New 981 Boxster 2.7 PDK - Buy with a loan or PCP?
Discussion
Boo152 said:
bozzy101 said:
Working at a dealership, I would always suggest a low deposit when financing with PCP.
Is that because a lower deposit means a higher loan = more profit for the dealer and more commision for the salesman?Edited by bozzy101 on Sunday 30th June 15:13
PowerMalc said:
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
It makes it difficult to re-deal in 3 years time. For example, if a customer like the OP puts in £10k deposit, they may only be left with £2k equity (or often less) in 3 years time. Suddenly the payment on their renewal skyrockets to an amount they can't afford (as their deposit is now £8k less).
If somebody wants to put in a large deposit on the grounds of saving interest, I'd usually suggest HP.
Zyp said:
Can you not put in another deposit when you come to re-deal, thus keeping the payments the same or lower?
You can, but a lot of people I deal with haven't got another deposit 3 years down the line. Of course, this may not be true for the OP. Having said that, it should always be a consideration as circumstances can change. Gassing Station | Porsche General | Top of Page | What's New | My Stuff