Options/Finance Help
Discussion
Hello, hope all are well 
I'm finally going to take the plunge this yr and put down a deposit on the 997 (c2).. Our local dealer advised theres a list till 04/05, so plenty of time to sort out money..
I'm looking to put down £20k, and then one of their HP deals.
What I'm after is anyone who has done this and their thoughts on which is the best. I'll be keeping the car for around 2/3yrs, prob up to 12k a year, looking @ around £500pm to finance...
After speaking to the dealer, this is all very 'doable' and will be getting the spot light treatment from their finance guy next week, so any info/help on best deals to go for would be very appreciated...
Also what were the best options to go for on the 996, I imagine the 997 will have similar (baar 19" wheels ), so not having had one before any info and good kit to go for would be nice..
I must say aswell the service I got from the guy today was 100% better than the arrogance I got from all the BMW dealer's I've dealt with over the 4yrs ownership of my 540i, which is a very pleasant surprise!
Thanks
John
I'm finally going to take the plunge this yr and put down a deposit on the 997 (c2).. Our local dealer advised theres a list till 04/05, so plenty of time to sort out money..
I'm looking to put down £20k, and then one of their HP deals.
What I'm after is anyone who has done this and their thoughts on which is the best. I'll be keeping the car for around 2/3yrs, prob up to 12k a year, looking @ around £500pm to finance...
After speaking to the dealer, this is all very 'doable' and will be getting the spot light treatment from their finance guy next week, so any info/help on best deals to go for would be very appreciated...
Also what were the best options to go for on the 996, I imagine the 997 will have similar (baar 19" wheels
), so not having had one before any info and good kit to go for would be nice.. I must say aswell the service I got from the guy today was 100% better than the arrogance I got from all the BMW dealer's I've dealt with over the 4yrs ownership of my 540i, which is a very pleasant surprise!
Thanks
John
Best deals always with cash.
Second best deals always with remortgage money.
Car finance is more competitive these days, but you will always be screwed. Just depends how much. I did some work for Mercedes Benz Finance and they admitted it was 'very lucrative' for them.
I decided against finance when I looked closely at the deals. Some had small deposits, some had small monthly payments, all screwed you when you looked closely or compared them to straighter loans. Even if just because you could negotiate with the dealer less as bargaining power lower.
Sorry can't be more help.
Other thoughts:
- Don't suppose a 35k 996 would appeal, financing the other 15k with unsecured personal loan, paid back early.
- Buy a new GT3 or 997 etc and sell it on for list after 6 months, if that can be done through Porsche finance?
>> Edited by domster on Thursday 26th February 12:01
Second best deals always with remortgage money.
Car finance is more competitive these days, but you will always be screwed. Just depends how much. I did some work for Mercedes Benz Finance and they admitted it was 'very lucrative' for them.
I decided against finance when I looked closely at the deals. Some had small deposits, some had small monthly payments, all screwed you when you looked closely or compared them to straighter loans. Even if just because you could negotiate with the dealer less as bargaining power lower.
Sorry can't be more help.
Other thoughts:
- Don't suppose a 35k 996 would appeal, financing the other 15k with unsecured personal loan, paid back early.
- Buy a new GT3 or 997 etc and sell it on for list after 6 months, if that can be done through Porsche finance?
>> Edited by domster on Thursday 26th February 12:01
Thanks for the reply...
I realise cash is always king, but £60k is way to much to have tied up in a car in one lump. Loans are fine, but normally capped @ £25k, I have max £30.. I wanted to get a 997 for many reasons, one being that after a yr or so, it'll still be worth a fair bit.
I'm still awaiting to hear back the final figures from Porsche, but paying £500pm for up to 3yr, (£6kpa - 7%apr), I would def. think the value of the 997 would hold well against this...
I did look @ a 2/3yr old 996 as I can afford most+loan, but I reckon it'll loose at least another £10k over 3yr, esp. with 997 on way...
It's a real headache trying to figure...
Dealer said would need £3k deposit in May to stay on list, which he said is fully refundable, as very confident at selling 'my' car.
Cheers
John
I realise cash is always king, but £60k is way to much to have tied up in a car in one lump. Loans are fine, but normally capped @ £25k, I have max £30.. I wanted to get a 997 for many reasons, one being that after a yr or so, it'll still be worth a fair bit.
I'm still awaiting to hear back the final figures from Porsche, but paying £500pm for up to 3yr, (£6kpa - 7%apr), I would def. think the value of the 997 would hold well against this...
I did look @ a 2/3yr old 996 as I can afford most+loan, but I reckon it'll loose at least another £10k over 3yr, esp. with 997 on way...
It's a real headache trying to figure...
Dealer said would need £3k deposit in May to stay on list, which he said is fully refundable, as very confident at selling 'my' car.
Cheers
John
Hi John
Premium on new model will only last a year or so, 2-3 years is quite a long ownership period and depreciation will occur.
997 will eventually depreciate - and by 3 years will have lost a chunk you'll still be paying interest on. What about a non/less-depreciating OPC car like a used GT3? Or even a 993RS?
Paying interest is OK if depreciation low, but paying interest AND depreciation hurts. You could have virtually any car in the world for 500 GBP a month, but they will take all the 20k as deposit and leave you with a nasty balloon payment. What you're doing isn't wrong (I'd love a 70k car on 500 a month ) but at the end of the 2 year period finding 35k cash for a balloon may be a shocker. Give them the car back/sell it and you've lost a fortune.
See if they can do an annual deal with you chopping a car in every 12 months, transferring the deposit from one to another. Certainly consider the 997 for no more than 12-18 months as a financed item (3 years will have killed values). Or I'd seriously think about more exciting fare like the GT3s, RSs etc.
Buying second hand with cash will give leverage and won't expose you too much. The car will be cheaper and most depreciation done.
Premium on new model will only last a year or so, 2-3 years is quite a long ownership period and depreciation will occur.
997 will eventually depreciate - and by 3 years will have lost a chunk you'll still be paying interest on. What about a non/less-depreciating OPC car like a used GT3? Or even a 993RS?
Paying interest is OK if depreciation low, but paying interest AND depreciation hurts. You could have virtually any car in the world for 500 GBP a month, but they will take all the 20k as deposit and leave you with a nasty balloon payment. What you're doing isn't wrong (I'd love a 70k car on 500 a month
) but at the end of the 2 year period finding 35k cash for a balloon may be a shocker. Give them the car back/sell it and you've lost a fortune. See if they can do an annual deal with you chopping a car in every 12 months, transferring the deposit from one to another. Certainly consider the 997 for no more than 12-18 months as a financed item (3 years will have killed values). Or I'd seriously think about more exciting fare like the GT3s, RSs etc.
Buying second hand with cash will give leverage and won't expose you too much. The car will be cheaper and most depreciation done.
John,
Have recently purchased a C4S - did it entirely on remortgage - by far and away the most sensible way and cheapest way to borrow money. In my mind you should NEVER tie up liquidity into a depreciating asset (a recent theory admittedly). Save your deposit and stick it into the stock market for 3 years. The return you'll get will more than likely write off the depreciation of the car! This is what I have done and have zero regrets (so far!)...
Have recently purchased a C4S - did it entirely on remortgage - by far and away the most sensible way and cheapest way to borrow money. In my mind you should NEVER tie up liquidity into a depreciating asset (a recent theory admittedly). Save your deposit and stick it into the stock market for 3 years. The return you'll get will more than likely write off the depreciation of the car! This is what I have done and have zero regrets (so far!)...
The points you raise are exactly the one rattling around my head.
The dealer said that customers normally trade in b4 18months for a new one...
As for ballon payment, its set @ £28k, I reckon the 997 would be worth at least £35 still after 3 (if I kept that long).
Its a n/mare trying to work out the exact 'costs' involved in doing the lease/finance deal if you do trade in after 18months... I very much doubt dealer will make it clear.. Obv. they WILL make money out of it...
Quick sums so far are:
997 with a 'few' options @ £60k
£20k deposit
£500pm @ appox 7.5pa%
So after say 1yr, I'd of paid £6k, to which I can't work out how much will be put towards the total and which towards interest. 7.5% of £6k = £525, which seems way to, obv its not that simple, anyone with a 'finance' head , help would be appreciated.
But worse case for example, that only £3k went off total then I'd be left with £20+£3k off £60 leaving £37k owed, which is not alot for 1 yr old 997?... No idea on the price dealer would trade in at?..
There must be an easy way of working this out, or am I just dreaming?
The dealer said that customers normally trade in b4 18months for a new one...
As for ballon payment, its set @ £28k, I reckon the 997 would be worth at least £35 still after 3 (if I kept that long).
Its a n/mare trying to work out the exact 'costs' involved in doing the lease/finance deal if you do trade in after 18months... I very much doubt dealer will make it clear.. Obv. they WILL make money out of it...
Quick sums so far are:
997 with a 'few' options @ £60k
£20k deposit
£500pm @ appox 7.5pa%
So after say 1yr, I'd of paid £6k, to which I can't work out how much will be put towards the total and which towards interest. 7.5% of £6k = £525, which seems way to, obv its not that simple, anyone with a 'finance' head , help would be appreciated.
But worse case for example, that only £3k went off total then I'd be left with £20+£3k off £60 leaving £37k owed, which is not alot for 1 yr old 997?... No idea on the price dealer would trade in at?..
There must be an easy way of working this out, or am I just dreaming?
You would need to supply all details and small print for one of us to make total sense of the chicanery. But one thing is clear, you will get screwed - it's just a question of how much.
When I used to market finance deals there were two main hooks - a low deposit or a low monthly payment/rate.
Here's how they make the money:
Low deposit: big balloon, big monthlies
Low monthlies: big deposit, big balloon
The balloon payment was a work of genius. No-one thinks 24 months ahead and then you either have to trade in for a new car, upping sales for the dealer and suffering depreciation, pay the monster balloon and effectively write off the payments, or walk away and literally write them off.
They will always make money out of you. Autocar even did an article on similar lines last week, saying how 700 GBP per month parks your arse in a Ferrari 360 Modena Spyder, list price 117k.
I would suggest getting a s/h car, preferably a less depreciative model. Or getting on the waiting list for the newest models and changing every 6-12 months, remembering to keep having an eye for the latest 'must have' mobile.
With good 996s only 35k now, it does make sense to simply get a cheap loan for 15k, holding on to the car for another three years (payments of unsecured 15k loan over 5 years are 300GBP per month for me, so not sure what that would be over 3), and then selling it for say 27k.
Or get a second hand GT3 on Porsche finance. It may even appreciate if it's a good spec. I'd put my money on a Clubsport one not a comfort. What you lose in interest, you should gain in non-depreciation or even appreciation.
When I used to market finance deals there were two main hooks - a low deposit or a low monthly payment/rate.
Here's how they make the money:
Low deposit: big balloon, big monthlies
Low monthlies: big deposit, big balloon
The balloon payment was a work of genius. No-one thinks 24 months ahead and then you either have to trade in for a new car, upping sales for the dealer and suffering depreciation, pay the monster balloon and effectively write off the payments, or walk away and literally write them off.
They will always make money out of you. Autocar even did an article on similar lines last week, saying how 700 GBP per month parks your arse in a Ferrari 360 Modena Spyder, list price 117k.
I would suggest getting a s/h car, preferably a less depreciative model. Or getting on the waiting list for the newest models and changing every 6-12 months, remembering to keep having an eye for the latest 'must have' mobile.
With good 996s only 35k now, it does make sense to simply get a cheap loan for 15k, holding on to the car for another three years (payments of unsecured 15k loan over 5 years are 300GBP per month for me, so not sure what that would be over 3), and then selling it for say 27k.
Or get a second hand GT3 on Porsche finance. It may even appreciate if it's a good spec. I'd put my money on a Clubsport one not a comfort. What you lose in interest, you should gain in non-depreciation or even appreciation.
From my elementary maths, if you borrow £40K @ 7.5% in the first year you do pay £3K interest, so £250 of your £500 / month pays of the loan the rest goes to your lender.
You just have to figure out when you intend to sell it/how much will it be worth, then take into account how much up front cash you have paid. Then it is reasonably easy to figure out what this would cost over your ownership period.
Eg. You buy a car for 60K, put 20K down, Pay 500/month, then after 1 year sell the car for 50K.
You will have paid 3K interest on the 60K so you have essentially spent 63K, which means you lose 13K over one year, which £1083 per month, for the pleasure of owning the vehicle.
By the way if you continued paying £500 / month until the 40K was paid off it would take approx. 9 years.
Jack
You just have to figure out when you intend to sell it/how much will it be worth, then take into account how much up front cash you have paid. Then it is reasonably easy to figure out what this would cost over your ownership period.
Eg. You buy a car for 60K, put 20K down, Pay 500/month, then after 1 year sell the car for 50K.
You will have paid 3K interest on the 60K so you have essentially spent 63K, which means you lose 13K over one year, which £1083 per month, for the pleasure of owning the vehicle.
By the way if you continued paying £500 / month until the 40K was paid off it would take approx. 9 years.
Jack
not forgetting the £3k you pay on the 'loan', making total £60, umm seems close to the starting price ;-). Then its figuring out how much a 1yr 997 is worth... Bearing in mind the waiting lists, I reckon close to list will be possible...
Get the 's' version for a yr, making 2 in total, and the 998 should be waiting for you
All seems so easy, but could mean bread'n'cheese if the market sways!!!
Sooooo soooo tempting though!..
Get the 's' version for a yr, making 2 in total, and the 998 should be waiting for you
All seems so easy, but could mean bread'n'cheese if the market sways!!!
Sooooo soooo tempting though!..
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