Discussion
Having slowly come to the conclusion that if I get a 911 its going to be a mk2 GT3 or a GT2, I'm forced to consider finance. Whats the best way of going about this as I don't want to be going the traditional route of a tiny deposit and huge balloon. I want to put a large deposit, say 50k, and then pay off the remaining 10-15k over 2-3 years.
Is this something car dealers and car loan companies will try to steer me away from? I could chuck it on the mortgage, but the problem with that is the risk of paying the car off over 25 years which is pretty daft.
croyde said:
Chuck it on the mortgage and just be adamant that you will pay that bit back in 2/3 years. It is about the cheapest borrowing you will get.
Good luck.
If going this route, you will have to make sure that you wont be paying more in arrangement fees and redemption penalties than you are saving over a bog standard loan in the first place.
my philosophy is to put cash into (hopefully) appreciating 'things' / investments and borrow the money as cheaply as possible (ie interest only mortgage) to fund the car. any net returns on your cash investment can be offset against your monthly payments on your borrowing, but with the wind behind you, you could at least wear some of the depreciation of your car against net capital appreciation of your investment when you come to sell.
that's my theory, and so far so good! requires more effort clearly but i'm not in the habit of throwing away money on cars without a fight!!!
so.... give me your £50k and i'll look after it for you
Edited to say.... get the GT2!
>> Edited by 911nutter on Wednesday 1st June 10:58
that's my theory, and so far so good! requires more effort clearly but i'm not in the habit of throwing away money on cars without a fight!!!
so.... give me your £50k and i'll look after it for you
Edited to say.... get the GT2!
>> Edited by 911nutter on Wednesday 1st June 10:58
911nutter said:
my philosophy is to put cash into (hopefully) appreciating 'things' / investments and borrow the money as cheaply as possible (ie interest only mortgage) to fund the car. any net returns on your cash investment can be offset against your monthly payments on your borrowing, but with the wind behind you, you could at least wear some of the depreciation of your car against net capital appreciation of your investment when you come to sell.
that's my theory, and so far so good! requires more effort clearly but i'm not in the habit of throwing away money on cars without a fight!!!
so.... give me your £50k and i'll look after it for you
Edited to say.... get the GT2!
>> Edited by 911nutter on Wednesday 1st June 10:58
Ah but borrowing at a lesser rate than you can get as a reasonably guaranteed return isn't trivial.
Agree with the principal of paying for things with returns on investment though, as that way once the car is paid for, you are still getting a return rather than burning through the capital. If I go that route though, it means accepting that I can't really afford a 65k 911. Then the next thing I know, I'll have kids and never be able to justify such a purchase which is why I almost feel obliged to do it before the kids, because once we've got one its easy to continue in the same pattern!
The 650 quid a 15k loan over two years would cost a month isn't a huge burden.
Actually more inclined towards the GT3
The other half has to drive it too, and with the GT2 I'd have to spend a few k immediately on changing the brakes as there aren't many with steels on already. >> Edited by DanH on Wednesday 1st June 11:57
Rarely worth keeping savings if you have debt, very rarely (reliably) make more interest on investments/savings than you're paying on loans, mortgage etc. I switched to an offset mortgage recently for this reason.
One of the benefits of the car finance packages with a balloon payment is that you only need commit yourself to a relatively small monthly payment but can pay lump sums off at any time thus paying it off early or reducing the balloon (and of course the interest charged). On the Porsche Finance balanced payment scheme the interest is calculated on a daily basis.
One of the benefits of the car finance packages with a balloon payment is that you only need commit yourself to a relatively small monthly payment but can pay lump sums off at any time thus paying it off early or reducing the balloon (and of course the interest charged). On the Porsche Finance balanced payment scheme the interest is calculated on a daily basis.
AC79xxx said:
If you can get that limit credit cards keep transfering the balance every 9 months so that it stays at 0% interest.
This assumes you're disciplined to paying back £650 every month for the next 2 years to clear the debt.
I'd also have to buy from someone who takes credit cards. They'd probably smack me for 5% surcharge anyway
Dan,
The Porsche finance scheme is very flexible. You can overpay at any time without penalty and you can pay off the loan at any time with a penalty of one months interest on the outstanding balance.
With that said - if you intend to pay it off, you could for example pay off everything but the final £500 (without penalty) then pay off the final £500 a month later and you will only pay penalty interest on £500.
In other words, why not take out the Porsche finance scheme and then pay off as much as you can, when you can - it doesn't then have to be over a set period if you don't want to.
BTW - I bought my first porsche (a GT3 MKII in Cobalt Blue) two weeks ago and it is absolutely superb and I am very pleased with my choice!! I also remember you from the Lotus BBS a couple of years ago as I had a MkI Elise. My vote goes with the GT3 as its awesome.
Cheers
Steve M
The Porsche finance scheme is very flexible. You can overpay at any time without penalty and you can pay off the loan at any time with a penalty of one months interest on the outstanding balance.
With that said - if you intend to pay it off, you could for example pay off everything but the final £500 (without penalty) then pay off the final £500 a month later and you will only pay penalty interest on £500.
In other words, why not take out the Porsche finance scheme and then pay off as much as you can, when you can - it doesn't then have to be over a set period if you don't want to.
BTW - I bought my first porsche (a GT3 MKII in Cobalt Blue) two weeks ago and it is absolutely superb and I am very pleased with my choice!! I also remember you from the Lotus BBS a couple of years ago as I had a MkI Elise. My vote goes with the GT3 as its awesome.
Cheers
Steve M
[quote=BobM]Rarely worth keeping savings if you have debt, very rarely (reliably) make more interest on investments/savings than you're paying on loans, mortgage etc. I switched to an offset mortgage recently for this reason.
Dan - I agree, subject to tax. If you can get any of the interest you pay tax deductible, your effective rate of borrowing is slashed. eg if you have any sort of debt financed investment (eg property), taking an equity drawdown to buy the car works if you can "lose" the extra interest on the increased debt as tax deductible.
Long and short of it is, this is the real thing, not a dress rehersal - if you can, you must. Go ahead and enjoy!
Cheers
Ajit.
Dan - I agree, subject to tax. If you can get any of the interest you pay tax deductible, your effective rate of borrowing is slashed. eg if you have any sort of debt financed investment (eg property), taking an equity drawdown to buy the car works if you can "lose" the extra interest on the increased debt as tax deductible.
Long and short of it is, this is the real thing, not a dress rehersal - if you can, you must. Go ahead and enjoy!
Cheers
Ajit.
I recently remortgaged and can't get out of it for a while. Wishing I'd offset in hindsight, but not sure its worth it until renewal, especially as the money I'd be offsetting is likely about to be spent on a car
I'm not aware of any way in which I can avoid tax on this? Is there anything obvious that I can leverage? Just got a single property thats mortgaged. I also have a maxi ISA thats obviously subject to tax relief so I'm undecided whether or not to sell that and cut some of the borrowing I'd otherwise need for this car.
Agree about life not being a dress rehersal
Thats what I said when I got the Elise first, then the Noble! >> Edited by DanH on Wednesday 1st June 23:37
Hi Dan,
Yeah I have to admit that the GT2 does look tasty but as my wife and I are using the car daily, I don't think she'd have coped very well with the silly torque / power combo from the GT2.. especially in the wet.
Regarding insurance, try Chris Wilkins at Bickley for a quote - I used him for my GT3. Its not the cheapest cover you will find but its very comprehensive and includes track cover (for an addition premium on a per day basis).
Cheers
Steve
Yeah I have to admit that the GT2 does look tasty but as my wife and I are using the car daily, I don't think she'd have coped very well with the silly torque / power combo from the GT2.. especially in the wet.
Regarding insurance, try Chris Wilkins at Bickley for a quote - I used him for my GT3. Its not the cheapest cover you will find but its very comprehensive and includes track cover (for an addition premium on a per day basis).
Cheers
Steve
- clue - I'm Jennie's other half :wink: Actually mate, it was the great photo of the Noble that gave it away. I liked the GT40 too - not so sure about the cardboard driving lights though! Sounded awesome didn't it?
I hope you get your GT3 - I think they're superb cars - no doubt I'll get one soon once I've finished scratching the Ferrari itch
I hope you get your GT3 - I think they're superb cars - no doubt I'll get one soon once I've finished scratching the Ferrari itch
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