Never Never

rstaichi · 5 Jan 2017

I've got a mate who wants to get into a 993 it will be his first porsche, he's looking at spending 40k but only can do this through a finance deal, now i've tried to tell him don't but he's really keen to go ahead. Payment wise 2000k down and 795 p/m over 5 years thats one hell of a commitment in my books .. whats your views on this or will he be investing the cash?? Tough one! :?:

FRP · 5 Jan 2017

Umm I would say don't do it. I have a personal rule...if you can't afford it outright then don't buy it

That's a mortgage amount almost???

MisterCorn · 5 Jan 2017

It all depends on circumstances, if he has a stable job with a great income, plenty of disposable income but little savings and can get a good finance deal then why not? For all we know he has just finished paying off his mortgage early and suddenly has over £1k spare every month. Not enough information on the circumstances to say whether I would do it or not, but it doesn't sound crazy.

MC

PeterS · 5 Jan 2017

Sounds crazy to me, but I'm not a fan of finance.

Just remember her has to leave plenty left available for maintenance and upkeep.

The ones that are worth good money are only like that because they've had good money spent on them, wisely.

Monkeynutz · 5 Jan 2017

There are some finance deals out there that make the finance option attractive but that amount your friend is looking at is a fat wedge commitment over 5 years. For that money I would think the car would be high-ish miles and need a few pennies spent on it especially over a 5 yr period.

As an investment I am not sure, if he was looking for a return after the 5 years. It would probably have to be a garage queen and the only miles would be to the specialist and back. A 10 year plan might be a different prospect. That said I I have no idea about the market now or the potential market for these cars.

Some people with large disposable incomes that don't want to put holes in their nest eggs prefer to borrow the money for their pride and joy rather than wait which is a personal choice depending on circumstances, maybe he had done the math and it works for him :dont know:

Albionmuz · 5 Jan 2017

If my maths is correct this 40k car is going to cost him nearly 50k without repairs, maintenance and Insurance etc. If he wants the car most likely to be considered an investment and to increase in value the most, a manual Carrera, he is unlikely to get one that doesn't need money spending at 40k?

Really depends on whether he is looking for an investment or likes the car enough to settle for probably not losing too much when he does come to sell.

It's a risk. Have 993 prices peaked is the big question.

Having recently bought mine I totally get where your mate is coming from though. He may not even be able to afford one for outright cash in five years if they continue appreciating.

Alex · 5 Jan 2017

NEVER buy a car on a (dealer) finance deal unless you want ripping off and also in a vulnerable position. Those loan repayments seem OTT too. Tesco will loan you £35k over 5 years for £685/month. There's also plenty of interest free deals on CCs. So pay £2k deposit, put £3k on a 2 year interest free CC (£125/month repayment over 2 years). That'd work out at £810/month for 2 years and £685/month for the remaining 3 years. Total payable (inc. deposit) = £46,091 (for a £40k car)............but, should your friend write it off/stolen......full Insurance amount gets paid to him. Should your friend decide to sell up.........full amount goes to him, and then he can pay the remainder off if he chooses.........or buy a more expensive car with the money he's made. With the finance deal it'll cost him £49.7k :?:

Just did a quick search for a loan but there's probably a lot cheaper than Tesco.

Shurv · 5 Jan 2017

What is so wrong about buying a car on finance? Most ordinary folk do just that. If the guy wants it now, and hasn't got the cash saved, then why not? It's his money, and if he is happy with the repayments, then who are we to poo poo his ideas.
I bought my 996 with a bank loan, and paid it off just over half way through a 4 year loan term. I got a great rate and as I settled early, didn't end up paying much interest.
APR's for personal loans are only around 3 to 3.5% , so peanuts in reality, and it can enable people to buy when the market is favourable.
Not everyone is minted.

Alex · 5 Jan 2017

I was referring to a finance deal provided by the dealer where by they finance company 'own' the car until it's paid off. Bank loans and credit cards are fine as the car purchase is totally independent from the loan.

nigel99 · 5 Jan 2017

If you can afford the repayments then I have no issue with finance however I would be looking at personal loan over car finance. Lower APR and because you own the car from day 1 are free to sell it/change it at anytime. Perhaps with a better deal could shorten the duration too, 5 years is a long time.

MattyR · 5 Jan 2017

Sod it. If your mate wants a 993 I would say go for it. We all know they are fine things but, as others have pointed out, be prepared to pay for a little extra costs over the years. Personally my car has 154k on the odo and the big ticket items are done. So won't need crazy money spending over the next 5 years. So as long as your chap finds a higher mileage car owned by an enthusiast (tricky, granted- they are rarely advertised but many would sell for the right price. Not me though!) he won't be doing too badly. BUT, if he can up his game to 1k per month, with a slightly better finance deal (he'll be in balls deep anyway), it opens up options. Exponentially nicer options (silver Targa at Precision etc).

MattyR · 5 Jan 2017

Plus if he can up his budget he may be able to purchase from a dealer with warranties etc.

Palladium · 5 Jan 2017

here is the best idea, rent one for a week in the spring, drive a thousand miles in it, return it, and the desire to go into debt over one will have gone, not because there is anything wrong with them, but because novelty is a lot of the desire with sports cars.

gunner · 5 Jan 2017

Extend the mortgage by £20k and pay a much lower rate?

Alex · 5 Jan 2017

..........and 3 times the amount. :?:

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