Any advice re new 911 welcome?!

[Hendrikus]

I visited my OPC today to enquire about purchasing a used 911 Carrera Cabriolet. The sale price was £60,000 or so.

I was very much persuaded to go for a new model, on the basis that the finances would of limited difference to me, and the new model (with the PDK etc) would hold its value more when I come to sell in, say, 3 yrs time.

With the spec I want, the total price for the new model is circa £78,000.

I have a Boxster worth 10k to trade in, and 20k in cash. I was offered Porsche balloon hire purchase as the best deal for me, which would mean I would pay approx £700 per month for 3 years with a balloon payment of 40k or so. Thus the 78k car would cost me in total 95k or so.

I was told that this a far better deal than financing the 60k used car, where I would need to finance or borrow in some way the missing 30k.

My heart is very persuaded by the idea of a brand new Porsche 911 - my head tells me it can't be right that I am better off spending 18k more than I went to the OPC intending to spend! The figures as presented to me, though, show that on spending 60k on an used car I won't really be any better off.

has anyone been through this dilemma/experience? I have never bought a new car (let alone a car of this value) and am very confused. Also, should I steer clear of Porsche finance and try and borrow money elsewhere? new/used - any comments gratefully received?

 

[Dylan1]

welcome!

whilst encouraging you to buy new i would caution against thinking it may be a better financial proposition-even with pdk,i`m afraid there is no way that a new porsche is going to be worth a huge amount in 3 yrs time-your 78k will probably be down to 45k(even with pdk[])the 60k used will probably be worth 30k so either way you are going to lose 30k at least
however,the good news is that you will have had 3 fantastic years[]so if you can afford to do it,go for it,enjoy yourself.but either way and you will lose money-the only way to minimise that is to buy an older car like a 993 or older-imo,best to get what you want and dont worry about the rest of it-get living!!

 

[Hendrikus]

thanks ; I guess on the midst of such a huge expenditure it is helpful to hear words such as this! I think you have, though, backed up what the chap at Porsche said to me. Essentially, either way I lose 30k, but as the monthly payments will be pretty similar I might as well lose 30k on a brand new car, with PDK and all the latest toys. And there is the warranty etc etc

I think, unless someone persuades me otherwise in the next 24 hrs, go for the new car. To hell with it.

 

[mex99]

Definitely go for new - with £30K deposit you should be driving a new car! One word of caution - if you have specced a cab to £78K you are not trying hard enough - I spent more on a non cab C2S. Having the exact car you want is the best bit.

Porsche finance are fairly competitive at the moment, and it is always sensible to buy with other peoples money. I am trying to decide whether to just buy my car or finance - also see Jamie Garside, he is a member here, who owns a finance company - seems like a great bloke - if I do finance I would likely use him.

If anything £30K may be too much deposit - my rule of thumb is 25 - 30% - save your money - it earns interest in the bank, and £10K invested in funds now with FTSE at 5100 will maybe bring excellent return come 3 years time???

 

[jonathanw]

The cheapest way to finance a car is with cash. the various finance deals that Porsche offer are expensive. I had a sweet talking finance man at the OPC extolling the virtues of the various packages. You pay smaller sums for several years and then get hit with a balloon payment or walk away from the car. If you do the latter you have nothing towards your next car. As has already been said most cars will depreciate but most of that is in the first year or two. On the otherhand there is nothing like a brand new car to your own spec. Your dead a long time so enjoy yourself now.

 

[Hendrikus]

thanks, very helpful indeed. I best find myself a stock broker then!

 

[adrian996]

Hi Dan. I'm sure you're more than aware of what's happening to inflation - 3.8% today and easily 6%+ by the end of the year (which is only just over 5 months away).
With this in mind that £78K car will be on the market for about £60K private (and still have loads of warranty left on it) or £66K from an OPC and will have about 2K to 4K miles on it at the very most. That's an average hit of £15k in 5 months. It won't be the exact spec that you want - unless you're really lucky - but will still be an almost new 997 which has had any teething problems ironed out for you by the previous owner. You might even get one for less than this privately if you come across someone who's really in trouble financially and needs to off-load the car quickly to save his or her house - which might well be happening, unfortunately

Like yourself, I've never bought a new car - and would never, even if I was a millionaire. The new smell of the car fades almost as quickly as the value - but not quite as quickly. I quietly saved up the cash to buy my car - nearly eight years - but the feeling of pride, satisfaction and, ultimately, the care that I take of it, is unprecedented.

If it has to be a new car then you're going to have to just do it - otherwise you'll not be satisfied with what you buy and still spend a lot of money.

By the way, I'm afraid that the reasons that the salesman pushed you towards buying new are that he gets kick back from the finance deal that he seals with you and also that no new cars are selling at the moment and some OPC garages are worried that they'll lose their franchise with Porsche UK if their sales are low. Don't forget; they're just car garages that happen to sell Porsche cars, just like Citroen and Renault.

Whatever you do you'll love it! The cars are just great!

Adrian.

 

[rob.kellock]

Whilst I don't profess to be an expert in car finance, isn't the used car a massive financial saving? Cars depreciate most from new with the depreciation curve flattening out as they get older.

For £60k, Bolton OPC are offering a 15 month old 997 C2 cab with less than 5000 miles. I suspect that the car will be virtually indistinguishable from new. The cheapest 997 cab in the entire OPC network according to the Porsche website is almost 3 years old and £50k.

If you put your Boxster and £20k in as deposit, against the used car, you could shop around for the cheapest finance to repay the £30k balance in full over 3 years at a cost of, say £900 per month. In 3 years time you own the car outright. It could well be worth £40k - not only is it yours but you could probably have it on your drive by the weekend.

If you go for the new car, of course you get all the benefits of a new car to your spec and your monthly payments may be modestly less but in 3 years time even if it's worth £50k (which may be a big if), you will only have £10k equity left in it. And you'll have to wait a while for it to be built.

Just my two pennysworth - having recently calculated that I could have run a brand new 997 for less than my 996 has cost me over the last 2 years I'm quite tempted myself. Whatever decision you reach, I'm sure you'll choose what's best for you and enjoy it.

 

[oldtimer]

Hi hendrikus , I wouldn't be too impatient if I were you. Two big factors

1. the Gen2 cars are not so different to the Gen1 cars based on a brief experience of the former and running a Gen1 997C2S for 2yrs 20k miles

2 there are more Gen1 cars on the market at better prices than in OPC network. I guess as you need finance you wont buy private but lots of traders out there and its a buyers market. You can offer low 40s for a well specced 3yr old car that cost 75k new

your boxster is not going to lose a lot more value , times are getting hard so luxury sports cars are going to depreciate hard. If the moneys not an issue then as someone said you can always blow it []

 

[spluff]

just wondering how getting finance is better than buying the car outright? I am facing this dilema myself and was going to plump for buying the car outright..... Is this wrong?

 

[Robin M]

Its always better to finance if you have the Cash and (This is the important bit), you can invest the cash in something else which will give you a higher level of return after the Inland Revenue tax it than you are paying in interest on the loan. I.e. some people buy shares and know/guess or whatever that they will be worth a lot more in three years when the loan is payed off.

 

[Dylan1]

invest in the current investment climate?[][][][][][][]

pay your cash for the car and dont do finance in the current market(imo)

 

[spluff]

yeah it is a bit risky - could end up losing both ways.......

 

[Dylan1]

that was my thinking really-at least by paying cash i`m not paying interest for someone else to make money and i still have other investments to do that kind of thing with!

 

[Grant]

I'm with dylan ref finance!

Not wishing to throw a spanner in the works, whilst I agree with the OPC that a new 2nd generation 997 will hold its value better than a nearly new 1st (certainly in the short term) the best way to minimise depreciation is to wait for all the September part exchanges to filter into the system along with a few demo 997.2's this will have the affect of re-adjusting 997.1's prices down in all the trade guides, then buy one at least 2 years old! This realignment of values happened with the 996 & it will happen with the 997!

Of course if you are only keeping it short term (when demand for the facelift will likely out strip supply) or aren't worried about re-sale value then the new model is a super beast & the base Carrera is something of bargain relatively speaking!

 

[Hendrikus]

thankyou everyone for your input - it is really great to have a Forum such as this where so many people air their considered views.

Went back to the OPC today; interesting they are doing deals. My 78k prospective new car is down to 73k, and I can squeeze an extra 1k for my part-ex by the looks of it.

But then I also saw the 60k used car in Bolton........... a dilemma indeed!

will make a decision tomorrow!

 

[mex99]

Are you saying you got £5K of a gen 2 997???

 

[loughran62]

Just to throw a whole bag of spanners into the works, I bought a 1968 car this time last year and it`s appreciated by £25,000

With the sort of money you have to spend buy youself a 72, 73 2.4 s. Drive a beautiful appreciating asset... and people will wave and smile and let you out at junctions [].

Coat please.

Mike.

 

[Jamie Garside]

If concerned about depreciation / economics I would not want to buy a new car in today's market as it will depreciate. There are some good used cars out there at good money. If money isn't a huge issue and you want your ideal spec/colour combo then go for it, but with eyes open in todays money.

Unless you want PDK from a day to day driving point of view the Gen1 is perfect. I went to Silverstone yesterday and whilst very impressed with Gen2 - it didn't really offer me anything over and above what I already have - not worth £18K difference IMO. Despite the pictures, in the flesh they look almost identical, the interior is identical except the PCM and drove pretty much the same!

Good luck, oh and sent you an e-mail as you asked about other finance providers. Would be happy to help you / give some indie advice. You can finance a used car at similar rates and on similar terms to a new car. There is no way that a new car is cheaper to buy than a used one, there is no logic to it.

As for the old finance vs not finance argument, I have a handfull of clients that earn £500K to £1M PA and still finance their Porsche 911. It is down to personal circumstances and preferences. A lot of people like to hang onto cash and fund the depreciating assets as a rental - assuming you get the right product and deal of course.

Jamie

 

[Dylan1]

"a lot of people like to hang onto cash and fund the depreciating assets as a rental - assuming you get the right product and deal of course."

you are absolutely right of course jamie,but in the current market you would have to be very astute and/or very risk orientated to do that(imo)-but it can be done for sure!!