# how did you pay for your GTR?.



## bootnec (Aug 18, 2007)

Evening all.

As above,its quite a nosey question i know but im curious to find out.

Ive never dealt with a garage i have always bought private.
any car ive got into debt over was by means of a personal loan hence not a favourable APR. ive never dealt with a finance company and from what ive read finance companys offer more suitable terms and intrest rates, is there truth in this or am i wrong?

many thanks.


----------



## thistle (Oct 27, 2007)

I don't think you will get attractive quotes from a Nissan dealer on a new or used GTR in terms of rates or depreciation assumptions.

The only situation I would recommend finance on a GTR is if it allows you to use the capital in some other more productive way, and that means you'd be beating the finance houses at their own game, which is unlikely for most.

Whilst not the same car, the contract hire deals on M3s have been quite good recently.


----------



## sin (Dec 3, 2007)

I was fortunate, as the last time i remortgaged i could self cert at 75% ltv with no penalties for early repayments and a fixed rate for the term of the mortgage at 0.49% above base rate. You've no hope now of getting a mortgage like this now.

So i borrowed as much as i could, payed back what i didnt need & left it in a drop down facility attached to my mortgage, just in case. Great timing as when the GTR arrived base interest rate is / was / still is at 0.5%. = 0.99% total for me.

So i took it out of the drop down. £54000 @ 1% (rounded up) = £540 pa interest. Seemed silly not to for £45 a month. I'd obv saved for 2 years knowing it was coming, and i've increased my mortgage payments to circa what i think they should be, so at least i'm paying something of it.


----------



## bootnec (Aug 18, 2007)

thanks for the replys lads.

sin im not going to lie ..most of that went right over my head!

thistle can you explain what you mean by using capital in a more productive way could you please give me an example please,also what is contract hire?

cheers.


----------



## Bennyboy1984 (Jul 26, 2009)

I thought you GTR owners paid for your cars with 'cold hard cash upfront' ? :chuckle:


----------



## tomgtr (May 24, 2008)

Bennyboy1984 said:


> I thought you GTR owners paid for your cars with 'cold hard cash upfront' ? :chuckle:


Aren't you a GTR owner? Or are you from the more dedicated 32-34 religion?


----------



## GTRSTAR (Nov 26, 2009)

I stole mine, at least you might think that if you saw me driving it :flame:

But seriously, so many parts are non OEM its now closer to a "cut n shut" than the original :lamer:










Finance is the way to go when purchasing a car, the money can often be used for more fruitful investments, unless youve got millions stashed away that is.. :smokin:


----------



## Jm-Imports (Feb 12, 2007)

i saved 5k per annum over last 6 years for something special and when i sold my last car i then had enough to buy my GTR.

but now i have a little finance on some special parts i had to buy lol


----------



## LiamGTR (Nov 26, 2006)

GTRSTAR said:


> Finance is the way to go when purchasing a car, the money can often be used for more fruitful investments, unless youve got millions stashed away that is.. :smokin:


I couldn't disagree more, this is how it should be done I think:



Jm-Imports said:


> i saved 5k per annum over last 6 years for something special and when i sold my last car i then had enough to buy my GTR.


----------



## Jm-Imports (Feb 12, 2007)

LiamGTR said:


> I couldn't disagree more, this is how it should be done I think:


i was actually saving up for a gallardo but then the GTR came out and i had to have it instead.


----------



## GTRSTAR (Nov 26, 2009)

LiamGTR said:


> I couldn't disagree more, this is how it should be done I think:


For LiamGTR and any other moron that missed the point I was making, most, I would estimate over 90%, of high value cars are funded with finance, which means that there are good reasons to use finance instead of tying up large sums of money in a depreciating asset.

Well done to the people that have saved for years, its admirable, nevertheless, finance can still help us enjoy the finer things in life sooner than would otherwise be possible, its not the answer for everyone, but in most cases if properly implemented, can be a very useful tool.


----------



## Zed Ed (Oct 24, 2007)

GTRSTAR said:


> For LiamGTR and any other moron that missed the point I was making, most, I would estimate over 90%, of high value cars are funded with finance, which means that there are good reasons to use finance instead of tying up large sums of money in a depreciating asset.
> 
> Well done to the people that have saved for years, its admirable, nevertheless, finance can still help us enjoy the finer things in life sooner than would otherwise be possible, its not the answer for everyone, but in most cases if properly implemented, can be a very useful tool.


you are right, but I suspect our recent economic misfortune suggests many people using finance don't have pots of capital employed elsewhere

given low investment return, I'd like to see a finance deal that, would leave you positive, vs returns on capital invested

given life is short maybe its time for some real wheels..............................


----------



## LiamGTR (Nov 26, 2006)

GTRSTAR said:


> For LiamGTR and any other moron that missed the point I was making, most, I would estimate over 90%, of high value cars are funded with finance, which means that there are good reasons to use finance instead of tying up large sums of money in a depreciating asset.
> 
> Well done to the people that have saved for years, its admirable, nevertheless, finance can still help us enjoy the finer things in life sooner than would otherwise be possible, its not the answer for everyone, but in most cases if properly implemented, can be a very useful tool.


Now now no need to lower yourself to name calling, i'm only saying I don't agree with you.

opcorn:


----------



## GTRSTAR (Nov 26, 2009)

Zed Ed said:


> you are right, but I suspect our recent economic misfortune suggests many people using finance don't have pots of capital employed elsewhere
> 
> given low investment return, I'd like to see a finance deal that, would leave you positive, vs returns on capital invested
> 
> given life is short maybe its time for some real wheels..............................


As you're well aware Z, there is only one way of ensuring positive equity when it comes to selling, and that's a low interest rate, unfortunately, many dealers now have business managers who are paid on commission, which means there's fat chance of getting a rate that doesn't leave you shelling out when you chop it in. 

Did you mean it's time for a set of wheels or a new car?! opcorn:



LiamGTR said:


> Now now no need to lower yourself to name calling, i'm only saying I don't agree with you.
> 
> opcorn:


lol no offence :repost:


----------



## w8pmc (Sep 16, 2010)

I used straight forward finance (not Nissan's) & put a chunky deposit down so i'll always have a decent enough gap between the cars value & the settlement figure.

As per sin's scenario (how you doing & we need to meet up soon?) i have a silly low rate on my mortgage to the interest i'm not paying on my mortgage i'm now kinds paying on the car (not the same levels of course).

The oddity is that the company who underwrote my E60 M5 a few years back, smashed Nissan's rate out of the window so they got my business


----------



## sin (Dec 3, 2007)

w8pmc said:


> I used straight forward finance (not Nissan's) & put a chunky deposit down so i'll always have a decent enough gap between the cars value & the settlement figure.
> 
> As per sin's scenario (how you doing & we need to meet up soon?) i have a silly low rate on my mortgage to the interest i'm not paying on my mortgage i'm now kinds paying on the car (not the same levels of course).
> 
> The oddity is that the company who underwrote my E60 M5 a few years back, smashed Nissan's rate out of the window so they got my business


Doing great m8, hows the beast?

Will see if if we can sort something out locally over the festive season.


----------



## christer (Jul 16, 2010)

GTRSTAR said:


> there is only one way of ensuring positive equity when it comes to selling, and that's a low interest rate:


To the OP:

Without sounding offensive, you need to look into this very closely before you decide what to do. Asking what "Contract Hire" is a bit worrying - not because everyone should know what it is - but everyone should be capable of typing "Contract Hire" into google to read up on this rather than asking anonymous people on an internat board the question (and probably thaking their word for it). 

There are many ways to finance a purchase, from the personal loans that you have had before, to PCP and so on. 

Personally, I purchased my GTR on a balloon payment basis. So lets say the purchase price was £48k, my provider then quotes me a "balloon" - i.e. what they forecast the value of the car is at the end of the finance period and then you pay the difference. Most reputable companies estimate a low figure to be sure you can sell the car and pay off the balloon, but the agreements are flexible. In addition, a deposit is required. In y case iirc, the pruchase price was £48k, and the suggested balloon was £21k after 36 months. I decided to decrease the balloon to £18k (which increases my monthyl payments of course) and I think I put down about £15k deposit. The APR I got was aorund 5% which is pretty good imho. I don't ever draw down on a mortgage personally for anything other than property use, it might be cheaper but you have more risk - and that risk is pointed right at what you aboslutely have to have which is a place to live

IMHO, DYOR


----------



## charlie123 (Dec 13, 2010)

*I think you're all wrong!*

The best way to buy a car (that is more than £25,000) is to get it on an operating lease.

That way, you immediately write off the VAT. From £60k to £50k. You then finance the difference between that and its residual cost (plus interest on the residual).

That way, a new 2010 GTR comes in at about 650 a month (plus VAT).

Check with an accountant, but the VAT is reclaimable, and the monthly rental offset against your tax. even if you are only paying in the 40% tax bracket, that means your tax bill is £3,120 a year cheaper and you save paying class IV NI. 

So there you have it, a new GTR for about £300 a month. 

So long as you (or someone you know) is VAT registered.


----------



## thistle (Oct 27, 2007)

Does the GTR qualify as a commercial vehicle to enable the VAT to be reclaimed? If you could do that, you would have to pay company car tax on the benefit since all the miles would not be company miles?


----------



## charlie123 (Dec 13, 2010)

I'm told the VAT rules have changed, and the old 50% for non-commercial has gone. However, even if that is wrong, you can still claim 50%, (the lease company can claim 100% of course) and offset against your tax bill.

There's no company car tax (unless you are an employee - in which case ignore my advice!) but you would have to declare the percentage of non business use on your tax return.

If you have another car (or your wife does) then you can get away with c.10%.

As ever, check with an accountant and don't rely on the above!


----------



## thistle (Oct 27, 2007)

My accountant seems to be an agent of the HMRC rather than suggest things like this.

I'm a partner in a medical practice and since we're small and most of our income is paid by the NHS there are advantages to not being VAT registered.

But even then, despite having to run a car for the purposes of home visits, I can only claim the home visit miles as a proportion of the total which includes commuting miles which far outweight visit miles. Result is that I can only claim a small proportion of motoring expenses, the rest of which come out of taxed income, and IIRC I'm limited to £3000 depreciation per year. No motoring advantages for me LOL.


----------



## charlie123 (Dec 13, 2010)

Far be it from me to challenge your accountant, and I am in a different situation (I'm a self employed barrister), but I think push him a bit on this.

I designate home as work, rather than Chambers, which helps. Also, I suppose you have your other partners to think of, who don't want to subsidise your racing around (ahem, home visits).

I don't know what looks more incongruous, my getting out of a GTR in wig and gown, or you in stethoscope and tweed jacket :chuckle:


----------



## thistle (Oct 27, 2007)

It has been questioned a lot, and it used to be common to claim 100% of the costs of the first car and 50% of the second car (the wife's). Now I claim 25% of the first car, but will claim some of the costs of a winter car too. Designating home as the place of work won't cut it as I live outside the practice area, see no patients at home, have no nameplate at home etc. Even claiming for when you're on call and have to do a visit on the way in or out doesn't cut it because you'd be doing the journey anyway apparently. These are all fairly standard interpretations in my profession from speaking to others. Very conservative, but I don't want the hassle/expense of an HMRC investigation.

Being a barrister you'd probably be happier to stretch things and take them on if necessary?

Anyway, no tweed here


----------



## Jacey Boy (Apr 24, 2005)

Caaassshhhhhh


----------



## w8pmc (Sep 16, 2010)

sin said:


> Doing great m8, hows the beast?
> 
> Will see if if we can sort something out locally over the festive season.


She's runing well & so chuffed i bought.

Defo around through to the 28th Dec & then sneaking off for some peace & quiet on the 28th. Let me know & we can grab a beer?.


----------



## ChuckUK (Jan 1, 2009)

Cash here, keeping it for a while.


----------



## londongtr (Dec 8, 2009)

If you are lucky enough then pay cash - someone makes money on finance - you never see a poor banker.

I was lucky


----------



## charlie123 (Dec 13, 2010)

*cash?*

But if you pay cash you cannot recover the VAT. So on a £70k new GTR, you are paying £11,000 to the Treasury. 

If the interest rate on your lease is, say 8% and the best you can get in a fixed rate savings bond over three years is 4.5%

The difference is then 3.5% or 3,000 (on a straight line reducing balance basis) over three years, still only a quarter as much as the VAT you've reclaimed by using an operating lease.

Moreover, buy paying over three years, you have to factor in RPI, ((500 a month now is worth more than 500 a month in 3 years time).

Also, keeping the car off balance sheet has advantages, too.


----------



## londongtr (Dec 8, 2009)

yep but you need to be a company owner for that, I have owned companies in the past for a few purposes but my primary income is as an employee PAYE so i have to pay VAT



charlie123 said:


> But if you pay cash you cannot recover the VAT. So on a £70k new GTR, you are paying £11,000 to the Treasury.
> 
> If the interest rate on your lease is, say 8% and the best you can get in a fixed rate savings bond over three years is 4.5%
> 
> ...


----------

