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Financing Your Porsche

YvesD

YvesD

New member
Guys,

As a matter of interest, how do you fund your Porsche purchase ?

OPC Finance ?, Cash ?, other magic product ?

Whats the consensus view on the right balance between initial deposit, monthly payments, length of ownership to minimise the depreciation problem etc ?

I appreciate its probably individual specific but is there a trend to our funding habits ?

Yves

 
ORIGINAL: YvesD
Guys,

As a matter of interest, how do you fund your Porsche purchase ?

OPC Finance ?, Cash ?, other magic product ?

Whats the consensus view on the right balance between initial deposit, monthly payments, length of ownership to minimise the depreciation problem etc ?

I appreciate its probably individual specific but is there a trend to our funding habits ?
Yves
Click to expand...

If you have equity and cash available try an offset mortgage. Borrow against residential/commercial property. then nominate a business a/c or WHY (something with cash in it) to set-off interest payments.Tax efficient too!
Regards, [;)]
Clive
 
Funded with cash.

I do not know why one would fund against property. The idea of funding a depreciating asset against an appreciating one does not click for me.
 
50% deposit, OPC Finance for the rest.
I'm not embarrassed to say I'm a young single guy who has always wanted a Porsche and it was the easiest way for me to be able to get one.
I don't see cars as an investment, just something to be enjoyed.
Don't get me wrong I would love to own one outright but I think I would struggle to justify that amount of cash on something that brings no financial return.
I also think it is a good way for me personally to keep upgrading / enjoying a new model every year or two as finances allow.
My finance payments allow me something that brings a huge smile to my face every day [:D], unlike my gym membership![:mad:]
 
paid for 100%cash,same with all my cars
luckily have enough funds to use for investments/property without the need to disinvest money from cars
also helps with depreciation [:mad:]as i write off the cost of the cars against tax[:D]
 
50% deposit, 50% balloon and interest only on the monthly payments. OPC rates too high for me so financed by Jamie Garside (is a member on here). In a perfect world I would buy outright with cash but I don't believe in releasing equity from my mortgage into a depreciating asset or cashing in other investments that I have. I plan to chip away on the balloon payment over the next 3 years to have it all pretty much paid off in 3 years along with further funds which should put me into a nice 998. Fingers crossed.
 
So far....always only purchased a car when I could afford it outright without finance, love cars but they cost enough in depreciation without adding finance costs (just call me tight) having said this whether financed or purchased we are all still enjoying the same cars!
 
Cash.
I've only ever bought a car with cash
(though my previous cars were 2 Fiat Unos and a new Fiat Panda)
 
ORIGINAL: MarcBC
Funded with cash.
I do not know why one would fund against property. The idea of funding a depreciating asset against an appreciating one does not click for me.
Click to expand...

It's a complicated business, finance isn't it?
At high end, I wouldn't dream of putting my own money into a seriously depreciating asset - I rather use it for something more worthwhile.
Once a decision to borrow is made, the cheapest money available is that secured against property. Offsetting the borrowings against the equivalent amount in another account, say a savings or business fund, means you pay nil interest and can then concentrate on repaying capital over a fixed period.
It's all a matter of individual circumstances and outlook, I guess.
Regards,
Clive
 
I had Porsche finance for the first 6 months as I used my M3 for the deposit and didn't want to part with any cash, but worked out that the lost interest on £40k was far less than seeing the 3 year finance through and settled up. That obviously wouldn't work against a possible "one off, top drawer investment opportunity" waiting for your cash, but I'm not that adventurous when it comes to investing anyway (having been burnt before - ouch!).

Wish I had thought about it harder initially, but I was too excited and got into the car within 2 weeks of it even crossing my mind?
 
Cash for me. I'm sure it's an old-fashioned way of looking at things but the thought of borrowing money on a depreciating object & paying a % for the privilege galls. [&:]
 
Finance for me, obviously!

small deposit, 5 years 50% bubble.


We work with the same product as the OPC, which is a Balanced Payment Plan however have a couple of distinct differences:

OPC link to FHBR and we link to Bank Base therefore we are able to offer an overall better variable rate.
OPC deals carry 60 days penalty for early settlement whereas we are at maximum 10 days

OPC's feel they have a right to the business, and after hours spent negotiating £500 off a car or some extras, people blindly sign up to un-competitive interest rate and terms which costs them 000's. For instance, I pitch interest rate for every 997 deal slightly lower than the dealers very lowest rate they are allowed to do (the one where they don't earn commission).

Industry standard deposits are 10% however we will offer 0% and generally up to 50% balloon over 5 years however all of this comes with a health risk. We don't finance these terms for people who could only afford to buy a Porsche on these terms. The demongraphic generally points to high earners with assets and therefore if they wish to fund on an aggressive profile and they understand the risks / can buy themselves out of the deal as and when - then so be it.

Increasingly, people are less concerned about whether the car is going to be worth £x balloon in 5 years as they have put a decent deposit in i.e. £10K to £20K, will only keep the car a year in any case and in that time will always be in equity.

I am seeing a rise in interest only deals as well. Will do 30/70 funding on 2 years, 40/60 funding on 3 years and 50/50 funding on 4 years. 30/70 meaning 30% deposit, 70% balloon.

Hope this helps answer your question.
 
ive always paid cash. If i couldnt afford it, i wouldnt buy it.

i think the math is relatively simple: say u pay 80k for 911s cab, after 3 yrs or so its worth 40 as trade price if your lucky (vs fcst price of nearer 50).

opportunity cost of having 80k in the bank earning 5.5% = 13k over 3 yrs.

so total loss after 3 yrs is about 53k which @ 59% = 90k pre-tax earnings. = 30k pa.

[then.. if u add on insurance... service.. etc and gross that up by 59% pa.... :O)

if u borrow the money, u just add on whatever the spread is > 5.5%. dont know what consumer car finance is these days, 7%??.

which ever way u cut it, its usualy costs to have fun. bit like spending 30k pa on holidays. I might think that after 5 yrs, i could have bot a holiday home for that money. but persoanlly i like staying in nice hotels and going to different places. Essentially its economics vs lifestyle.


 
Married for 20yrs and i never figured that one out.. doh! [:mad:]

Out of interest, how does the Cayman cp with the 996 u had ?




 
hi
the cayman s is for me a far better drive than the 996 -better balanced and handling and all the up to date devpts of the 987/997 model -:to be honest i prefer the cs even to the 997 i tested at length (i know some others here feel the same way-some even having owned 997`s)
 
ORIGINAL: dyllan

hi
the cayman s is for me a far better drive than the 996 -better balanced and handling and all the up to date devpts of the 987/997 model -:to be honest i prefer the cs even to the 997 i tested at length (i know some others here feel the same way-some even having owned 997`s)
Click to expand...

THx Dylan. May have to look at a Cayman, s i've nver driven one. Also thinking of lotus exige (partly for track etc).
 
ORIGINAL: cueman

ORIGINAL: dyllan

hi
the cayman s is for me a far better drive than the 996 -better balanced and handling and all the up to date devpts of the 987/997 model -:to be honest i prefer the cs even to the 997 i tested at length (i know some others here feel the same way-some even having owned 997`s)
Click to expand...

THx Dylan. May have to look at a Cayman, s i've nver driven one. Also thinking of lotus exige (partly for track etc).
Click to expand...

Cueman

Alternatively drive a 997 C2 S with or without Powerkit, you'll never want another car
 
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