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Car finance from Porsche Solutions

dufmiester

Member
Joined
1 Jul 2014
Messages
20
Hi Guys,

I popped to my local Porsche Dealers and looked at a Macan the other day, I then proceeded to ask about finance.

So for a 50k car over 2 years on finance i was offered the following deal below

50k car purchase
£6877.19 advanced payment
Balance £43122.81

Add charges £4934.69
Balance £48057.50
23 payments of £650
Followed by a final rental of £33107.50

Total payable 54944.60 (according to the PC Finance Services document)
8k miles per year
APR 6.7%!!

No I am no mathematician but looking at the figures i am paying back £69884.69 over 2 years!

As i usually buy my cars with a loan or outright, I would be interested to know other porsche owners views and way they've financed their cars. :?:

I would also be interested in the residual value of the car after 2 years, would I only likely get 33K back and walk away. Have any of you guys got more back than stated by the Porsche Dealer?

Thanks

Paul
 
Here's another example for comparison

Cayman S - 36 Months PCP - £60k
£15,000 Deposit
£45,000 Balance to finance
£ 7,700 Charges
£52,700 Balance

35 payments of £600
Final Payment £31,682

Total 67,710
APR 6.9%


It's the way they load the interest on the balance to finance then deduct the balloon payment that stings. It's an affordable way to drive a new Porsche but financially it makes no sense if you can afford a much larger deposit and loan or the cash unless your portfolio of investments provides a higher return.

I say it makes no sense but I have been doing it for years on BMWs but then I have never been able to afford over 50% of the purchase price in one hit. It does get you in a new Porsche with a low deposit and low monthly payments leaving the nest egg intact which is why I am tempted.

That said, I am starting to struggle with the concept myself once I started to work out the cost of ownership over the period. Try doing it with a 991.2 C4S @£30k deposit that will make you giggle ;) Maybe I am getting older and less impatient to have what I want but the costs of these finance deals is starting to make me wince a little.

Balloon values are purposely on the low side, designed to limit the risk to the finance company and to hook you back into the cycle again. I always thought Porsche interest was high, nearly 2% more than what you can get from other manufacturers.

I was told by a dealer that the best way to use PCP is on a nearly new car but watch their interest rates climb significantly to combat this if not negotiated hard!

A neat little tool I found from this website since joining is here and can help to play with the numbers a little: http://www.pcpcal.co.uk/
 
Thanks for the response.

I simply don't see the logic in this type of finance , you'd be better getting a personal loan, push as much as possible on the cash price with the dealer and then sell the car after 24 months.

A 45K personal loan from Halifax over 5 years is £835 per month, after 24 months you can still pay the remainder, its simply a no brainer in my opinion.

Or how about this on lease

https://www.carleasing4u.co.uk/car-leasing-deal-porsche-macan-59989834

Opinions please :?:
 
dufmiester said:
I would also be interested in the residual value of the car after 2 years, would I only likely get 33K back and walk away. Have any of you guys got more back than stated by the Porsche Dealer?

Please find me a 2 year old Macan for £33k and I'll bite your hand off... they still are selling at "new prices" due to 18 month waiting list...
 
mazza said:
dufmiester said:
I would also be interested in the residual value of the car after 2 years, would I only likely get 33K back and walk away. Have any of you guys got more back than stated by the Porsche Dealer?

Please find me a 2 year old Macan for £33k and I'll bite your hand off... they still are selling at "new prices" due to 18 month waiting list...

Yes I know that, but thats my question, would the PD only offer me 33k??
 
Potentially, but you can always sell the car privately and it will likely be for more than £33k...(though many things can happen in the next 2 years with brexit :eek: )
 
Paul

I can't quite see how you get to £69,884.69 from the numbers you have provided. I make the total £59,869.38 (initial payment of £6,877.19 + charges£4,934.69 + instalments £14,950.00 + final payment £33,107.50). It still doesn't match with the quoted total of £54,944.60 (it's close if you don't include the charges?) but maybe not as bad as you thought.

I think the final payment would be one that you make to them if you want to keep the car at the end of the two years, rather than a payment they would make to you. If you choose not to make the final payment then the car goes back to the finance company therefore they are taking the 'risk' on the residual value.
 
madge said:
Paul

I can't quite see how you get to £69,884.69 from the numbers you have provided. I make the total £59,869.38 (initial payment of £6,877.19 + charges£4,934.69 + instalments £14,950.00 + final payment £33,107.50). It still doesn't match with the quoted total of £54,944.60 (it's close if you don't include the charges?) but maybe not as bad as you thought.

I think the final payment would be one that you make to them if you want to keep the car at the end of the two years, rather than a payment they would make to you. If you choose not to make the final payment then the car goes back to the finance company therefore they are taking the 'risk' on the residual value.

Yes I stand corrected, whats 10K between friends!!! lol... :D

But seriously £1125 a month lost on a car makes no sense, I agree the risk is with the finance company regards the final payment and selling it privately is probably the way to go!
 
Speak to jamie @ performance car finance... see what he can do.

He has financed 2 cars for me, both significantly cheaper than what the dealer was offering.

But my current car I got through a personal loan - was meant to be 5 years, but i managed to pay it off within 18 months... I think that is how I would go again.
 
dufmiester said:
But seriously £1125 a month lost on a car makes no sense

Yes, I think there are better deals out there, as some of the other chaps have said. I would shop around for a better APR and a deal that will allow you to be a bit more flexible about putting a bigger amount down initially to reduce the interest cost.

I looked at the OPC financing for a Cayman GTS a while ago and would have gone a different route (probably remortgage and pay off early through over-payments) but I didn't get the car in the end anyway.

IMO the dealer PCP deals are great for people who want a brand new car every 2 or 3 years without a big up-front payment. It's expensive but I guess a new Porsche every couple of years always will be, unless it's a GT car with no depreciation of course!
 

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