Porsche PCP Finance rate
Discussion
Quoted 3.9% Equiv 7.4% APR on a new Macan. Is this the going rate for PCP for new car? Understand lower rate of 5.9% only for Boxster and Cayman. Never used Porsche finance before but thinking about it to give a guaranteed hand back at end of 3 years given who knows what economy will look like then
Terminator X said:
O/T but these companies must be raking it in when the Base Rate is, what, 0.1%!
TX.
Not starting an argument but merely pointing out that making a profit isn't a crime, and there's always alternatives if the OP does some research. Personally I don't think it's too bad a rate, and if they're going PCP route its a way of knowing broadly, exactly how much the vehicle will cost you in the time of your 'ownership'.TX.
Just jumping in on this - I'd love a Macan GTS as my next car, covid has thrown a delay in the works but still plan to get one
I've never done a PCP before, is there any other finance companies worth speaking to or will Porsche direct be the best option? I assume the biggest difference will be the residual value used for the balloon, with Porsche keeping it higher?
Would appreciate any recommendations
I've never done a PCP before, is there any other finance companies worth speaking to or will Porsche direct be the best option? I assume the biggest difference will be the residual value used for the balloon, with Porsche keeping it higher?
Would appreciate any recommendations
Bam89 said:
Just jumping in on this - I'd love a Macan GTS as my next car, covid has thrown a delay in the works but still plan to get one
I've never done a PCP before, is there any other finance companies worth speaking to or will Porsche direct be the best option? I assume the biggest difference will be the residual value used for the balloon, with Porsche keeping it higher?
Would appreciate any recommendations
That tends to be how it works. But it's not necessarily the best value.I've never done a PCP before, is there any other finance companies worth speaking to or will Porsche direct be the best option? I assume the biggest difference will be the residual value used for the balloon, with Porsche keeping it higher?
Would appreciate any recommendations
A third party lender with lower interest rate may have a similar monthly payment, but the balloon is smaller.
Fnumber1user said:
Terminator X said:
O/T but these companies must be raking it in when the Base Rate is, what, 0.1%!
TX.
Not starting an argument but merely pointing out that making a profit isn't a crime, and there's always alternatives if the OP does some research. Personally I don't think it's too bad a rate, and if they're going PCP route its a way of knowing broadly, exactly how much the vehicle will cost you in the time of your 'ownership'.TX.

O/T so apologies

TX.
Terminator X said:
No problem with people making money; 3.9% is 39x higher than the Base Rate
There is profit and there is profit it seems!
O/T so apologies
TX.
It doesn't work like that though. If you have a loan business you measure the profit on the absolute amount. So if you loan £1m on 20 cars, you need to make (say) £40k pa. So your charge must be £40k more than the price of the money. Also In your example, if the base rate went down to 0%, how would it work to determine whether the profit is egregious or not?
O/T so apologies

TX.
Bert
How much are you borrowing? If it is less than 25-30k, there are cheaper options out there like the supermarket banks or even someone like HSBC. 7.9% is quite high to be honest but from memory, Porsche PCP has never been below 5.9%.
I used to package these loans up for car companies. They basically finance them in the capital markets at zero percent with 15-20x leverage. So for 20 cars, they would be making 40k on 50k of equity per annum using the example above. There are obviously other costs as well but the finance arm of car companies often created all the value in the firm. It also helped to shift a lot more cars.....
I used to package these loans up for car companies. They basically finance them in the capital markets at zero percent with 15-20x leverage. So for 20 cars, they would be making 40k on 50k of equity per annum using the example above. There are obviously other costs as well but the finance arm of car companies often created all the value in the firm. It also helped to shift a lot more cars.....
Dimebars said:
Twinfan said:
It sounds like the rate varies model by model.
No different to any other manufacturer, who will vary their rate between models and quarterly campaignsDigga said:
Promotional and marketing-driven assistance aside, residuals vary considerably between models. Just consider a base spec Cayanne, versus a top spec GT3 RS and think which will likely hold better value in 3 or 4 years time.
Of course residuals varyBut that has no impact on the headline APR figure offered by the manufacturer
Dimebars said:
Digga said:
Promotional and marketing-driven assistance aside, residuals vary considerably between models. Just consider a base spec Cayanne, versus a top spec GT3 RS and think which will likely hold better value in 3 or 4 years time.
Of course residuals varyBut that has no impact on the headline APR figure offered by the manufacturer
https://www.buyacar.co.uk/cars/1444/car-finance-ho...
Digga said:
Depends how you look at it. APR is APR, but residual will impact:
https://www.buyacar.co.uk/cars/1444/car-finance-ho...
That's not what the OP was asking about thoughhttps://www.buyacar.co.uk/cars/1444/car-finance-ho...
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