Advice on financing 997 PDK Turbo / Turbo S from OPC

[W8PMC]

Gerber1 said:

It was more of a tongue in cheek comment but there is some truth in it.

What people do with their finances is none of my interest however PCP is a good way to ensure the poor stay poor and the rich get richer.

What a complete load of BS. I bet you're great fun at parties.

As per my post above, PCP/Finance/Lease & CH have their place & if used correctly become a far better & lower overall cost option to using cash, so only someone who doesn't understand or appreciate the cost of money or who has so much money they don't care would suggest that using such products is purely for those who can't actually afford the item they're buying.

[W8PMC]

sasha320 said:

Thanks, Halifax has same rules, current account for 3 months :0(

Shame though, looks like a cracking product though.

Sorry, i didn't realise the Lloyds offering was for account holders only or that you had to be a customer for X amount of time.

I set my Lloyds facility up in October as was unsure at that point what car i was going to buy next. When i decided on the FFRR I was either going to use this facility as the rate was good or cash, but the deposit contribution offered by Land Rover if i used their PCP made that option cheaper than using the Lloyds product or cash so it became a no brainer.

[Gerber1]

W8PMC said:

Gerber1 said:

It was more of a tongue in cheek comment but there is some truth in it.

What people do with their finances is none of my interest however PCP is a good way to ensure the poor stay poor and the rich get richer.

What a complete load of BS. I bet you're great fun at parties.

As per my post above, PCP/Finance/Lease & CH have their place & if used correctly become a far better & lower overall cost option to using cash, so only someone who doesn't understand or appreciate the cost of money or who has so much money they don't care would suggest that using such products is purely for those who can't actually afford the item they're buying.

If you have cash available then you don't take finance.

You'd have to be rather clever to get a greater return on your cash than the saving offered by not taking out finance at a horrendous interest rate.

[truck71]

Gerber1 said:

If you have cash available then you don't take finance.

You'd have to be rather clever to get a greater return on your cash than the saving offered by not taking out finance at a horrendous interest rate.

Not necessarily. I've just procured a car for my parents who are cash buyers. We took the PCP as there was a manufacturer contribution which helped achieve a 20% discount on list.
Folks withdrew from the PCP within the 14 days period allowed and settled the outstanding balance. Difference in total bill was a grand as a result.

[Digga]

Gerber1 said:

You'd have to be rather clever to get a greater return on your cash than the saving offered by not taking out finance at a horrendous interest rate.

It does depend on the rate, but even fairly accessible (i.e. not just the preserve of the ultra-wealthy or financially astute) returns - certain ISA funds for one - could potentially do better.

[W8PMC]

Gerber1 said:

If you have cash available then you don't take finance.

You'd have to be rather clever to get a greater return on your cash than the saving offered by not taking out finance at a horrendous interest rate.

Again, total BS. Did you read my post?

Nothing clever about it, i & in fact anyone can very easily get a guaranteed 5% return on cash & in some cases more (not guaranteed), so immediately if the interest rate is less than 5% then using cash costs more than PCP. Add in the savings/benefits that dealers & mfctrs offer for using their PCP product (in my case £5k) & i'm quids in using their money & as said before, this doesn't even factor in the cost of money over the given term.

With LR i'm getting 5.9% & with Lloyds i got 4.5%, but factor in the £5k from LR & that was the obvious & cheaper than cash choice.

[Porsche911R]

W8PMC said:

Nothing clever about it, i & in fact anyone can very easily get a guaranteed 5% return on cash & in some cases more (not guaranteed),.

where can I get a 5% return on my cash over 12 months guaranteed please ?

[Porsche911R]

truck71 said:

Not necessarily. I've just procured a car for my parents who are cash buyers. We took the PCP as there was a manufacturer contribution which helped achieve a 20% discount on list.
Folks withdrew from the PCP within the 14 days period allowed and settled the outstanding balance. Difference in total bill was a grand as a result.

They did not really buy with a PCP though did they, they had the cash and played the game.
NOT really the same thing as a 36 month PCP with GTV and balloon is it lol ? (which is what ave joe does)

[Jesus]

Gerber1 said:

As
If you have cash available then you don't take finance.

You'd have to be rather clever to get a greater return on your cash than the saving offered by not taking out finance at a horrendous interest rate.

10 years ago I had £20k cash to buy a car.
Instead, I bought a plot of land and took out a loan to buy the car.

I'll tell you what, best financial decision I have ever, and will ever, make.

[Digga]

Jesus said:

Gerber1 said:

As
If you have cash available then you don't take finance.

You'd have to be rather clever to get a greater return on your cash than the saving offered by not taking out finance at a horrendous interest rate.

10 years ago I had £20k cash to buy a car.
Instead, I bought a plot of land and took out a loan to buy the car.

I'll tell you what, best financial decision I have ever, and will ever, make.

And I thought you were going to tell that yarn about the loaves and the fishes.

[Jesus]

Digga said:

And I thought you were going to tell that yarn about the loaves and the fishes.

Had to PCP the fish - bread was bought cash after I remortgaged my barn

[W8PMC]

Porsche911R said:

where can I get a 5% return on my cash over 12 months guaranteed please ?

The same places i can. A simple Google will reveal all.

In fact off to renew one such 5% account tomorrow, would you like me to pick up a leaflet?

Edited by W8PMC on Wednesday 22 February 16:05

[Digga]

Jesus said:

Digga said:

And I thought you were going to tell that yarn about the loaves and the fishes.

Had to PCP the fish - bread was bought cash after I remortgaged my barn

And the wine was blood that the car dealer squeezed out of a stone?

[Porsche911R]

W8PMC said:

The same places i can. A simple Google will reveal all.

In fact off to renew one such 5% account tomorrow, would you like me to pick up a leaflet?

spread the love and tell us all on here would be best.

[W8PMC]

Porsche911R said:

spread the love and tell us all on here would be best.

Really? I don't recall needing to ask on here, just did my homework & voila.

A clue for you, start with the many Building Societies available.

Sorry OP, kind of being dragged off topic. Needless to say, ignore those who state that any type of funding for a new vehicle is sacrilege & an indicator that you're unable to afford what you want to buy as it's total BS.

Many deals around & if you'd rather keep your available cash invested & get decent returns or use for something else then so be it. If you want to chuck your cash into a rapidly depreciating asset then again so be it. No right or wrong answers, just personal opinions.

Edited by W8PMC on Wednesday 22 February 17:27

[Porsche911R]

W8PMC said:

Really? I don't recall needing to ask on here, just did my homework & voila.

A clue for you, start with the many Building Societies available.

Sorry OP, kind of being dragged off topic. Needless to say, ignore those who state that any type of funding for a new vehicle is sacrilege & an indicator that you're unable to afford what you want to buy as it's total BS.

Many deals around & if you'd rather keep your available cash invested & get decent returns or use for something else then so be it. If you want to chuck your cash into a rapidly depreciating asset then again so be it. No right or wrong answers, just personal opinions.

yawn the normal bullst from people saying they can make 5 to 10% in 12 months then cannot back it up showing any where doing such deals!

I will await the "5% return on my cash over 12 months guaranteed" post rather than skirting round, talking the talk.

I don't see anyone here slagging off funding to buy a car, just great advice on how things work and cheaper ways to fund cars. NOT many people here are saying buy CASH, the OP does not have £80k to buy a car this way, so it's a moot point you have got yourself into with people !

My advice was to get a bank loan or self fund from your mortgage at 2% the latter will beat any other option available.

buying on PCP or saying how great PCP is can be misleading and most of the time it's miss sold with the buyer having no idea what interest they will act pay in TOTAL.

A 1 or even £5k discount on the car does not even cover 1/2 the interest paid on most high value £100k sports cars funded this way via PCP hence the discount they offer to sway you to do it are available.

yes you can get 20% off if you buy a large BMW or Merc, but you can if you fund other ways also ! As one poster quoted, get the PCP to get the discount, then pay the PCP off !

I think you are missing the point that a massive % of new car buyers are paying 8 to 12% funding PCP and massive Balloons and ending up with st all after 3 years and no deposit to go forward.

The last car I bought was also not a depreciating asset , it's made 20% in the last 12 months and I get to use it !
And because I paid outright for it the 20% is real money nothing lost in interest to counter the gain.

Now post up this 5% 12 months guaranteed return and stop messing about :-)

PS how is your M5 F10 holding up as a return on your money ?

Edited by Porsche911R on Wednesday 22 February 17:59

[Jesus]

Delightful, as ever.

[IMI A]

Porsche911R said:

The last car I bought was also not a depreciating asset , it's made 20% in the last 12 months and I get to use it !
And because I paid outright for it the 20% is real money nothing lost in interest to counter the gain.

Nothing wrong with advice that you or W8 are giving the OP. There is no right or wrong. In the OP's shoes I would personally go to someone like Oracle Finance and get a deal with a very high balloon payment - no cheaper way to finance a car but as others have said you lose the GFV. Also interest rate remains variable but I don't think we are in for a hike anytime soon.

One last point. You haven't made 20% on anything until you actually sell your car! Also not wise to assume cars are actually selling for these inflated prices. They're not in most cases.

[W8PMC]

Porsche911R said:

yawn the normal bullst from people saying they can make 5 to 10% in 12 months then cannot back it up showing any where doing such deals!

I will await the "5% return on my cash over 12 months guaranteed" post rather than skirting round, talking the talk.

I don't see anyone here slagging off funding to buy a car, just great advice on how things work and cheaper ways to fund cars. NOT many people here are saying buy CASH, the OP does not have £80k to buy a car this way, so it's a moot point you have got yourself into with people !

My advice was to get a bank loan or self fund from your mortgage at 2% the latter will beat any other option available.

buying on PCP or saying how great PCP is can be misleading and most of the time it's miss sold with the buyer having no idea what interest they will act pay in TOTAL.

A 1 or even £5k discount on the car does not even cover 1/2 the interest paid on most high value £100k sports cars funded this way via PCP hence the discount they offer to sway you to do it are available.

yes you can get 20% off if you buy a large BMW or Merc, but you can if you fund other ways also ! As one poster quoted, get the PCP to get the discount, then pay the PCP off !

I think you are missing the point that a massive % of new car buyers are paying 8 to 12% funding PCP and massive Balloons and ending up with st all after 3 years and no deposit to go forward.

The last car I bought was also not a depreciating asset , it's made 20% in the last 12 months and I get to use it !
And because I paid outright for it the 20% is real money nothing lost in interest to counter the gain.

Now post up this 5% 12 months guaranteed return and stop messing about :-)

PS how is your M5 F10 holding up as a return on your money ?

Edited by Porsche911R on Wednesday 22 February 17:59

Wind your neck in treacle.

Nowhere have I said 5-10%, I said 5% which is widely available as you well know but you rather choose to vainly patronise in a less than humourous fashion.

I'm not missing any point & was only stating that those making comment that anyone who 'funds' a car acquisition & doesn't use cash, clearly can't afford the vehicle in the first place. Whilst that may well be true for some, I'd bet many have also spunked a ton of cash into a car thinking it was the 'correct' method & then due to a change in circumstance have regretted this decision. Sometimes cash is better kept as available & other funding methods used for depreciating assets.

Lucky you that you've made a turn on your car, that outcome is limited to a select few people & very few cars but I'm genuinely pleased for you & I've yet to replicate that with a vehicle.

As regards my F10 M5, yes it worked out very well for me & I saved a significant sum having used CH rather than cash, in the same way my inbound FFRR is being funded using PCP as the extra £5k discount was a big draw & the large deposit means I'll always be in a positive equity position & assuming the depreciation profile doesn't change over the next 18-24mths, I'll have another positive outcome.

Being totally honest that hasn't been the case with every single car, however cash or borrowing wouldn't have altered that. I consider my funding decisions to be taken with care & as said above, those who state the correct method is to buy cash are talking BS & purely airing an opinion while trying to make the point their opinion is the correct one.

Sometimes cash works well & sometimes as can be clearly demonstrated is doesn't.

I do however totally agree that someone who's funding a car using PCP with a tiny deposit, a huge balloon & a massive interest rate to keep the monthly payments at an affordable level is at best displaying naivety & at worst the inability to be able to 'truly' afford the car in question.

Edited by W8PMC on Wednesday 22 February 19:16

[WDISMYL]

I would also like some of that 5% guaranteed return for a cash investment please! And it doesn't count if you are talking about Banks trying to get you to open an account but capping the 5% on £2000 etc!

So please spill the beans - where can I get some?

However there is a real misnomer that I see repeated over and over from people who take out finance - their argument is "why would I sink cash in a depreciating asset - I'll keep my cash and finance instead". But you have sunk cash into a depreciating asset and I don't just mean your deposit. You have to include the borrowed money too - and on top of that you are paying someone else the privilege of doing so. It's an illusion to think otherwise. The psychology of paying monthly payments just tricks your brain into thinking that you are avoiding doing so. You haven't. With finance you get interest + depreciation.

I understand the argument of having cash as a backstop for emergencies and by financing it gives you some flexibility. That does have value. However its getting the balance right.

The problem is people with say £50k in the bank, don't keep £40k and use £10k as a deposit to buy a £30k car, borrowing just 20k. In this case they would still have twice the amount in cash of the amount borrowed. If they needed to pay back the loan they could.

Instead people tend to put £35k as a deposit to buy a car worth £135k, borrowing 100k. Yes they have £15k of cash but have leveraged twice the value of their original bank balance into a DEPRECIATING asset. That's just foolish and a way to stay poor forever.

Edited by WDISMYL on Wednesday 22 February 19:37