Financing a second-hand Porsche for the every first time
Discussion
KittyLitter said:
Go for a Cayman R, its like a precursor to the GT4. It would be close to half the costs you are contemplating for the GT4 and doubtful half the car.
Worth considering. I picked up a well sorted Cayman R on Collecting Cars for your budget about 6 weeks ago. Feels special, and a great drive. Have done 2,000 miles already including a track day and a trip to Nurburgring. Had 2 GT3s in our group that went to Germany and whilst they were of course quicker, was able to keep up. Minimal depreciation now, and no interest payments makes it a good buy if on a (relative) budget.
kmpowell said:
Currently going through the process of refinancing the balloon on my GT4 which I bought brand new in the summer of 2022. APR on my original PCP deal was 4.9%, and to refinance the balloon through Porsche finance (VWFS) today on another PCP, they want 11.4%! They were promptly told to foxtrot Oscar.
Having rung around most brokers, they are at circa 9-10%, but the cheapest so far I’ve found is through my bank (Lloyds), using their refinancing ‘flex PCP’ offered to me at 6.9%. The max they will fund is £60k, so I’ll have to put the £6.3k balance in myself, however that’s a no brainer to secure that rate in the current climate.
I’ve got a couple of months to go until it’s due so I’m still ringing around, but nobody has come come close to Lloyds yet, so OP if you bank with them or Halifax, give them a try.
This is precisely the market information that I'm after. My mortgage is with Lloyds, so made some enquiries with them last week. Exactly as you've found: they appear to offer the best rate I've seen, at just under 7%. Likewise a high 0% credit limit if I end up going down a different route.Having rung around most brokers, they are at circa 9-10%, but the cheapest so far I’ve found is through my bank (Lloyds), using their refinancing ‘flex PCP’ offered to me at 6.9%. The max they will fund is £60k, so I’ll have to put the £6.3k balance in myself, however that’s a no brainer to secure that rate in the current climate.
I’ve got a couple of months to go until it’s due so I’m still ringing around, but nobody has come come close to Lloyds yet, so OP if you bank with them or Halifax, give them a try.
Thanks for taking the time!
Not sure you will get many if any car dealers that will accept full payment by Credit Card as they will not want to pay the processing fees on the card you want tyo use, but you might beable to use it by offering to pay the fees usually about 1%.
I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years.
I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4
So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky.
It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable)
As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me.
Hope that helps bud
I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years.
I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4
So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky.
It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable)
As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me.
Hope that helps bud
Not sure you will get many if any car dealers that will accept full payment by Credit Card as they will not want to pay the processing fees on the card you want tyo use, but you might beable to use it by offering to pay the fees usually about 1%.
I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years.
I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4
So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky.
It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable)
As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me.
Hope that helps bud
I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years.
I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4
So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky.
It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable)
As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me.
Hope that helps bud
EvoSid said:
Not sure you will get many if any car dealers that will accept full payment by Credit Card as they will not want to pay the processing fees on the card you want tyo use, but you might beable to use it by offering to pay the fees usually about 1%.
I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years.
I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4
So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky.
It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable)
As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me.
Hope that helps bud
Interesting. I have never heard of anyone doing this (refinancing a car). Great if you have the cash to buy in the first place. The return you got should be do-able with any decent fund, id expect.I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years.
I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4
So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky.
It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable)
As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me.
Hope that helps bud
Cayman R suggestion makes a lot of sense around your budget. Great car and likely a free car in relation to lack of depreciation.
Win win to enjoy whilst u save for a GT4 and in the meantime realise as a road car the R is probably better to live with day to day than the GT4 will be lol.
Poor headlights and lack of modern CarPlay aside being obvious elephants in the room.
Win win to enjoy whilst u save for a GT4 and in the meantime realise as a road car the R is probably better to live with day to day than the GT4 will be lol.
Poor headlights and lack of modern CarPlay aside being obvious elephants in the room.
The main brokers I see floated around for sports car finance are Magnitude Finance, Charles & Dean, Lillian Stanley and Apollo Capital, but of course, there are other brokers available. Magnitude do have an online calculator/instant quote but be prepared to receive a call from their customer care team afterwards.
The brokers will generally be able to obtain a lower APR rate than an OPC but you're still looking at 9.9% APR, potentially 8.9% if you have an excellent credit score. This is the best rate I have seen personally at the moment.
Personal loans tend to be around 6.9% but only upto £25k. The APR usually increases above this level. As suggested above, Lloyds and Halifax are offering good PCP rates that better than most lenders at the moment but you have to bank with them.
Car finance is expensive at the moment and many just look at the monthly payments on PCP deals, rather than the total cost of borrowing with the interest payable.
Hope this helps.
The brokers will generally be able to obtain a lower APR rate than an OPC but you're still looking at 9.9% APR, potentially 8.9% if you have an excellent credit score. This is the best rate I have seen personally at the moment.
Personal loans tend to be around 6.9% but only upto £25k. The APR usually increases above this level. As suggested above, Lloyds and Halifax are offering good PCP rates that better than most lenders at the moment but you have to bank with them.
Car finance is expensive at the moment and many just look at the monthly payments on PCP deals, rather than the total cost of borrowing with the interest payable.
Hope this helps.
jasonrobertson86 said:
Interesting. I have never heard of anyone doing this (refinancing a car). Great if you have the cash to buy in the first place. The return you got should be do-able with any decent fund, id expect.
TBH I did not even know that refinancng a car I was already bought was even an option. Only a chance converstaion with our leasing company ( Lombard finance ) meant they were happy to lend me money against my car and I took advantage of the crazy deal they offered. Hopefully in about 6-7 months £50K plus interrest will be paid off an there is nice healthy investment sititng in an ISA waiting to be used for a new car maybe. You are probaly right that most funds will / should deliver that kind of return. Main thing is I now have a GT4 worth £60K plus and a intial money plus interest in the bank so win win for me Hopefully give others an option as you could buy a car on higher interest rates now and refinance it later on when ( if ) interest rate ever come down again
Sid
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