Porsche UK reneging on finance deals
Discussion
If they fear a crash in demand for lux toys then the way they can show confidence and hold the residuals is by charging a premium on interest to create a buffer against the buy back price being too high.
I appreciate that Porsche is probably maximising its profit post IPO but what has happened to residuals.
I appreciate that Porsche is probably maximising its profit post IPO but what has happened to residuals.
I am (maybe was!) in the market for a new Macan GTS - I asked my dealer about the "stickiness" of the APR - here's the response:
"That is our national rate which is the same for all Porsche centres and competitive with the current automotive market at present.
The rate can change and move up or down as you stated and our quotations are valid for 30 days. Once you are proposed and approved with the finance they have a pay out window, so the rate is fixed for a little longer - up to 90 days.
I will attempt to make sure you have an approval much closer to the delivery of your car so you have as much clarity as we can offer."
"That is our national rate which is the same for all Porsche centres and competitive with the current automotive market at present.
The rate can change and move up or down as you stated and our quotations are valid for 30 days. Once you are proposed and approved with the finance they have a pay out window, so the rate is fixed for a little longer - up to 90 days.
I will attempt to make sure you have an approval much closer to the delivery of your car so you have as much clarity as we can offer."
jonny finance said:
The mortgage market is once again moving fast, for the better. Folk sitting it out or successfully shopping elsewhere for their hard earned drip will mean only one thing. OPC arranged funding will have to follow suit
Yup, I think you're right.I have a call tomoz with Oracle Finance to see what they will offer
My 2019 Macan is all paid for so needed another £25k to pay for new one coming in April so searched market for personal loans over 48months. I started with M&S, where I funded current car, they offered £15k at 8.9%, but Nationwide were better offering £20k at 6.9%. Their money is in my bank.
N111BJG said:
My 2019 Macan is all paid for so needed another £25k to pay for new one coming in April so searched market for personal loans over 48months. I started with M&S, where I funded current car, they offered £15k at 8.9%, but Nationwide were better offering £20k at 6.9%. Their money is in my bank.
Definitely worth shopping around and not hard to beat Porsche APR!Yes personal loan rates are still reasonable value for many. The issue that will distort the direction of the market is pcp finance which I understand to be by far the most popular way to buy a new car especially the high end stuff.
As has Been mentioned already there are 2 issues at play, the higher interest rates (almost certainly about to go higher today!) And the finance companies having to try and work out what the future value and hence balloon payment should be in 3 or 4 years time. Will used values still be relatively high or are they going to slide back to more tradional levels?
So if pcp becomes less attractive then I can only see new car sales slumping.
As has Been mentioned already there are 2 issues at play, the higher interest rates (almost certainly about to go higher today!) And the finance companies having to try and work out what the future value and hence balloon payment should be in 3 or 4 years time. Will used values still be relatively high or are they going to slide back to more tradional levels?
So if pcp becomes less attractive then I can only see new car sales slumping.
Longy00000 said:
Yes personal loan rates are still reasonable value for many. The issue that will distort the direction of the market is pcp finance which I understand to be by far the most popular way to buy a new car especially the high end stuff.
As has Been mentioned already there are 2 issues at play, the higher interest rates (almost certainly about to go higher today!) And the finance companies having to try and work out what the future value and hence balloon payment should be in 3 or 4 years time. Will used values still be relatively high or are they going to slide back to more tradional levels?
So if pcp becomes less attractive then I can only see new car sales slumping.
AgreedAs has Been mentioned already there are 2 issues at play, the higher interest rates (almost certainly about to go higher today!) And the finance companies having to try and work out what the future value and hence balloon payment should be in 3 or 4 years time. Will used values still be relatively high or are they going to slide back to more tradional levels?
So if pcp becomes less attractive then I can only see new car sales slumping.
I know of several people who have come to the end of their current 3 Yr deal and have negotiated extensions or taken out personal loans to pay the balloon off as to get a new deal for similar car would be several hundred pounds a month more or in one case to keep the payments about the same it was a case of dropping from a well specced 5 series to less specced 3 series. He kept his 5 for now.
More and more people are to come in for a shock when they expect to just change cars as they have done in the past.
More and more people are to come in for a shock when they expect to just change cars as they have done in the past.
Longy00000 said:
I know of several people who have come to the end of their current 3 Yr deal and have negotiated extensions or taken out personal loans to pay the balloon off as to get a new deal for similar car would be several hundred pounds a month more or in one case to keep the payments about the same it was a case of dropping from a well specced 5 series to less specced 3 series. He kept his 5 for now.
More and more people are to come in for a shock when they expect to just change cars as they have done in the past.
What you could get you cant have now unless you pay more money for it.More and more people are to come in for a shock when they expect to just change cars as they have done in the past.
For the ones who stretched to get into certain cars to 'look the part' a bit of a reality shock is pending
Hobo said:
Correct. You get accepted for finance, but don't sign anything until the car turns up. This is what the OP said though, he said he signed the finance agreement, and I struggle to see that happening.
As for VWFS, that is no doubt their (or in this case the OPC's) choice. In this case, the OPC (or VWFS) decided they they were to increase the APR in line with the market increases, probably in the knowledge they had a massive waiting list for people wanting cars and could sell it on without issue.
Clearly it is going to annoy people, as will significantly increase monthly payments, but not really the fault of VWFS. The world has changed in the past 12 months and credit is no longer as cheap as it was. Go try getting a mortgage now on an offer made 12 months ago. In one way it may be good. There will no doubt be less buyers around due to the costs, so less cars, better residuals, better exclusivity, and potentially more chance of getting the cars previously out of reach.
It's very good IMO. It's annoying paying full whack for a car only to be seen in the same bracket by onlookers as someone renting it for a bag of sand a month.As for VWFS, that is no doubt their (or in this case the OPC's) choice. In this case, the OPC (or VWFS) decided they they were to increase the APR in line with the market increases, probably in the knowledge they had a massive waiting list for people wanting cars and could sell it on without issue.
Clearly it is going to annoy people, as will significantly increase monthly payments, but not really the fault of VWFS. The world has changed in the past 12 months and credit is no longer as cheap as it was. Go try getting a mortgage now on an offer made 12 months ago. In one way it may be good. There will no doubt be less buyers around due to the costs, so less cars, better residuals, better exclusivity, and potentially more chance of getting the cars previously out of reach.
Cheap finance devalues the brand.
rawenghey said:
Hobo said:
Clearly it is going to annoy people, as will significantly increase monthly payments, but not really the fault of VWFS. The world has changed in the past 12 months and credit is no longer as cheap as it was. Go try getting a mortgage now on an offer made 12 months ago. In one way it may be good. There will no doubt be less buyers around due to the costs, so less cars, better residuals, better exclusivity, and potentially more chance of getting the cars previously out of reach.
It's very good IMO. It's annoying paying full whack for a car only to be seen in the same bracket by onlookers as someone renting it for a bag of sand a month.Cheap finance devalues the brand.
Regarding cheap finance devaluing the brand - ignoring any snobbery concerns of the comment assuming you meant finance allowed the "wrong kind of people to buy Porsches" - Take a look at Porsche's growth as a brand in the era of cheap finance from circa 2008 to early 2022. It's clear which version was more valuable in any single objective measure e.g. total company valuation, consumer demand, total sales/revenue, oversubscription of waiting lists for events, trackdays, build slots and the list goes on
jonny finance said:
The mortgage market is once again moving fast, for the better. Folk sitting it out or successfully shopping elsewhere for their hard earned drip will mean only one thing. OPC arranged funding will have to follow suit
Then an increase today of half a percent means 2 steps back?For what it’s worth, I think it depends on whether you requested a finance quote when you placed your order and your dealership. By sheer dumb luck, I requested a finance quote when I ordered my Macan GTS last January and was offered 6.4% APR, which at the time felt pricey. Apparently that locked it in and when the car recently finally arrived, they honoured it, thankfully. I did have to sign the finance paperwork a couple of weeks early, because they said Porsche wouldn’t honour the old rate past the end of 2022, but that was not a hard decision to take versus going up to 10.9%!!
garypotter said:
Where will this end? if the rate is nearly 11% and many people pull out of the pre orders, these cars will sit in the dealers and they will want to shift them, if they start reducing prices this will effect the 2nd hand car market??
Maybe i need to rub my crystal ball harder....
There are increasing numbers of new cars (albeit not particularly inspiring ones) being listed on the AUC site - from my experience these are not all the new cars an OPC has either.Maybe i need to rub my crystal ball harder....
I imagine that those who have got used to changing or upgrading cars regularly will be thinking twice in the current climate?
Or perhaps the vehicles previously being bought regularly to support future halo purchases are now being reconsidered?
Good time to buy a high spec Taycan or Panemera it seems - not for me at £170k for the top spec ones :-(
rawenghey said:
It's very good IMO. It's annoying paying full whack for a car only to be seen in the same bracket by onlookers as someone renting it for a bag of sand a month.
Cheap finance devalues the brand.
Surely this is a joke? Cheap finance devalues the brand.
Nobody actually thinks like that, do they!? Do you honestly care how much someone else thinks you are paying for a car?
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