Cash vs Lease Purchase - need advice

[981C]

Hi Folks

Would appreciate some advice. I'm looking to buy a GT4 (£90k).

This is a car I've wanted since I had my first Cayman in 2007, but I wasn't fortunate enough to get my hands on one from an OPC.

Now that the market has stabilised somewhat, I really want one. Trouble is, I'm not sure how to pay for it:

I can finance the car or buy outright, but the finance rates available are 1-2% less than the return I hope to achieve on my savings, so it seems crazy to tie up the cash. Realistically, do you see the car being worth less than 60K at 4 years old/22,000 miles?

Haven't considered a PCP deal because the balloons from Porsche Financial Services are very low, and I end up financing a larger sum - so more interest!

Any tips?

[covmutley]

Would you borrow £90k to make 1%? I doubt it.

Most savings that have decent returns like funds carry risks. Keep it simple. Find the cheapest price (could be pcp but pay off straight away) and pay for it and enjoy it!

[NickCQ]

981C said:

Haven't considered a PCP deal because the balloons from Porsche Financial Services are very low, and I end up financing a larger sum - so more interest!

Is this right? You are paying interest on the whole amount you borrow (i.e. purchase price and fees minus deposit), so the lower the balloon, the lower the average balance during the term of the financing and the less interest you pay, shirley?

[981C]

Yes, sorry. I pay a lower interest rate on a LP deal as I carry the residual risk. I'm still financing the whole amount less my deposit.