Deposit Paid (How to pay for the rest?)

[Sam77]

Put deposit down on a boxster 2.7 today. During test drive gear box (manual) was bit stiff to begin with and had to force to get in to 1st and 2nd and often found 3rd or 4th instead, it did get better towards the end and dealer said this was normal esp as car had not been driven for a while. Is this true?

Anyway I'm 50% excited 50% apprehensive, never had a car of this value/prestige before.

Just need to decide how to pay for it which is the reason for the post. Car is 20k and I could prob put in about 7.5k and finance rest. Dealer said to keep my money and go for a Lease Purchase with a final payment of say 10k, to keep the monthly payments down and that my 7.5k would earn more money in interest than I would pay interest in a loan!

What would people advise, I was just going to take straight finance over 3/4 years and put in the 7.5k I have. Also should I keep couple of grand back just as a safety net, god forbid anything goes wrong.

I know its a bit long but dont spend 20K that often and so could do with some advice.

Cheers

 

[jleo]

I find the gearbox can be a bit stiff until it warms up, esp 1st and 2nd gear but it should be easier once warm. How does it compare to others you've tested? Its possible it needs a new clutch depending on mileage?

Regarding the financing, bear in mind the dealer will make commission on a lease deal he does for you so not exactly independent advice. If I was you I would look for a personal loan to pay the balance, interest should be about 7 percent. Check out the moneyfacts website for comparisons.

Not a bad idea to keep some money in your pocket just in case. Good luck and enjoy the car!

 

[Sam77]

Cheers, clutch should be OK as services by OPC in Jan and as an fleet car it has had everything done to it whenever it was needed, plus I will get a warrenty so if it is clutch I hope that would be covered.

Have looked at personnal loans and can get 6.5/6.7 % which seems pretty good.

 

[430 DJ]

When I bought mine this time last year I went with Porsche Finance as there was not much difference compared with the high street. As a guide I borrowed £6K over 36 mths and pay approx £190 per month.

Regards
David

 

[Alex Postan]

ORIGINAL: Sam77


Dealer said to keep my money and go for a Lease Purchase with a final payment of say 10k, to keep the monthly payments down and that my 7.5k would earn more money in interest than I would pay interest in a loan!

What would people advise, I was just going to take straight finance over 3/4 years and put in the 7.5k I have. Also should I keep couple of grand back just as a safety net, god forbid anything goes wrong.

I know its a bit long but dont spend 20K that often and so could do with some advice.

Cheers

Car sales earn profits for the dealer and so does selling finance. Do you really believe that interest rates are available that are higher for deposit than for borrowing? Water doesn't flow uphill you know.....

 

[thboxster]

Never yet have I come across a normal occasion where I gan get more interest on my savings than I would get charged for on a loan.

If that were the case then i'd be borrowing 20k, sticking it in the bank and effectively making money while I pay the loan off. Sounds too good to be true, if only it were true.

It's worth holding a little in reserve just in case you need to fork out for new tyres or things, but that's normal practice for any car. I would throw 5 or 6k at it (In fact i'd pay it on my Virgin credit card to get the air-miles[]) and go for a personal loan for the rest. That is if the Porsche Finance is a higher interest rate than on the high street. I imagine it is.

There are plenty of loan options that are a wisker under 6% currently so there's plenty to choose from.

 

[daro911]

ORIGINAL: thboxster

if the Porsche Finance is a higher interest rate than on the high street. I imagine it is.

There are plenty of loan options that are a wisker under 6% currently so there's plenty to choose from.

Porsche Finance do price match these days whenever possible ... Anything to make a few extra buck$ out of the deal []

 

[juliany27]

If you get Porsche finance - ask for a few freebies as sweeteners. You never know.....

 

[daro911]

ORIGINAL: juliany27

If you get Porsche finance - ask for a few freebies as sweeteners. You never know.....

[] Thats why the service customers end up paying £120+++ an hour labour .... "freebies" there is no such thing in the Porsche language []

 

[Rodney Naghar]

How about taking out a personal loan at 6.5/6.7% as you say, then applying for credit cards that let you balance transfer the money out of the personal loan at 0% for 9 months or so (although they are now charging 2% handling fee). This would reduce your effective interest rate to near 0%, which you can keep rolling over to new credit cards once the 0% period is over. (assuming your credit rating is ok)

 

[38F3E1]

ORIGINAL: Sam77

Cheers, clutch should be OK as services by OPC in Jan and as an fleet car it has had everything done to it whenever it was needed, plus I will get a warrenty so if it is clutch I hope that would be covered.

I would make sure you are happy the warrenty does in fact cover that as all that I know of consider clutch a wear and tear item and therefore do not cover it.

Ian.

 

[Sam77]

ORIGINAL: Rodney Naghar

How about taking out a personal loan at 6.5/6.7% as you say, then applying for credit cards that let you balance transfer the money out of the personal loan at 0% for 9 months or so (although they are now charging 2% handling fee). This would reduce your effective interest rate to near 0%, which you can keep rolling over to new credit cards once the 0% period is over. (assuming your credit rating is ok)

Good idea and probably the most cost effective way but I'd probably forget to transfer and end up with a massive amount of interest. Will def go personnal loan route for 6.5/6.7 %.

 

[daro911]

ORIGINAL: ian_uk

ORIGINAL: Sam77

Cheers, clutch should be OK as services by OPC in Jan and as an fleet car it has had everything done to it whenever it was needed, plus I will get a warrenty so if it is clutch I hope that would be covered.

Clutch unlikely to be covered for obvious reasons of fair wear and tear etc. One word of advice if you are not 100% certain that the gearbox or clutch are in perfect working order walk away from this deal. Once you leave the showroom the sales guy is no longer bothered and you would be in the hands of the service / warranty guys. Whole different ball game []

 

[juliany27]

Alternatively, get confirmation of absolutely everything in writing. If the sales guy/gal says/has said that all is well, or represents that any OPC warranty covers the clutch etc., write it down and get him/her to sign it. Becomes very, very binding on the sales company. If they refuse to sign, go over their head to the head honcho. If you are assertive and stick to your guns, they should be prepared to stand by what they say, I hope.

However, I agree with Robert - if in doubt, walk away and ask for the return of your deposit. There are many very good Boxsters out there.

 

[Sam77]

I'm sure it fine just over worrying now I've started the process. Drove lots week or so ago and now this one so hard to compare, esp as I've done about 1000 miles in mine this week and they're worlds apart.

I know a Porsche specialist near me so as soon as I get it its straight round to his for a quick once over whilst its still under warrenty.