12 GT4's for sale on PistonHeads and growing
Discussion
matt21 said:
Thinking of adding a little at mortgage renewal time to the mortgage at sub 2% APR then buy in cash.
Am I missing something?
Always bought my pork this way ,it's the cheapest way if mortgage is not long term especially with low rates and also allows some flexibility in buying to get best deal ie private,opc or non opc.Am I missing something?
Even if you have the cash it depends on what returns are available elsewhere, and how risk averse you are (or can afford to be). If, for example, the stock market is buoyant it may make sense to borrow on your mortgage - or a low finance deal from your bank/dealer etc and invest the money in the stock market either directly or via a fund manager.
There's no simple answer because interest rates and the market are dynamic.
There's no simple answer because interest rates and the market are dynamic.
Edited by bcr5784 on Tuesday 29th August 08:06
Thanks guys. Not stretching myself on the mortgage, but obviously borrowing from the bank at 2% is better than up to 10% with Porsche.
Just didn't know if there was something about PCP I was missing, may friends swear by it, but quite honestly don't think they add up total cost of ownership (quickly forget the deposit they put down!)
Just didn't know if there was something about PCP I was missing, may friends swear by it, but quite honestly don't think they add up total cost of ownership (quickly forget the deposit they put down!)
matt21 said:
Thanks guys. Not stretching myself on the mortgage, but obviously borrowing from the bank at 2% is better than up to 10% with Porsche.
Just didn't know if there was something about PCP I was missing, may friends swear by it, but quite honestly don't think they add up total cost of ownership (quickly forget the deposit they put down!)
There is also a consideration regarding building a relationship with your OPC if for example after buying your GT4 you decide you would like to be considered / given the opportunity to buy a new GT car as the car is so good, then taking out finance through the dealership as well as servicing and extended warranties should be given some thought as they all build in a margin for the dealership. This does help .Just didn't know if there was something about PCP I was missing, may friends swear by it, but quite honestly don't think they add up total cost of ownership (quickly forget the deposit they put down!)
You can take out finance and pay for a couple of months and then settle the agreement which I know a few wealthy Porsche owners do, this all helps build the OPC's margin and also that relationship.
matt21 said:
Thanks guys. Not stretching myself on the mortgage, but obviously borrowing from the bank at 2% is better than up to 10% with Porsche.
Just didn't know if there was something about PCP I was missing, may friends swear by it, but quite honestly don't think they add up total cost of ownership (quickly forget the deposit they put down!)
Without wishing to offend anyone PCP's are designed for people that want to change cars every year and don't actually want to buy the car...they're more like a lease contract than a putprchase contract. The monthly payments are there to amortise the depreciation and not much else. Great way to get behind the wheel of a car you might not otherwise be able to afford. Just didn't know if there was something about PCP I was missing, may friends swear by it, but quite honestly don't think they add up total cost of ownership (quickly forget the deposit they put down!)
The point about finance and OPC relationship is a good one though.....if a GT product is a long term aim worth considering. When I bought my 997 GTS I borrowed £10k I didn't need to. OPC got their commission, gave me £1000 off the car because I took finance and I paid it off early so it cost me £100 in finance costs (after a month OPC is agnostic and told me what to do).
Cheib said:
If you're worried about cost of ownership/cheapest way to buy the car then traditional HP will be cheaper than PCP without a doubt. Obviously if that HP is effectively through you mortgaging equity out of your house then it will be cheaper still. PCP also only works with a smallish deposit. If you. Say want to put up a 50% deposit it doesn't really work at all.
What might be interesting about PCP is if they quoted what you would expect to be strong residuals, but I suspect they won't do that.
OPC says PCP because that's the biggest earner for them...
Why does PCP only work with a small deposit out of interest? Surely the more you put in the less interest you are paying?What might be interesting about PCP is if they quoted what you would expect to be strong residuals, but I suspect they won't do that.
OPC says PCP because that's the biggest earner for them...
Fokker said:
Why does PCP only work with a small deposit out of interest? Surely the more you put in the less interest you are paying?
If you're planning on changing your car at year 3 for one from a different manufacturer you'll have too much equity to simply hand the car back and walk away. You'd need to find the balloon payment sum, buy the car and complete your finance deal, then trade it in elsewhere.A lot of people won't be able to find the balloon payment to do this.
Twinfan said:
If you're planning on changing your car at year 3 for one from a different manufacturer you'll have too much equity to simply hand the car back and walk away. You'd need to find the balloon payment sum, buy the car and complete your finance deal, then trade it in elsewhere.
A lot of people won't be able to find the balloon payment to do this.
I put in 50% deposit on my first GT4 on a PCP and sold it back through the dealer as a sale or return. Made no difference at all and there was no P/X or other car bought. they just paid me back what I was owed.A lot of people won't be able to find the balloon payment to do this.
The figures were something like £80k OTR price, £45k deposit with £45k balloon and £224 per month payments over a 24 month contract. the £224 was effectively the interest payment. The APR was reasonable, below 6% I think and it seemed like a good way to finance the car. What I didn't have obviously was depreciation but still, if you buy right, you can limit that as well.
Had I have put in less deposit, I would have paid a larger monthly payment hence costing me more. 50% deposit on a PCP is the max allowed and better bet than a small deposit if you can do it.
Edited by Fokker on Tuesday 29th August 13:38
Twinfan said:
I think people are talking in general terms about PCPs and the average buyer who switches brands at renewal, not folk such as yourself. They're very different situations.
Yes I appreciate that but i have heard people say previously that a PCP only works with a small deposit and i couldn't quite understand why hence my question. As a general rule of thumb with any finance agreement, the more you put in the less interest you will pay. I just can't see why an OPC wouldn't take a car back in from a customer who was leaving the brand just because he has a lot of equity in it? They're always looking for used stock...Twinfan said:
If you're planning on changing your car at year 3 for one from a different manufacturer you'll have too much equity to simply hand the car back and walk away. You'd need to find the balloon payment sum, buy the car and complete your finance deal, then trade it in elsewhere.
A lot of people won't be able to find the balloon payment to do this.
If there's equity left in the car and the different manufacturer you're looking to buy from isn't interested in the Porsche then you just sell the car to a buyer and they'll clear the finance and hand over a cheque for the equity. I did this on a 987 Spyder and my BGTS, it's all pretty straightforward. A lot of people won't be able to find the balloon payment to do this.
Twinfan said:
Lots of reasons - spec not good for resale, too much stock already, unpopular model etc. The way you used it was good for you but not the normal way a PCP works for a buyer getting a daily driver over 3 years.
If you'd bought the car from the same OPC which is likely then they'll be happy to have it back in in most cases unless they are bursting at the seams which is unlikely. HokumPokum said:
CSL more hardcore imo.
GT4 like the 991 Gt3 are much more usable on a daily basis.
Don't agree with that one bit, I ran my CSL as a daily, I don't with my GT4.what's hardcore about a CSL over a GT4 ?GT4 like the 991 Gt3 are much more usable on a daily basis.
it's a 3 series automatic with more ride height and 4 seats, vs a manual with heavy clutch, low ride heights and 2 seats.
Gassing Station | Boxster/Cayman | Top of Page | What's New | My Stuff