YouTuber explains why it now costs more than ever to finance a supercar - Dexerto

YouTuber explains why it now costs more than ever to finance a supercar

Published: 8/Sep/2020 17:06

by Kieran Bicknell


Financing a large purchase such as a new car, supercar or exotic vehicle is a fantastic way to get the car you want sooner, so long as it’s done correctly. In recent years finance costs have gone up though, and Supercars of London has explained why.

Unfortunately with everything going on this year, supercar ownership costs have been impacted thanks to the changes in the financial sector. Banks are now being more conservative with their loaning, and these costs have been passed on to those financing their latest purchases.

But just why exactly are costs going up for people financing their cars in particular? In his September 8 video, YouTuber Supercars of London (Paul Wallace) broke down this change in financing tactics for his subscribers to explain the situation a little better.

In essence, banks are now being more cautious about the potential future values of supercars in particular, though it does appear to be affecting more ‘everyday’ cars too.

Paul Wallace Lamborghini Murcielago
YouTube: SOL - Supercars of London
Paul may now find it harder to sell his Murcielago due to changes in the way lenders value cars

Lenders are taking a ‘cautious’ approach

This means that whereas a bank would’ve previously put the residual value of a supercar at $150,000 they may now take a cautious approach and value it lower. Archie Hamilton says lenders are valuing cars “up to 20, 30 percent less” than their typical valuations.

For Paul, this meant that a typical quote for a potential purchaser on his Murcielago was coming out “around £450 per month more [than before] even with a bigger deposit.”

By predicting that a car will be worth a lower value than before at the end of your finance agreement, finance payments work out at more per month, as the cost of the finance agreement takes into account this lower residual value.

Clip starts at 5:14

It could benefit consumers “in the long run”

Paul used a Lamborghini Aventador in the video as an example. “This Aventador is up for £219k ($285k) before [everything that’s happened this year] the lenders might’ve valued it in four years at £150k, now lenders are saying it’ll be worth £120k, so you’re paying £30k more on finance.”

This means that monthly payments will be higher, but it could actually benefit those taking out finance agreements in the long run, a theory that Paul agrees with, saying it could be “better for the consumer in the long run.”

Since the bank or lender is valuing your car lower, at the end of the agreement (usually around 4 years) the ‘balloon’ payment at the end to purchase the car will be lower.

Archie actually sums up Paul’s speech perfectly: “So what you’re saying, its a lot harder to jump into supercars than it was before” to which Paul agreed, saying he had “hit the nail on the head.”


Russian Instagram influencer torches his $150,000 Mercedes on purpose

Published: 25/Oct/2020 0:46

by Bill Cooney


An Instagram influencer literally set his own $150,000 Mercedes Benz on fire after he got fed up with how his local dealership was repairing it.

Several videos of Russian Instagram and YouTube star Mikhail Litvin torching the black GT 63 S went viral over the weekend, with people around the internet both amazed and horrified that someone has enough extra cash rolling around they can just send a luxury car up in flames.

But, Litvin’s display surprisingly wasn’t just a random instance of pure, nihilistic capitalism captured on film, as he claims he was sending a message to his local Mercedes dealership and the company as a whole.

The saga begins like this: Mikhail bought a brand new GT 63 S (running around $140,000 to $160,000) and somehow, broke the engine five times in a row through various automotive shenanigans.

Eventually, he became fed up with how his local Mercedes Benz dealership was repairing the vehicle each time he brought it in, even replacing the turbo kit with one purchased off of eBay at one point.

Paying to have sub-par parts installed in his car seems to have been the final straw for the Russian, who filled his trunk up with gasoline and brought plenty of cameras to a deserted field to send his vehicle off with a Viking funeral.

After bathing the car in fuel, Litvin lights a Looney Tunes-style trail from offscreen and the poor four-door goes up in a massive fireball.

Pouring gasoline on a mercedes
Mikhail Litvin/YouTube
Litvin made sure not to miss a spot.

After contemplating all the memories he had in the Mercedes while the inferno raged behind him, the YouTuber drove into the sunset with his new whip, a classic teal Lada that only needed a little bit of a running start to get going.

With over 11 million followers on Instagram and 4 million subscribers on YouTube, chances are good that Litvin will be picking up a fly new car sometime soon to replace the smoking heap that was his GT 63 S.

Exactly what he’ll replace it with remains to be seen, but we’d bet he’ll have a video out about it when he does.