Any advice re new 911 welcome?!
- Thread starter Hendrikus
- Start date
Jamie Garside
New member
Dyllan, I'm not just referring to using cash for investment as yes that might not be the right move at the moment however cash is king and there is nothing like having £60K in the bank for liquidity over having £60K tied up in a depreciating asset and nothing in the bank as a) it is more difficult/costly to re-finance the car should you need the cash and b) if you are therefore forced to sell to realise the cash, especially in a market like we are currently in, you might be taking a big hit to dispose of quickly.
I personally prefer to have debt and cashflow over no debt and no cash. Obviously in an ideal world I would like no debt, all the toys and bags of cash but for most people it isn't the case.
Black80XSA
New member
Financing cars is a very difficult business, and one that every person has a different stance on.
The Porsche system is good if you want to continue owning a Porsche for the long term, but what if something better comes along or you circumstances change in say 5 or 7 years. You are putting in a lot of cash, and £700/month (probably the depreciation over 3 years) but you have nothing at the end, bar the ability to buy another car from Porsche (either new or an overpriced used car) and carry on the finance system. It gives you some security from market conditions with a set balloon payment (or guaranteed future value if you like).
Buying a used cabriolet with external finance is well worth a look - at least you are buying the car. Given that that £60k car in Bolton carries at least £7k mark up after its been prepped and warranted you might get £4k off their price. Sell the Boxster for the £10k pittance they offered you, add your £20k and you have £26k to finance.
You really have to decide whether you would
1. buy used with your own finance, leaving you in possession of the car at the end
2. use the Porsche system where in 3 years time you might find yourself having to hand the car back and walk away if your cicrumstances change (having given them 30k deposit and £700/month)
3. use the Porsche system and pay their balloon (sometimes pessimistic, sometimes the reverse)
4. use the Porsche system and change the car after 3 years, paying another deposit
Personally, given the way the prices are dropping, i'd be looking at a year old Cab either discounted from OPC or a good specialist like Paragon or Camtune.
The Porsche system is good if you want to continue owning a Porsche for the long term, but what if something better comes along or you circumstances change in say 5 or 7 years. You are putting in a lot of cash, and £700/month (probably the depreciation over 3 years) but you have nothing at the end, bar the ability to buy another car from Porsche (either new or an overpriced used car) and carry on the finance system. It gives you some security from market conditions with a set balloon payment (or guaranteed future value if you like).
Buying a used cabriolet with external finance is well worth a look - at least you are buying the car. Given that that £60k car in Bolton carries at least £7k mark up after its been prepped and warranted you might get £4k off their price. Sell the Boxster for the £10k pittance they offered you, add your £20k and you have £26k to finance.
You really have to decide whether you would
1. buy used with your own finance, leaving you in possession of the car at the end
2. use the Porsche system where in 3 years time you might find yourself having to hand the car back and walk away if your cicrumstances change (having given them 30k deposit and £700/month)
3. use the Porsche system and pay their balloon (sometimes pessimistic, sometimes the reverse)
4. use the Porsche system and change the car after 3 years, paying another deposit
Personally, given the way the prices are dropping, i'd be looking at a year old Cab either discounted from OPC or a good specialist like Paragon or Camtune.
Tony M
New member
This was the advice my accountant gave too.
It seems that if you have the cash and leave it invested, over a three year period the interest will be greater than the finance charges as the sum you initially borrow is a decreasing loan as you pay it off.
I still scratch my head regarding this advice but have financed the last five vehicles my company needed instead of paying cash.
i do understand the logic(linda`s dad is an accountant and explained it!)but it relies on the return investment on your cash (minus any taxation on it)being greater than the interest you pay for finance,and in the current market that is by no means guaranteed.however if the sums add up then its clearly wiser to finance.interestingly,linda`s dad always buys his cars with cash,but as you would expect[
]has lots of other investments!mind you,he also bought his sunseeker outright!mmmmm.......
]has lots of other investments!mind you,he also bought his sunseeker outright!mmmmm.......
hastings glazing
New member
Just a thought that I havent seen mentioned anywhere.I know in New Zealand different models,colours,auto verses manual etc effect the speed at which the downward direction happens upon our beloved cars.It might pay to ask around at the prospect of purchasing another model that isnt as prone to loosing money so fast.Its always the first owner that takes the biggest hit.There are shed loads of near new cars for sale here right now and purchasing a car in the winter Im sure is a better option as things definately slow down-obviously you are in the summer months but waiting may be an option.Good luck and enjoy the excitement of buying a new car.Test drive loads and have the dealers working against each other for whats best for you.
ORIGINAL: garyw
ORIGINAL: dyllan
linda`s dad always buys his cars with cash,but as you would expect[
Linda got any sisters...????????? [
garyw
sadly no!!only 2 brothers(who will probably inherit the lot!!)[
]
Ronnie C
New member
ORIGINAL: 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.
If only the performance was better than a Vauxhall Nova.
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