How to pay for your first porsche
Discussion
Hi guys,
I am in the fortunate position that I am considering buying a new 911. I have driven one, loved it, and have gone through the initial process of specifications and pricing. The big thing that hurts is the APR at 5.9%. I am not in a position to buy in cash at the minute due to wanting to have that rainy day savings in case anything unexpected happens.
I am also considering keeping it past any PCP deal as it wont see loads of miles with no need for a commute. This is another plus of getting a porsche over something from another brand, they look great for years to come. Has anyone had any luck with external funders to get a lower APR. Given the GFV's are decent for a PCP it means you are borrowing a sizeable amount (if only going £20k over the GFV).
I'd rather throw some of the interest money into getting a nicer spec if i can also.
Any help is more than appreciated.
Thanks
I am in the fortunate position that I am considering buying a new 911. I have driven one, loved it, and have gone through the initial process of specifications and pricing. The big thing that hurts is the APR at 5.9%. I am not in a position to buy in cash at the minute due to wanting to have that rainy day savings in case anything unexpected happens.
I am also considering keeping it past any PCP deal as it wont see loads of miles with no need for a commute. This is another plus of getting a porsche over something from another brand, they look great for years to come. Has anyone had any luck with external funders to get a lower APR. Given the GFV's are decent for a PCP it means you are borrowing a sizeable amount (if only going £20k over the GFV).
I'd rather throw some of the interest money into getting a nicer spec if i can also.
Any help is more than appreciated.
Thanks
Personal loans are available at lower rates, but you may not be able to borrow enough depending on how much deposit you're putting in.
There are specialists out there who may be able to do better than Porsche rates but you'll need to do some ringing around to find out as it will depend on your personal circumstances.
There are specialists out there who may be able to do better than Porsche rates but you'll need to do some ringing around to find out as it will depend on your personal circumstances.
jonny996 said:
i will give you the Dad answer.
Put it on your mortgage, if you don't have enough equity in your home, should you really be buying a brand new 911?
This isnt such a bad idea actually. Ive been very old school over the years paying it down so im prob at around 15% equity, 10% perhaps with the way houses are selling. So I dont have too long left, so it might actually work out cost effective. Will do some man maths and compare against a few other options.Put it on your mortgage, if you don't have enough equity in your home, should you really be buying a brand new 911?
Twinfan said:
Personal loans are available at lower rates, but you may not be able to borrow enough depending on how much deposit you're putting in.
There are specialists out there who may be able to do better than Porsche rates but you'll need to do some ringing around to find out as it will depend on your personal circumstances.
Are there any you would recommend? I have some time this afternoon i plan to do some googling and research, but if there are any you or others can recommend I look at first, it would be apprecaited.There are specialists out there who may be able to do better than Porsche rates but you'll need to do some ringing around to find out as it will depend on your personal circumstances.
Edited by a_dreamer on Tuesday 22 June 10:05
Do what you want - life is short, and there's only 2 guarantees, which we all know...
PCP gives you the luxury of knowing virtually exactly what the ownership of said vehicle will cost. In the current market prices are actually on the rise, will this continue who knows? Is that important to you?, presumably not because if you are buying new you understand that cars are usually a depreciating asset, and that no sooner than you've taken delivery it will have lost value.
VWFS who run Porsche's financial side of things charge 6.9% on used (5.9% on new like you stated), but this could be negated as could some of the depreciation if you purchased nearly new. Difficult to advise without knowing what deposit you are considering placing and the monthly's, and you may feel the need/consider new a must have/prerequisite.
In my own experience the Porsche I bought in Jan 20 is only a few thousand shy of what I paid for it according to WBAC so the only costs has been the initial deposit, the monthly's, the insurance, a service, and a set of tyres. With the FGV figure, I will get significantly more than my initial deposit back - or I will buy it outright/use it towards another. Part of this outcome is luck, but PCP gives you the hard facts and a worse case scenario. Whether that is palatable to you is only your decision.
Based on your words don't get caught in the paralysis of not wanting to use it/put miles on it, after all what's the point of having a garage ornament? - actually not driving them can be detrimental in many ways.
Also, I always wanted a 911 - test drove one and loved it. Test drove something else in the range and I'd always been wrong, bought that instead. Make sure you experience not just the 911...you may be surprised. Either way, enjoy the road to ownership...they're all great cars and its a great position to be fortunate enough to be in.
PCP gives you the luxury of knowing virtually exactly what the ownership of said vehicle will cost. In the current market prices are actually on the rise, will this continue who knows? Is that important to you?, presumably not because if you are buying new you understand that cars are usually a depreciating asset, and that no sooner than you've taken delivery it will have lost value.
VWFS who run Porsche's financial side of things charge 6.9% on used (5.9% on new like you stated), but this could be negated as could some of the depreciation if you purchased nearly new. Difficult to advise without knowing what deposit you are considering placing and the monthly's, and you may feel the need/consider new a must have/prerequisite.
In my own experience the Porsche I bought in Jan 20 is only a few thousand shy of what I paid for it according to WBAC so the only costs has been the initial deposit, the monthly's, the insurance, a service, and a set of tyres. With the FGV figure, I will get significantly more than my initial deposit back - or I will buy it outright/use it towards another. Part of this outcome is luck, but PCP gives you the hard facts and a worse case scenario. Whether that is palatable to you is only your decision.
Based on your words don't get caught in the paralysis of not wanting to use it/put miles on it, after all what's the point of having a garage ornament? - actually not driving them can be detrimental in many ways.
Also, I always wanted a 911 - test drove one and loved it. Test drove something else in the range and I'd always been wrong, bought that instead. Make sure you experience not just the 911...you may be surprised. Either way, enjoy the road to ownership...they're all great cars and its a great position to be fortunate enough to be in.
Fnumber1user said:
Based on your words don't get caught in the paralysis of not wanting to use it/put miles on it, after all what's the point of having a garage ornament? - actually not driving them can be detrimental in many ways.
Also, I always wanted a 911 - test drove one and loved it. Test drove something else in the range and I'd always been wrong, bought that instead. Make sure you experience not just the 911...you may be surprised. Either way, enjoy the road to ownership...they're all great cars and its a great position to be fortunate enough to be in.
Cheers, yeah PCP is the risk free option in many aspects i guess.Also, I always wanted a 911 - test drove one and loved it. Test drove something else in the range and I'd always been wrong, bought that instead. Make sure you experience not just the 911...you may be surprised. Either way, enjoy the road to ownership...they're all great cars and its a great position to be fortunate enough to be in.
In terms of the driving it is more circumstantial as I dont have a commute to work etc, so where as when buying cars in the past that has had to be a factor, this will be purely pleasure driving
The 911 is a car I have always wanted, I need the token back seats for my little kids, but I do need to test drive a few others.
There were a few financing options discussed in this thread, might be worth a read. OP went down the mortgage equity release route in the end:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
It’s always great to achieve that long term goal. It’s a depreciating asset yes, but a well looked after 911 is always likely to be worth a decent amount. Maybe consider waiting for something a bit more limited in numbers (they might bring out a carrera T). If you’re looking long term, then you might want to think about a Carrera S with a manual gearbox. In the short term the masses want PDK, but down the line it’ll be a manual that’ll be the sought after car.
Fnumber1user said:
Do what you want - life is short, and there's only 2 guarantees, which we all know...
PCP gives you the luxury of knowing virtually exactly what the ownership of said vehicle will cost. In the current market prices are actually on the rise, will this continue who knows? Is that important to you?, presumably not because if you are buying new you understand that cars are usually a depreciating asset, and that no sooner than you've taken delivery it will have lost value.
VWFS who run Porsche's financial side of things charge 6.9% on used (5.9% on new like you stated), but this could be negated as could some of the depreciation if you purchased nearly new. Difficult to advise without knowing what deposit you are considering placing and the monthly's, and you may feel the need/consider new a must have/prerequisite.
In my own experience the Porsche I bought in Jan 20 is only a few thousand shy of what I paid for it according to WBAC so the only costs has been the initial deposit, the monthly's, the insurance, a service, and a set of tyres. With the FGV figure, I will get significantly more than my initial deposit back - or I will buy it outright/use it towards another. Part of this outcome is luck, but PCP gives you the hard facts and a worse case scenario. Whether that is palatable to you is only your decision.
Based on your words don't get caught in the paralysis of not wanting to use it/put miles on it, after all what's the point of having a garage ornament? - actually not driving them can be detrimental in many ways.
Also, I always wanted a 911 - test drove one and loved it. Test drove something else in the range and I'd always been wrong, bought that instead. Make sure you experience not just the 911...you may be surprised. Either way, enjoy the road to ownership...they're all great cars and its a great position to be fortunate enough to be in.
Pretty much this, I did the same in Sept 2019 with a new 992.PCP gives you the luxury of knowing virtually exactly what the ownership of said vehicle will cost. In the current market prices are actually on the rise, will this continue who knows? Is that important to you?, presumably not because if you are buying new you understand that cars are usually a depreciating asset, and that no sooner than you've taken delivery it will have lost value.
VWFS who run Porsche's financial side of things charge 6.9% on used (5.9% on new like you stated), but this could be negated as could some of the depreciation if you purchased nearly new. Difficult to advise without knowing what deposit you are considering placing and the monthly's, and you may feel the need/consider new a must have/prerequisite.
In my own experience the Porsche I bought in Jan 20 is only a few thousand shy of what I paid for it according to WBAC so the only costs has been the initial deposit, the monthly's, the insurance, a service, and a set of tyres. With the FGV figure, I will get significantly more than my initial deposit back - or I will buy it outright/use it towards another. Part of this outcome is luck, but PCP gives you the hard facts and a worse case scenario. Whether that is palatable to you is only your decision.
Based on your words don't get caught in the paralysis of not wanting to use it/put miles on it, after all what's the point of having a garage ornament? - actually not driving them can be detrimental in many ways.
Also, I always wanted a 911 - test drove one and loved it. Test drove something else in the range and I'd always been wrong, bought that instead. Make sure you experience not just the 911...you may be surprised. Either way, enjoy the road to ownership...they're all great cars and its a great position to be fortunate enough to be in.
I didnt use Porsche Finance, I used these people (Clydesdale - they were excellent), did it for 4.2% v. 6.9% at the time so a hefty saving in monthlies - but this is NOT PCP so there are no GFV's, if the arse falls out the market, you still owe the money.
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I took the view that the £200 a month in interest I was saving over the term, more than covered the risk of the arse falling out of the market. Life is too short. As it happens, the market has held very very well - interest payments aside, I now find after just under two years, its only depreciated about 10% according to WBAC prices and 3 OPC's are regularly contacting me asking to buy it.
The only thing I'd swap it for would be a V6 Exige to compliment my daily fast EV. But an Exige hasnt got rear seats, and its not a 911.
I will take a peek at a Manual 992-T if one ever comes out, but if its part of the 992.2 rollout, it may well have the mandated speed-limiting, blackbox tracking stuff activated, so even more reasons to get one NOW!
5.9% is not a bad rate these days for car finance for a private individual (not a business), you might perhaps get it a little cheaper with the right funder.
Things have changed a lot in the last year as there is now a lot more regulation around car finance deals with private individuals. This has meant that a lot of funders have pulled out of the market as its to much hassle / risk that you get something wrong and rates have gone up as there is less competition.
On top of this brokers like Oracle Finance now have little discretion on doing a deal on the rate as everyone has to be treated fairly and the upshot is ironically many people will end up paying a higher rate for car finance as everyone gets offered the same rate. Oracle rates are typically round 8% by the way.
If you have a business to put it through you will get a better rate potentially but then there are tax implications in that it becomes a company car.
Using your mortgage is cheap but you are effectively paying off your car over 25 years instead of 5 as an example.
Personal loans might be cheaper but won't give you a balloon or more than £20k of finance generally.
And so you are back at square one - Porsche finance is actually pretty good rate wise and the balloons are pretty good as well.
Things have changed a lot in the last year as there is now a lot more regulation around car finance deals with private individuals. This has meant that a lot of funders have pulled out of the market as its to much hassle / risk that you get something wrong and rates have gone up as there is less competition.
On top of this brokers like Oracle Finance now have little discretion on doing a deal on the rate as everyone has to be treated fairly and the upshot is ironically many people will end up paying a higher rate for car finance as everyone gets offered the same rate. Oracle rates are typically round 8% by the way.
If you have a business to put it through you will get a better rate potentially but then there are tax implications in that it becomes a company car.
Using your mortgage is cheap but you are effectively paying off your car over 25 years instead of 5 as an example.
Personal loans might be cheaper but won't give you a balloon or more than £20k of finance generally.
And so you are back at square one - Porsche finance is actually pretty good rate wise and the balloons are pretty good as well.
JohnnyUK said:
jonny996 said:
i will give you the Dad answer.
Put it on your mortgage, if you don't have enough equity in your home, should you really be buying a brand new 911?
Never, ever, ever, never put a depreciating asset on your mortgage (if that's what you meant!)Put it on your mortgage, if you don't have enough equity in your home, should you really be buying a brand new 911?
need to be disciplined though
I’m old skool so houses are homes, cars are toys, hence I’d never mortgage a car.
Be careful on the finance thing if you want to own outright. I’d only do that if I knew the funds to settle were coming my way soon. You’re going to pay for years on the original deal, then finance the balloon over more years if you can’t settle it. I’d have to really love a car to get 6/7 years worth of debt. I’m talking F40/CGT love, not a standard new 911.
As said I’d just see what used stuff floats your boat.
Be careful on the finance thing if you want to own outright. I’d only do that if I knew the funds to settle were coming my way soon. You’re going to pay for years on the original deal, then finance the balloon over more years if you can’t settle it. I’d have to really love a car to get 6/7 years worth of debt. I’m talking F40/CGT love, not a standard new 911.
As said I’d just see what used stuff floats your boat.
Cheers for everyones feedback.
The Mortgage option only makes sense as I have a short period of time on it as we have overpaid and then shortened it at periods for various regions. The key challenge is how much I want to have saved somewhere. I think on the original PCP i would intend to pay the balloon at the end outright rather than refinance it.
As a few have said, it seems the safest bet as you avoid any odd fluctuations etc, plus the longest I have kept a car is 4 years, but it wasnt a porsche....
The challenge comes more from the fact that the gfv is about 60% the vehicle price so even if i paid the rest upfront, you still finance a decetn amount to have 6% on and my money in savings isnt exactly earning much, its more the security.
Got some time tomorrow so going to ring round and see what is available.
Appreciate all your thoughts and glad in some senses there isnt some glaringly obvious option I have not already considered.
The Mortgage option only makes sense as I have a short period of time on it as we have overpaid and then shortened it at periods for various regions. The key challenge is how much I want to have saved somewhere. I think on the original PCP i would intend to pay the balloon at the end outright rather than refinance it.
As a few have said, it seems the safest bet as you avoid any odd fluctuations etc, plus the longest I have kept a car is 4 years, but it wasnt a porsche....
The challenge comes more from the fact that the gfv is about 60% the vehicle price so even if i paid the rest upfront, you still finance a decetn amount to have 6% on and my money in savings isnt exactly earning much, its more the security.
Got some time tomorrow so going to ring round and see what is available.
Appreciate all your thoughts and glad in some senses there isnt some glaringly obvious option I have not already considered.
The steady increase in new 911 prices has certainly pulled used values up but the price differential still goes a long way in terms of servicing a used one. Assuming it's out of warranty, a used one really frees up the Indie Workshop and part supply options.
A moderately well spec'd 992S is well into six figures right?
A moderately well spec'd 992S is well into six figures right?
Edited by Andyoz on Wednesday 23 June 16:53
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