Discussion
tedblog said:
When you have the figures in front of you its shocking ? £1k a month before any running costs.
You will be paying something like 7% to service the debt alone so that's probably £450/month. Unless you can beat 7% risk free on your money (doubtful) then you should be funding it yourself if you are able, eg cash or putting it on your re-morgage which would be less than 2%. The other main element of cost on PCP is the lenders depreciation estimate, which you pay for over the term. This will be a number they expect to be the lowest likely outcome in 3yrs time based on your mileage. Again, you lose out because they know more than you and you sit on the risk. You could of course buy the car and sell it on yourself but there is hassle and cost associated with that.
The question for me is what depreciation will these cars suffer? On the demand side - how many buyers will be out there in 3/5/10 years time; Brexit covid tax changes will all affect this but my view is the economy will bounce back in the not too distant future and there will still be healthy demand. On supply side its more interesting - I think there is a very good chance porsche just won't be able to make many high output internal combustion engines any longer. Environmental regulations and public perception are pushing every manufacturer towards hybrids and electric drivetrains very quickly. A car like this is for drivers. Maybe Porsche will find a way to keep ICE sportscars alive beyond mid decade but I am sceptical. They are keen to keep 911 ICE only and of course the GT division cars as ICE only but where does that leave cayster? The cost to run an ICE and EV mid engine platform will be very high and the numbers aren't there. Look how many other sportscars are simply stopping production (SLK TT etc).
You will probably have "normal" depreciation for a few years but by the time everyone realises what's going on with ICEs I think these cars will be in high demand and hard/impossible to buy new. Look at what happened to 981 prices when everyone thought 718 would be F4T only, then imagine you couldn't have an ICE at all? EV's are practical and fast but they have no soul.
The counter argument to this is that regulations get pushed back due to covid (doubtful given the build back greener agenda in Germany, UK etc); and that ICEs get taxed all the way to the scrap heap - more likely.
joewickham said:
You will be paying something like 7% to service the debt alone so that's probably £450/month. Unless you can beat 7% risk free on your money (doubtful) then you should be funding it yourself if you are able, eg cash or putting it on your re-morgage which would be less than 2%.
The other main element of cost on PCP is the lenders depreciation estimate, which you pay for over the term. This will be a number they expect to be the lowest likely outcome in 3yrs time based on your mileage. Again, you lose out because they know more than you and you sit on the risk. You could of course buy the car and sell it on yourself but there is hassle and cost associated with that.
The question for me is what depreciation will these cars suffer? On the demand side - how many buyers will be out there in 3/5/10 years time; Brexit covid tax changes will all affect this but my view is the economy will bounce back in the not too distant future and there will still be healthy demand. On supply side its more interesting - I think there is a very good chance porsche just won't be able to make many high output internal combustion engines any longer. Environmental regulations and public perception are pushing every manufacturer towards hybrids and electric drivetrains very quickly. A car like this is for drivers. Maybe Porsche will find a way to keep ICE sportscars alive beyond mid decade but I am sceptical. They are keen to keep 911 ICE only and of course the GT division cars as ICE only but where does that leave cayster? The cost to run an ICE and EV mid engine platform will be very high and the numbers aren't there. Look how many other sportscars are simply stopping production (SLK TT etc).
You will probably have "normal" depreciation for a few years but by the time everyone realises what's going on with ICEs I think these cars will be in high demand and hard/impossible to buy new. Look at what happened to 981 prices when everyone thought 718 would be F4T only, then imagine you couldn't have an ICE at all? EV's are practical and fast but they have no soul.
The counter argument to this is that regulations get pushed back due to covid (doubtful given the build back greener agenda in Germany, UK etc); and that ICEs get taxed all the way to the scrap heap - more likely.
I know how a pcp works, its the fact of spending £1K before running costs . The other main element of cost on PCP is the lenders depreciation estimate, which you pay for over the term. This will be a number they expect to be the lowest likely outcome in 3yrs time based on your mileage. Again, you lose out because they know more than you and you sit on the risk. You could of course buy the car and sell it on yourself but there is hassle and cost associated with that.
The question for me is what depreciation will these cars suffer? On the demand side - how many buyers will be out there in 3/5/10 years time; Brexit covid tax changes will all affect this but my view is the economy will bounce back in the not too distant future and there will still be healthy demand. On supply side its more interesting - I think there is a very good chance porsche just won't be able to make many high output internal combustion engines any longer. Environmental regulations and public perception are pushing every manufacturer towards hybrids and electric drivetrains very quickly. A car like this is for drivers. Maybe Porsche will find a way to keep ICE sportscars alive beyond mid decade but I am sceptical. They are keen to keep 911 ICE only and of course the GT division cars as ICE only but where does that leave cayster? The cost to run an ICE and EV mid engine platform will be very high and the numbers aren't there. Look how many other sportscars are simply stopping production (SLK TT etc).
You will probably have "normal" depreciation for a few years but by the time everyone realises what's going on with ICEs I think these cars will be in high demand and hard/impossible to buy new. Look at what happened to 981 prices when everyone thought 718 would be F4T only, then imagine you couldn't have an ICE at all? EV's are practical and fast but they have no soul.
The counter argument to this is that regulations get pushed back due to covid (doubtful given the build back greener agenda in Germany, UK etc); and that ICEs get taxed all the way to the scrap heap - more likely.
If you spent that gambling people would think you have a problem.
As with all things though if you can afford it then why not ,you only live once.
stuartmcg said:
Interested to hear if there was much room for negotiation. These cars are now approaching 6 months old (on paper) and look like they've only dropped £1k in that time and you still have the £2k registration fee on what is listed as a demo ?
Yes I did get a decent discount so quite happy with the deal. When I contacted them it was a miserable week in mid-February which probably helped. As far as I know, the car wasn't advertised anywhere either. It's technically a demo but unregistered and barely even sat in, with delivery mileage.Thanks to others who said nice things about the spec too. I saw the orange and thought: yes, we need more colour in this world!
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