Porsche UK reneging on finance deals
Discussion
From what I have heard recently this is starting to happen quite often. I’m sure you’re not the only one not comfortable paying nearly 11% on finance.
Cars and allocations are starting to filter through, if you’re not desperate to change I would politely ask for the deposit back instead of getting bent over a barrel and wait it out.
Sadly Porsche centre's have changed as a brand, the opc make their main chunk of cash off Macans, Tycans and Cayennes. They have a new customer base and business model, due to this their customer service isn’t at the front anymore. The dealerships will be as sole less as walking into a bmw showroom soon enough.
I bet you if you asked most of the sales people nowadays about a spec of a car they wouldn’t have a clue.
Cars and allocations are starting to filter through, if you’re not desperate to change I would politely ask for the deposit back instead of getting bent over a barrel and wait it out.
Sadly Porsche centre's have changed as a brand, the opc make their main chunk of cash off Macans, Tycans and Cayennes. They have a new customer base and business model, due to this their customer service isn’t at the front anymore. The dealerships will be as sole less as walking into a bmw showroom soon enough.
I bet you if you asked most of the sales people nowadays about a spec of a car they wouldn’t have a clue.
If it was a bank loan, you could have paid a commitment fee from the time of approval to the time of the money being paid out to secure the rate. Guess that option does not exist for private individuals.
I can understand it to a degree from a companies perspective as they would need to refinance their exposure at time of commitment, still not great from a customer retention perspective
I can understand it to a degree from a companies perspective as they would need to refinance their exposure at time of commitment, still not great from a customer retention perspective
MDL111 said:
If it was a bank loan, you could have paid a commitment fee from the time of approval to the time of the money being paid out to secure the rate. Guess that option does not exist for private individuals.
I can understand it to a degree from a companies perspective as they would need to refinance their exposure at time of commitment, still not great from a customer retention perspective
Not necessarily. As a business VW FS will have arranged finance forward based on their expected needs for the next year or so...or should have. However, looking at how much they have increased the margin I suspect they are quite uncovered so are having to clawback. As global interest rate rises top out and, in the UK, likely reverse later in the year then PCP rates might be a few points lower this time next year especially if waiting lists start to materially shorten.I can understand it to a degree from a companies perspective as they would need to refinance their exposure at time of commitment, still not great from a customer retention perspective
Edited by EC2 on Saturday 28th January 09:51
Just greedy profiteering. VW finance are a major player who will hedge their exposures well in advance. They will know every day what they have to fund. Toyota clearly value their customers Porsche it seems just want to take your trousers down. As an aside who is mad enough to fund cars at 10% !! That’s painful
Imagine this will be a common story, in a prior era of cheap financing and supply chain issues artificially bolstering residuals, sure PCP me up. Cooking spec models going for wads over list.
Fast forward to a more gloomy outlook, and higher lending costs. Cancelled orders being picked up by those who don't want to wait for the lead times, why buy that used model at list when you can have a new one.
Throw in the odd fixed rate ending on the mortgage, and it's easy to see the feeding frenzy abating.
Fast forward to a more gloomy outlook, and higher lending costs. Cancelled orders being picked up by those who don't want to wait for the lead times, why buy that used model at list when you can have a new one.
Throw in the odd fixed rate ending on the mortgage, and it's easy to see the feeding frenzy abating.
TheMuu said:
Imagine this will be a common story, in a prior era of cheap financing and supply chain issues artificially bolstering residuals, sure PCP me up. Cooking spec models going for wads over list.
Fast forward to a more gloomy outlook, and higher lending costs. Cancelled orders being picked up by those who don't want to wait for the lead times, why buy that used model at list when you can have a new one.
Throw in the odd fixed rate ending on the mortgage, and it's easy to see the feeding frenzy abating.
Absolutely, swathes of PCP renters hanging on the coat tails of cheap tick and artificially inflated values will be waking up and smelling the coffee.Fast forward to a more gloomy outlook, and higher lending costs. Cancelled orders being picked up by those who don't want to wait for the lead times, why buy that used model at list when you can have a new one.
Throw in the odd fixed rate ending on the mortgage, and it's easy to see the feeding frenzy abating.
EC2 said:
Not necessarily. As a business VW FS will have arranged finance forward based on their expected needs for the next year or so...or should have. However, looking at how much they have increased the margin I suspect they are quite uncovered so are having to clawback. As global interest rate rises top out and, in the UK, likely reverse later in the year then PCP rates might be a few points lower this time next year especially if waiting lists start to materially shorten.
I suspect rates got away from them given the significant shift over a very short timeframe (and the fact that they were basically negative for a very long time beforehand) Edited by EC2 on Saturday 28th January 09:51
I have a new Macan scheduled for delivery in April.
On the various VWFS deals I’ve had in the past their rates are typically about 5.5% above BoE rate of the day. At the moment their margin is 7.4% & they insist on lending far more money than I need.
So I’m going the personal loan route this time & have £20k promised at 6.9% over four years.
On the various VWFS deals I’ve had in the past their rates are typically about 5.5% above BoE rate of the day. At the moment their margin is 7.4% & they insist on lending far more money than I need.
So I’m going the personal loan route this time & have £20k promised at 6.9% over four years.
Terminator X said:
I ordered an Audi in Nov 21, still not here but finance all unchanged whenever it arrives.
Apologies to the 99% of PH who are either cash buyers or driving s
tboxes.
TX.
LOL, I think something like 90% of new cars are bought with finance - that leaves 10% driving sApologies to the 99% of PH who are either cash buyers or driving s
tboxes. TX.
tboxes or laundering cash....
I have a 992S on order from jun 22 but am still awaiting allocation. I was going to buy it cash so the APR rates aren’t a huge concern but given the state of the market I won’t be taking the order unless it now fits with the release of the 992.2. Prices are softening and I don’t want to be paying over the odds for a 992.1 when there are good ones now appearing sub £95k.
andyglos said:
I have a 992S on order from jun 22 but am still awaiting allocation. I was going to buy it cash so the APR rates aren’t a huge concern but given the state of the market I won’t be taking the order unless it now fits with the release of the 992.2. Prices are softening and I don’t want to be paying over the odds for a 992.1 when there are good ones now appearing sub £95k.
I'd do the sameandyglos said:
I have a 992S on order from jun 22 but am still awaiting allocation. I was going to buy it cash so the APR rates aren’t a huge concern but given the state of the market I won’t be taking the order unless it now fits with the release of the 992.2. Prices are softening and I don’t want to be paying over the odds for a 992.1 when there are good ones now appearing sub £95k.
Not seen any at 95?What year 2022?
86 said:
Just greedy profiteering. VW finance are a major player who will hedge their exposures well in advance. They will know every day what they have to fund. Toyota clearly value their customers Porsche it seems just want to take your trousers down. As an aside who is mad enough to fund cars at 10% !! That’s painful
You don't hedge an exposure when the customer is not guaranteed to take out the finance!Gassing Station | Porsche General | Top of Page | What's New | My Stuff