Best way to finance a Porsche
Discussion
So, I've been working very hard the last few years and have decided that I deserve a 992 of some description. I've seen some around the £100-110k mark that would probably scratch the itch. What are your preferred ways to finance these? I've generally always cashed previous cars but don't think that's a wise move in the current climate. I want to drive it for 2-3 years and give it back ideally, unsure how it works...I see people chop and change all the time but have never really understood how, surely they must be taking a massive hit every time!
It sounds like you should be looking at PCP and PCH deals based on your plan to drive for 2-3 years then give it back, I have no idea how the figures for that stack up currently though, I'd guess a browse of the Porsche website would probably give you PCP data for PCH you will need to look at leasing companies.
Just ensure you look at the total cost and not just the monthly payments. Some of those PCP schemes have eye watering interest charges attached as (a) you're borrowing a whole chunk of cash; and (b) the balloon payment is interest bearing over the term. Good luck.
Big deposit and HP the balance would certainly be cheaper; everytime I put details into the Magnitude finance calculator I'm amazed how expensive those PCPs work out to be. You can deduct the cost of the PCP from the GFV to get the break even point vs cash- it's often so low even in a market falling scenario you'd be better off buying cash most of the time as the interest charges are just so high.
Ymmv, yadda, etc.
Big deposit and HP the balance would certainly be cheaper; everytime I put details into the Magnitude finance calculator I'm amazed how expensive those PCPs work out to be. You can deduct the cost of the PCP from the GFV to get the break even point vs cash- it's often so low even in a market falling scenario you'd be better off buying cash most of the time as the interest charges are just so high.
Ymmv, yadda, etc.
I’m in the same boat at the moment. I fancy a 911 GTS, my current Porsche has held its value really well so I’m in a nice position with its market value vs the amount owed.
Perhaps take a look at lease purchase. I was quoted by Porsche Edinburgh via Santander (as a starting point) and the rate was quite good but crucially a lot of people just set the final payment (which is payable come rain or shine on a lease purchase unlike PCP where at the GFV point you can just hand the car back) too high to get the monthly payment low, personally I think that’s not the smartest way of doing it because you may end up with a car that’s worth 50k but you owe 65k, not the end of the world but then let’s say you want to purchase a nice new Porsche you’re going to have to stump up another 15/20k as your next deposit.
Hope I haven’t told you anything you don’t already know : )
There is a gent on 911uk who’s name is banded around for finance and I spoke to him yesterday, he was good. Perhaps worth a shout.
Perhaps take a look at lease purchase. I was quoted by Porsche Edinburgh via Santander (as a starting point) and the rate was quite good but crucially a lot of people just set the final payment (which is payable come rain or shine on a lease purchase unlike PCP where at the GFV point you can just hand the car back) too high to get the monthly payment low, personally I think that’s not the smartest way of doing it because you may end up with a car that’s worth 50k but you owe 65k, not the end of the world but then let’s say you want to purchase a nice new Porsche you’re going to have to stump up another 15/20k as your next deposit.
Hope I haven’t told you anything you don’t already know : )
There is a gent on 911uk who’s name is banded around for finance and I spoke to him yesterday, he was good. Perhaps worth a shout.
cringle said:
Thanks all. I think cashing it may be the way forward after all. Knowing my luck the values will plummet soon after??
Won’t happen , level zero will just become level 60000 or so . It will be a rental market as per se , encouraging to upgrade every 3-4 years . Those who buy at 60000 will have huge repair warranty bills . I think one just may end up saying 2000 min . bucks a month a year will be car expenditure ( not including insurance etc ) Ie 24000 + extras a year
Nothing especially useful to add, except; would the 992 offer much more than the equivalent 991?
A bank loan at a lower rate to Porsche finance on an approved used (warrantied) 991 would provide most of what a new 992 offers, along with not being responsible for the initial depreciation hit. Timing has meant that use 992 cars are stubbornly close to new car prices, but the 991 ‘level up’ across the market began after the usual 3-5 year depreciation.
If I was looking to minimize my losses, that is what I’d be looking to do - as the 991 is 99% the car a 992 is IMO. I’d actually be more inclined to go for the normally aspirated 991.1, personally. At your budget, you’d have a great 991.1 GTS which again will offer better residuals than a base/S Carrera.
A bank loan at a lower rate to Porsche finance on an approved used (warrantied) 991 would provide most of what a new 992 offers, along with not being responsible for the initial depreciation hit. Timing has meant that use 992 cars are stubbornly close to new car prices, but the 991 ‘level up’ across the market began after the usual 3-5 year depreciation.
If I was looking to minimize my losses, that is what I’d be looking to do - as the 991 is 99% the car a 992 is IMO. I’d actually be more inclined to go for the normally aspirated 991.1, personally. At your budget, you’d have a great 991.1 GTS which again will offer better residuals than a base/S Carrera.
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