What APR can I expect to be offered by Porsche OPC at the mo
Discussion
lansdown65 said:
I've just got 5.9% APR on a new Cayman.
ouch that's must be 15k interest on a PCP !hence why when you offer to buy cash these days they say no deal !!! OPC love finance where else can one get 6% atm they make more money on the finance than on the car ! scary
Why don't people loan them self money from their house at 1% ?
Porsche911R said:
lansdown65 said:
I've just got 5.9% APR on a new Cayman.
ouch that's must be 15k interest on a PCP !hence why when you offer to buy cash these days they say no deal !!! OPC love finance where else can one get 6% atm they make more money on the finance than on the car ! scary
Why don't people loan them self money from their house at 1% ?
Mortgages are very expensive when you take into account how much money banks make out of them over the life span of the product. Not much risk to the bank either.
(I've not see this 1% rate anywhere by the way - lenders seem to start you at 2% for a few years then move you to 4% which works out to about £80k of interest to borrow £80k over 25 years)
When i was in the Bolton OPC pricing up Turbo S's last month the standard APR for PCP was 8.99% & even 9.50% on some cars. I did laugh as not a chance anyone would pay rates that high for such a high value car. That said i wasn't in negotiating mode as too early for my requirements as i don't need to order until the Summer, however if they stayed that high then i'd use one of the many Brokers who's smash that rate.
The only figure you should take the time to calculate is the total amount paid in interest until you actually own the car.
Put your monthly budget into a loan calculator and increase the number of months until you reach the amount it's going to take to get the car you want.
You might find that it will take 6 or 7 years or more . . .
In this case all a PCP does is cost you extra in interest. On my last change a 3 year PCP and a 2 year loan to pay off the balloon would have cost over £12.5k in interest. A 5 year loan cost me just over £7k in interest and a lump sum overpayment of just under 10 payments reduced the term by 12 payments and took another £2k off the interest.
I did buy my first Porsche via a re-mortgage in 2006 - 0.39% above base rate and then overpaid the mortgage when possible to get back to the level I would have been at pre-purchase. This requires a great deal of discipline and thus it took 6 years, rather than the 5 I had planned.
Put your monthly budget into a loan calculator and increase the number of months until you reach the amount it's going to take to get the car you want.
You might find that it will take 6 or 7 years or more . . .
In this case all a PCP does is cost you extra in interest. On my last change a 3 year PCP and a 2 year loan to pay off the balloon would have cost over £12.5k in interest. A 5 year loan cost me just over £7k in interest and a lump sum overpayment of just under 10 payments reduced the term by 12 payments and took another £2k off the interest.
I did buy my first Porsche via a re-mortgage in 2006 - 0.39% above base rate and then overpaid the mortgage when possible to get back to the level I would have been at pre-purchase. This requires a great deal of discipline and thus it took 6 years, rather than the 5 I had planned.
Edited by pete.g on Saturday 20th February 14:47
9e 28 said:
Because if you borrow £80k on your house to buy a car even at 1% it works out to more than £15k over the 25 year span of the mortgage i.e. £800 x 25 = £20,000!
Mortgages are very expensive when you take into account how much money banks make out of them over the life span of the product. Not much risk to the bank either.
(I've not see this 1% rate anywhere by the way - lenders seem to start you at 2% for a few years then move you to 4% which works out to about £80k of interest to borrow £80k over 25 years)
That's only relevant if you are daft enough to span it over 25 years. You can pay it off at your own speed.Mortgages are very expensive when you take into account how much money banks make out of them over the life span of the product. Not much risk to the bank either.
(I've not see this 1% rate anywhere by the way - lenders seem to start you at 2% for a few years then move you to 4% which works out to about £80k of interest to borrow £80k over 25 years)
lansdown65 said:
I've just got 5.9% APR on a new Cayman.
kkerr3 said:
i am being offered 7.6% on a GT4
I am in the middle - 6.9% APR from Porsche. I did find a quote at 4.9% which would have saved me nearly £2000 however I am planning on settling the finance early and want to stay friendly with the dealership to enhance my chances of a GT4RS and/or a 911R.
Bramptonmel55 said:
I wonder if they will offer me a better rate on a new 991.2 rather than a 9 month old 991.1...
As with most manufacturer backed finance - they will almost certainly offer you a better rate on a (new - keeps up the brand's sales figures) 991.2 rather than a (used - who cares) 9 month old 991.1. Although in either case Porsche’s rate will likely be far worse* than that offered via other brokers/finance providers (e.g. Oracle Finance/Lombard).lansdown65 said:
5.9% APR on a new Cayman
Twinfan said:
5.9% too Cayman GTS
Twinfan - a new Cayman GTS?^ I'm actually surprised at these (<6%), as it's Porsche/VWFS I'd expect more:
kkerr3 said:
7.6% on a GT4
R1nur said:
6.9%
W8PMC said:
8.99% & even *9.50% on some cars
W8PMC - surely these must have been rates on used Turbo S's? Even so - outrageous!Bramptonmel55 - for used car/secured finance (i.e. not some LIBOR-based fantasy, personal loan, or re-mortgage) I would suggest anything <5% is "good", 5%<>6% “ok” and >6% not great.
Due to the way they’re structured PCPs will always, assuming the same underlying funding rate, be a higher %APR than normal/non-balloon HP. It is essential to look at the total cost over your intended term and then compare the differences (£x000) between your various options/funding methods/quotes.
You would be surprised at the wide spread on rates across brokers; keep in mind they're selling you money, and if they're able to have your pants down - they will. Speak to some of the specialist car finance brokers and see how many, having been informed a better rate was achieved via another provider, subsequently offer to "sharpen their pencil" to improve the deal. Also, if any start quoting a %flat rate - double it to get an approximate idea of %APR.
Regardless of the how it’s packaged (PCP/HP), other than maybe Porsche/VWFS supporting the PCP GFVs, I don’t imagine Porsche’s finance quote couldn’t be beaten by another finance provider.
Finally, when comparing quotes makes sure you’re comparing like with like – for example, are all the deals/rates you’re offered based on regulated agreements.
Good luck!
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