For those who have bought a new 911 on finance...

[SunDiver]

Anyone have opinions on the best deals OPCs can manage on a new 911(997S) in terms of finance rates and APR? Lets say a total price of £70k (usual options in other words) and one were to put down 20K and finance over two or three years with say a deferred 35K balloon payment. I'm guessing monthly payments of c.£900 and c.£700 respectively? Anyone care to comment? If there's anyone that's done this recently and would like to comment on how competitive the OPC were, I'd be interested to know...

I guess I'd really be interested in seeing a real-world set of figures from someone who's been through the process and doesn't mind sharing them... In other words, {total price, deposit, monthly payment and ballon payment}. Anyone got any examples...? Perhaps from previous owners' paperwork? I asked at a OPC recently and they seemed reluctant to give figures unless you were definitely going to buy one. Fair enough - no one wants to waste anyone's time; but real examples would be very enlightening if anyone cares to post on the matter...? I'm aware buying outright is the cheapest option but it's not an option...;-)

[tonytonitone]

Your local OPC shouldnt be reluctant to talk figures. If they are phone Porsche GB and let them know, you will find your OPC call you back quickly.

[BobM]

SunDiver said:

I guess I'd really be interested in seeing a real-world set of figures from someone who's been through the process and doesn't mind sharing them... In other words, {total price, deposit, monthly payment and ballon payment}. Anyone got any examples...? Perhaps from previous owners' paperwork? I asked at a OPC recently and they seemed reluctant to give figures unless you were definitely going to buy one. Fair enough - no one wants to waste anyone's time; but real examples would be very enlightening if anyone cares to post on the matter...? I'm aware buying outright is the cheapest option but it's not an option...;-)

You'll need to pay whatever minimum deposit they'll let you get away with, which I would guess is >10% (I paid more).

They will then have a maximum balloon payment allowable at the end of the finance period, I think the maximum is around 50% of the new price after 3 years, so about £35k in the case of a £70k car.

You're then charged interest at a rate of 3.5% above Finance House Base Rate on the balance, I think this is calculated on a daily basis (I haven't seen a statement yet but that's what I remember from the last time).

If you want my figures drop me an email via my profile. I think they do have other schemes, but I went for this one as I knew I had an unpleasant tax bill coming up and wanted to pay a fairly small deposit with the ability to pay chunks off the balance afterwards. I also didn't really haggle over the interest rate, not sure how far you'd get there.

[guyvert1]

When I was considering a new 997 I gave our local OPC finance guy a good going over, the best I got out of him was 1.5% above base IF I put down at least £30k.

You will loose out a bit, but unless you want to commit large funds, or big enough funds to allow say a 'high street' loan to cover the rest, you are at their mercy, and they know it

I've decided to wait a yr until the initial depreciation hits and then buy one, looking for and old 996 in the meantime (black/black if anyone has one )

[rubystone]

Have you tried financing through a finance house? I've financed another car at 4.75% fixed for 3 years (could have had 5 years if I'd wanted) through Capital Bank.

[kryten22uk]

I also did my finance seperately through Capital Bank (albeit on my S4, not a 997). They will give you a better rate than a Dealer, and if its a PCP you're after then its the best way as you dont lose one of your "options" if you dont want another Porker at the end of the period.

A good way of finding out what any Porker will be on a 10% deposit and 24, 36 or 48 mth PCP is to look on www.broadspeed.com. Select the porsche you want and then click on the "pcp deal". It then gives you the monthly cost and the respective balloon payments for various annual mileage. As a summary for the 997 Carrera S:

24mths, 20k miles gives £752pcm and £48986 balloon.
36mths, 30k miles gives £770pcm and £42726 balloon.

[SunDiver]

Cheers folks - good info. Some more research required I think...

[mogul]

£70k new

7k deposit. 24 month agreement with a 40k balloon, £1380 per month 4% above base (on balanced payments).

Managed however to get 3.75% fixed (about 6% APR) over 36 months on my new X5 due March 05 (through BMW and Barclays).

[rubystone]

That's a good rate Mogul - I wonder how much of that rate is down to BMW being keen on shifting the cars and thus subsidising the Barclays rate to the tune of 75 basis points or so?

[dealmaker]

My OPC had a great "TWO YEAR DEAL" available via LLoyds - it was 2.5% FLAT !!!

At those rates it's worth borrowing and putting the money in a high interest ING account (paying 4%)!!!

Only downside was obviously that the repayment's were high because of the relativley short term.

[rubystone]

Dealmaker - yep - ING are offering 5% - I did indeed transfer the money into there and take the finance offer - OK so it's marginal, but there is no downside at all

[tony.t]

dealmaker said:

My OPC had a great "TWO YEAR DEAL" available via LLoyds - it was 2.5% FLAT !!! At those rates it's worth borrowing and putting the money in a high interest ING account (paying 4%)!!! Only downside was obviously that the repayment's were high because of the relativley short term.

Isn't a flat rate more than the true APR? rule of thumb is that a flat rate is half the true APR so assuming you pay tax on savings this may not be such a great idea.

[barrisimo]

My car was a new 996 C4S in 2002.

Full price was £70k.

I put down £30k did a 4 year baloon with £35k at the end. It costs me £360 per month. Wanted to keep the monthly payments down so hence why I did it over 4 years. You should be able to get something similar probably a little more per month as the interest rate is now higher. Not the lowest total cost option by far but an option if you want to keep the monthly payments down.

[clapham993]

Don't rule out the benefits of opening one's papworth to reveal tightly packed blocks of £50s.

Contrary to the urban myth, no one doesn't deal for cash........

[gwp]

I shopped around for finance, and the dealer beat or met it everytime..
In the end I didn't go with the OPC as the RTI or GAP was over £1000 more from them, used Lombard who offered second best rate, but RTI was £295.00 for two years cover..

[911nutter]

now hear me out on this before tutting.... firstly let me make it clear i could have bought my car outright no issue.

however, i purchased my car through remortgaging my house... that is by far and away the cheapest way to borrow money.

the savings i had did not however sit idle in my current account, but was invested in ..... the stock market... shock horror .... you know - that place where allegedly you can't make any money these days.

well the happy ending to the story is that i have now made far more money than the car has lost in depreciation, running costs AND monthly repayments (£286 per month!) essentially this car is free.

here endeth the sermon

>> Edited by 911nutter on Tuesday 8th February 14:00

[911fan]

I really like the way other PH'ers have structured the purchase of a new motor.

I previously always thought that cash was the best way to buy a new car.

Correct me if I'm wrong but does the maths mean that when u get round to changing the car ( e.g in 2yrs) the interest rate diff between the finance arrangement and the 5% in ING slightly cushions your pocket in terms of the residual?

[SimonHarrod911]

clapham993 said:

Don't rule out the benefits of opening one's papworth to reveal tightly packed blocks of £50s. Contrary to the urban myth, no one doesn't deal for cash........

Since the introduction of the latest money laundering legislation they will show you the door and ask for a bankers draft.

[aceparts_com]

Mr Nutter, I can kind of see your logic but do you not lose out from a tax point?

Say you have £50K in bank earning 5% interest = £2500 PA Gross, £1500 after tax. Total interest earned = £7500

You borrow against your house, 50K @ 5.75% over 5 years so interest paid is approximately £7,500

Monthly repayment on the mortage = £950 over 5 years. That means your investment on the stock market needs to earn you £1330 assuming you pay 40% tax.

Maybe I need to study accounts some more but I was always under the impression that as interest on a morgage cannot be offset against tax (where as interest on a business loan can be), paying down your mortgage is always better than having money in a savings account as you get taxed on your savings!

[rubystone]

aceparts_com said:

paying down your mortgage is always better than having money in a savings account as you get taxed on your savings!

Unless you have a mortgage that tracks base rate less 0.06%...in which case I'd say it's better to stick your cash into a (virtually) no risk ING Direct instant access account and earn 5% gross on it.

I used to buy everything outright, but with the cost of borrowing being so cheap - as I said I financed a car at base rate recently - it's plain stupid not to take up these kind offers!