Cayman GTS residuals - Porsche Financing

Cayman GTS residuals - Porsche Financing

Author
Discussion

hixster

Original Poster:

354 posts

216 months

Monday 22nd January 2018
quotequote all
I've been speccing up a 718GTS with medium to reasonable spec. The car is coming out circa £70k mark.

With 6K miles per year over 3 years (18K total), the Porsche finance example has the residual/balloon at £42k.

I'm aware OPC are usually conservative on residual values, but I'm seeing similarly specced 981GTSs at 3 years old for sale at between £54k and £60k.
Who's to say the 718 GTS will hold its value in the same way, but if it did, this would leave some reasonable 'equity' as they call it in the car.

I'm just curious what residual figures any 981 GTS owners were quoted when buying new on similarly priced cars.

moonigan

2,127 posts

240 months

Monday 22nd January 2018
quotequote all
60% of purchase price after 3 years is excellent.

hixster

Original Poster:

354 posts

216 months

Tuesday 23rd January 2018
quotequote all
I don’t disagree, guess I’m just curious as to what Porsche predict when you agree finance and what the market does

Prestonese

793 posts

104 months

Tuesday 23rd January 2018
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The residual value is a bit arbitrary really though the finance company puts a cap on it to protect themselves in a downturn where values fall further than expected.

It sounds counterintuitive but having a lower residual (you can agree this with the finance company) is going to cost you less overall as total interest is lower. Though if your concern is your monthly budget it may be irrelevant.

moonigan

2,127 posts

240 months

Tuesday 23rd January 2018
quotequote all
Prestonese said:
The residual value is a bit arbitrary really though the finance company puts a cap on it to protect themselves in a downturn where values fall further than expected.

It sounds counterintuitive but having a lower residual (you can agree this with the finance company) is going to cost you less overall as total interest is lower. Though if your concern is your monthly budget it may be irrelevant.
I'm guessing sales on the 718 are a lot slower than expected. Porsche are offering a deposit contribution and stupid residuals. If you can stay away from the options list then the base 718 GTS makes a lot of sense. 70% residual means over 3 years it costs you around £25K.

Twinfan

10,125 posts

103 months

Tuesday 23rd January 2018
quotequote all
hixster said:
I've been speccing up a 718GTS with medium to reasonable spec. The car is coming out circa £70k mark. With 6K miles per year over 3 years (18K total), the Porsche finance example has the residual/balloon at £42k.

I'm just curious what residual figures any 981 GTS owners were quoted when buying new on similarly priced cars.
I'll share my figures as I was in a similar(ish) position to you.

My 981 CGTS was £63k, I put a £10k deposit down and I'm financing the car over 4 years with a 6k a year mileage limit. My balloon is £26k.

I'm hoping to pay off the finance around 18 months early which will save me a few quid.

911wise

1,867 posts

208 months

Tuesday 23rd January 2018
quotequote all
Been sceptical the only way I see you having any equity in the car is if you can pay off the balloon at the end. If not dealer has you over a barrel, Why would they give you the market value for a car they own not you?

Twinfan

10,125 posts

103 months

Tuesday 23rd January 2018
quotequote all
Yep, you are at the mercy of the dealer somewhat when you get to the end of your term.

I've always planned to buy mine, not hand it back.

pete.g

1,527 posts

205 months

Tuesday 23rd January 2018
quotequote all
hixster said:
I've been speccing up a 718GTS with medium to reasonable spec. The car is coming out circa £70k mark.

With 6K miles per year over 3 years (18K total), the Porsche finance example has the residual/balloon at £42k.

I'm aware OPC are usually conservative on residual values, but I'm seeing similarly specced 981GTSs at 3 years old for sale at between £54k and £60k.
Who's to say the 718 GTS will hold its value in the same way, but if it did, this would leave some reasonable 'equity' as they call it in the car.

I'm just curious what residual figures any 981 GTS owners were quoted when buying new on similarly priced cars.
You're using the retail price as guide - the bid to the owner will have been well below that figure; probably 15% or even more.

I would not use a PCP - go for HP over a longer term.

WG

1,009 posts

125 months

Tuesday 23rd January 2018
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I have recently had two leasing illustrations on a 718 Boxster GTS with invoice price just over £70K. 4 year residual :- £34,651,, 2 year residual £43,689. Interest rate on both is 7.3%.

hixster

Original Poster:

354 posts

216 months

Tuesday 23rd January 2018
quotequote all
911wise said:
Been sceptical the only way I see you having any equity in the car is if you can pay off the balloon at the end. If not dealer has you over a barrel, Why would they give you the market value for a car they own not you?
Yes, this is part of my reasoning for asking the question. I can pay the balloon, then would sell the car on and recoup the money and anything over the residual...

If the residual is 42k and I can sell the car for £50k+ then I walk away with £8k+ to put into a new car etc..


Edited by hixster on Tuesday 23 January 12:20

hixster

Original Poster:

354 posts

216 months

Tuesday 23rd January 2018
quotequote all
Twinfan said:
I'll share my figures as I was in a similar(ish) position to you.

My 981 CGTS was £63k, I put a £10k deposit down and I'm financing the car over 4 years with a 6k a year mileage limit. My balloon is £26k.

I'm hoping to pay off the finance around 18 months early which will save me a few quid.
cool, thanks for sharing, sounds like you'll be in a good position with the car.

Prestonese

793 posts

104 months

Tuesday 23rd January 2018
quotequote all
moonigan said:
Prestonese said:
The residual value is a bit arbitrary really though the finance company puts a cap on it to protect themselves in a downturn where values fall further than expected.

It sounds counterintuitive but having a lower residual (you can agree this with the finance company) is going to cost you less overall as total interest is lower. Though if your concern is your monthly budget it may be irrelevant.
I'm guessing sales on the 718 are a lot slower than expected. Porsche are offering a deposit contribution and stupid residuals. If you can stay away from the options list then the base 718 GTS makes a lot of sense. 70% residual means over 3 years it costs you around £25K.
That's probably the case and explains the current low residuals but there isn't anything to stop you from selling to the highest bidder at the end even if it isn't the original dealer. The residual is arbitrary as it is only to protect the finance company or dealer (usually the former actually) if the agreement goes badly.

Twinfan

10,125 posts

103 months

Tuesday 23rd January 2018
quotequote all
hixster said:
cool, thanks for sharing, sounds like you'll be in a good position with the car.
No problem, and yes I think I will smile

timberman

1,280 posts

214 months

Tuesday 23rd January 2018
quotequote all

I'd be interested to hear the interest rates achieved by going through Porsche finance,

I've been offered a loan of 50k by my bank at a rate of 3.4% which seems to be much better than anything Porsche are willing to offer me.


Porsche911R

21,146 posts

264 months

Tuesday 23rd January 2018
quotequote all
timberman said:
I'd be interested to hear the interest rates achieved by going through Porsche finance,

I've been offered a loan of 50k by my bank at a rate of 3.4% which seems to be much better than anything Porsche are willing to offer me.
you forget PCP allows people to buy cars they cannot really afford and it keeps the monthly lower but they pay £25k in interest to allow it.

A loan is 4 x the monthly payments and of course better/cheaper over all but people cannot afford the payments.

Twinfan

10,125 posts

103 months

Tuesday 23rd January 2018
quotequote all
Cars people can't really afford? Here we go again with the famous Porsche owner's stereotype of condescending and elitist comments. If you can afford the PCP payments then you can afford the car - simple as that.

Anyway, back on topic, my Porsche finance interest rate is 6.9%. My bank only loans up to £20k so they weren't an option for me when I was buying. If you can get a £50k personal loan at 3.4% then I'd certainly take it!

hixster

Original Poster:

354 posts

216 months

Tuesday 23rd January 2018
quotequote all
I went outside of the dealer network and through a broker for my 981S - the best deal at the time was with Santander APR 5.8%

timberman

1,280 posts

214 months

Tuesday 23rd January 2018
quotequote all
Twinfan said:
Cars people can't really afford? Here we go again with the famous Porsche owner's stereotype of condescending and elitist comments. If you can afford the PCP payments then you can afford the car - simple as that.

Anyway, back on topic, my Porsche finance interest rate is 6.9%. My bank only loans up to £20k so they weren't an option for me when I was buying. If you can get a £50k personal loan at 3.4% then I'd certainly take it!
I seem to remember being offered a similar rate when I last visited a local OPC,
told the sales guy I was looking to either match or beat 3.4% and he thought I was talking about flat rate, after confirming I meant apr he seemed to lose interest in me.

wasn't actually looking to borrow 50k but it's nice to know it's there if I want it.

moonigan

2,127 posts

240 months

Tuesday 23rd January 2018
quotequote all
Porsche911R said:
you forget PCP allows people the manufacturers to sell buy cars they cannot really afford and it keeps the monthly lower but they pay £25k in interest to allow it. wouldn't be able to sell otherwise.
I've corrected that for you. Buying by PCP can be the smart way to buy particularly if it involves contributions/discounts that would not be available if you went in with your debit card.