718 balloon payment
Discussion
Hi all. In talks with my OPC at the moment about swapping my 981 GTS with a 718 GTS. Currently I’m on a PCP deal (ends Oct this year) and my settlement figure is 33k. To my surprise, the new PCP settlement figure after 3 years with the 718 is 45k. I asked why it’s higher and I was told Porsche have realised they were way off with their pricing (hence why I have quite a substantial amount of equity in my car).
Just wanted to run this past you guys to see whether your settlement is coming up this high? This will obviously mean less equity at the end of the term, but this is offset with lower monthly payments (which in my case will reduce by 50%).
As context, I may end up swapping into something with more seats in a few years but thought this current deal is a very good one.
And lastly, yes I’ve driven the new 718 and think it’s lovely. It has usable power, a nicer interior and I’m fully on board with the new engine. A 911 doesn’t interest me as I like my sports cars small.
Just wanted to run this past you guys to see whether your settlement is coming up this high? This will obviously mean less equity at the end of the term, but this is offset with lower monthly payments (which in my case will reduce by 50%).
As context, I may end up swapping into something with more seats in a few years but thought this current deal is a very good one.
And lastly, yes I’ve driven the new 718 and think it’s lovely. It has usable power, a nicer interior and I’m fully on board with the new engine. A 911 doesn’t interest me as I like my sports cars small.
Could you not switch to straight finance for the £33k balloon on your 981? That way you'd own the car outright when you need to get something with more seats rather than switch into another dead end PCP?
Just a thought, given the excellent residuals of the 981 GTS and the equity you already have. Rather than lose more money buying a new car, treat it as a savings plan...
Just a thought, given the excellent residuals of the 981 GTS and the equity you already have. Rather than lose more money buying a new car, treat it as a savings plan...
You really need to look at the settlement figure combined with monthly payments... you can’t look at either in isolation. That’ll give you your cost of ownership over the term. I suspect it’s that the GTS had much better residuals than they thought with your current car which is why your settlement figure looks”low” but as you say your monthly payments would have been higher.
Cheib said:
You really need to look at the settlement figure combined with monthly payments... you can’t look at either in isolation. That’ll give you your cost of ownership over the term. I suspect it’s that the GTS had much better residuals than they thought with your current car which is why your settlement figure looks”low” but as you say your monthly payments would have been higher.
Monthy payments are coming to approx. £300 for the 718 (or £11k over 3 years). Settlement is 45K making total cost of ownership of £56kTwinfan said:
Could you not switch to straight finance for the £33k balloon on your 981? That way you'd own the car outright when you need to get something with more seats rather than switch into another dead end PCP?
Just a thought, given the excellent residuals of the 981 GTS and the equity you already have. Rather than lose more money buying a new car, treat it as a savings plan...
Potentially, I haven't ruled this option out. But I do like the notion of a new car with new features, e.g. PTV, better sat nav, car play, new warranty, etc etc.Just a thought, given the excellent residuals of the 981 GTS and the equity you already have. Rather than lose more money buying a new car, treat it as a savings plan...
If i were you, i buy the car outright now and then sell it. Good one can go for £50+ quick sale at £45k is doable , if you give the car back to porsche im certain they will pop a £50+ price tag on.
If you want a new car, sell the 981 GTS privately and use the money towards a new one.
If you want a new car, sell the 981 GTS privately and use the money towards a new one.
london_v said:
Deposit with a small contribution from OPC is approx. 19K.
So £33k balloon plus the £19k deposit is £52k. Not a bad trade-in for a 981 GTS to be fair. It'll be advertised around £60k depending on mileage and spec I guess.Re-financing to get into a 718 GTS costs you £300 for the next 3 years, but at that point you'll have nowhere near the equity you have now and owe £45k to buy the car.
I'd seriously consider financing the balloon payment instead of changing cars. In the short term it will cost you more than £300 a month, obviously, but in 3 years you could own the 981. No-one has a crystal ball but it currently looks like your 981 GTS will not lose much money over that period and you'd be in a much stronger position financially. 981s have been very reliable so far, a 6 year old is unlikely to be a money pit.
Twinfan said:
So £33k balloon plus the £19k deposit is £52k. Not a bad trade-in for a 981 GTS to be fair. It'll be advertised around £60k depending on mileage and spec I guess.
Re-financing to get into a 718 GTS costs you £300 for the next 3 years, but at that point you'll have nowhere near the equity you have now and owe £45k to buy the car.
I'd seriously consider financing the balloon payment instead of changing cars. In the short term it will cost you more than £300 a month, obviously, but in 3 years you could own the 981. No-one has a crystal ball but it currently looks like your 981 GTS will not lose much money over that period and you'd be in a much stronger position financially. 981s have been very reliable so far, a 6 year old is unlikely to be a money pit.
I agree with this, financing the balloon seems the most financially sensible option. Re-financing to get into a 718 GTS costs you £300 for the next 3 years, but at that point you'll have nowhere near the equity you have now and owe £45k to buy the car.
I'd seriously consider financing the balloon payment instead of changing cars. In the short term it will cost you more than £300 a month, obviously, but in 3 years you could own the 981. No-one has a crystal ball but it currently looks like your 981 GTS will not lose much money over that period and you'd be in a much stronger position financially. 981s have been very reliable so far, a 6 year old is unlikely to be a money pit.
I am considering ordering a 718 Cayman and the monthly payments are certainly tempting. I could use my current Golf R as deposit and get a Cayman GTS for just over £300 per month over 3 years, but then I could end up with no equity at the end. On the other hand I am 58 years old with enough in my pension so perhaps should just go for it! If I end up leasing a VW Up after 3 years at least I will have lived the dream for 3 years!
If I do get a new Cayman I will definitely use the Porsche PCP because the residuals are very high and could mean a lower overall cost of ownership if keeping for 3 years.
If I do get a new Cayman I will definitely use the Porsche PCP because the residuals are very high and could mean a lower overall cost of ownership if keeping for 3 years.
I have had the PCP figures and the GFV I was quoted was £44100 but that was 8K miles,it was £42000 on 12K miles
I am assuming you have it at 5-6K miles/yr for GFV to be that.
I think the interest on my quote works out at about 8k over 3 years however I do plan to pay most of it off in June so will avoid that.
On the other hand although the interest is substantial the GFV does give you a nice insurance policy if the market goes belly up post Brexit.
I'm assuming the OP has quite a bit of equity from the 981 if his GFV was so low on it.
I didn't actually think you could put in a deposit as high as 19K.
Laughing at the sage advice of holding onto the 981 for another 3 years-great advice of course but how many petrol heads ever go for the sensible option.We all get bored.
I am assuming you have it at 5-6K miles/yr for GFV to be that.
I think the interest on my quote works out at about 8k over 3 years however I do plan to pay most of it off in June so will avoid that.
On the other hand although the interest is substantial the GFV does give you a nice insurance policy if the market goes belly up post Brexit.
I'm assuming the OP has quite a bit of equity from the 981 if his GFV was so low on it.
I didn't actually think you could put in a deposit as high as 19K.
Laughing at the sage advice of holding onto the 981 for another 3 years-great advice of course but how many petrol heads ever go for the sensible option.We all get bored.
Twinfan said:
So £33k balloon plus the £19k deposit is £52k. Not a bad trade-in for a 981 GTS to be fair. It'll be advertised around £60k depending on mileage and spec I guess.
Re-financing to get into a 718 GTS costs you £300 for the next 3 years, but at that point you'll have nowhere near the equity you have now and owe £45k to buy the car.
I'd seriously consider financing the balloon payment instead of changing cars. In the short term it will cost you more than £300 a month, obviously, but in 3 years you could own the 981. No-one has a crystal ball but it currently looks like your 981 GTS will not lose much money over that period and you'd be in a much stronger position financially. 981s have been very reliable so far, a 6 year old is unlikely to be a money pit.
Thanks for the reply above and for everyone else’s thoughts. I have considered financing the balloon, but £33K over 3 years is over £900 / month and that’s before interest. That’s not feasiable for me at the moment ... or am I missing something here?Re-financing to get into a 718 GTS costs you £300 for the next 3 years, but at that point you'll have nowhere near the equity you have now and owe £45k to buy the car.
I'd seriously consider financing the balloon payment instead of changing cars. In the short term it will cost you more than £300 a month, obviously, but in 3 years you could own the 981. No-one has a crystal ball but it currently looks like your 981 GTS will not lose much money over that period and you'd be in a much stronger position financially. 981s have been very reliable so far, a 6 year old is unlikely to be a money pit.
For me, the priority is to get monthlies down to help with cash flow but to also be in a decent(ish) position in a few years to move on to something a bit more practical, e.g. an M2, C63 Coupe, etc.
However I understand upgrading to the 718 I’d be putting all my equity into a car that will leave with me with little to no equity at the end of the term... but the offset is saving £200/ month (or £10k over 3 years) to help contribute to the next car (and if there’s any equity left in the car then even better).
I have just ordered a 718 GTS (having had 2 981 GTS’s) and also had a £45k residual as well as the deposit contribution - so for me it is an amazing deal - and if it all goes badly in the motor industry in the next few years it’s not me that is risking the future value.
Hoping to get a Spyder in a year though - so I bought with a view of 1 year.
Hoping to get a Spyder in a year though - so I bought with a view of 1 year.
Are you getting manual or PDK..?.I've just checked the figures on the Porsche configurator and the basic list price is £59,850 and the GFV after 36 months and assuming doing 5k miles per annum is £45,626..This is an astonishing 76% GFV after three years so from a fiscal POV i'd be tempted to get a bare bones basic manual GTS, do 15k miles and just hand it back at the end of the term..
The problem is that Porsche's APR has crept up to 6.4% but only you can decide what's best in your situation.
Edit to add: the above is a total no brainer IMO..
The problem is that Porsche's APR has crept up to 6.4% but only you can decide what's best in your situation.
Edit to add: the above is a total no brainer IMO..
Edited by Taffy66 on Tuesday 13th February 20:46
Taffy66 said:
Are you getting manual or PDK..?.I've just checked the figures on the Porsche configurator and the basic list price is £59,850 and the GFV after 36 months and assuming doing 5k miles per annum is £45,626..This is an astonishing 76% GFV after three years so from a fiscal POV i'd be tempted to get a bare bones basic manual GTS, do 15k miles and just hand it back at the end of the term..
The problem is that Porsche's APR has crept up to 6.4% but only you can decide what's best in your situation..
Yes, my spec comes to just under 65K. I’ve gone for manual and kept options to a minimum to play the game right :-)The problem is that Porsche's APR has crept up to 6.4% but only you can decide what's best in your situation..
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