Is this a good deal and should I do 3 or 4 years PCP

[aeales123]

Hi there. Its a 66 plate 911 Turbo S, you can see it on the Porsche Cambridge website. It is £110k and my deposit is £50k.

36 month PCP is £551.92, final value £52,627.50

49 month PCP is £581.09, final value £48,568.75

6000 annual mileage.

Should I do the 3 year or the 4 year PCP? I don't plan to keep the car afterward and will likely look to stay on a pcp deal going forward.

Thanks so much in advance for your help, I've never PCP financed before.

Alex

[Raptor7000r]

What's the interest rate? GFV is quite low IMO but generally i'm finding this across all marques are pricing GFV values low intentionally should the car market suffer serious decline.

On the flip side, your repaying more capital.

[Tagteam]

Wow three years and 50 per cent depreciation . The car market is heading back to normal

[CrgT16]

Didn't look at the porsche website but you are spending that on a 911 Turbo S that is 6 years old?

[2 GKC]

CrgT16 said:

Didn't look at the porsche website but you are spending that on a 911 Turbo S that is 6 years old?

48k miles too. Does seem expensive

[therams]

The apr works out at around 7.4%

Edited by therams on Tuesday 26th July 20:13

Edited by therams on Tuesday 26th July 21:02

[Raptor7000r]

therams said:

The apr works out at around 7.4%

Edited by therams on Tuesday 26th July 20:13

Edited by therams on Tuesday 26th July 21:02

What's the fixed rate? By my calculations your paying quite a lot in interest but this is general across the board when your looking at 50k plus borrow.

I was looking at 911 Turbos too but at 80-90k for 13 plates their really expensive but will likely hold their value as new ones are being listed at 200k

[loskie]

what would lease costs be for a new one?

[Sport_Turismo_GTS]

therams said:

The apr works out at around 7.4%

I think the standard Porsche Apr is around 6.9% for new cars, so 7.4% doesn’t sound too bad from thst perspective. The longer the term, (obviously) the more you are paying in interest charges.

Edited by Sport_Turismo_GTS on Tuesday 26th July 22:34

[julian987R]

aeales123 said:

Hi there. Its a 66 plate 911 Turbo S, you can see it on the Porsche Cambridge website. It is £110k and my deposit is £50k.

36 month PCP is £551.92, final value £52,627.50

49 month PCP is £581.09, final value £48,568.75

6000 annual mileage.

Should I do the 3 year or the 4 year PCP? I don't plan to keep the car afterward and will likely look to stay on a pcp deal going forward.

Thanks so much in advance for your help, I've never PCP financed before.

Alex

why not take out a bank loan at a far lower rate, maybe 3% thereabouts. A loan is a loan, be it with Porsche or your Bank. Psychologically, a loan with Porsche, doesn't feel as serious and John Major like, but a loan is a loan - makes no odds.

Go with a bank loan, you'll get far lower interest rates...and come the end sell it to an OPD to clear any remaining loan. you are paying through the nose on options, and now you want to entertain paying Porsche % rates to pay it al off?

[Sport_Turismo_GTS]

loskie said:

what would lease costs be for a new one?

Isn’t the waiting list around 24 months for one of these?

[loskie]

OP: to answer your question.

No it's not.

[Sport_Turismo_GTS]

julian987R said:

why not take out a bank loan at a far lower rate, maybe 3% thereabouts. A loan is a loan, be it with Porsche or your Bank. Psychologically, a loan with Porsche, doesn't feel as serious and John Major like, but a loan is a loan - makes no odds.

Go with a bank loan, you'll get far lower interest rates...and come the end sell it to an OPD to clear any remaining loan. you are paying through the nose on options, and now you want to entertain paying Porsche % rates to pay it al off?

I thought most bank loans were only available at 3% for up to £25k max - APRs are much higher if you are borrowing the £60k the OP needs?

Edited by Sport_Turismo_GTS on Wednesday 27th July 10:50

[tyrrell]

Sport_Turismo_GTS said:

therams said:

The apr works out at around 7.4%

I think the standard Porsche Apr is around 6.9% for new cars, so 7.4% doesn’t sound too bad from thst perspective. The longer the term, (obviously) the more you are paying in interest charges.

Edited by Sport_Turismo_GTS on Tuesday 26th July 22:34

Porsche APR at present 7.89%.

[a_dreamer]

£70k to have it for the three years.

Numbers look about right based on the cost and depreciation, but it's a lot of money (for a lot of car)

[Haribo Lecter]

aeales123 said:

Hi there. Its a 66 plate 911 Turbo S, you can see it on the Porsche Cambridge website. It is £110k and my deposit is £50k.

36 month PCP is £551.92, final value £52,627.50

49 month PCP is £581.09, final value £48,568.75

6000 annual mileage.

Should I do the 3 year or the 4 year PCP? I don't plan to keep the car afterward and will likely look to stay on a pcp deal going forward.

Thanks so much in advance for your help, I've never PCP financed before.

Alex

I honestly can’t get my head around PCP.

Car is £110k, you put down £50k, and in 3yrs time you have to buy it (again) for £52k if you want to keep it. If you don’t then the £50k you put down and the £20k you’ve paid over the 3yrs disappear.

So you’ve effectively paid £70k to drive a car for 3yrs. Am I missing something?

[Longy00000]

Your man maths is correct if the car is actually worth £52k in 3 years time.
However most peeps who pcp high end cars are hoping, trusting or just believing that it will be worth more than rhe GFV.
So in this example it may be worth £80k after 3 years so you would have £28k deposit for next vehicle.
Obviously the key to making it all work is to choose your car wisely,one at the bottom of its depreciation curve, that will always be in demand and then you might get all your money back.
It can work but you need to be
A. Careful
B. Hopeful
C. Prepared for it to continue to depreciate

[Twinfan]

Haribo Lecter said:

I honestly can’t get my head around PCP.

Car is £110k, you put down £50k, and in 3yrs time you have to buy it (again) for £52k if you want to keep it. If you don’t then the £50k you put down and the £20k you’ve paid over the 3yrs disappear.

So you’ve effectively paid £70k to drive a car for 3yrs. Am I missing something?

Yes. If you don't hand the car back and walk away you have equity in the car.

For example, in 3yrs time you've paid £70k and you want to own the car outright? Pay the £52k and you've bought the car for £122k.

If the car is worth £72k (for example) then you could immediately sell it and get £20k back so it cost you £50k for 3 years.

Or that £20k can be used towards a deposit for your next car if you re-PCP.

[Haribo Lecter]

Twinfan said:

Yes. If you don't hand the car back and walk away you have equity in the car.

For example, in 3yrs time you've paid £70k and you want to own the car outright? Pay the £52k and you've bought the car for £122k.

If the car is worth £72k (for example) then you could immediately sell it and get £20k back so it cost you £50k for 3 years.

Or that £20k can be used towards a deposit for your next car if you re-PCP.

Thanks I’d need the £20k for therapy to stop the tears of having pissed £50k up the wall!

[Twinfan]

Haribo Lecter said:

Thanks I’d need the £20k for therapy to stop the tears of having pissed £50k up the wall!

You and me both!