Porsche Solutions vs Lease Purchase

Porsche Solutions vs Lease Purchase

Author
Discussion

FarzyB

Original Poster:

64 posts

114 months

Friday 22nd May 2015
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Speaking to OPC Leeds today, they tell me these are, for all practical purposes, the same in terms of features and flexibility. The main difference is that Lease Purchase does not have a guaranteed future value, but since this is set so low on PCP financing, perhaps this makes little difference anyway? Has anyone had a different/worse experience with one or the other? I don't intend to keep the car at the end - will either part exchange it or give it back, depending on my situation then.

Cpb1702

418 posts

114 months

Monday 25th May 2015
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FarzyB said:
Speaking to OPC Leeds today, they tell me these are, for all practical purposes, the same in terms of features and flexibility. The main difference is that Lease Purchase does not have a guaranteed future value, but since this is set so low on PCP financing, perhaps this makes little difference anyway? Has anyone had a different/worse experience with one or the other? I don't intend to keep the car at the end - will either part exchange it or give it back, depending on my situation then.
I went lease purchase on a cayenne and upped the final payment by 4k to reduce the monthlys. Don't forget you can still voluntarily terminate after paying off half what you owe if it looks like heading to negative equity. There is no affect on your credit score no matter what you are told otherwise.

I can walk away from this car at any time with v little negative equity. This was a new car a year and half ago. Unheard of on other makes. Much less depreciation than other motors.

maurauth

749 posts

169 months

Monday 25th May 2015
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I'd just be worried about not being let out at junctions or children swearing at you for leasing one.

FarzyB

Original Poster:

64 posts

114 months

Monday 25th May 2015
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Thanks guys. I am not too concerned about the end value as the "guaranteed future value" will be presumably be set so low as to hardly transfer any real risk to Porsche, especially given how few Caymans there are compared to Boxsters, etc. My concern now is whether on a p/x of a lease purchase car whether I would have to make the final payment whilst I'm waiting for the dealer to sell the car (and I have, in the meantime, taken on a new car). I'm not sure how p/x (whether the next car was a Porsche or not), so please feel free to set me at ease/caution me!

One other thing: as to the point about returning the car if half the payments are made: does this mean that any equity built up is forfeited, or does the finance company recognise that and make any sort of payment to the customer for that? Again, forgive me if I'm being naive….!

maurauth

749 posts

169 months

Monday 25th May 2015
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AFAIK if you hand it back at the half way point you are essentially calling it quits. You have no further dealing with the finance company and there is no balance to pay either to or from them.

MrTickle

1,825 posts

238 months

Tuesday 26th May 2015
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When you have a car on personal finance lease / PCP etc. if you trade the car in early - the dealer will get a settlement figure for the loan and offset that with the value placed on the car.

New car £50,000
P/X given for Cayman £22,000
Settlement figure on Cayman £23,500
Balance to finance/pay £51,500

(This for a negative equity car) Hopefull more like

New car £50,000
P/X given for Cayman £22,000
Settlement figure on Cayman £18,500
Balance to finance/pay £46,500

This is done immediately at the time of your new car deal. The right to cancel after 50% term, voluntary termination is a total cancellation of all terms - you hand the car back (subject to fair wear and tear) after paying 50% of the agreement value and everything is cancelled (no refund to you regardless). This can work if a car drops into neg equity due to fast depreciation and higher interest levels at the start of the agreement.

Hope that's clear.

Triple7

4,013 posts

236 months

Tuesday 26th May 2015
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I bought my Macan S on a Lease Purchase through my OPC, didn't need the GMFV as I was sure the Macan would be a strong seller and the APR was less than on a PCP.

Sold the car private and settled the loan, very easy.

Yes, if you walk away half way you lose your deposit, equity and car!

FarzyB

Original Poster:

64 posts

114 months

Wednesday 27th May 2015
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Thanks for the answers - very helpful!

From my research it looks like if you are to p/x a car which has outstanding finance - whether under solutions or a lease purchase scheme - you have to repay the financing in full yourself before you can do the p/x. Is this correct even if it's a p/x with Porsche? Apparently 4 out of 5 people don't use the option to purchase at the end of their finance and presumably p/x the car? If this is the case, it seems that Solutions financing isn't really all that more flexible than a lease purchase!

MrTickle

1,825 posts

238 months

Wednesday 27th May 2015
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FarzyB said:
Thanks for the answers - very helpful!

From my research it looks like if you are to p/x a car which has outstanding finance - whether under solutions or a lease purchase scheme - you have to repay the financing in full yourself before you can do the p/x. Is this correct even if it's a p/x with Porsche? Apparently 4 out of 5 people don't use the option to purchase at the end of their finance and presumably p/x the car? If this is the case, it seems that Solutions financing isn't really all that more flexible than a lease purchase!
If p/x with a dealer, no need to pay off first, they just offset the p/x value with the settlement figure.

If you want to private sell, then you need to clear the loan before the sale, or get the buyer to pay off the loan at the time of sale with a debit card or CHAPS and give you the difference - but some private buyers get very nervous at this so it can make it more difficult to sell.

FarzyB

Original Poster:

64 posts

114 months

Wednesday 27th May 2015
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MrTickle said:
FarzyB said:
Thanks for the answers - very helpful!

From my research it looks like if you are to p/x a car which has outstanding finance - whether under solutions or a lease purchase scheme - you have to repay the financing in full yourself before you can do the p/x. Is this correct even if it's a p/x with Porsche? Apparently 4 out of 5 people don't use the option to purchase at the end of their finance and presumably p/x the car? If this is the case, it seems that Solutions financing isn't really all that more flexible than a lease purchase!
If p/x with a dealer, no need to pay off first, they just offset the p/x value with the settlement figure.

If you want to private sell, then you need to clear the loan before the sale, or get the buyer to pay off the loan at the time of sale with a debit card or CHAPS and give you the difference - but some private buyers get very nervous at this so it can make it more difficult to sell.
OK, and presumably p/x can be done at any time during a purchase lease? Would this also be the case if the p/x were not with a Porsche dealer (eg BMW, etc)?

MrTickle

1,825 posts

238 months

Thursday 28th May 2015
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FarzyB said:
OK, and presumably p/x can be done at any time during a purchase lease? Would this also be the case if the p/x were not with a Porsche dealer (eg BMW, etc)?
Yep, with the exception of contract hire, lease and PCP deals can all be settled at any time and any main dealer would deal with it at the time of p/x'ing.