3000 deposit contribution.

"I'm not a fan of" doesn't sound like a marriage made in heaven starting point for any important visual impact aspect of an expensive car?

Will never forget ordering a brand new car from a brochure, waiting months for it to be ready and then arriving to find it in the showroom wearing the wrong and "not the ones I actually wanted" wheels. First impressions!

The illustration posted on this thread re the finance is for 2 years, not 3 years?

If they are still doing that deal it sounds pretty good on the rates. BUT

The residual values of 405's at the moment are pretty high, but how long they will stay that way is always going to be tricky to gauge. Bear in mind that the bulk of the early first batch of 62/13 plate sales have yet to come off 3yr finance and into the used market. When they do the level of supply in the used market will increase. Basic economics tells you that this will have to have a negative affect on the values compared to those you are seeing on the available used ones out there at the moment.

In 3/4 years time there will be all the 62/13 plate cars which come to market soon, and another 3 years of used cars coming through as well! So its anyones guess...... There is nothing that can't be fixed with a hammer😜😜
FFRR 4.4 SDV8 Autobiography Santorini Black.
Fiat 500x 1.4 multiair Lounge 2015
2010 LR D4 Commercial 2.7 TDV6

All very true , it's a tough one but I assume that finance companies don't want to get caught out so the fact they they are still giving strong guaranteed future values (35k for a 24k 4 year old Vogue) means that they expect residuals to remain strong. They do have the resilience to absorb loses though! Who knows what the likes of a Greek default will mean.

What to do.......

pld118 wrote:

"I'm not a fan of" doesn't sound like a marriage made in heaven starting point for any important visual impact aspect of an expensive car

First thing I did was change the wheels on mine. Of all the aspects of the car, that's an easy one to change

Accepting I was looking at L322's, a main dealer recently volunteered to change the wheels if I preferred another style to those fitted. Surely those selling L405 would be similarly accommodating if a potential deal breaker?

I am trying to keep a logical frame of mind here and not committed yet either way. The local dealer is getting back to me regarding his two stock cars, and my other option is potentially to factory order a car to my spec - I think the wait is 5-6 months on a new 3.0 Vogue. Provided I could secure the right finance package now.

Favoured spec would be, 3.0 Vogue, Santorini Black, 22" alloys (type 504/6 I think), grey atlas vents, opening pano roof, front fog lights and privacy glass.

That Jardine Motors deal only allows you to do 4999 miles a year which is nothing unless the car lives in a garage and is a weekend toy.

If you use it daily then 5k miles a year isn't going to be enough. If you increase the mileage allowance you'll find the monthly payment will rocket. Either that or you'll have some fairly hefty excess mileage rates to pay when you get rid of the car is handing it back to the finance company!

David. 2002 4.6 Vogue SE - Alveston Red with Lightstone Leather
2007 Range Rover Supercharged in Java Black with Ivory Leather
2012 Range Rover 5.0 SC Autobiography in Indus Silver with Jet/Ivory Interior
2012 Range Rover 4.4 TDV8 Autobiography in Baltic Blue with Sand Interior