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Finance rate "under review"

Magicman

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I read on Facebook that LCS had told a customer that the 6.9% pcp rate was under review. VAG are moving their rate to 10.7% so I expect at some point lotus will do the same. Depending on your deposit this could increase the monthly by a substantial amount. and could make it hard to justify for some, me included

So this is my dilemma...

I've not had the call yet but expect my November delivery to be bounced back to Jan/Feb at best.


My gt4 is not selling easily, it looks like I'm going to take a fairly sizable financial hit selling it in the winter. It's currently on a 6% pcp deal

So I sell my gt4 now, take the hit and then come Feb time when my emira lands and lotus have put the rate up to 10-11% in line with porsche (lotus CS has already stated its under review) and the emira will likely come out near 50% more a month than my gt4, as much as I want the emira and its a great chance to be in one of the first cars (well other than the rest of the world that have been supplied first) that's a hard pill to swallow. I really can't decide what to do
I don't even think with the way things are going there'll be much to gain by flipping the emira.

And all this is assuming the FE list price doesn't increase.
 

Tonyshepp

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It's a tough one, most aren't in the position of outlaying cash and the majority of cars are on pcp.
I'd question whether the Emira is worth the extra investment over the GT4. Both are great cars.

If interest is high people can't afford PcPs and therefore less get sold. Does that mean that as there is less supply used prices for Emiras hold strong or are they affected even more as used PCP rates will be higher then for new.

I'm looking at PCP at the moment as I may be able to tie my cash away for the same loan period at not much more then the interest I may get (subject to BOE rate rise). I'd do this to reduce the risk of the used car market going into free fall.

Don't buy it if the GT4 still delights you.
 

DJS

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I made mention to this in a previous thread, an interest rate rise to around 11-12% would be very damaging to Emira sales and devastating to the Eletre.

6.9Apr to 11.9Apr on an Emira would be around £250 per month more on my current quotation.

Everything points to walking away from this car.
 

Leonard

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As we are sharing @Magicman I will chuck my 2 pence worth in.
When the world was rosey I had the cash put aside in 2021 for the Emira.
Roll on only 14 months and that cash is now going to my other half to buy her out the house.
My mortgage needs reviewing which is going to leave a minimum 450 pound hole in my finances a month, plus I'm taking on all the bills.
80% of my investments are on their arse and I'm not cashing them in now just to buy a car.
So like you I'm left with PCP and a decent sized deposit to keep the monthlies down. If that interest rate rises then I would be daft to waste money each month on a very nice car when I could be investing it elsewhere and hopefully making a decent return in a few years.
So I think the moral of the story is you need to do what's right for you at the time and remember that it is just a car at the end of the day. Cars come and go, but will always be there if your circumstances change. As nice as the Emira is its not an investment, it won't give you a better life, it is just a luxury good. Heck you don't even get that luxury goods feel good factor from Lotus as part of the pre purchase experience 😉
 

Tonyshepp

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As we are sharing @Magicman I will chuck my 2 pence worth in.
When the world was rosey I had the cash put aside in 2021 for the Emira.
Roll on only 14 months and that cash is now going to my other half to buy her out the house.
My mortgage needs reviewing which is going to leave a minimum 450 pound hole in my finances a month, plus I'm taking on all the bills.
80% of my investments are on their arse and I'm not cashing them in now just to buy a car.
So like you I'm left with PCP and a decent sized deposit to keep the monthlies down. If that interest rate rises then I would be daft to waste money each month on a very nice car when I could be investing it elsewhere and hopefully making a decent return in a few years.
So I think the moral of the story is you need to do what's right for you at the time and remember that it is just a car at the end of the day. Cars come and go, but will always be there if your circumstances change. As nice as the Emira is its not an investment, it won't give you a better life, it is just a luxury good. Heck you don't even get that luxury goods feel good factor from Lotus as part of the pre purchase experience 😉
You are damn right about that feel good factor about spending 80k. Even at Porsche I got two cans of Pepsi max and a cake just for looking at the cars..
 
OP
Magicman

Magicman

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@Leonard My original plan was to put 20-25k in, more may be an option but like you now is not a good time to cash in investments.

I'm only 18mths away from 50 and my pension dropping and that lovely £270k tax free lump so the sensible option is sit on the gt4 until then and then my original plan was a used Huracan. However I've never really taken the sensible option on cars 😄

I think the problem is @Tonyshepp that yes the gt4 is a fabulous thing but because its caused me grief selling it and effectively done me out of the chancevof the emira that I've waited over 18mths for I think I'm just bitter towards it.

And then I'll come over to look at everyone's emira at a meet in the spring and just want to kick it 🤣🤣
 

Leonard

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@Leonard My original plan was to put 20-25k in, more may be an option but like you now is not a good time to cash in investments.

I'm only 18mths away from 50 and my pension dropping and that lovely £270k tax free lump so the sensible option is sit on the gt4 until then and then my original plan was a used Huracan. However I've never really taken the sensible option on cars 😄

I think the problem is @Tonyshepp that yes the gt4 is a fabulous thing but because its caused me grief selling it and effectively done me out of the chancevof the emira that I've waited over 18mths for I think I'm just bitter towards it.

And then I'll come over to look at everyone's emira at a meet in the spring and just want to kick it 🤣🤣
I think you have answered your own question (it's good to talk 😅)
Have you entered the GT4 details to see what 'Lotus' will give you trade in?
If that is unpalatable what about rolling the deposit over to a possible more sporty version in the future? Hopefully you will be more cash rich and can have a faster more sorted and rarer Emira?
 
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Magicman

Magicman

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I think you have answered your own question (it's good to talk 😅)
Have you entered the GT4 details to see what 'Lotus' will give you trade in?
If that is unpalatable what about rolling the deposit over to a possible more sporty version in the future? Hopefully you will be more cash rich and can have a faster more sorted and rarer Emira?
The Lotus trade in is horrific, its thousands behind even WBAC.
 

Kentviking

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The Lotus trade in is horrific, its thousands behind even WBAC.
@TomE Maybe we should set up a trade-in forum topic on here...for all those struggling with the continued patience required to wait for an Emira you might just be offering a highly suitable alternative.

Getting back to the topic I can happily reveal that I secured my financing before the full market reaction to Trussonomics kicked in...unsecured personal loans the way to go (half the price of a new mortgage in the UK and less than a third of where secured car lending is ending up)
 

Leonard

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@TomE Maybe we should set up a trade-in forum topic on here...for all those struggling with the continued patience required to wait for an Emira you might just be offering a highly suitable alternative.

Getting back to the topic I can happily reveal that I secured my financing before the full market reaction to Trussonomics kicked in...unsecured personal loans the way to go (half the price of a new mortgage in the UK and less than a third of where secured car lending is ending up)
Good plan. I'd defo be interested in someones trade in 981 Spyder at 60k cheers 😅
 

New to Lotus

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Could be difficult for lotus.
How many people put deposits down thinking it was a 60k ,car it's now for a fe, a 75k to 80k car, the finance has gone up once and it seems the max deposit has gone down effectively making you finance more of the car and make them more profit.
I think 10 or 11 % would be a disaster.

As for second hand cars they are all overpriced by 10 to 20% that was the effect of the pandemic and supply of new cars. Trade prices are now reflecting this hence the low trade in values but dealers are sitting on cars they have paid to much for. Difficult times!!!

Nobody wants to take a loss but your car is worth what somebody is willing to pay for it.
 

TomE

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@TomE Maybe we should set up a trade-in forum topic on here...for all those struggling with the continued patience required to wait for an Emira you might just be offering a highly suitable alternative.

New topic created to discuss trade ins in the UK:

If people want to advertise their trade in car on here then it's fine to post it in Marketplace:
 

Leonard

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Could be difficult for lotus.
How many people put deposits down thinking it was a 60k ,car it's now for a fe, a 75k to 80k car, the finance has gone up once and it seems the max deposit has gone down effectively making you finance more of the car and make them more profit.
I think 10 or 11 % would be a disaster.

As for second hand cars they are all overpriced by 10 to 20% that was the effect of the pandemic and supply of new cars. Trade prices are now reflecting this hence the low trade in values but dealers are sitting on cars they have paid to much for. Difficult times!!!

Nobody wants to take a loss but your car is worth what somebody is willing to pay for it.
Glad you mentioned the deposit amount I'd forgotten about that.
With full deposit I'm sure I was only paying 55 pounds a month. Now it's 200 +
 

Lotustoronto

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I read on Facebook that LCS had told a customer that the 6.9% pcp rate was under review. VAG are moving their rate to 10.7% so I expect at some point lotus will do the same. Depending on your deposit this could increase the monthly by a substantial amount. and could make it hard to justify for some, me included

So this is my dilemma...

I've not had the call yet but expect my November delivery to be bounced back to Jan/Feb at best.


My gt4 is not selling easily, it looks like I'm going to take a fairly sizable financial hit selling it in the winter. It's currently on a 6% pcp deal

So I sell my gt4 now, take the hit and then come Feb time when my emira lands and lotus have put the rate up to 10-11% in line with porsche (lotus CS has already stated its under review) and the emira will likely come out near 50% more a month than my gt4, as much as I want the emira and its a great chance to be in one of the first cars (well other than the rest of the world that have been supplied first) that's a hard pill to swallow. I really can't decide what to do
I don't even think with the way things are going there'll be much to gain by flipping the emira.

And all this is assuming the FE list price doesn't increase.
What a difficult decision. I am not sure I would trade in a GT4 to 50% more for an Emira. On the flip side, I can see the Emira pricing raising substantially in 2023+. I don't know how future interest rates will be.

Also to consider, does the GT4 continue to drop in value and the Emira rise in price next year, making that delta larger in the future? I think you need to choose what you would prefer to drive and comfortably afford.
 

New to Lotus

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It was only 50 quid not for the first time Leonard we were doing the same thing correct now 150 more.
Stealth profit increase could be the government increasing prices.
 

Pops68

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As we are sharing @Magicman I will chuck my 2 pence worth in.
When the world was rosey I had the cash put aside in 2021 for the Emira.
Roll on only 14 months and that cash is now going to my other half to buy her out the house.
My mortgage needs reviewing which is going to leave a minimum 450 pound hole in my finances a month, plus I'm taking on all the bills.
80% of my investments are on their arse and I'm not cashing them in now just to buy a car.
So like you I'm left with PCP and a decent sized deposit to keep the monthlies down. If that interest rate rises then I would be daft to waste money each month on a very nice car when I could be investing it elsewhere and hopefully making a decent return in a few years.
So I think the moral of the story is you need to do what's right for you at the time and remember that it is just a car at the end of the day. Cars come and go, but will always be there if your circumstances change. As nice as the Emira is its not an investment, it won't give you a better life, it is just a luxury good. Heck you don't even get that luxury goods feel good factor from Lotus as part of the pre purchase experience 😉
Yep, you never know what's going to happen and toys are the first to go when times get hard. I'm actually happy I won't be getting my car till late next year. I think (at least in the U.S.) things are going to calm down a bit and we will be in a better place. And yeah you'd be crazy to sell investments in the dip!! I sure miss those "mean tweets" from our last guy in the White House...:)
 

Green

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Yep, you never know what's going to happen and toys are the first to go when times get hard. I'm actually happy I won't be getting my car till late next year. I think (at least in the U.S.) things are going to calm down a bit and we will be in a better place. And yeah you'd be crazy to sell investments in the dip!! I sure miss those "mean tweets" from our last guy in the White House...:)
You just can’t help yourself can you? Typical of most cult memberso_O
 

Leonard

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You just can’t help yourself can you? Typical of most cult memberso_O
I think we can all agree that all world leaders are madder than a box 📦 of frogs 🐸 and only really have their own self interests and those of BIG business at heart. Moving on 🙂
 

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