[PA]

Take the FF to FF.

[360c]

Its a luxo barge, the FF thing is a problem waiting to happen, forget the shit looks, who will be able to repair it after the warranty period

Huge sales flop in Oz I believe.

[goober]

Huge sales flop in Oz I believe.

Even those who have the borrowing capacity, I doubt a lender would do 5 years 50% given the previous model dropped by 60-65% at best and 70%+ at worst, hence there is a massive tear up coming. And those that say if they can afford it and it loses so be it, no one likes to lose 300-400K on anything

[360c]

Even those who have the borrowing capacity, I doubt a lender would do 5 years 50% given the previous model dropped by 60-65% at best and 70%+ at worst, hence there is a massive tear up coming. And those that say if they can afford it and it loses so be it, no one likes to lose 300-400K on anything

Nothing like gearing a depreciating "asset"   

You and I don't like losing $300-400k on anything; but there still seem to be a lot of punters who are up for it.

[goober]

Nothing like gearing a depreciating "asset"   

You and I don't like losing $300-400k on anything; but there still seem to be a lot of punters who are up for it.

As we always discover the punter doesnt lose the money, the finance company does

[360c]

As we always discover the punter doesnt lose the money, the finance company does

I don't understand how companies like BMW finance get stung over and over on these things 
Let alone how they get done by fraudsters with records and jail time for previous finance fraud 

[mtarone]

I don't understand how companies like BMW finance get stung over and over on these things 
Let alone how they get done by fraudsters with records and jail time for previous finance fraud 

Clearly I'm a bit slow. I don't understand how this works; how are finance companies getting stung if they allow a larger balloon/residual? I would have thought this was still the responsibility of the owner to cover at the end of the finance period?

[360c]

Clearly I'm a bit slow. I don't understand how this works; how are finance companies getting stung if they allow a larger balloon/residual? I would have thought this was still the responsibility of the owner to cover at the end of the finance period?

Easy, owner buys it on the never, never with small monthly payments and huge residual/payout. The owner goes broke because he really can't afford the lifestyle he wants to be accustomed to. Finance company discovers car is worth a fraction of the payout.
Alternatively buyer gets to end of period, discovers massive negative equity and hands back the keys. Finance company then has to pursue them for the money, which they invariably won't have in that situation.

[TomE]

Clearly I'm a bit slow. I don't understand how this works; how are finance companies getting stung if they allow a larger balloon/residual? I would have thought this was still the responsibility of the owner to cover at the end of the finance period?

Most Banks and main stream institutions will require Directors Guarantees as security.

[goober]

Easy, owner buys it on the never, never with small monthly payments and huge residual/payout. The owner goes broke because he really can't afford the lifestyle he wants to be accustomed to. Finance company discovers car is worth a fraction of the payout.
Alternatively buyer gets to end of period, discovers massive negative equity and hands back the keys. Finance company then has to pursue them for the money, which they invariably won't have in that situation.

100% correct. At one stage in the late 80's early 90's BMW Aust had 750+ repo BMW's sitting at Fowles at Altona and couldnt sell them all at once cos the prices Aust wide would have crashed.

Finance companies owned by manufacturers are dictated as to when to sell multiples of vehicles, ever wonder why they dont have 300 cars in a pickles prestige auction, they limit the numbers to protect the manufacturer