Article by Jamie Mackenzie Smith - 13th April 2018

Should I Buy or Finance an Aston Martin Valkyrie?

We’ve all been there. £3 million burning a hole in your pocket and a track-going version of Aston Martin’s latest hypercar sat in front of you. But as a shrewd, savvy business-type, you know that dropping £3m in one go on a 1,100bhp car could be considered a questionable, perhaps even ‘baller’ move. But what about putting it on finance?

Fortunately, you’re in luck. At the 2018 Geneva Motor Show Aston Martin announced finance options for the Valkyrie AMR Pro. Much like any other PCP car financing deal you’re expected to pay a deposit, monthly payments and then a balloon price at the end of the contract.

The thing that makes the Valkyrie Pro’s finance package stand out is the cost; you’ll be expected to put up a £600k deposit, make monthly payments of £26,000 and a final payment of £1.8 million before you can finally call the car your own.

But before you pull out your diamond and swan-encrusted chequebook to pay for the car’s really incredibly reasonable (if your day job is funding space exploration) deposit- ask yourself: will you really be accepted for credit?

Why would I be declined credit?

When was the last time you needed to take out a loan for anything? If the answer is “never”, then you could be in for a nasty shock: you could well be turned down for a £3 million finance product. Worse still, you might even struggle to get finance for a Kia Picanto.

The thing is, if you’re cash rich it’s still quite feasible to have a lower than average credit rating in the absence of a proven track record of borrowing and repaying money. Regardless of how much you may have in your bank account or in assets, if you’ve not proven to creditors that you can reliably borrow and repay money, your ability to get finance could be limited.

If that also means you’ve never checked your credit file, you have no way of knowing what information lenders are assessing when you apply for a loan. Put simply, you’re flying blind.

Which option represents the best value?

However you choose to buy a car, it’s always worth making sure that you’re getting the best deal for your circumstances. But when you’re buying a hypercar, the buying process is a bit different - don’t expect to be able to turn up at the dealership, kick the tyres and ask the man in the cheap suit if he’ll throw in some floor mats. If you’re one of the chosen few that Aston Martin have allowed to buy this car, you’ll have to think about the initial investment against its likely value in a few years.

Despite the insane price tag, unlike with most other cars, you’re unlikely to lose money on a car this exclusive. Although luxury cars are often the worst hit when it comes to depreciation, this usually only applies to the ones made in significant numbers. Just look at any modern day used Bentley, Maserati or even Aston Martin (DB9s and V8 Vantages in particular) and you’ll see them sell on eBay or Autotrader for about 40% of their original price tag all day long.

But find a car where only tens of units were made (think Aston Martin One-77, Mercedes SLR Stirling Moss Edition or Lamborghini Reventon) and you’ll see the prices have only gone up – a trend that is exacerbated every time one is written off. With only 25 Valkyrie AMR Pros being built, chances are by the time you’ve paid it off, you’ll already be able to make your money back if you’re buying it purely as an investment.

Alternatively, if you’re paying upfront, you will end up paying less in the long run, giving you a greater return when you decide to sell. The finance package quoted by Aston Martin mentions a representative 7.9% APR, which adds £600,000 to the sticker price. Even at this level, Representative APRs are not set in stone however, and are often based on your credit rating, which means the final amount could end up costing more still.

What if I can’t afford an Aston Martin?

Fortunately, other supercars unveiled at Geneva are also available on finance, including the Ferrari 488 Pista and Lamborghini Huracan Performante Spyder, both of which can be had for less than half the price of the Valkyrie’s deposit alone. If you’d rather spread out the cost, finance deals are available for them too.

Before applying for any form of finance, it’s important to know what information potential lenders will see on your report. You can try checkmyfile free for 30 days and then for just £14.99 a month, which you can cancel at any time. You’ll get access to your credit report based on data from all four Credit Reference Agencies, letting you see what lenders see.

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