Best rate on a new Porsche?
Discussion
kbf1981 said:
So many people are thick. If you own a business and can take out what you want, cash is miles more expensive than finance because you pay 60%+ tax on income above 100k
NI = 12%
Employers NI = 15%
Income tax = 45%
So if you own a business, and take 100k cash out to buy a car, you need to actually take out around £210k to buy it as cash.
Dividends aren't much different
Corporate tax = 26%
Dividend tax = 38%
So again, you need to earn / take out 200k+ to pay 100k post tax
Debt is tax free.
Erm. No. You pay cash from the company. Full capital relief for the company and tiny benefit in kind, for now, as company car (Taycan being an EV).NI = 12%
Employers NI = 15%
Income tax = 45%
So if you own a business, and take 100k cash out to buy a car, you need to actually take out around £210k to buy it as cash.
Dividends aren't much different
Corporate tax = 26%
Dividend tax = 38%
So again, you need to earn / take out 200k+ to pay 100k post tax
Debt is tax free.
Different matter if buying expensive ICE.
And where do you think your payments come from to finance the car personally? They are all net of tax (or should be). Add up the gross monthly payments (what you have to earn to take home the monthly) and multiply that by 24/36/48 to get the real cost of financing your car.
Edited by Discombobulate on Tuesday 29th November 10:21
It's a bit irritating really. Due a Taycan Turbo S (well it was due in October but each month it gets pushed back) in January and will be contract purchase as per my 4S. Makes sense from a business POV as we can use the £360k cash for 2 of them much more productively. Rising rates just make it a bit more frustrating.
Discombobulate said:
Erm. No. You pay cash from the company. Full capital relief for the company and tiny benefit in kind, for now, as company car (Taycan being an EV).
Different matter if buying expensive ICE.
And where do you think your payments come from to finance the car personally? They are all net of tax (or should be). Add up the gross monthly payments (what you have to earn to take home the monthly) and multiply that by 24/36/48 to get the real cost of financing your car.
Might work for 0% BIK Taycan but try it with a ICE Supercar and there is no Capital relief and the BIK will be eye watering expensive Different matter if buying expensive ICE.
And where do you think your payments come from to finance the car personally? They are all net of tax (or should be). Add up the gross monthly payments (what you have to earn to take home the monthly) and multiply that by 24/36/48 to get the real cost of financing your car.
Edited by Discombobulate on Tuesday 29th November 10:21
And you know this will change ... car tax changed at the last financial statement ... and BIK is bound to follow ...
Better to own the car and charge the mileage allowance ... if this was ever going to be increased with fuel or electricity (fuel) prices ? ... but only for a "very sensible" car !
Better to own the car and charge the mileage allowance ... if this was ever going to be increased with fuel or electricity (fuel) prices ? ... but only for a "very sensible" car !
FourGears said:
Are Porsche offering an FDA on finance?
Take the finance then pay it off?
Had to look up what FDA was….answer not in the current environment maybe in a few months. Most models still have a decent waiting list so if there’s a cancelled order someone is probably happy to queue jump to get the car and even take daft finance. I have seen it in the past but on cars like Panamera’s that are built and need to be shifted.Take the finance then pay it off?
OPC will lost its bonus if you cancel your finance straight away so you won’t be flavour of the month or any month in the future. So that’s a choice you make !
Cheib said:
Had to look up what FDA was….answer not in the current environment maybe in a few months. Most models still have a decent waiting list so if there’s a cancelled order someone is probably happy to queue jump to get the car and even take daft finance. I have seen it in the past but on cars like Panamera’s that are built and need to be shifted.
OPC will lost its bonus if you cancel your finance straight away so you won’t be flavour of the month or any month in the future. So that’s a choice you make !
Surely we are heading for a totally different market where the dealer starts having to chase the customer. People are going to need serious deposits to fund these cars and the amount of people who can raise £50000/£60000 deposits ( and not remortgage their house to do it ) or buy them outright will be few. OPC will lost its bonus if you cancel your finance straight away so you won’t be flavour of the month or any month in the future. So that’s a choice you make !
I can’t see for the foreseeable future much light for these high end dealers. They’ve been built on cheap money which has been literally everywhere but it’s really turned now. Car dealerships are going to struggle to adapt.
Chipper said:
Cheib said:
Had to look up what FDA was….answer not in the current environment maybe in a few months. Most models still have a decent waiting list so if there’s a cancelled order someone is probably happy to queue jump to get the car and even take daft finance. I have seen it in the past but on cars like Panamera’s that are built and need to be shifted.
OPC will lost its bonus if you cancel your finance straight away so you won’t be flavour of the month or any month in the future. So that’s a choice you make !
Surely we are heading for a totally different market where the dealer starts having to chase the customer. People are going to need serious deposits to fund these cars and the amount of people who can raise £50000/£60000 deposits ( and not remortgage their house to do it ) or buy them outright will be few. OPC will lost its bonus if you cancel your finance straight away so you won’t be flavour of the month or any month in the future. So that’s a choice you make !
I can’t see for the foreseeable future much light for these high end dealers. They’ve been built on cheap money which has been literally everywhere but it’s really turned now. Car dealerships are going to struggle to adapt.
I think cars can go back to normal depreciation rates pretty quickly, It is where there may well be problems as Porsche have managed to increase the price of new cars by somewhere between 15 and 20% over the last few years so current nearly new models looks really expensive compared to their predecessor. Currently a four year old 991.2 GTS is say £85k….a used 992 GTS is £125k at a minimum from an OPC….pretty much a 50% premium. That gap simply won’t hold, 992 prices need to adjust lower by say £20k. When that happens new 992 GTS’s start looking expensive…..and then new 911 sales stall.
Robbo66 said:
Agree with all of this apart from one part. I cannot fathom why anyone would buy anything ..now.
Jan Feb will be a very different place.
Could you elaborate your post a bit please? Jan Feb will be a very different place.
What's going to change so dramatically in the next 4-8 weeks do you think?
Sincere post - not a challenge, just wanting to get an idea of what you, and others, think the state of the market will be and what will change that so much after Xmas.
P.S. I f****** hate buying a car with finance despite the many reasonable and rational arguments to do so. Still do though, especially the more run of the mill stuff I won't keep. Just kills experience for me. I know many who feel the same about houses and mortgages too...!
Robbo66 said:
Not quite as simple as that.
This all depends on where and how you invest your net cash for a higher return versus the cost of ‘renting’ your trinket.
You have paid tax to be able to ‘rent’ so decision washes out.
I’m afraid I’m old school, can’t afford it straight cash, won’t buy it.
We must have gone to the same schoolThis all depends on where and how you invest your net cash for a higher return versus the cost of ‘renting’ your trinket.
You have paid tax to be able to ‘rent’ so decision washes out.
I’m afraid I’m old school, can’t afford it straight cash, won’t buy it.
992gt3 190 already behind the scenes,still 30k over.
Murcielago_Boy said:
Robbo66 said:
Agree with all of this apart from one part. I cannot fathom why anyone would buy anything ..now.
Jan Feb will be a very different place.
Could you elaborate your post a bit please? Jan Feb will be a very different place.
What's going to change so dramatically in the next 4-8 weeks do you think?
Sincere post - not a challenge, just wanting to get an idea of what you, and others, think the state of the market will be and what will change that so much after Xmas.
P.S. I f****** hate buying a car with finance despite the many reasonable and rational arguments to do so. Still do though, especially the more run of the mill stuff I won't keep. Just kills experience for me. I know many who feel the same about houses and mortgages too...!
I posted the following in another thread over a month ago:
SkinnyPete said:
I was speaking to a sales executive at Porsche recently, they were saying that the 10.8% interest rate has already impacted sales of Macans as people who buy these cars in this price range can’t really afford them anyway. So the additional extra cost finally pushes them out of reach.
No apparent detriment to 911 sales though, their conjecture was if you can afford a £120-150k on a toy then the interest rate is much less relevant.
They also said their second hand prices have softened for the third month running, and that their rates are going up again in a few weeks.
I don't like timing the market, but I really wouldn't want to buy a car anytime soon. No apparent detriment to 911 sales though, their conjecture was if you can afford a £120-150k on a toy then the interest rate is much less relevant.
They also said their second hand prices have softened for the third month running, and that their rates are going up again in a few weeks.
I think now would be the worst time to buy.
Car prices around the peak of the wave ( on the downside now ) coupled with higher financing costs leave a purchase better left until we see where the new normal settles.
With the majority financing l can’t see how the current pricing can continue.
Car prices around the peak of the wave ( on the downside now ) coupled with higher financing costs leave a purchase better left until we see where the new normal settles.
With the majority financing l can’t see how the current pricing can continue.
Yellow491 said:
Robbo66 said:
Not quite as simple as that.
This all depends on where and how you invest your net cash for a higher return versus the cost of ‘renting’ your trinket.
You have paid tax to be able to ‘rent’ so decision washes out.
I’m afraid I’m old school, can’t afford it straight cash, won’t buy it.
We must have gone to the same schoolThis all depends on where and how you invest your net cash for a higher return versus the cost of ‘renting’ your trinket.
You have paid tax to be able to ‘rent’ so decision washes out.
I’m afraid I’m old school, can’t afford it straight cash, won’t buy it.
992gt3 190 already behind the scenes,still 30k over.
Cheib said:
FourGears said:
Are Porsche offering an FDA on finance?
Take the finance then pay it off?
Had to look up what FDA was….answer not in the current environment maybe in a few months. Most models still have a decent waiting list so if there’s a cancelled order someone is probably happy to queue jump to get the car and even take daft finance. I have seen it in the past but on cars like Panamera’s that are built and need to be shifted.Take the finance then pay it off?
OPC will lost its bonus if you cancel your finance straight away so you won’t be flavour of the month or any month in the future. So that’s a choice you make !
Murcielago_Boy said:
Robbo66 said:
Agree with all of this apart from one part. I cannot fathom why anyone would buy anything ..now.
Jan Feb will be a very different place.
Could you elaborate your post a bit please? Jan Feb will be a very different place.
What's going to change so dramatically in the next 4-8 weeks do you think?
Sincere post - not a challenge, just wanting to get an idea of what you, and others, think the state of the market will be and what will change that so much after Xmas.
P.S. I f****** hate buying a car with finance despite the many reasonable and rational arguments to do so. Still do though, especially the more run of the mill stuff I won't keep. Just kills experience for me. I know many who feel the same about houses and mortgages too...!
Those renting at 11% ++ on a fast depreciating toy, who may have also paid overs too….won’t be.
ChrisW. said:
How to be a bad Porsche customer, pay cash !! What a world.
Sign of the times chris, cheap money encouraged folk to live beyond.I remember buying my cayenne,they were around my ankles to take finance , to the point i told them to shove it.I made a bid of which they said they could only match if i took finance, funny though a hour later they phoned and said come and pick it up, one of the best vehicles i have owned.
As said to pay expensive interest and depreciation works out very expensive/prohibitive , all the tax breaks dont help much once in the trap.
Gassing Station | Porsche General | Top of Page | What's New | My Stuff