Surprising Porsche finance....

[W12GT]

So I fancy a change and adding or swapping a couple of cars; I have been considering another 991.1 - either a Carrera or Carrera S approx MY2012 or 2013 - I really want it just for a bit of rough use tbh, something I can take to clients, take the kids out with a bike rack on top that kind of thing.

So I’ve a called 4 OPCs and the numbers are staggering based on sticking down £5k, 5k miles over two years -

£55k 23m at 1350 final payment £27k
£53k 24m at 1275 final payment £26k
£51k 24m at 1250 final payment £25k
£57k 24m at 1375 final payment £27.5k

Those residuals are shocking compared to the asking price - in fact all below 50%. So that tells me the asking prices are WAY too expensive as there is no way on earth a 7/8 year old car that probably cost £75-85k new 7-8 years ago can they only drop say £25k in the first 7 years then drop another £25k for the next two years? That tells me how overpriced OPC cars are and that I won’t be going that route again. Shame as I’ve had 8 Porsches in total now but this time it just feels wrong.

My last 991 Carrera S cost me £56k in 2017 for a 63plate, now a 2012 Carrera can be £54k so effectively 4years older and only 2k less oh and not as good spec either. I think I’ll leave it - especially know that the current trade in value for that £54k car varies between £35-39k!

Anyone managed to get a sensible deal recently?

Edited by W12GT on Monday 17th August 20:52

[MannyLon]

What is the APR offered?

[W12GT]

I didn’t even ask tbh because I was so astounded I didn’t see the point as no matter what they got it down to it wouldn’t have made sense with the less than 50% residual.

Up until recently I’ve always bought outright - until I got stung a couple of times so now try to mitigate with PCP where possible.

[akadk]

This seems like a very ignorant post

Given the age of vehicle you will not have been quoted a pcp.

It’s more than likely a lease purchase with balloon. Given the age of vehicle at the end of the agreement, the finance house takes a risk averse position and sets the balloon quite low. There is no intention here to try to mirror the market value and entice you into another car like a pcp.

Unless you actually plan to own the car outright it doesn’t make sense to finance this age of car.

Also, it’s like the APR used was 10%+ which will make up a lot of that monthly payment.

Ps. I bought a 2015 Rapide S from a Aston Main dealer for £5k deposit and £292pcm.....how’d ya like them apples !

[W12GT]

akadk said:

This seems like a very ignorant post

Given the age of vehicle you will not have been quoted a pcp.

It’s more than likely a lease purchase with balloon. Given the age of vehicle at the end of the agreement, the finance house takes a risk averse position and sets the balloon quite low. There is no intention here to try to mirror the market value and entice you into another car like a pcp.

Unless you actually plan to own the car outright it doesn’t make sense to finance this age of car.

Also, it’s like the APR used was 10%+ which will make up a lot of that monthly payment.

Ps. I bought a 2015 Rapide S from a Aston Main dealer for £5k deposit and £292pcm.....how’d ya like them apples !

Ignorant? Crikey that’s bold considering your entire post is utter tosh.

You are 100% wrong. It is PCP - Porsche do up to 10 years so that restricts them to the 23/24 months for cars of that age. FACT.

Yes I know about your Rapide S deal as you have mentioned it on several occasions elsewhere; in fact even you have commented about someone getting in trouble because it’s already worth £5k less than your final payment - which I don’t believe because based on your number of £55k, 5k deposit then 7k in monthlies that means your balloon is circa £48800 based on 5.9% ! I challenge you to try and get that deal again. Because that is impossible- I have tried to get one myself - in fact I have called up regarding 8 Rapide/ S in the last 5/6weeks. You can’t even get a car like yours for £55k - that ship has long since sailed; that’s now circa £65k-70k. Go away and have a look yourself - even 14plates are 64k.

Thanks for your input though - hugely irrelevant and utterly pointless.

Edited by W12GT on Monday 17th August 22:21

[Cheib]

I don’t think I would look on them as residuals....I’d look at them it as the finance company being very defensive and not wanting any risk in two years time. I don’t follow prices of them closely but they’re an age now when most of them are outside the OPC network and I suppose you can say there’s at least a £5k margin for a trade price at an absolute minimum so there is £5k of your £25k depreciation straight away, finance company may think the purchase price you are quoting is high (say they think a car is retail £50k and the OPC is asking £53k) so that’s another £3k. Then a couple of years deprecation at £5k per year and you’re at £18k.

[akadk]

Apologies I didnt mean any offence

The sweet spot is to find a car on the cusp of turning 5yrs old and get a 24month pcp at a low apr.

The banks just take a very risk averse position on older cars

W12GT said:

akadk said:

This seems like a very ignorant post

Given the age of vehicle you will not have been quoted a pcp.

It’s more than likely a lease purchase with balloon. Given the age of vehicle at the end of the agreement, the finance house takes a risk averse position and sets the balloon quite low. There is no intention here to try to mirror the market value and entice you into another car like a pcp.

Unless you actually plan to own the car outright it doesn’t make sense to finance this age of car.

Also, it’s like the APR used was 10%+ which will make up a lot of that monthly payment.

Ps. I bought a 2015 Rapide S from a Aston Main dealer for £5k deposit and £292pcm.....how’d ya like them apples !

Ignorant? Crikey that’s bold considering your entire post is utter tosh.

You are 100% wrong. It is PCP - Porsche do up to 10 years so that restricts them to the 23/24 months for cars of that age. FACT.

Yes I know about your Rapide S deal as you have mentioned it on several occasions elsewhere; in fact even you have commented about someone getting in trouble because it’s already worth £5k less than your final payment - which I don’t believe because based on your number of £55k, 5k deposit then 7k in monthlies that means your balloon is circa £48800 based on 5.9% ! I challenge you to try and get that deal again. Because that is impossible- I have tried to get one myself - in fact I have called up regarding 8 Rapide/ S in the last 5/6weeks. You can’t even get a car like yours for £55k - that ship has long since sailed; that’s now circa £65k-70k. Go away and have a look yourself - even 14plates are 64k.

Thanks for your input though - hugely irrelevant and utterly pointless.

Edited by W12GT on Monday 17th August 22:21

[PaulD86]

W12GT said:

Those residuals are shocking compared to the asking price - in fact all below 50%. So that tells me the asking prices are WAY too expensive as there is no way on earth a 7/8 year old car that probably cost £75-85k new 7-8 years ago can they only drop say £25k in the first 7 years then drop another £25k for the next two years? That tells me how overpriced OPC cars are and that I won’t be going that route again. Shame as I’ve had 8 Porsches in total now but this time it just feels wrong.

Can I confirm that you know the balloon payment or GFV are not the same as the cars value at the end of the deal? Porsche set the balloon on my car at £16.5k. At the time I paid the car off, it's value was around £40k. Maybe I am misunderstanding what you're saying here, but I'm not getting where your conclusion comes from.

Some makes give very high GFVs or balloons which is great for that low monthly, but means you'll probably have little or no equity at the end of the deal which persoanlly I would wish to avoid.

[W12GT]

PaulD86 said:

W12GT said:

Those residuals are shocking compared to the asking price - in fact all below 50%. So that tells me the asking prices are WAY too expensive as there is no way on earth a 7/8 year old car that probably cost £75-85k new 7-8 years ago can they only drop say £25k in the first 7 years then drop another £25k for the next two years? That tells me how overpriced OPC cars are and that I won’t be going that route again. Shame as I’ve had 8 Porsches in total now but this time it just feels wrong.

Can I confirm that you know the balloon payment or GFV are not the same as the cars value at the end of the deal? Porsche set the balloon on my car at £16.5k. At the time I paid the car off, it's value was around £40k. Maybe I am misunderstanding what you're saying here, but I'm not getting where your conclusion comes from.

Some makes give very high GFVs or balloons which is great for that low monthly, but means you'll probably have little or no equity at the end of the deal which persoanlly I would wish to avoid.

Yes Paul, I completely understand the difference. I’ve become very aware of risk exposure in recent years and that GFV is important. The higher it is the lower the financial exposure; if it’s worth more (unlikely) then buy it, if it’s lower walk away. So on this basis it’s better to minimise your committed exposure (especially with the current world situation) :-

Option 1:- 50k car, 2 years GVF 20k - this means an accepted exposure of the £30k plus interest so circa £40k with the ‘chance’ that you might have collateral left in it.

Option 2:- 50k car, 2 years GFV 40k - accepted exposure of £10k plus interest so circa £20k. Likelihood of it being worth less than GVF so walk away. If worth more then buy it.

Option 3:- purchase outright. Issue is tying up monies that I can use to generate income elsewhere that is greater than the interest. Exposure is actually potentially higher than option 1!

Personally I’d take option 2 every single time. It’s the safest option keeping the largest amount of working capital available for investment elsewhere.

Edited by W12GT on Tuesday 18th August 12:16

[W12GT]

akadk said:

Apologies I didnt mean any offence

The sweet spot is to find a car on the cusp of turning 5yrs old and get a 24month pcp at a low apr.

The banks just take a very risk averse position on older cars

W12GT said:

akadk said:

This seems like a very ignorant post

Given the age of vehicle you will not have been quoted a pcp.

It’s more than likely a lease purchase with balloon. Given the age of vehicle at the end of the agreement, the finance house takes a risk averse position and sets the balloon quite low. There is no intention here to try to mirror the market value and entice you into another car like a pcp.

Unless you actually plan to own the car outright it doesn’t make sense to finance this age of car.

Also, it’s like the APR used was 10%+ which will make up a lot of that monthly payment.

Ps. I bought a 2015 Rapide S from a Aston Main dealer for £5k deposit and £292pcm.....how’d ya like them apples !

Ignorant? Crikey that’s bold considering your entire post is utter tosh.

You are 100% wrong. It is PCP - Porsche do up to 10 years so that restricts them to the 23/24 months for cars of that age. FACT.

Yes I know about your Rapide S deal as you have mentioned it on several occasions elsewhere; in fact even you have commented about someone getting in trouble because it’s already worth £5k less than your final payment - which I don’t believe because based on your number of £55k, 5k deposit then 7k in monthlies that means your balloon is circa £48800 based on 5.9% ! I challenge you to try and get that deal again. Because that is impossible- I have tried to get one myself - in fact I have called up regarding 8 Rapide/ S in the last 5/6weeks. You can’t even get a car like yours for £55k - that ship has long since sailed; that’s now circa £65k-70k. Go away and have a look yourself - even 14plates are 64k.

Thanks for your input though - hugely irrelevant and utterly pointless.

Edited by W12GT on Monday 17th August 22:21

I was pretty close on the numbers there then!!!

[Koln-RS]

Purely out of interest; can you go to Porsche Finance to get finance (HP or PCP or whatever) to buy a Porsche privately?

[PaulD86]

W12GT said:

PaulD86 said:

W12GT said:

Those residuals are shocking compared to the asking price - in fact all below 50%. So that tells me the asking prices are WAY too expensive as there is no way on earth a 7/8 year old car that probably cost £75-85k new 7-8 years ago can they only drop say £25k in the first 7 years then drop another £25k for the next two years? That tells me how overpriced OPC cars are and that I won’t be going that route again. Shame as I’ve had 8 Porsches in total now but this time it just feels wrong.

Can I confirm that you know the balloon payment or GFV are not the same as the cars value at the end of the deal? Porsche set the balloon on my car at £16.5k. At the time I paid the car off, it's value was around £40k. Maybe I am misunderstanding what you're saying here, but I'm not getting where your conclusion comes from.

Some makes give very high GFVs or balloons which is great for that low monthly, but means you'll probably have little or no equity at the end of the deal which persoanlly I would wish to avoid.

Yes Paul, I completely understand the difference. I’ve become very aware of risk exposure in recent years and that GFV is important. The higher it is the lower the financial exposure; if it’s worth more (unlikely) then buy it, if it’s lower walk away. So on this basis it’s better to minimise your committed exposure (especially with the current world situation) :-

Option 1:- 50k car, 2 years GVF 20k - this means an accepted exposure of the £30k plus interest so circa £40k with the ‘chance’ that you might have collateral left in it.

Option 2:- 50k car, 2 years GFV 40k - accepted exposure of £10k plus interest so circa £20k. Likelihood of it being worth less than GVF so walk away. If worth more then buy it.

Option 3:- purchase outright. Issue is tying up monies that I can use to generate income elsewhere that is greater than the interest. Exposure is actually potentially higher than option 1!

Personally I’d take option 2 every single time. It’s the safest option keeping the largest amount of working capital available for investment elsewhere.

So you're talking about risk appetite, basically. With risk appetite there is no one size fits all, it is about what is right for the individual and their circumstances. That certainly isn't the same thing as Porsche being wrong about their asking prices due to residuals. I'm still not understanding how you're making that link if I'm honest. Are you saying that you want a higher GFV as you think Porsche prices are at risk of total collapse in a few years and you want to minimise exposure to this? If that's your opinion then fair enough. I can't say it's one I'd subscribe to or find likely though.

You have put by your option 1, the "chance" there may be equity in it. I think putting it like that is a little odd to be blunt. If you look at what has happened with the price of....well any Porsche you like really, there is evidence that there is a strong probability that you would have a sizeable equity in the car after the 2 years. I think the chances of a 50k Porsche dropping to sub 20k in 2 years (as per your example) would be virtually nil and of course if you want to go on to own the vehicle in the long term, your preferred option will make that car more expensive for you. Indeed if the Porsche I bought had had a GFV at the relative percentage you suggest in option 2, a quick bit of mental maths tells me that getting to where I am now (I own the car outright) would have cost me around an extra £10k. I agree there would have been less risk exposure, but that's a very high cost for that.

As said, risk appetite is personal and I'm not saying yours is wrong. I am, however, questioning your assertions re Porsche pricing. Indeed Porsche main dealer pricing is part of the reason that the residuals on them are so strong VS other brands - Compare a 911, F-Type or i8 residuals. So I quite like their model from that perspective.

But, if you don't there is a simple solution - use a 3rd party finance house. They will offer your purchase options better aligned with what your risk appetite appears to be. Horses for courses.

[W12GT]

PaulD86 said:

W12GT said:

PaulD86 said:

W12GT said:

Those residuals are shocking compared to the asking price - in fact all below 50%. So that tells me the asking prices are WAY too expensive as there is no way on earth a 7/8 year old car that probably cost £75-85k new 7-8 years ago can they only drop say £25k in the first 7 years then drop another £25k for the next two years? That tells me how overpriced OPC cars are and that I won’t be going that route again. Shame as I’ve had 8 Porsches in total now but this time it just feels wrong.

Can I confirm that you know the balloon payment or GFV are not the same as the cars value at the end of the deal? Porsche set the balloon on my car at £16.5k. At the time I paid the car off, it's value was around £40k. Maybe I am misunderstanding what you're saying here, but I'm not getting where your conclusion comes from.

Some makes give very high GFVs or balloons which is great for that low monthly, but means you'll probably have little or no equity at the end of the deal which persoanlly I would wish to avoid.

Yes Paul, I completely understand the difference. I’ve become very aware of risk exposure in recent years and that GFV is important. The higher it is the lower the financial exposure; if it’s worth more (unlikely) then buy it, if it’s lower walk away. So on this basis it’s better to minimise your committed exposure (especially with the current world situation) :-

Option 1:- 50k car, 2 years GVF 20k - this means an accepted exposure of the £30k plus interest so circa £40k with the ‘chance’ that you might have collateral left in it.

Option 2:- 50k car, 2 years GFV 40k - accepted exposure of £10k plus interest so circa £20k. Likelihood of it being worth less than GVF so walk away. If worth more then buy it.

Option 3:- purchase outright. Issue is tying up monies that I can use to generate income elsewhere that is greater than the interest. Exposure is actually potentially higher than option 1!

Personally I’d take option 2 every single time. It’s the safest option keeping the largest amount of working capital available for investment elsewhere.

So you're talking about risk appetite, basically. With risk appetite there is no one size fits all, it is about what is right for the individual and their circumstances. That certainly isn't the same thing as Porsche being wrong about their asking prices due to residuals. I'm still not understanding how you're making that link if I'm honest. Are you saying that you want a higher GFV as you think Porsche prices are at risk of total collapse in a few years and you want to minimise exposure to this? If that's your opinion then fair enough. I can't say it's one I'd subscribe to or find likely though.

You have put by your option 1, the "chance" there may be equity in it. I think putting it like that is a little odd to be blunt. If you look at what has happened with the price of....well any Porsche you like really, there is evidence that there is a strong probability that you would have a sizeable equity in the car after the 2 years. I think the chances of a 50k Porsche dropping to sub 20k in 2 years (as per your example) would be virtually nil and of course if you want to go on to own the vehicle in the long term, your preferred option will make that car more expensive for you. Indeed if the Porsche I bought had had a GFV at the relative percentage you suggest in option 2, a quick bit of mental maths tells me that getting to where I am now (I own the car outright) would have cost me around an extra £10k. I agree there would have been less risk exposure, but that's a very high cost for that.

As said, risk appetite is personal and I'm not saying yours is wrong. I am, however, questioning your assertions re Porsche pricing. Indeed Porsche main dealer pricing is part of the reason that the residuals on them are so strong VS other brands - Compare a 911, F-Type or i8 residuals. So I quite like their model from that perspective.

But, if you don't there is a simple solution - use a 3rd party finance house. They will offer your purchase options better aligned with what your risk appetite appears to be. Horses for courses.

I have now had a fair number of Porsche’s in my time. Overall they have been the biggest losers of all the car’s I’ve owned. The losses have been massively in excess of what was anticipated. Take a look at 996’s - very very cheap. 997’s with the exception of the later OPC cars these are also very cheap. Take a look as there are a huge number of cars sub 25k. That’s the same place that the 991.1 sits which can be had for sub £43k now; which will end up in a couple of years at low 20s (unless a sought after version) as it’s already 2generations old and it will be 3 generations old at the end of the term, and most importantly OPCs will have abandoned them from a selling perspective so the drop will be rapid at that point.

I’m not being naive, but maybe just looking at it with greater depth than others. Oh and can I just point out that the 991 isn’t the most reliable of cars (this has been covered in some detail on PH and other forums) and I believe they must be run under warranty (this drives the value of the car down too as it’s an extra cost)....and yes I know this from experience having had my 991.1 C2S flat bedded 6times in under two years; every time it’s been collected the various drivers usually comment that they see far too many of them being recovered with faults!

But despite that I still love them! But at what price......

[PaulD86]

W12GT said:

I have now had a fair number of Porsche’s in my time. Overall they have been the biggest losers of all the car’s I’ve owned. The losses have been massively in excess of what was anticipated. Take a look at 996’s - very very cheap. 997’s with the exception of the later OPC cars these are also very cheap. Take a look as there are a huge number of cars sub 25k. That’s the same place that the 991.1 sits which can be had for sub £43k now; which will end up in a couple of years at low 20s (unless a sought after version) as it’s already 2generations old and it will be 3 generations old at the end of the term, and most importantly OPCs will have abandoned them from a selling perspective so the drop will be rapid at that point.

I’m not being naive, but maybe just looking at it with greater depth than others. Oh and can I just point out that the 991 isn’t the most reliable of cars (this has been covered in some detail on PH and other forums) and I believe they must be run under warranty (this drives the value of the car down too as it’s an extra cost)....and yes I know this from experience having had my 991.1 C2S flat bedded 6times in under two years; every time it’s been collected the various drivers usually comment that they see far too many of them being recovered with faults!

But despite that I still love them! But at what price......

Fair enough, I don't share your thinking on where 911 values will go but only time will tell. My ex had 3 used 911s in a row over 12ish years. 997.1, 997.2 and 991.1. I looked at the prices before each were bought and each time I came to the conclusion that each year they would lose £5-6k. Come trade in time for each, they had all lost 5-6k/year. Reliability wise, all 3 were fine, but we all know that you can be lucky and unlucky with cars. I'm not going to argue any 911 is more or less reliable than another as I don't have possession of enough facts to do so.

You mention 996s - these are now all at least 15/16 years old and they are still in many cases at least 25% of their new price. I think that's good going to be honest. And even a £25k 997 is potentially still a decent percentage of its original cost quite some time on.

[W12GT]

PaulD86 said:

W12GT said:

I have now had a fair number of Porsche’s in my time. Overall they have been the biggest losers of all the car’s I’ve owned. The losses have been massively in excess of what was anticipated. Take a look at 996’s - very very cheap. 997’s with the exception of the later OPC cars these are also very cheap. Take a look as there are a huge number of cars sub 25k. That’s the same place that the 991.1 sits which can be had for sub £43k now; which will end up in a couple of years at low 20s (unless a sought after version) as it’s already 2generations old and it will be 3 generations old at the end of the term, and most importantly OPCs will have abandoned them from a selling perspective so the drop will be rapid at that point.

I’m not being naive, but maybe just looking at it with greater depth than others. Oh and can I just point out that the 991 isn’t the most reliable of cars (this has been covered in some detail on PH and other forums) and I believe they must be run under warranty (this drives the value of the car down too as it’s an extra cost)....and yes I know this from experience having had my 991.1 C2S flat bedded 6times in under two years; every time it’s been collected the various drivers usually comment that they see far too many of them being recovered with faults!

But despite that I still love them! But at what price......

Fair enough, I don't share your thinking on where 911 values will go but only time will tell. My ex had 3 used 911s in a row over 12ish years. 997.1, 997.2 and 991.1. I looked at the prices before each were bought and each time I came to the conclusion that each year they would lose £5-6k. Come trade in time for each, they had all lost 5-6k/year. Reliability wise, all 3 were fine, but we all know that you can be lucky and unlucky with cars. I'm not going to argue any 911 is more or less reliable than another as I don't have possession of enough facts to do so.

You mention 996s - these are now all at least 15/16 years old and they are still in many cases at least 25% of their new price. I think that's good going to be honest. And even a £25k 997 is potentially still a decent percentage of its original cost quite some time on.

I think it’s deeper than that; given the current climate, say you were a person who lost their income, eaten into their savings and realise they have to get rid of the car. Quickly. What are your choices? WBAC - will rob you and even an OPC car bought today at 50k will only get you 40k tomorrow. Then there’s a trader - similarly they are unlikely to offer much more than WBAC -so say £42k max. Then think about a private sale; it’s got to be a good price to get a quick sale so you are looking at 40-42k. That’s how they depreciate quickly. A few people in trouble put cars up cheaply which undermines the market. Oh and we have now entered the beginning of what is forecast by many to be the biggest recession in history. Last one I got caught up in 2was 2008 when my 911 lost 25k in about 2 months. I’ve learnt the hard way.

[Sheepshanks]

W12GT said:

Yes Paul, I completely understand the difference. I’ve become very aware of risk exposure in recent years and that GFV is important. The higher it is the lower the financial exposure; if it’s worth more (unlikely) then buy it, if it’s lower walk away. So on this basis it’s better to minimise your committed exposure (especially with the current world situation) :-

The thing with PCP is you're not supposed to do either of those things! You're supposed to p/x the car and take another PCP - and it's much easier for the dealer to get you into another PCP if you have a hefty chunk of equity in the car at the end of the term.

[W12GT]

Sheepshanks said:

W12GT said:

Yes Paul, I completely understand the difference. I’ve become very aware of risk exposure in recent years and that GFV is important. The higher it is the lower the financial exposure; if it’s worth more (unlikely) then buy it, if it’s lower walk away. So on this basis it’s better to minimise your committed exposure (especially with the current world situation) :-

The thing with PCP is you're not supposed to do either of those things! You're supposed to p/x the car and take another PCP - and it's much easier for the dealer to get you into another PCP if you have a hefty chunk of equity in the car at the end of the term.

ONLY if you stay with the same marque! Otherwise you risk a hammering.

Edited by W12GT on Tuesday 18th August 15:35

[PaulD86]

W12GT said:

I think it’s deeper than that; given the current climate, say you were a person who lost their income, eaten into their savings and realise they have to get rid of the car. Quickly. What are your choices? WBAC - will rob you and even an OPC car bought today at 50k will only get you 40k tomorrow. Then there’s a trader - similarly they are unlikely to offer much more than WBAC -so say £42k max. Then think about a private sale; it’s got to be a good price to get a quick sale so you are looking at 40-42k. That’s how they depreciate quickly. A few people in trouble put cars up cheaply which undermines the market. Oh and we have now entered the beginning of what is forecast by many to be the biggest recession in history. Last one I got caught up in 2was 2008 when my 911 lost 25k in about 2 months. I’ve learnt the hard way.

It certainly sounds like you have been unlucky, certainly with a 911 losing that much that quickly. The problems you list could apply to any car, however, so again I wouldn't be pointing my finger at Porsche over their pricing. Owning a car for a short time is generally the most expensive way to do it. The longer you have it, the less the cost/year or month. What would your 2008 911 have cost if you'd had it 4 years? I am actually curious how it lost that much in 2 months as that's more than my ex's 57 plate (so similar age) lost in 4 years! I assume due to the financial crash? If so, things did recover so it may have just been extremely unfortunate timing for you I fear. RE WBAC and dealer prices - a dealer offered me £10k more for my car this year than WBAC price. I'm keeping it btw (had a slight notion for another car then saw sense) but it does show that WBAC prices for interesting cars are far from gospel on what you may be offered for them. Recession is an interesting one - it will push some out of sports cars, but could also move those who would have bought new into used ones. Time will tell but I don't think there is about to be a Porsche price crash, and I don't just think that as I own one and am wishful thinking.... indeed if the value of mine crashed it would almost be good for me as it would make it easier to justify keeping it and not selling it to fund the next property purchase.

[EvoSid]

akadk said:

This seems like a very ignorant post



Ps. I bought a 2015 Rapide S from a Aston Main dealer for £5k deposit and £292pcm.....how’d ya like them apples !

I think that particular model is known as a lemon

[EvoSid]

W12GT said:

Yes Paul, I completely understand the difference. I’ve become very aware of risk exposure in recent years and that GFV is important. The higher it is the lower the financial exposure; if it’s worth more (unlikely) then buy it, if it’s lower walk away. So on this basis it’s better to minimise your committed exposure (especially with the current world situation) :-

Option 1:- 50k car, 2 years GVF 20k - this means an accepted exposure of the £30k plus interest so circa £40k with the ‘chance’ that you might have collateral left in it.

Option 2:- 50k car, 2 years GFV 40k - accepted exposure of £10k plus interest so circa £20k. Likelihood of it being worth less than GVF so walk away. If worth more then buy it.

Option 3:- purchase outright. Issue is tying up monies that I can use to generate income elsewhere that is greater than the interest. Exposure is actually potentially higher than option 1!

Personally I’d take option 2 every single time. It’s the safest option keeping the largest amount of working capital available for investment elsewhere.

Edited by W12GT on Tuesday 18th August 12:16

I kind of see where you are coming from

Option is ideal if you want to own the car at the end of the term as you will only have to find £20K to cover the GFV. But if you don't want to by it at the end of the term means you have let a lot of cash in 2 years as you have said.

Option 2 is ideal if you want to run a nice car for little money ( same as the Rapide S for £292 pcm) as the higher GFV means a lower amount of cash to lose if you want to walk away from it at the end. But if you want to buy it then you have to find a fair chunk of cash to keep it.

Option 3 is great if you want to brag at the pub and on forums about how you bought your car cash blah blah , but a you have said it is risky

So I can see why you want to go for option 2 but the problem is finance companies are looking at any car and writing f more so you have more of the tis tea they do as they clearly think the age of high residuals is over. Is that what will happen? Who knows as so far 2020 is becoming the weirdest year ever. Wh is to say what will happen in 2021 and how the world will be in 2022.
So I guess you like myself and many others will probably wait and see what the market does over winter. As at present prices are up and demand is strong and dealers cant get enough stock so not an ideal buyers market we hoped it would be
But lets see what 2021 brings as it is nearly here !