Post WLTP Finance Rates
Discussion
A question regarding peoples recent experience Porsche Finance. Has anyone on here got any quotes recently for PCP? Had some figures sent through this week for a new 718 GTS order and the deposits/APR are massive (APR is north of 6% by quite some margin!). This mirrors a friends experience who ended up going with a third party finance company recently for a Porsche Approved sale.
I know that Porsche Finance has often had higher APRs than what is possible from third parties, but sometimes I know the discount offered as a result of taking out Porsche Finance redresses the balance, or indeed they have offered some strong residuals which makes the spend over the loan term less than it would elsewhere....this doesn't seem to be the case currently (Final payment on the quote I had was less than £30k after 4 years!)!
I'm wondering therefore whether anyone else has had a similar experience, or whether it's dealer specific. It seems they've really pulled back on any offers at a time I'd have thought they'd be wanting to try and boost sales given the huge void in orders due to the factory closure. Perhaps someone with a better understanding of these things can suggest why this is the case....needless to say it doesn't instil a lot of confidence regarding residuals if Porsche themselves are valuing stuff so conservatively.
I know that Porsche Finance has often had higher APRs than what is possible from third parties, but sometimes I know the discount offered as a result of taking out Porsche Finance redresses the balance, or indeed they have offered some strong residuals which makes the spend over the loan term less than it would elsewhere....this doesn't seem to be the case currently (Final payment on the quote I had was less than £30k after 4 years!)!
I'm wondering therefore whether anyone else has had a similar experience, or whether it's dealer specific. It seems they've really pulled back on any offers at a time I'd have thought they'd be wanting to try and boost sales given the huge void in orders due to the factory closure. Perhaps someone with a better understanding of these things can suggest why this is the case....needless to say it doesn't instil a lot of confidence regarding residuals if Porsche themselves are valuing stuff so conservatively.
Unless there is a run out model I've never found their finance rates competitive. Even leases tend to be prohibitive as they rarely put any support in like some other manufacturers. When I ordered my Cayenne the salesman asked wether I wanted to finance. I said probably not as your rates will be crap, he just nodded and smiled. Says it all I think 
Also wrt WLTP/factory shutdown i'm not convinced one should expect great deals. Yes the long lead times may put some people off. But equally supply is heavily constrained so that will balance any drop in demand. Unless demand drops significantly, I don't think they have much need to offer incentives right now.
Also wrt WLTP/factory shutdown i'm not convinced one should expect great deals. Yes the long lead times may put some people off. But equally supply is heavily constrained so that will balance any drop in demand. Unless demand drops significantly, I don't think they have much need to offer incentives right now.
RacerMike said:
A question regarding peoples recent experience Porsche Finance. Has anyone on here got any quotes recently for PCP? Had some figures sent through this week for a new 718 GTS order and the deposits/APR are massive (APR is north of 6% by quite some margin!). This mirrors a friends experience who ended up going with a third party finance company recently for a Porsche Approved sale.
I know that Porsche Finance has often had higher APRs than what is possible from third parties, but sometimes I know the discount offered as a result of taking out Porsche Finance redresses the balance, or indeed they have offered some strong residuals which makes the spend over the loan term less than it would elsewhere....this doesn't seem to be the case currently (Final payment on the quote I had was less than £30k after 4 years!)!
I'm wondering therefore whether anyone else has had a similar experience, or whether it's dealer specific. It seems they've really pulled back on any offers at a time I'd have thought they'd be wanting to try and boost sales given the huge void in orders due to the factory closure. Perhaps someone with a better understanding of these things can suggest why this is the case....needless to say it doesn't instil a lot of confidence regarding residuals if Porsche themselves are valuing stuff so conservatively.
In my experience if you play hardball and get quotes from elsewhere they will be flexible on the APR.I know that Porsche Finance has often had higher APRs than what is possible from third parties, but sometimes I know the discount offered as a result of taking out Porsche Finance redresses the balance, or indeed they have offered some strong residuals which makes the spend over the loan term less than it would elsewhere....this doesn't seem to be the case currently (Final payment on the quote I had was less than £30k after 4 years!)!
I'm wondering therefore whether anyone else has had a similar experience, or whether it's dealer specific. It seems they've really pulled back on any offers at a time I'd have thought they'd be wanting to try and boost sales given the huge void in orders due to the factory closure. Perhaps someone with a better understanding of these things can suggest why this is the case....needless to say it doesn't instil a lot of confidence regarding residuals if Porsche themselves are valuing stuff so conservatively.
Sometimes it's in your favour for the final payment to be lower as this may well mean that you are over paying in the shorter term and will have cash sitting in the car once the end of the agreement comes up, ready for another deposit. Also less chance of negative equity if you decide after 2 years to change to another model.
Another option that is a little cheaper but seldom talked about is Hire Purchase with Balloon which Porsche also offer. The only difference between that and PCP is that the final payment is not "guaranteed" to be LESS than the car is worth (small chance of having more to pay than the car is worth, unlikely with a nice Porsche), but this does save some money and seeing as the final payment seems low to you, perhaps worth looking at?
Thanks both for the advice. Worth considering both options I think then (the Hire Purchase with final payment seems like an idea for sure).
Just to be clear....I wouldn't expect them to be offering mega deals to sell more cars. Just seemed to me they'd actually done the opposite and ramped up the APRs when I'd have almost expected that they would at least keep them the same. There's obviously financial logic in it, but was keen to see others experiences as it's tough to understand the broader picture if you're dealing with one dealership.
I'm still ultimately a bit torn between an older 981 and a new car. Both are appealing for different reasons, but obviously a new 718 order is going to be a fair chunk more than an older car.
Just to be clear....I wouldn't expect them to be offering mega deals to sell more cars. Just seemed to me they'd actually done the opposite and ramped up the APRs when I'd have almost expected that they would at least keep them the same. There's obviously financial logic in it, but was keen to see others experiences as it's tough to understand the broader picture if you're dealing with one dealership.
I'm still ultimately a bit torn between an older 981 and a new car. Both are appealing for different reasons, but obviously a new 718 order is going to be a fair chunk more than an older car.
Porsche911R said:
NO such thing as free Money esp with 3rd party finance also check out the fee's it's normally upwards of £800
Absolutely. It’s an interesting situation given that some of the deals offered for the past 5 or so years across all manufacturers have almost been free money! I can understand how it can be sustained and I was wondering if we’re maybe starting to see the end of the bubble. A combination of factors like WLTP, China and Brexit aren’t really encouraging individuals or businesses to spend money....I think it’ll still be possible to get a deal that suits me either through Porsche or a third party. We’re at risk of getting into the cash/finance PH favourite, but it would be interesting to understand where the manufacturers see things heading regarding car purchases in the next 5 years.
RacerMike said:
Absolutely. It’s an interesting situation given that some of the deals offered for the past 5 or so years across all manufacturers have almost been free money! I can understand how it can be sustained and I was wondering if we’re maybe starting to see the end of the bubble. A combination of factors like WLTP, China and Brexit aren’t really encouraging individuals or businesses to spend money....
I think it’ll still be possible to get a deal that suits me either through Porsche or a third party. We’re at risk of getting into the cash/finance PH favourite, but it would be interesting to understand where the manufacturers see things heading regarding car purchases in the next 5 years.
Porsche or 3rd party loans has never been close to free money ! it's a business often wanting >7% plus fee'sI think it’ll still be possible to get a deal that suits me either through Porsche or a third party. We’re at risk of getting into the cash/finance PH favourite, but it would be interesting to understand where the manufacturers see things heading regarding car purchases in the next 5 years.
most people will rent a car. 85% already PCP.
to finance will cost you well over £20k for a £80k loan over 4 years.
and if you want to get out early can cost you the £1k fee also.
we are at a risk of getting into the cash/finance but people cannot afford the stuff they own hence the ave person is in £50k debt !!
nothing to do with Brexit or WLTP ! more to do with the ease banks lend money !
car markets bombing so run of the mill cars can be had with 0% like a M4 but you loose >50% of it's value in 3 years.
Edited by Porsche911R on Friday 19th October 14:17
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