How to pay for your first porsche
Discussion
If you are hoping to keep the car or want to pay the finance down faster, I would avoid PCP. The balloon payment will guarantee that you have to hand the car back. If you go with HP and values rise you will have more equity in the car when you sell it, and if you decide to hold it, that won’t be a problem - remember - the day when ICE engines will not be for sale new, is not that far away.
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?
I bought my first 911 in the completely wrong way, because that was the one I could afford with low financial stress
I wanted to keep it and had a decent deposit, but no way I could afford cash outright. Also wanted to keep interest as low as possible (short term) and comfortably afford the monthly payments. For me the best option was PCP and I saved throughout to afford the balloon payment at the end in case the residuals were favourable, which they were.
No other option would have allowed me to own the same car, in the same number of months, in my specific circumstances. Plus the deal had unlimited mileage and so I just drove it without worrying about how often I was allowed to take it out.
Looking back, I had a blast driving a car that some years before I could only dream of sitting in. That alone is worth what I paid for the car.
I wanted to keep it and had a decent deposit, but no way I could afford cash outright. Also wanted to keep interest as low as possible (short term) and comfortably afford the monthly payments. For me the best option was PCP and I saved throughout to afford the balloon payment at the end in case the residuals were favourable, which they were.
No other option would have allowed me to own the same car, in the same number of months, in my specific circumstances. Plus the deal had unlimited mileage and so I just drove it without worrying about how often I was allowed to take it out.
Looking back, I had a blast driving a car that some years before I could only dream of sitting in. That alone is worth what I paid for the car.
I used Lombard Asset Finance who gave me £50K at 4% APR or 1.95% flat rate
I had the money but wanted to keep it for a rainy day / new business opportunity / new garage build (if planning ever comes through) . I invest the same as I pay in repayments into a stocks and shares ISA via the Nutmeg / MoneyBox apps and so far after approx 6 months I am getting approx 11% return. Obviously this is not enough to offset the full amount of interest just yet but over the term it should balance out hopefully. Plus as a bonus the Cayman Gt4 I bought has gone up a bit in value
Only downside Lombard will only only do business with you if you are a RBS / Natwest customer if you are neither then use Ryan at clydesdale as they also gave me a similar rate
Best of luck and as a fellow first time Porsche Owner I can assure if it is an amazing brand, so much so I am looking to add a 911 to the GT4 as a daily
I had the money but wanted to keep it for a rainy day / new business opportunity / new garage build (if planning ever comes through) . I invest the same as I pay in repayments into a stocks and shares ISA via the Nutmeg / MoneyBox apps and so far after approx 6 months I am getting approx 11% return. Obviously this is not enough to offset the full amount of interest just yet but over the term it should balance out hopefully. Plus as a bonus the Cayman Gt4 I bought has gone up a bit in value
Only downside Lombard will only only do business with you if you are a RBS / Natwest customer if you are neither then use Ryan at clydesdale as they also gave me a similar rate
Best of luck and as a fellow first time Porsche Owner I can assure if it is an amazing brand, so much so I am looking to add a 911 to the GT4 as a daily
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.
Paralysis implies owners are compelled not to use their cars. Can i suggest each individual owner decides what he/she does during ownership. There is no difference between a track day or a polish day. Maxus said:
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?
We are not all in a position to buy outright and access to a Porsche car via mortgage/re-mortgage is a reasonable option to consider. The key is to be able to pay down the annual depreciation on your car through your mortgage payments. For example the first 3 years the average 911 will depreciate 20-30K.(being very general here btw)
36 months at £833 per month.
5 year fixed rate for peace of mind.
i failed my GCE Maths in 82' so this may be a little off!
The options are interesting. I like the aero pack for what it does the the front and back bumpers and the wing is boss but I like it without. Sports exaust is a must as is the chrono pack.
After that there were a few smaller things I liked. The camera is very poor. Not sure why?
I've reached out to a few companies mentioned. Clydesdale seem to be virgin money now.
I think I need to get to a comfortable stage on the money then just get it ordered.
After that there were a few smaller things I liked. The camera is very poor. Not sure why?
I've reached out to a few companies mentioned. Clydesdale seem to be virgin money now.
I think I need to get to a comfortable stage on the money then just get it ordered.
a_dreamer said:
The options are interesting. I like the aero pack for what it does the the front and back bumpers and the wing is boss but I like it without. Sports exaust is a must as is the chrono pack.
After that there were a few smaller things I liked. The camera is very poor. Not sure why?
I've reached out to a few companies mentioned. Clydesdale seem to be virgin money now.
I think I need to get to a comfortable stage on the money then just get it ordered.
Interesting thread this: After that there were a few smaller things I liked. The camera is very poor. Not sure why?
I've reached out to a few companies mentioned. Clydesdale seem to be virgin money now.
I think I need to get to a comfortable stage on the money then just get it ordered.
I have recently used Ryan at Clydesdale aka Virgin / Yorkshire
Second time I’ve used them - great apr and 0 hassle.
Mortgage being the other route I would consider vehicle cost dependent.
However, I do wonder if pcp is becoming more attractive- you pay a bit more interest but remove all downside risk linked to the death of ICE etc.!!
stichill99 said:
A new 911 is going up in value? As an OPC technician said to me In 20 years time there will be a lot of people wanting to buy your 993 but nobody will want to buy a 992 because of the amount of electronics/sensors complications that will arise!
IMHO there are all sorts of uncertainties about the usability and desirability of ICE cars in the future.Sure, just like steam powered traction engines, there'll likely always be some loon fettling, polishing and occasionally running them, but on the whole it could easily and foreseeably become a proper (and possibly very expensive) hobbyist thing. As hard as it is right now to run an EV with the charging network as it is, it could, potentially, eventually etc. become similar for ICE.
Real rare stuff will always have a museum/collector value perhaps.
My plan with the GT3 is keep, drive, track and enjoy for as long as possible, but to assume 90% of value could be lost.
RichDS said:
However, I do wonder if pcp is becoming more attractive- you pay a bit more interest but remove all downside risk linked to the death of ICE etc.!!
Downside risk protection is not always that attractive once you deduct the PCP cost from the guaranteed value to get the break even point vs cash. Some seem to think the arse is going to fall out of the market and the world is going to end but I'd see a demand for ICE for a while yet, remains to be seen whether the 2030 eco-mentalist ban actually gets extended...If you've built up a nice mortgage overpayment I would've thought it will be much cheaper borrowing to use that as rates now <1% vs 5.9% (?) for the Porsche PCP.
I'd probably pay the monthly depreciation back into the fund to offset the depreciation however. Ymmv, of course.
stichill99 said:
A new 911 is going up in value? As an OPC technician said to me In 20 years time there will be a lot of people wanting to buy your 993 but nobody will want to buy a 992 because of the amount of electronics/sensors complications that will arise!
This is a very real concern, a lot of the tech in cars nowadays will become obsolete. Even modern limited run Ferraris etc, may struggle to repeat the desirability of their ancestors I suspect. Buy it, drive it, enjoy it, if you end up with a future classic, brilliant, if not hey ho.
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?
Right now I have an £80k budget to buy myself a significant birthday present.
Now do I spend that budget and in return get a 4ish year old 911 with around 15k miles, or add another £20k or so & order a new 992 by taking PCP route.
Whilst I’ve never had any particular attachment to any brand new daily cars (currently Macan S) I am very fond of my 2014 BMW GS (& I’m it’s sole owner) in a way I’ve never felt about any 2nd hand bikes I’ve owned.
Now do I spend that budget and in return get a 4ish year old 911 with around 15k miles, or add another £20k or so & order a new 992 by taking PCP route.
Whilst I’ve never had any particular attachment to any brand new daily cars (currently Macan S) I am very fond of my 2014 BMW GS (& I’m it’s sole owner) in a way I’ve never felt about any 2nd hand bikes I’ve owned.
Stuart70 said:
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?
Reality is, borrowing to buy a depreciating asset in any form would probably horrify him. Used with a cheap loan and a warranty always seems far better value to me, except that the used market’s gone a bit crazy of late.
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