New 981 Boxster 2.7 PDK - Buy with a loan or PCP?
Discussion
Exactly - finances are tight for me right now, and I considered selling the Cayman. Then I went out in it and had one of those drives - the kind where you heel n toe perfectly, nail every apex, and just generally love the thrill of it. It's worth every single penny.
Sure, doesn't mean you shouldn't buy the car in the best way possible, but buy the bloody thing if you want it - you're here for a good time, not a long time!
ETA: Oggy - glad all's well for you too! Nothing like a scare like that to put things in focus.
Sure, doesn't mean you shouldn't buy the car in the best way possible, but buy the bloody thing if you want it - you're here for a good time, not a long time!
ETA: Oggy - glad all's well for you too! Nothing like a scare like that to put things in focus.
Thanks for all the well thought informed replies, plenty of food for thought.
Endowment paid out last month so only £7k left on the mortgage, I've got another year to pay it off at 2.4% interest.
I've nearly always bought new or nearly new and I've been impressed with the 981 so have my heart set on one now.
Also if new I will only have one service and tyres might last 15000 miles if I decide just to hand the car back after 3 years.
£1200 for fuel (5000 miles at 25mpg X £6.30 gall)
Insurance £300 to £500. RFL £220 so cost to run per year about £1800
Still attracted by a PCP because of low monthly and Porsche's £1500 deposit but downside I have no asset to show for it after years, have to look on it as a rental
Endowment paid out last month so only £7k left on the mortgage, I've got another year to pay it off at 2.4% interest.
I've nearly always bought new or nearly new and I've been impressed with the 981 so have my heart set on one now.
Also if new I will only have one service and tyres might last 15000 miles if I decide just to hand the car back after 3 years.
£1200 for fuel (5000 miles at 25mpg X £6.30 gall)
Insurance £300 to £500. RFL £220 so cost to run per year about £1800
Still attracted by a PCP because of low monthly and Porsche's £1500 deposit but downside I have no asset to show for it after years, have to look on it as a rental
For the first time in my life I bought a car on PCP - the Spyder.
Two years in, I still have a nagging feeling that I didn't do the right thing.
The deal seemed attractive at the time (it maybe a good deal, I don't know but I was happy with it) but it was a big step for me.
Have three other cars that are paid for, and my last Porsche cost £40k and I had a loan for £20k to pay for it.
So I have just over a year left on this PCP and I don't now envisage changing the car in that time.
The balloon payment is being saved so hopefully all will be well when the time comes to pay it off - and at the moment, I don't see a car I want to replace the Spyder with so may end up keeping it.
What I've always read though, is that PCP's are best for people who change cars regularly so perhaps I've done it arse about face and its gonna cost me!
If it does, oh well - life's too short to f
k about.
Malc - do whatever you feel comfy with.
At your age you probably deserve it
Two years in, I still have a nagging feeling that I didn't do the right thing.
The deal seemed attractive at the time (it maybe a good deal, I don't know but I was happy with it) but it was a big step for me.
Have three other cars that are paid for, and my last Porsche cost £40k and I had a loan for £20k to pay for it.
So I have just over a year left on this PCP and I don't now envisage changing the car in that time.
The balloon payment is being saved so hopefully all will be well when the time comes to pay it off - and at the moment, I don't see a car I want to replace the Spyder with so may end up keeping it.
What I've always read though, is that PCP's are best for people who change cars regularly so perhaps I've done it arse about face and its gonna cost me!
If it does, oh well - life's too short to f
k about.Malc - do whatever you feel comfy with.
At your age you probably deserve it
PowerMalc said:
Thanks for all the well thought informed replies, plenty of food for thought.
Endowment paid out last month so only £7k left on the mortgage, I've got another year to pay it off at 2.4% interest.
I've nearly always bought new or nearly new and I've been impressed with the 981 so have my heart set on one now.
Also if new I will only have one service and tyres might last 15000 miles if I decide just to hand the car back after 3 years.
£1200 for fuel (5000 miles at 25mpg X £6.30 gall)
Insurance £300 to £500. RFL £220 so cost to run per year about £1800
Still attracted by a PCP because of low monthly and Porsche's £1500 deposit but downside I have no asset to show for it after years, have to look on it as a rental
As some people have said there is no right and no wrong answer to this but a quick calculation of the basic vehicle depreciation over 3yrs will probably raise your eyebrows! Pick a sensible 3yr old Boxster today price for p/x with a dealer, subtract that away from the new list price and divide by 36 months. The figure will now show how much a Boxster depreciates each month. Compare this to your monthly payment. One last thing, try to put as little cash in up front when using PCP but keeping your payment in the area you want as you might be handing the car back walking away from the deposit worst case scenario.Endowment paid out last month so only £7k left on the mortgage, I've got another year to pay it off at 2.4% interest.
I've nearly always bought new or nearly new and I've been impressed with the 981 so have my heart set on one now.
Also if new I will only have one service and tyres might last 15000 miles if I decide just to hand the car back after 3 years.
£1200 for fuel (5000 miles at 25mpg X £6.30 gall)
Insurance £300 to £500. RFL £220 so cost to run per year about £1800
Still attracted by a PCP because of low monthly and Porsche's £1500 deposit but downside I have no asset to show for it after years, have to look on it as a rental
Shares have done well the last year or so, personally I'd like at that as a good time to sell a few - wouldn't be surprised so see some big volatility return. 8% finance on top of a 20% correction would be painful!
Ahh for a crystal ball.
But I'd always for 2nd hand, even if I was a billionaire. Why not with an OPC warrantee?
Ahh for a crystal ball.
But I'd always for 2nd hand, even if I was a billionaire. Why not with an OPC warrantee?
Edited by richardrsc on Wednesday 19th June 20:19
I saw something the other day - a shared ownership scheme and the numbers made a compelling case.
I can't find the link but in essence, the percentage share translates to days usage per annum. 30% share equating to 1/3 of 365. The site marries people with the same purchase intention for specific models but then reduces the cost of ownership. I can't remember all the details. They handle garaging, insurance, tax and so forth.
I don't know if it stacks up when you read the contract but the theory is interesting. Perhaps this might be worth consideration.
I can't find the link but in essence, the percentage share translates to days usage per annum. 30% share equating to 1/3 of 365. The site marries people with the same purchase intention for specific models but then reduces the cost of ownership. I can't remember all the details. They handle garaging, insurance, tax and so forth.
I don't know if it stacks up when you read the contract but the theory is interesting. Perhaps this might be worth consideration.
I am not totally inept at finance but I have never really understood PCP if I am honest. Surely, it's to the financial benefit of the dealer, not the buyer, as it has been designed by the finance/car industry. Does it make real actual costs of using a car opaque ?
BUT surely, as a way of financing an asset, it needs to be compared to other forms of finance to check its cost-effectiveness in relation to the added benefits that it offers.
And I guess the cheapest form of finance is a mortgage. And if one doesn't have one anymore then borrowing against the security of a house is very cheap atm. I have just got a fully flexible fee-free re-mortgage at 2.49% with HSBC (tracker), which sounds a bit better than circa 8%. On £20k, that's about £3,300 cheaper over 3 years. I can't see the BoE base rate going up to 6% in the 3 years to come either.
BUT surely, as a way of financing an asset, it needs to be compared to other forms of finance to check its cost-effectiveness in relation to the added benefits that it offers.
And I guess the cheapest form of finance is a mortgage. And if one doesn't have one anymore then borrowing against the security of a house is very cheap atm. I have just got a fully flexible fee-free re-mortgage at 2.49% with HSBC (tracker), which sounds a bit better than circa 8%. On £20k, that's about £3,300 cheaper over 3 years. I can't see the BoE base rate going up to 6% in the 3 years to come either.
You may know the VanMorrsion song with the lyric:
"No matter to which God you pray, your precious life is ticking away"
I always wanted a Morgan +4. When I was 52 I bought one for £29K cash. It was not one of my better decisions in life. Nevertheless, if I hadn't bought it I would always have wanted one. I sold it within 2 years. Sometimes you just have to do these things. The decision will never be right, but it will be both enjoyable and hopefully memorable.
Last year I was about to buy a Merc SL. I tried a few and I took my wife for a ride in one. She said "Do you really want this car?" I had to say no. Some months later I bought my first 911. It has not been without problems, but I smile whenever I look at it or drive it.
"No matter to which God you pray, your precious life is ticking away"
I always wanted a Morgan +4. When I was 52 I bought one for £29K cash. It was not one of my better decisions in life. Nevertheless, if I hadn't bought it I would always have wanted one. I sold it within 2 years. Sometimes you just have to do these things. The decision will never be right, but it will be both enjoyable and hopefully memorable.
Last year I was about to buy a Merc SL. I tried a few and I took my wife for a ride in one. She said "Do you really want this car?" I had to say no. Some months later I bought my first 911. It has not been without problems, but I smile whenever I look at it or drive it.
OP are there any Boxsters in the OPC network with close to your spec it may be worth a punt to go and make a really cheeky cash offer on an actual in stock car you never know you might just get the deal of your life if an OPC is sitting on one that needs to move, its nearing the end of the month and the holidays are rapidly approaching...
Klippie said:
OP are there any Boxsters in the OPC network with close to your spec it may be worth a punt to go and make a really cheeky cash offer on an actual in stock car you never know you might just get the deal doof your life if an OPC is sitting on one that needs to move, its nearing the end of the month and the holidays are rapidly approaching...
How do you find out what stock is in the OPC network and dealer itd atBit the bullet today and bought a new one on a 3 year PCP deal with a 10% discount.
So in effect I will be renting a new car for £580 a month, if after 3 years I have had enough of fast cars I will just hand it back.
If I want to keep it I'll sell some shares to pay off the balloon.
Zyp thanks for you earlier simple comment, it helped.
So in effect I will be renting a new car for £580 a month, if after 3 years I have had enough of fast cars I will just hand it back.
If I want to keep it I'll sell some shares to pay off the balloon.
Zyp thanks for you earlier simple comment, it helped.
bozzy101 said:
Working at a dealership, I would always suggest a low deposit when financing with PCP.
Can I ask why? Surely increasing the deposit lowers the monthly and the amount of interest you pay over the 3 years
Deposit plus the total of 35 payments will be roughly the same regardless of the split
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