Porsche PCP Finance rate
Porsche PCP Finance rate
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anonymous-user

Original Poster:

72 months

Monday 8th June 2020
quotequote all
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

Twinfan

10,125 posts

122 months

Monday 8th June 2020
quotequote all
5.9% for the Cayster sounds like a new lower rate, it was 6.9% pre-COVID.

Terminator X

18,369 posts

222 months

Monday 8th June 2020
quotequote all
O/T but these companies must be raking it in when the Base Rate is, what, 0.1%!

TX.

Fnumber1user

411 posts

70 months

Monday 8th June 2020
quotequote all
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'.

Bam89

642 posts

119 months

Tuesday 9th June 2020
quotequote all
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

So

28,176 posts

240 months

Tuesday 9th June 2020
quotequote all
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.

A third party lender with lower interest rate may have a similar monthly payment, but the balloon is smaller.

Terminator X

18,369 posts

222 months

Tuesday 9th June 2020
quotequote all
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'.
No problem with people making money; 3.9% is 39x higher than the Base Rate spin There is profit and there is profit it seems!

O/T so apologies getmecoat

TX.

BertBert

20,542 posts

229 months

Tuesday 9th June 2020
quotequote all
Terminator X said:
No problem with people making money; 3.9% is 39x higher than the Base Rate spin There is profit and there is profit it seems!

O/T so apologies getmecoat

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?
Bert

Twinfan

10,125 posts

122 months

Tuesday 9th June 2020
quotequote all
Exactly, you can't just look at the rate difference you need to work on absolutes if you want to make a living!

Prestonese

805 posts

123 months

Wednesday 10th June 2020
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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.....

Roadrunner996

211 posts

194 months

Wednesday 10th June 2020
quotequote all
cc3,

Run a quote by Alphera (BMW Finance) . I got 5.9% on my Macan GTS last October . Don't know what the rates are now though.......interestingly Porsche didn't attempt to sell their finance on the (pre-owned) vehicle

W4NTED

770 posts

232 months

Wednesday 10th June 2020
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5.8% on a Taycan i picked up yesterday

Twinfan

10,125 posts

122 months

Wednesday 10th June 2020
quotequote all
It sounds like the rate varies model by model.

Digga

44,134 posts

301 months

Wednesday 10th June 2020
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Twinfan said:
It sounds like the rate varies model by model.
Surely most of that variance, manufacturer's contribution.promotion aside, is merely due to the differing GMFV for respective models?

Twinfan

10,125 posts

122 months

Wednesday 10th June 2020
quotequote all
Good point, it may well do.

Dimebars

973 posts

112 months

Wednesday 10th June 2020
quotequote all
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 campaigns

Digga

44,134 posts

301 months

Wednesday 10th June 2020
quotequote all
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 campaigns
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.

Dimebars

973 posts

112 months

Wednesday 10th June 2020
quotequote all
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 vary

But that has no impact on the headline APR figure offered by the manufacturer

Digga

44,134 posts

301 months

Wednesday 10th June 2020
quotequote all
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 vary

But that has no impact on the headline APR figure offered by the manufacturer
Depends how you look at it. APR is APR, but residual will impact:

https://www.buyacar.co.uk/cars/1444/car-finance-ho...

Dimebars

973 posts

112 months

Wednesday 10th June 2020
quotequote all
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 though