The Truth about McLaren: Selling a 570s after 7 Months!
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- čas přidán 9. 01. 2019
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It's a long one.. In this video my friend Mark and I discuss the reasoning behind his choice to sell his #McLaren #570s after just 7 months of ownership!
Specifically we talk about:
- Mark's ownership experience and opinions on the McLaren brand
- #SuperCarFinance - The financial aspect, i.e. the cost of financing a supercar, how much Mark has lost and whether it was worth it
- How McLaren compares to other brands and the bad press McLaren is currently receiving, and whether the #McLaren720s is hurting the brand
- We also discuss the #McLarenSenna and a few other topics
Appreciate this is a long video and a slightly different format to what you are use to seeing on this channel but let me know what you think! Equally, if you have any questions please comment below!
Don't forget to rate, comment and subscribe!
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/ mrdanielknight - Auta a dopravní prostředky
It's been four years since I shared this video (and had a red bull). Neither of us expected the response or engagement the video has had, it was a very impromptu chat and Mark was speaking from his own experience and analysis at that time. Some would argue he was right and others would say otherwise but it's great to see this conversation still resonating with some all these years later.
Owning a car.. exotic or otherwise shouldn’t be this stressful. Mclarens, Aston’s, even some Ferrari’s depreciate horribly and you’ll drive yourself mad thinking about it all the time. The diff is their are people who have the money to buy exotic cars and simply have the means to absorb the loss and their are people like this guy that clearly can’t afford to buy these cars and it becomes incredibly stressful for them analyzing every aspect of the financial responsibility. I agree that you should alway finance a depreciating asset, but if all you’re doing is worrying about how much that asset is depreciating during your ownership, then maybe you shouldn’t have purchased it to begin with.
exactly my point Sir
You live once, if you could really afford it, do it. If you can't, don't put the stress on yourself. It's a different story if you're greedy and trying to flip a car, but cars are made to enjoy. That's life...
agreed! You can't afford it If you consider too much for depreciation and resale value for exotic car
Neil L
Couldn't have said it better myself
Hyper analyzing finances is a true sign of financial despair.
It would not be so bad if he at least had a chance to really enjoy the car to make it worth this outcome.
Wish these guys would get to the point. This video should be 10 minutes long.
but what's the point in that if you get to the point?
Life Four Zero time is our most valuable asset, so saving time on this vid so I can actually go work on buying one...
EdBoSs don’t work hard, work smart my friend.. you don’t need to put in all the hours to buy one of these!
less then 3
They’ve taken a leaf out of VinWiki’s book - why take 10 mins over a video when 40 will do
Props to Mark for being really open, honest and down to earth especially when it came to finances. A lot of supercar owners are unnecessarily secretive when it comes to talking about finance and monthly's but Mark was sound. Always interesting to see where these kinds of cars sit on the monthly scale 👍🏽
You are always going to have to be okay with losing money on most cars, it just depends on how much the the experience is worth. But I can say from experience, if you are constantly thinking about the miles and depreciation while you own it then you are not truly enjoying it.
Excellent
Precisely so
Kind way of saying "You are driving a car you simply can not afford".
@@AndriesdeHaan Depends on the car. Even if you have desposible income you maybe alright with losing 20k on depreciation but that does not mean it's not affecting your ownership experience thinking it.
Not so sure about that myself, to be honest. I personally buy cars I can afford buying 3 times on the spot, drive /maintain it (with a decade in mind) and all that with my own money. I couldn't care less if my e90 (which I still drive now) was worth $1 the next day.
Not saying everyone should do/think like this, but in my opinion, if you care about losing an X amount on your car, you bought a car that is too expansive compared to your income/ savings/ capital.
Main takeaway from this video. Don't buy something like this if you have to worry about what it is going to cost you.
TheKitPlug I worried about how much my wife was going to cost me, doesn’t mean I shouldn’t have married her does it 🤔
@@MultiMb77 Yes... yes it most certainly does.
@@THEKITPLUG haha lesson learnt!! :)
That's kinda silly what sort of person buys something without considering the cost
@@stephenriddick4592 exactly some of these comments lack simply logic and filled with nothing but pure jealousy
I shall just say this, live within your means.
Typically, when people say this what they really mean is live within their means. Circumstances differ for everybody but since affordability of the car isn’t an issue that doesn’t negate the general concern that comes with the maintenance costs.
.....If we were all to live within our means the western world would STOP.
@@danielmarshall4587 It's going to end soon anyway.
@@mrdanielknight If you really had the money, you wouldn't even be discussing it.
@@danielmarshall4587 Excellent. That's exactly what the planet needs - instead of which the other half of the planet is trying to recreate our model. Debt fuelled growth is NOT capitalism.
Forget the car - love your garage!!😀
I'd love to have a garage that nice as well.
VOIP Portland well worth it, first mod to the house I did when I moved there! 👍 proper man cave
Really enjoyed that Daniel for me its your best video to date . Massive respect to the 570 owner for really going into detail about the finance as i know it is a touchy subject for some people .
Thanks Damien, and thanks for watching!
I've saved this video for watch later as I don't have an hr to spare right now nor am I anywhere near in the position to buy a mclaren, but I am very interested to watch it in case I do find myself in a position to buy one.
What finance did this video cover? Are we talking the cost of maintaining an expensive car, or the amount of repairs as a result of it being unreliable, or are we simply talking about repayments made on a loan to purchase this car?
I personally wouldn't take a loan to buy a luxury item such as a car. The amount you end up paying is ridiculous.
I love those cars. But if I had to finance one, the guilt of carrying the debt would keep me from enjoying the car. I feel guilty having to have a mortgage.
Financing a depreciating item like a car is actually the smartest way to do it, assuming that you have the cash to cover the cost of the car and invest that cash in something that will produce a greater return than the finance APR. Makes more sense to use the cash for investment than sinking it all into a depreciating item. If you don't have the cash to cover the purchase, then it doesn't make sense to buy it as you are then just chasing the debt and losing money in interest charges, therefore you can't really afford the item.
@@silentstormstudios And I thought financing a depreciating item is the worst idea you could possibly have. It loses value while you're paying interest on the full price only minus what you amortised.
Hi Guys. watched your video with interest as the car you are talking about was the one I sold after a year. Honestly not sure why you would be selling this car seen as you've lost around 9k. I bought this car for £173,000 owned it for a year and done a 1000 miles. The car had full PPF and had just had its first service. Your comment about you think you were getting done if you paid £138k is laughable. I lost £38k in a year which is a kick in the nuts thats for sure, however if you buy these cars new then its to be expected. There are many reasons why I got out of this car, however I won't go into specifics as I have respect for McLaren as a brand. The problem, I would suggest is the cheap finance deals that are enabling people, who do not really have the funds to drive cars they can't really afford.
Hey Mark, firstly I want to say, you have great taste!. you spec'd that car superbly and it was perfect. When I first set eyes on it, I knew I wanted it, and I already had a deposit down on another one...…
I thought £7k loss was actually ok considering! :), I intended to keep the car another year, but there was a buyer in the market and wanted the car, so I weighed up the options, and just like you, I also had many reasons why I was coming out of the car early, and like you I wont go into the specifics (not mentioned in the video). However, I did wander why you only covered 1000 miles and took a £38k loss! ouch!...
Finance deals do make these cars very affordable for people and it's a great way to experience them, and move them on and get into something else.
I think if I hadn't of recently bought the GT4 then I would maybe have kept it longer, as I can see myself driving the GT4 more this year, but who knows.. I am looking at the GT3RS now, as since buying the GT4, really digging the Porsche experience having never been in one.
On the note about value, I didn't mean to offend you, what I meant was ( I shouldn't have used the word "mugged off"....bad choice of words, I was very tired!), the market was sitting at £128k-£135k and it was up for £140k which would have been over market to the other 570's for sale at that time. I felt comfortable at the price I paid, at the end of the day, the car is only worth as much as someone is willing to pay!
Anyway, out of interest what car did you buy after the Mac? (if any)
Life_Is_1337 hi Mark unfortunately I didn’t use the car much as I was out of the country a lot. Good for you I suppose :). I loved the colour and spec and I still feel it’s the best colour for a 570. Good luck with the Porsche, I am a massive fan of them.
I bought a 458 with a high spec and low mileage on a 2015 plate. Lovely car but I have looked at the performante. I test drove it and loved it. If McLaren get their act together I would love to get in a 720s but I’ll have to wait and see. Good luck with the car mate.
@@markhobson854 Thanks Mark, nice choice with the 458. How do you find it going from the Mac? I was considering the Huracan or the 458 but I feel I need to scratch the 911 GT itch first, really taken back how great the GT4 is to drive. Didn't expect it really...
The 720S is incredible, I have a couple of friends with them and I think if you buy a newer one then you are safer from the issues they had with the launch models. One of my friends is on his 2nd due to issues, but I suppose least he was brave enough to stick with it.
My objective is ticking the Ferrari, Lambo, Porsche & GT3 box and then back to Mac.. before I get too old and look like I am having a proper life crisis! :)
Life_Is_1337 I’m very much like you I want to own all the supercar brands. I love the 458 due to no turbos, the noise it makes is brilliant. I find it more planted than the 570s but I suppose it was originally more 720 money. I have a white with black roof coupe and love it. It’s like a work of art really. I think it will hold its value well due to being the last normal aspirated engine but time will tell. The market is very soft at the moment so may just hang on for a year or so and see what happens.
Life_Is_1337 I also think pound for pound the 720 is a phenomenal car but I know about a lot of the problems so I won’t be taking the plunge just yet 😂😂
The real question is : how many shags you got from having this car. Divide the total expenditure per shag and see if it was a good investment.
Love it!! great way of analysing if a car is worth keeping! :)
Marcus Pereira car would attract mostly men
You can't divide by 0. Pussy isn't interested in cars. Cars are dick magnets. Get back to me when you see someone driving around in a high end handbag/shoe truck (re-fashioned from an old ice cream truck) playing those familiar tunes. Then you'll see beautiful high-maintenance women running behind it like small children.
SuperN0va these guys ain’t gettin laid...
Hookers would be a better investment.
It's a good video, thanks! Breaking it down like this helps others understand and appreciate the cost involved.
-Depreciation(10k)
-Insurance(1k)
-Service(1k)
-Tires + rims(if driving in snow like me, 1.5k)
-Intrest(1.5k)
-Milage(0.5k, daily driver)
-Fuel(not that i would) but people should reflect on it if you are indeed going to summarize(no idea)
-Storage(1k)
-Trackdays(1k)
=between 15-20k a year. For a newish car. A whole lot of money! Only a few selected can afford it. Think it through before buying.
Great video! Genuine car enthusiast talking about real world issues and experiences, good and negative. Really refreshing!
Thanks Thomas, appreciate you taking the time to watch :)
Brilliant video. Found this by accident. Very honest and informative. I really enjoyed the insight
Thanks for watching Rico :)
Your best video to date and by a long stretch. Nice one.
That garage is a beauty
Refreshingly honest video. Nice to hear to guys talk sense
Very informative video, thanks for sharing. Part of the problem with residuals is that McLaren seem to mass produce their vehicles and keep bringing out new models what seems yearly which in turn drives down the value of existing cars. Doing a quick search on pistonheads comes back with 130 570s or GT cars new and used for sale. Extending the search to include other models increases to 319. It's the same reason BMW M cars lose so much after even 1 year, do a search on how many BMW M4's there are for sale. Whereas if you take a look at other exotic cars (IVA/track type cars); Radicals, Ariel Atoms, BAC Mono's etc. they hold their value pretty well because in contrast they are so rare.
This problem with not understanding financing is common. People talk about "why would you put all that money into a depreciating asset." Well, when you sign the papers, whether you're financing or buying outright, the fact that it depreciates doesn't change. You're taking the hit regardless.
IMO if you're buying a car out of necessity (to commute, drive your family, etc) then financing can be an option. If it's a car for business (and written off on business), then financing is a no-brainer. However, if you're buying a "toy," you should be able to buy it outright. If you can't, you can't afford it and shouldn't buy it. As much as these guys skirt around the point of "money wasn't an issue" clearly, money was a huge issue and the main motivator. If you have to talk about the fact that he'd have to "stretch" to pay for the R8 @ 1.2k/mo and the McLaren was
Very honest and thought provoking. Mark seems like a decent bloke. You and Mark need to get the RS3 and GT4 out for a blast. I'd watch that! Well done Daniel.
Nice video .
I can describe this video in a Denzel W quote : Everybody wants to be the first to tell, nobody wants to tell the truth.
Great attention to details and describing all the costs of owning such a car.
Cars are like money pits, bit as people mention in the comments, some can have it without a sweat.
Cheers! Keep up the good work.
Just found your channel and what a great video 👏🏾. Keep up the good work.
Really good video, thoroughly enjoyed how raw this was, more of these please!
Thanks! We are already thinking of videos or topics we could discuss next!
those same stresses eg., depreciation are what makes cars like these so attractive to buyers on the second hand market like me who would otherwise have no chance at owning a supercar. when a 2 year old 570S costs 40% less than new, but is almost identical cosmetically and mechanically to one rolling off the showroom floor right now, it's great.
Big respect for the owner talking about the actual cost etc,
Loved the video! Much needed insight as I’m a 570s owner myself and I’m in between minds on whether to sell or not because of my love for the car, first supercar, McLaren love, etc and what makes most financial sense. 😤
Update, did you sell it and how good was your car ?
Like several others, I didn't expect much from this, but a really informative and interesting video. Cheers both.
Dave Tomley thanks Dave for the kind comments!
my god your garage is cleaner than my house.
I bow to you my fellow car nerds.
The garage really is a dream - especially if you watch Obsessed Garage like I do!
Great video! This is why I went from seriously ready to buy one, to running for the hills and being uninterested in getting one. They are absolute garbage from a reliability standpoint. I test drove one and a 720S, brand new cars at the dealer, and both had glitches/issues during the test drives! Best/worst part was the salesperson was not at all surprised... I’ll stay with Porsche or Ferrari.
Doesn't matter what the car manufacturer is you will always find someone who has had issues with their car.
I've driven mine 17,500 and can say they aren't garbage from a reliability stand point. I drive my car much harder than most(a couple dozen track days), and haven't had more issues than I'd expect. The power unit has been bullet proof. No suspension issues. I do have a Porsche that has been absolutely bullet proof and I do think they are more reliable. Ferraris are no more reliable. I have plenty of buddies with both Ferraris and McLarens and they attest to this as well. Porsche simply produces far more cars than any of the exotic manufacturers and will always have a leg up on them in terms of reliability.
Owning a McLaren caused me an ulcer. A check engine light appeared on my dash and I literally saw my life flash before my eyes. After I sold it my life is less stressful.
First video I have watched from your channel. Love the ownership analysis! I have subscribed!
I've kicked around the idea of swapping my 991.1 911 Turbo S for a 570s but the horror stories have kept me in my 911. Mclaren have some questionable service ethics and the depreciation problem. I've had my Turbo S for 1.5 yrs and I can sell it for what paid for it today. That's not happening with the 570s. Unfortunate.
Whilst the talk of finance is interesting I can't help but think if you're thinking this hard about the financials all the time then you're overstretched and that clouds the pleasure of ownership. I'd rather buy a car and enjoy it unshackled by the sleepless nights of doing man maths.
Save up and buy something you love and can afford. Everyone's just trying to keep up with everyone else on these channels and buying exactly the same shit.
Indeed and let's face it he was struggling to calculate 350 x4 so it's going to be a long night😆. Seriously though did I hear correctly that he was running four cars? Maybe stick to two and not waste so much money on depreciation and finance, it's all a bit excessive. As my mum used to say, Champagne lifestyle, beer budget.
You’ve nailed it. So many people doing this shit with cars bought well out of their comfort zone so they can do their CZcams channel. There are only a handful of channels worth watching to be honest. The rest are just fillers and dull. I own both my cars outright - one was new and I will drive the depreciation right out of it because I’ll keep it and enjoy it. The other was a special project rebuild, again all paid for by me to be enjoyed worry free for years to come. Money might be cheap to borrow at the moment but unless you can make more with the capital you keep then I don’t see the point. And I’m old enough to like to own my cars outright. I’d never feel like it was mine if I had it on finance and all the stipulations that come with that.
Toby I would just like to join in on your comments and say again it’s not affordability that was the issue, running 4 cars is easy and the GT4 will depreciate just as much and it will cost not far off the Mac! This car will be kept for a long time and paid off within the next year.
So again it wasn’t the affordability!
Owning (renting) and being comfortable with owning a *McLaren 570s* was why it went!
A lot of reasons resulted in the decision
@@MultiMb77 I don't think the Mac was going to be paid off in a year (if you were referring to the Mac?) He was paying 1K ish a month finance and put down 20 - 30K deposit if I remember correctly. He would have been due a huge balloon payment at the end of the finance period of which he could not afford.
I confess I only watched half of this video but my overall feeling was that he did not want to drop another 15k + in depreciation and running costs before selling it next year.
Yes there were a few reasons why it went but the main one was money, in my opinion anyway :-)
No issue, a great watchable video. Thank Mark for his co-op. Kind regards.
New Subscriber: Came across this video about the McLaren and loved it. Liked the talking points and learnt a lot which is what my ideal reason for watching videos.
Good video. Agree with the comments mostly in terms of ‘if you are concerned with running costs/depreciation’ etc then this level of financial commitment probably isn’t the best thing for you to do. Just in my opinion. The guy can clearly ‘afford’ the car but why bother, if it makes you worried about the whole experience?? Strange days we live in.
Thanks for watching! The concern re the running costs, is only a concern when you factor in how much money you could potentially lose over the next 12 -18 months. Throwing more money into something that's losing you money is a scary thought!
Great video mate..nice bloke,.down to earth...👍😊🇬🇧
My new favourite you tube video. Great job guys, talking honestly about the finance costs and running costs. Found this and the comments very interesting. I have great respect for both of you and learnt a lot. By the way, amazing garage wow.
Liked and subbed👍
My 570 test drive, the car broke down 2 blocks from the Dealership. The Porsche GT3RS is and has been Phenomenal to own !!! The noises are incredible!!! I believe in Andreas P !!! He has Passion for his work and it shows!!!
The best way McLaren can fix the worry with these cars is give a longer warranty. Something about the Mclarens makes me want one really bad.
They offer 12 year warranties to buy :D cars.mclaren.com/ownership/extended-warranty
Should come with 4 or 5 year warranty from new. Than the 12 year extended warranty should be available. 3 year comes and goes fast.
I really enjoyed this video, so more of the same if possible please! The one slightly unfortunate thing I take away from it though is the almost total focus on money, rather than the pleasure and enjoyment owning such a car can give you. Of course it comes down to individual circumstance, but it sounds a lot to me like Mark could quite easily have continued to own the car, and the return in "smiles per mile" would have been significantly higher than the pure financial cost. Putting the money into slightly reducing the mortgage instead sounds significantly less pleasurable - YOLO, and all that bollocks!
Thanks Andy - appreciate the comment and you watching!
Really useful insight to the ownership experience and thoughts 👌
Cheers 👍
Very insightful video, hope to see more like this
Great video, nice to hear a sensible take on some current issues. But, if you're thinking of a Hurracan, I was led to believe by my dealer that Lamborghini have pre-registered 90 UK cars ahead of March, which is going to do nothing to help values, and which led Ferrari to take the 488 off sale early in the UK
Good video, like a pub chat about cars. I'm a prancing horse owner, was thinking McLaren next, sounds like as long as you get the annual warranty its worth the gamble.
Douglas Chrystall yeah, warranty is important on them, they are amazing to drive! I am thinking of a prancing horse, but need to tick the GT3 box first!
Great video and Great insight from the owner...good luck to him! Message to the owner - Ownership can be stressful especially at those levels but be proud of the ownership, not many will get to be in your shoes. All the best!
Harry Lalli thank you, thanks for the nice comment!
Looking back, he would have came out in the positive selling his car during the pandemic. Crazy how life works.
Almost this entire video answers the question of why you should only buy a luxury in cash.
Luxuries are just that....luxuries. Money that you won't miss.
Financing it makes sense only if you can get a tax break on it as a company car.
Very well said.
You could argue that finance was not such a daft idea. If he kept it the full 3 years at least he would have known what his loss was; i.e. £30,000 deposit + (36mths x £941) =£63,876 or £1,774 per month. The Ascot McClaren Dealership offered only £105,000 to the previous owner when LifeIs1337 bought it. So at the end of the 3 year finance the car would be probably be lucky to get £80,000. I am sure LifeIs1337 was intelligent enough to see this and hence got out and of course that doesn't add in the service costs and the warranty insurance that he had to take. I wonder what the mileage limitation was on the 3 year deal at £993 per month.
John Anderson thank you thank you thank you!! 😂 someone actually seeing things through my eyes! 🍻
Life_Is_1337 Being an accountant, I hope you put the total monies spent on this car (and others) and running costs against your CZcams income; perhaps making a loss. You can then offset this net You Tube loss against your other 2018/19 income and possibly get a tax rebate.
John Anderson I still have the money I got back in savings at the moment, thinking of what to do with it.
I don’t actually have CZcams income, this isn’t my channel, I post videos on my channel but only for my pleasure and a few other followers 😁
Great video guys , I'm opposite the to you I only buy a cars outright , but that's from my parents saying if you can't afford it don't buy it from a young age . I'm old school and avoid anything credit , I even brought my house outright . Save save save , it soon compounds .
Unless you pay for it you don't really own it and the stress the money part has on most people totally ruins the fun factor you should be having with your prize assets, you end up worrying about it that much it no longer becomes fun and the thing you have looked forward to owning all your life, yes it's a shame but if you can't afford it you can't have it it's a simple as that unless you don't care about money! And unfortunately money management is essential unless you're rich enough that you don't have to ask how much it costs..
Well said Can do Life.... the cheapest way to own it, is to buy it. Finance becomes applicable for business, if your money can be earning you something rather than depreciating, then by all means... but each are different. You just need to track that spread over the duration, i.e. cost of funding, return on investment etc.. But generally speaking, its best to enjoy cars and not consider it a commercial venture.
All well and done, but are 20 yo with great paid jobs gonna have to work and live with mummy till their 40 so they can buy their 300k house outright? No, get a morgage thatbis cheap monthly and get on with life rather than live like a hobbit in your own bedroom on 60k a year salery. Interest rates aren't that high anyway
great video, thanks for sharing!
Thanks for the very honest numbers.
Enjoyed the video. Very useful. Ive run Astons, still run a Ferrari have thought about a Mac a few times.
Richard Carter they are incredible cars! I didn’t mention it in the video, but I used to get butterflies every time when I was getting ready to go out in it! This was my first experiences a car like this coming from a BMW M4!
They are mind blowing cars! And If you can cope with the money side of things! 👍
Thanks for watching Richard :)
@@MultiMb77 thanks, I'll add one to list.
Stick with the Ferrari, number 1 brand in the world.
Some of you aren’t looking at the bigger picture. Too many people aren’t looking at the situation practically. He has other outgoings so let’s say on top of that he goes and buys the maclaren outright, dumb move. As it stands he loses in total somewhere around £16k. To buy the car outright he would have to draw minimum 318k, pay close to £140k in tax and national insurance to be left just under 180k to buy the car and have enough to cover the other expenses associated with it (insurance etc) and live his day to day life. We have to assume he runs a business, he’s better off leaving the money within the company and just paying corp tax, instead of paying it as income tax (let’s not go too deep and discuss whether he should withdraw x amount as a dividend as those rules have now changed on how that is taxed). So £16k loss or £140k tax debt.
This is a good point and is probably true for this guy. However, for the average joe who has a job and not their own company, finance on something like this is a lot worse than buying cash.
Thank You So Much for this video it answered a lot of questions for me
Really good video guys. I watched the full 58 mins. Lots of interesting info. Your McLaren owning guest was really interesting too.
The Open Road thanks for watching and your kinds words
You got 21k back out of it so lost 9k of deposit but you've been paying 1k a month for 7 months so you've actually lost £16k no??
That's what I was thinking too, surely its a 16k loss in total?
How much was the dealer margin?
That's what I thought as well!
Indeed - most finance deals (lease hire, PCP or equivalent) are designed to service (pay for) the lump of depreciation over 'x' period based on the final estimated value. So yes, the cost must be a lot more than 'fessed up to. Obviously if the car had been purchased outright and then sold on for 128k, the loss would genuinely have been straightforward to see. Perhaps this is one reason for being wealthy enough to pay for an exotic car outright..... The fret and angst on display here seems to take away from a lot of the pleasure of ownership (or renting to be more accurate.....).
@@sausageseggandchips Exactly.
I do understand the observation that there was an underlying fear of the potential cost of owning such a car and whilst finance does indeed allow less well heeled individuals into the supercar market, myself included, if undertaken sensibly it can, and very often is, cheaper than paying for the car outright.
I have just ordered a new M5 the deposit and monthly payments if amortised over the period are less than the projected depreciation this is also helped by a finance rate of 3.9%. Same turned out to be true of an SL63 purchased a couple of years ago.
The one thing that did not make sense here was the fact that they regarded a high GMFV on the MacLaren a good thing as with a high deposit the monthly payments were low. The problem here is that at the end of the term there will be no deposit to return if the true value falls below the GMFV.
The Audi R8 will have higher monthly payments but at the end given the low GMFV you are likely to see some money back, unrealistic GMFV’s coupled with high deposits hide the true cost of ownership.
I appreciate cars like this as an artform, nice to look at, fun to drive, but for the price, they don't seem worth the risk to own. It's essentially hit or miss. Some people don't have problems, but way too many people do for it to be a safe bet. I have high hopes for the new NSX as a more consistently reliable and more practical supercar than most others.
Interesting and useful video guys.
I bought an 1st gen Audi R8 in December of last year. I absolutely love the car and it was what I could afford at the time. I got a great deal. As far as reactions you get in the video he seemed to imply that a McLaren gets only positive responses which I’m here to say that’s not true. I have a friend who has a 570S and he gets mixed responses all the time. When I bought my car the salesman told me “welcome to the club” I thought he meant that having a super car, welcome. He then told me “ you will see the best and worst of people”. Since I’ve owned this car I’ve had people give me the finger, say weird stuff at stop lights, slow down in the lane I’m in to a crawl ( that happens A LOT) and other weird stuff. It’s peoples perception of you, without knowing you. I bought my car to drive, didn’t care about the resale but just to enjoy the car, I think the gentleman should do the same and not worry about the resale to much. McLarens do need a lot of work to become reliable to daily drive.
I had the same experience when I bought my 2007 Cayman.
It's not an expensive car, but it looks like one, and it looks fast.
I stopped counting on how many times I've been told (not asked) that the car was leased, that I'm sponsored by daddy, that it's not a real porsche (by the few people who know the difference between a 911 and a 987), that I'm driving way to fast, that I'm just a materialistic arse, and so on.
People just love to hate, especially on stuff that they believe to be expensive.
But on the other hand, I got a lot of positive reactions too. I've been told by random people that they like my car really often, I got to drive alot of cool cars, because their owners wanted to drive mine, I met a lot of nice people that invited me to their car meets/tours, and I sometimes even got stopped at a supermarket parking area by what I believed to be an angry old guy, just because he wanted to tell me that he used to own the same car, and how much he loved it, etc.
The car is just a magnet for attention, which is one of the things I loved just as much as I hated about it.
I guess an R8 is much more extreme, than an ordinary little cayman.
testkanalvonmir first off that “ordinary little Cayman” is one of the best driving experiences you can have. After my R8 I will be getting a Porsche, albeit a used one lol. When I bought my car and was waiting for the detail to be done. I drove a Ferrari 458, a Merc. GT and a 718. I had a great day and the Porsche is within reach and was a blast to drive.
@@skywalk3x Yes it's easily one of the best entry level mid engine sportscars you can buy.
In Germany you can get a good example for around 25 grand, and it's surprisingly cheap to insure and maintain.
But to most people, all Porsche look the same, and they are literally everywhere. An R8 has way more head-turn-potential, I guess.
I hope some day I'm in a position to afford a 1st gen manual R8. It's my somewhat affordable dream car :)
Good video, however when talking about how much he lost you both said 9k but failed to mention the finance costs he paid for 7 months. He lost 9k of his deposit and spent 1k per month for 7 months in interest. So really his cost of ownership was 16k over 7 months, or put another way £571 per week to own that car for 7 months !!!!!!! That's a huge of cash to spend in effectively depreciation.
MJ W
You forgot to mention the 3k spent on the extended warranty and the 450 for the road tax.
Correct. I had to stop watching for the very reason that their maths omitted the finance cost.
People like you don't realize that 17k isn't that bad. When you are in a position to afford something like this it shouldn't be a financial decision. It should be a hobby or passion such as traveling etc. I plan to and will gladly take that loss because I understand what I'm losing and in the end it is worth it to some and not to others. My point is, if it isn't worth it to you then why are you even watching this video because you probably aren't that into cars.
@@tystroud4155 Your comments sound like that of someone who is or will be in serious financial trouble at some point. Even multi-millionaires consider the consequences of large purchases. You don't get to be well off by not caring about where your money is going. That's what the working poor do.
Well done boys. I really like the realness of this video. Real life review, real life experience and no 'on the band wagon' thrashing of what is clearly a very exciting and boundary pushing brand. Let's remember, performance wise, McLaren are very much making the other brands sit up and take note with the release of such capable and next level vehicles at comparable values.I agree, people with no real experience, taking to keyboards to rubbish brands is not helpful. I am so pleased I found this video!
Really good video guys. just bought a12c and was really worried given the title. So your love of the car, brand and the good stuff you say about it (and the 12c as an incidental) is great to hear. I'm loving mine so far.
Hi Simon, thanks for watching! Congratulations on the 12c. They're fantastic cars and so much car for the money!
simon potts fair play! Congrats The 12C is great! This video was very positive towards Mclaren, so you have done the right thing! No car like them! Enjoy it in good health
Have to say before watching this, I wasn't expecting to be a long one, looking forward to it
After watching, I must say it was a great video. Brilliant to get an insight into what it's like money wise.
While I do research and worry about reliability, life is to short and I want the cars I want ( if I can afford them ) to worry about depreciation. Lots of things that bring me joy cost me money. It nice to not lose money on your dreams, I.e when I sold my Lotus to buy my Alfa, but do think I would love Alfa so much if deprecation was my main concern? 😂
Really enjoyed watching this video but I must say that some of the things you said are just incorrect. First of all, depreciation affects you whether you buy cash or finance. Second, there are more than enough videos and Forum posts of McLaren owners who are truly upset with build quality, depreciation and treatment from mclaren. So you‘re point of „I don’t know where people are getting this informations from“ is simply rubbish. A friend of mine got a 720s in February 2019 and sold it in late April this year and lost over 100k€. In those 14 months of ownership, the car spent 6.5 weeks at the dealer for repairs. He says it’s one of the best driving cars he ever had but this was his first and last McLaren. If I’ll ever be in the market for such a high priced vehicle, the last brand I’m gonna go to is McLaren. Don’t care how awesome this thing drives, looks or feels. If it costs me more than a divorce and gives me equally as much headaches, I‘ll pass.
Really enjoyable discussion. Entertained for the full 58 mins (not many vids I would do that for). B cool garage too.
enjoyed this video, best one you have made so far.
Thanks for watching Jack!
You will regret it like the new owner of your sold car did. Like Arnold said “you’ll be back” lol great video
Great Talk guys!
Great vid guys. Looking to buy one soon to replace a V12S and this was really good info.
Great video :)
With cars like this you have to be 'footballer' and 'rockstar' rich, where you purchase in full like you were buying a basic Ford fiesta for cash. When you start worrying about the cost of tyres and that service no. 2, also wearing out those carbon ceramic discs, I think then maybe it's a little too much out of your league. There's little fun owning a car while worrying all day at the costs of running it. And that your mate bought it on finance, well that's another story! Nice garage though😉
Gio Verde only a fool would cash out if the car only use is driving it. Its not about pretending being rich, it’s actually being rich.
From what I’ve gotten from the video, this guy bought a car he couldn’t afford.
That’s all.
@@erick2good So are you saying he is 'being rich' with his reason for taking that route? This guy lost £9k in 7 months ownership. Each to their own, as long as he enjoyed the short ownership
Gio Verde pretty much. Smarter route. If he wouldve bought a toyota it would still depreciate possibly more than 7. Its a pleasure to finance a exotic, every body cant afford to finance either.
@@LegendInThaMakin ...and he's rationalizing the financing as ..."I'm only keeping the car short term"...then proceeds to explain that he's never not financed a car...
Financing a depreciating asset makes little sense unless you have an investment opportunity that earns a higher rate of return than the cost of the loan for the equivalent invested sum.
The financial jaws are going the wrong way here. Interest is increasing the cost of the vehicle and depreciation is eroding it’s value; not ideal.
paul dewar I know this comment is a year old but you would ALWAYS finance a depreciating asset. If someone else is prepared to take a risk on something that is going down in value on your behalf, why would you stop them? But your point about what you do with the money you would have spent is entirely valid, and kind of contradicts your point - you can almost always do something more financially beneficial than plough money into a car!
If you plan on keeping the car its fine to me. I financed my '15 C7 Corvette 4 years ago cause i knew i was gonna keep until i paid it off. Now currently i owe way less than my car is worth cause of how i paid it down. I could easily sell it or trade it in and be in the green if i chose to.
Thank you for this
I'm new to your channel. Thank you so much for being open to sharing the financials behind your McLaren ownership experience. I have paid cash for my vehicles in the past with the plan of keeping them 5 years to validate the purchase. Obviously, I could have made a different decision and properly invested those funds. Anyway, your spec is gorgeous and I know the new owner will enjoy it tremendously. What do you think about the Model S P100D and the new Audi and Porsche E competitors?
Terrance Anderson thanks for the kind comments, I am still not convinced on E cars, I love the theory, and I am sure in years to come they will be the only thing available. I could be tempted by hybrid so you get both of best worlds
The scaremongering on the internet via forums etc....is making isolated incidents look like an epidemic. There are lots of non McLaren owners out there that delight in stirring things up at every opportunity because 1 they are actually scared of the progress McLaren has made 2 jealousy 3 their supercar status being downgraded. Ive owned 3 Mclarens now as an early adoptor and I have had zero issues with all of them. The build quality and reliability I have experienced is far better than all the Ferrari's I have owned. McLaren make next gen cars in comparison to the competition but the brand is not as strong as the product and their problem is the small fledgling dealer network and current used car demand which causes the higher than Ferrari depreciation. What that does mean is they are cracking value for money 2nd hand cars if you ignore all the nonsense noise on the internet
Gazza Brownhigh exactly and well said! This was a better description of how I felt driving the car in this video!
I really want a 675LT, and hope I can come back to the brand! Probably when I stop reading forums!
I could not agree more. My 720S has over 8'000 miles on it, from driving across Europe. I've only had 2 windscreens in it from spirited driving and overtakes with Lambo's and have so many great road trip memories with it. It's annoying to me that experts (people with loud opinions without qualification) can make such unnecessary noise about a British built success - a visit to the MTC would surely be beneficial.These cars are leagues ahead of any supercar I have experienced, with the possible exception of the new Koenigseggs
The 650/675 seems the car that was the best built. Obviously early 12C had a few issues but as 650 was really a gen II car it was well sorted by then. I've never bought a brand new model from release as most ( any brand ) have a few teething problems, nothing big but none the less I do appreciate it can be annoying and not what you expect from a £200k supercar. I had a 650S spider, 570S coupe and now have a 675LT Spider which is unreal. Just like a race car for the road and way better than a 458 Speciale in every dept maybe bar sound but that said it pops and bangs on both upshift and downshift when its warm and you are driving enthusiastically. Very exciting and engaging car which I missed a little bit in the 650S because it was so damn good and refined. My 675LT was over twice the price of the 650S I traded in but it is worth every penny IMHO and being LIMITED and 1 of only 500 worldwide makes it extra special. I can thoroughly recommend a 675LT especially in spider form and Napier Green
Linsay Seaton absolutely, McLaren are so far more than their competitors! I wish people would realise this and stop bashing them.
From forums I read the service let’s them down but I never got to experience it!
Gazza Brownhigh do you have any video to prove your claim?
Its a low slung supercar its not a range rover ..obviously pot holes and uneven roads are going to be a problem as with all supercars
Residuals play such a huge part in Finance. There's a reason so many Motability cars are Audis and Mercedes these days, it's actually cheaper since when they get sold off at 3 years old the residuals are higher than if you bought a Citroen C3 or something.
I'd never touch finance though, too many ways you can get screwed, and I tend to keep cars for long stretches of time anyway. I tend to buy at the bottom of the curve, or ones rising in value, so never really think about depreciation much.
Most would like to know, how does this guy make his money? If you scaled up your business you could afford it better without having to STRESS on affordability. Really great and enlightening video.
chooselife3000 lol, it comes down to how much you're willing to lose. Affordability is not the issue
Interesting video, rich people often finance their cars because they can invest their say £140k cash elsewhere generating a higher rate of return than the interest on the car finance... simple maths.
I wish I was in that boat!
err no.... earn more by investing 140k in say equity which could give a higher return, whilst borrowing to buy car at a lower known fixed rate... The exact same concept as an interest only mortgage vs a repayment mortgage. Do your homework you might learn something.
did you actually read my first post?
:) good work
Good point, Robert, but I don't think that is the case here. He also has a big mortgage, and at some point, if you own little to none of your life, and something goes wrong, it is a long way down. Far wiser to keep your true ownership ratio higher, so that it is really pure investment plus finance, and not pay this off or that off first.
Aye I think your right .... and I agree... I'm old fashioned, I only buy what I can afford (other than a mortgage).
Selling a car after 7 months tells me he's not happy with the car.
the car itself was ace, the money side was not so much
I like these guys, steady and knowledgeable. I have built the garage so I need to fill it, 911 gt3 maybe.
Mclaren and the dealer had to buy my 570S back. Out of 12 months of ownership, it was only driveable for 2 of those months. All sorts of problems including tons of rust/corrosion. At least the parent company is classy as they come. They were very polite throughout. I went back to a GT3 and sleep well at night. Then again, I would certainly give Mclaren another shot in a couple of years when they get their act together!
mmm yeah they're still a pretty recent company, just need some more experience and time to sort their problems out, they're bringing out hybrids in the future too which sounds great since fuel is rather expensive
Many people like Phil Dixon were threated badly by mclaren heh
Why pay for a car in cash up front? You didn’t buy this car for £135k - you bought it for 30,000 + 941*12*3 + 90,000 = £154k! That’s why.
Christopher Madam technically not, The car cost £15,287 over 7 months
@@MultiMb77 so £6500 more than if he payed cash in just 7months
Except if you can save the money to buy it up front you can make money on the interest gap while financing the car and investing the money.
Had mine 2 years never had a single issue and covered 12k , defo have mother Macca ,
By far your best video (Y)
Appreciate the comment, thanks for watching Nas!
Enjoyed the candid chat. One question, why didn't you finance an older model with low mileage as the depreciation hit would have been far less?
The best time to buy one would be now, they are £80k-£90k. Even the earlier plates were still £130k+ they had only been around a short time when this was purchased.
Why give them thumbs down, it’s a honest vid, no bs...
I currently drive a 570s and luckily I don’t listen to much to forums or the like. I drive it and it makes me feel like a million bucks. I expect it to depreciate but no more than my 911 tts I had
You need to just stop over analyzing what people are saying. Unfortunate because videos like these only exacerbate the issue.
Too bad cause they are a blast to drive
James Taylor I wish I owned one but I had the opportunity to drive a 570s and a huracan back to back.
It wasn’t even close, the 570s is in a league of its own.
Hi James, by no means are we criticising the 570s, they are phenomenal cars but the numbers don't like and it made the most sense to move on now and avoid further loses.
Mr Daniel Knight so what’s next?
Long term they prob make good investments
T Croft time will tell
Great video, time to pull the trigger on the 570s!
Dunno about anyone else I'd like to see more of the spec of the garage!!! Looks awesome!
10:00 Doesn't matter of cash or financing, you always pay the depreciation + maintenance. So it's as crazy to buy Cash as is to finance.
I don't really understand the 'buying a car' thing. Leasing is the only way to go now if you're not bottom feeding.
Exactly, the depreciation argument is illogical, you are financing the depreciation either way.
@@cgavin1 if you have lived long enough to go through a few lean periods,you want to avoid debt and also more mature ladies prefer a nice lifestyle(holidays,house,long weekends away)rather than changing your car to match your new tracksuit.
650s is super series by the way
Good insight into how we purchase or finance our vehicles, finance to one side, the running costs seem ridiculously high, insurance to cover the car after warranty expires, blimey.
Great video. Currently have a 991 GTS and been toying with a 570 GT but just can’t get over the depreciation risk
I am just selling my 991.2 GTS for 570GT and really looking forward to my pick up. Can't look at these videos and not expect to get depressed about depreciation etc - that's what cars do mostly.
How are you getting on with the 570GT, getting very tempted with a 2017 one
I have owned a 570GT for 20 months and love it. I have put 11,000 miles on it and it puts a smile on my face every time. I bought 6 months old but have still lost a few quid. At the time I looked at Hurracan and 488 and actually depreciation is not that different. Leeds McLaren have been fantastic for servicing and a couple of minor niggles. I would absolutely recommend them. You can pick up a really nice spec 2017 model for just over 6 figures. Go for it. I plan to keep mine and extend the warranty.
I personally don't have any videos and can only talk from my own experience of 3 cars and other McLaren owners in the McLaren owners club that I have talked to. Thorney Motorsport though are an independent McLaren specialist and John Thorney has put his money where his mouth is by owning a 12C spider. He has released a number of videos recently that are honest and unbiased about McLaren products. If you don't believe me watch those videos. I've owned a host of Ferrari's lamborghinis etc... and I can categorically state my experience with McLaren is far superior to the numerous issues Ive had with previous Ferrari's. Lamborghini less so since the germans have been involved and sorted out the previous reliability issues but Ferrari's nah, not good, overrated and overpriced IMHO but that's the prancing horse premium. McLaren are certainly shaking up the supercar status quo which has got to be good for the consumer. 720S prices are crazy low considering how great a car it is and it walks all over a 488
They're amazing cars!.. really cool, and they're bulletproof. There is so much negativity about them on forums and other pages which is so unjustified!. The depreciation is in line with its competitors, so it makes it a great entry level supercar! at £135k you cant go wrong!! Plus they get no negative reactions from the public, have only had positive in it!. superb motor which will be missed, and until the next one!!
Good info. I'm gonna look at this thorney guy... i wanted a 12c but worried about maintenance
Just buy a C8 Corvette when they will come out, much cheaper, reliable and it will be a great car.
This is England ya doughnut
@@lozz0dnb So ? You can buy a Corvette anywhere in the world.
@@stockey Not strictly true. You would have to import one and pay import fees then its only left hand drive then there is no support network to maintain or repair them so doesn't quite work
@@lozz0dnb The C8 will be in right hand drive ya doughnut
@@DonLee1980 Didn't know that Hahah I take it all back
I'm interested in the comments re the bumpy roads and the lifter. I'm considering a (long term keeper) purchase. It is simply that the underside scrapes a bit on bumpy roads or would it actually "hit" the bumps and potholes? Would a 650 be any different?
Michael Embley I would be more than happy to have a chat about the experience! They are fabulous cars but certainly have things you need to know!
That was really interesting because I hadn't given much thought to this.
I have never watched either of you before but I have to say that you both came accross as really able to think logically and analyse the situation and make decisions on it. And you are both realistic in life.
I do recall as Finance Director of a company back in 2000 looking at the finance of a fleet of 120 sales rep cars that is was cheaper monthly payments for BMW 318's than a Ford or Vauxhall based on the residual value after 3 years.
I actually beleive that in the next coming 2 or 3 years that many finance companies may well be in trouble because I believe that the sale proceeds obtained of the vehicles will be well below the estimated residual value when the fiannce was given.
I also have been seeing that some finance companies are putting a clause in (very small print) that if the baloon payment (estimated residual value) is not achieved that the purchaser is liable to the difference.
I also believe that cars are now too complicated with electronics and the cost of repairs when warranty runs out and extended warranty costs will go up a lot in the future.
Conclusion: Mark, you have made the right decision to sell your McLaren and good luck on your next car.
John Anderson great reply, thank you John!
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