Porsche Finance Options
Discussion
JEBLondon said:
As for me, we run four very specialised/focused (in terms of industry/geography) funds that not only invest in quoted instruments but also in unquoted opportunities. We're small, private and to date doing ok for ourselves.
Are you front or back office? Just some of your responses make me question?
fieldl said:
I'd rather not have that amount of money tied up in a depreciating asset.
Quite a few people have said this but I dont understand what the difference is. Sorry if I'm being stupid but surely there's an opportunity cost of tying up the money regardless of whether the asset appreciates or depreciates?
paracetamol said:
Finance a depreciating asset and invest geared money in an appreciating one! I would rather put 15k down and finance the depreciation on a car on a monthly basis and invest the £60k remainder in a nice buy to let which will be worth much more than a 997 in 20 years time! The risk is that the property could fall in value but give it 20 years-unless there is famine and flood it will have increased at more than 4% and rememember that the money is geared and so its not a 4% retun on £60k but more like a 4% return on £250k (interest should largely be covered by tenants).
Minus 40% capital gains tax, is it worth it??
G
sidicks said:
paracetamol said:
Finance a depreciating asset and invest geared money in an appreciating one! I would rather put 15k down and finance the depreciation on a car on a monthly basis and invest the £60k remainder in a nice buy to let which will be worth much more than a 997 in 20 years time! The risk is that the property could fall in value but give it 20 years-unless there is famine and flood it will have increased at more than 4% and rememember that the money is geared and so its not a 4% retun on £60k but more like a 4% return on £250k (interest should largely be covered by tenants).
But there is a huge mis-match (i.e. risk) between the short-term finance payments and the long-term asset return.
I agree that in the long-term, the property strategy is likely to be a winner, but there is significant short-term risk - property becomes void, rack rent reduces etc etc
To help the OP, we have to compare like with like!
sidicks
I am making an assumption that if you have £75k floating around to spend on a car then you can afford a couple of void periods!
Barry_J said:
JEBLondon said:
As for me, we run four very specialised/focused (in terms of industry/geography) funds that not only invest in quoted instruments but also in unquoted opportunities. We're small, private and to date doing ok for ourselves.
Are you front or back office? Just some of your responses make me question?
Very definitely front.
JEBLondon said:
Barry_J said:
JEBLondon said:
As for me, we run four very specialised/focused (in terms of industry/geography) funds that not only invest in quoted instruments but also in unquoted opportunities. We're small, private and to date doing ok for ourselves.
Are you front or back office? Just some of your responses make me question?
Very definitely front.
Ouch! Questioning his job is a bit harsh mate.
Er, pardon me, but don't understand half of what you guys are saying but if I can, timidly, interupt the macho chest beating and say to original post (if he's still awake) that although I personally always go the finance and use the cash elsewhere route I'd suggest you go the way you're happiest with (you already know in your heart of hearts which that is I suspect), sleep soundly at night, and get on with enjoying the car! Can't impress you with complex explanations of how I make my dosh I'm afraid - it's all to boring for words.
nem351s said:
Ouch! Questioning his job is a bit harsh mate.
True but my question wasn't really about his job. What I was getting at (between the lines) was whether he was genuine or not and whether to take his responses seriously or not. Comments like this don't help:
JEBLondon said:
One question? You work in the city and can't make more than 4% on your cash..!!?? As an interesting observation, the smart people would've financed their cars at ~7% and stuck the rest into Porsche shares, currently up YTD ~30%... That's what I did!! 
JEBLondon said:
Gilts + 200bps?? You won't be making much of a bonus with that strategy my friend...
I asked a genuine question and got some genuine answers but I felt that other answers came straight out of the troll handbook but I may be wrong. As Adam B rightly points out, being in the front office is just a tag and doesn't make you any better qualified to answer the question.
Barry_J said:
nem351s said:
Ouch! Questioning his job is a bit harsh mate.
True but my question wasn't really about his job. What I was getting at (between the lines) was whether he was genuine or not and whether to take his responses seriously or not. Comments like this don't help:
JEBLondon said:
One question? You work in the city and can't make more than 4% on your cash..!!?? As an interesting observation, the smart people would've financed their cars at ~7% and stuck the rest into Porsche shares, currently up YTD ~30%... That's what I did!!
JEBLondon said:
Gilts + 200bps?? You won't be making much of a bonus with that strategy my friend...
I asked a genuine question and got some genuine answers but I felt that other answers came straight out of the troll handbook but I may be wrong. As Adam B rightly points out, being in the front office is just a tag and doesn't make you any better qualified to answer the question.
Barry J - you should read my comments with a touch of sarcasm.. Boring day at work and sidicks kinda 'took the bait'. I wish I'd stuck my cash into Porsche at the start of the year.. Instead I went long on the Canadian coal sector...
As for being genuine, unfortunately I am 'a true banker'. 4 years at CSFB, 3 at ING before I finally escaped and nowadays part of a small specialist 'boutique' business model trying to make ourselves rich whilst trying to make our clients wealthy..!!
JEBLondon said:
One question? You work in the city and can't make more than 4% on your cash..!!?? As an interesting observation, the smart people would've financed their cars at ~7% and stuck the rest into Porsche shares, currently up YTD ~30%... That's what I did!!
An investment in one company is hardly risk free though is it?
djohnson said:
JEBLondon said:
One question? You work in the city and can't make more than 4% on your cash..!!?? As an interesting observation, the smart people would've financed their cars at ~7% and stuck the rest into Porsche shares, currently up YTD ~30%... That's what I did!!
An investment in one company is hardly risk free though is it?
Ah just seen the rest of the thread.
for the weekend I you have £100K sitting about doing nothing already that you can buy a car cash with I'm guessing you probably have enough money lying about to make the few thousand pound loss or gain acheived bysaving interest or having a succesful investment strategy largely inconsequential.
Maybe he's a business user and the interest is tax deductable.
Having savings is not without risk; IIRC 2% of all deaths are violent and untimely so you've a reasonable risk of never spending the money. Not too much of a problem perhaps if someone has given you the money, you won the lottery or earn more than you can spend but for most of us not being able to spend money you've saved means you've wasted time working as well as not enjoying whatever you spend the money on.
If man A buys a car on finance and man B saves( the same amount as man A pays in finance per month) and then pays cash, how long does man B have to own the car before the weekly cost:benefit of owning the car is less than man A ?
Maybe he's a business user and the interest is tax deductable.
Having savings is not without risk; IIRC 2% of all deaths are violent and untimely so you've a reasonable risk of never spending the money. Not too much of a problem perhaps if someone has given you the money, you won the lottery or earn more than you can spend but for most of us not being able to spend money you've saved means you've wasted time working as well as not enjoying whatever you spend the money on.
If man A buys a car on finance and man B saves( the same amount as man A pays in finance per month) and then pays cash, how long does man B have to own the car before the weekly cost:benefit of owning the car is less than man A ?
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