The cost a new 405 is now c.£100k

I'm interested to understand how people finance their RR purchase and their rationale.

I've paid cash for the majority of mine. Complete flexibility and no monthly payments/interest.

PCP is not an option I would consider because I believe it's the most costly and least flexible.

HP or a loan is an option, offsetting the interest against growth in equivalent investments.

What does leasing offer compared to either of the above? Private includes VAT. Business doesn't include VAT but there are hefty alternative taxes.

Any other finance options worth considering? MY23 D350 HSE
On my 7th RR plus various other JLR vehicles

Cash outright purchase no PX. It's far far cheaper ! I have two business's and the business mileage I do is charged back to the company. Owning a company car as expensive as a Range Rover is a no brainier for me, it costs me £10k a year less to run it as a private vehicle and bill the company for business miles.

Or perhaps that's a bit misleading - put another way if it was a company car it would cost £10k more as I would also be paying tax on the benefit in kind. Those are my accountants figures and they are one of the top UK200 so should know what they are doing. 2021 L405 Vogue SE 4.4 V8 DIESEL ~ #17

Of course, cash will always be the cheapest, as long as a buyer has ready access to £70,000 and above, with no business case to use it elsewhere. For the rest of us, there’s a combination of cash, loans and finance.

Part PCP can make a lot of sense, it’s certainly not “always the expensive option” and it can be very flexible if you’re financially canny

Mine’s a combination of the cash from the sale of my ‘65 Disco, a substantial cash deposit, some 2.8% bank loan and the smallest PCP possible (taking full advantage of the £4,000 cash bung from LR for taking out the PCP!).

If the car’s good, I’ll be buying it at the end of the PCP. Meanwhile, I have the full protection of the finance Company should LR have sold me a troublesome example

My previous car was purchased with a px plus cash, however due to the higher used prices of the L405 my latest car was a combination of px plus cash and a small bank loan.

When I previously purchased new cars they went on pcp. A recall being very glad I had chosen PCP in 2008 when I bought a new Porsche. When the term came to the end the market value of the car was significantly less than the GFV figure, so it got handed back. During that period was the financial crash and a change of design which affected the used prices, so somewhat unusual circumstances.

Jack 2024 P550e Autobiography
2016MY TDV6 Autobiography - Gone
2011MY 5.0 SC Autobiography Black - Gone
2005 TD6 Vogue - Gone

Last edited by JackRegan on 11th Nov 2017 9:27am. Edited 1 time in total

I agree with Vogue 100% and also do the same by charging milage back to my company.

We've explored every alternative, including the option of 100% first year capital allowance for vehicles below 75g/km CO2 emissions (the new Range Rover Hybrid qualifies for this at only 64g!).

Sadly though, having gone through all the figures, including resale value at end of ownership, we still concluded that charging milage back and privately owning a FFRR still remains the best option.

I should just add though, that part financing a car is not such a bad thing,most people do it, admittedly you will pay some interest but I think that's fine, as long as it's not excessive.

I try to finance the depreciation.

Having purchased my 405 3 years ago next March, it looks like my trade in on the £80k original price will be £45k. So a 35k loss over 3 years, which is around £970 a month. I had a cheap bank loan for 30k at less than 3%, so not far off. I could have paid cash, but that 30k has made more invested in Stocks and Shares than I've paid in interest.

I'll do the same again in March. A higher list, better spec, on the new one means I'll have to top up the PX with some cash and finance to the tune of 1500 per month, which should cover the depreciation.

To me it means I can treat the car as a monthly expense and change it every 3 years.

Does no one else take the benefit of the cash incentive from LR to take out a PCP?

Even if you’re a cash buyer, take out the PCP, trouser the incentive payment of up to £4,000 and then pay off the PCP in full 30 days later; madness not to!

I'm seen my investments increase by 25-30% over the past 2 years (I understand their value could reduce in future years), so taking a low cost loan to cover the depreciation is financially positive at the moment.

I've also taken dealer finance in the past to obtain a further discount and paid it off a couple of weeks later, all with their knowledge and tacit agreement.

A combination of the above might work for me next time.

When I bought my last FF new in Sept 16 I obtained a decent PX value and 2-3% discount. Are there any (non-finance) discounts being offered on the MY18 yet? MY23 D350 HSE
On my 7th RR plus various other JLR vehicles

As far as I am aware the £4k dealer contribution isn't available yet on the MY18 model, I guess they don't need to yet. There was no discount when I ordered mine.

Give it a few months

Cash - always....  All my spelling errorz are belong to me!

2023 FFRR L460
2021 AM new Vantage

PCP, using my car allowance to pay the monthly payments. Cash is left in various investments, so I basically use the allwance to finance the depreciation. If I like the car, like the last FFRR, I pay the bullet out of bonus to keep it. Then I have a decent car owned outright to px and capital isn’t touched.

When I bought my 2014 VSE from a franchised LR dealer in 2016, the salesman said they'd sold 285 cars the previous month - all models combined, new & used.

Of those he said 17 were NOT on finance. I thought that was astonishing. Looking at the survey, the member profile here is obviously much less debt-inclined.

I paid cash, much to the salesman's disappointment.

Phil. wrote:

I'm seen my investments increase by 25-30% over the past 2 years (I understand their value could reduce in future years), so taking a low cost loan to cover the depreciation is financially positive at the moment.

I've also taken dealer finance in the past to obtain a further discount and paid it off a couple of weeks later, all with their knowledge and tacit agreement.

A combination of the above might work for me next time.

When I bought my last FF new in Sept 16 I obtained a decent PX value and 2-3% discount. Are there any (non-finance) discounts being offered on the MY18 yet?

Pixelpower wrote:

As far as I am aware the £4k dealer contribution isn't available yet on the MY18 model, I guess they don't need to yet. There was no discount when I ordered mine.