Porsche Balanced Payments

Guest · Oct 22, 2004

I am sure everyone on this Forum doesn't need to finance their new 987...but I do!!!

However, can anyone suggest a good finance company as an alternative to Porsche. The guy I spoke to at OPC seemed to think, by default, I was going to finance with him but I would like to benchmark his numbers.

Thanks in advance.

Guest · Oct 22, 2004

They do seem very insistent that you take finance from Porsche don't they, its a bit off putting.

I think if memory serves correct, the TV car shows all say that the best place to get finance from is usually a the supermarket lenders like Tesco.

944Turbo · Oct 22, 2004

There is a facility on autotrader that lets you search for loans I did a quick search the other day, rates looked reasonable though the cheapest wasn't if you want insurance about the 3rd one was.
Tony

heather · Oct 22, 2004

You could try having a look at these sites they are great for searching out best rates for loans, savings and anything financial related. Hope it helps.

www.moneyfacts.co.uk
www.moneysupermarket.com

Guest · Oct 22, 2004

Capital Bank, but I believe that Porsche's Balanced Payment Plan is funded by Capital.

You could try Hermes Leasing - they gave me a good quote on our new Boxster. I went with Capital becuase they gave a higher balloon.

The Porsche deal is good but I believe that you can get stung because the interest rate is linked to base rate.

Charlie_McLaughlin · Oct 22, 2004

Alliance and Leicester are also good with loans... and also have the facility for a "ballon" payment. Check it out online for a better rate of interest....

Charlie

Bill Stewart · Oct 22, 2004

If you have a flexible mortgage and some equity on the house then that may be the way to go. You can finance the whole sum of the car and just choose to pay the depreciation element (in effect giving a balloon payment) or pay the whole lot. The term will be as flexible as you want it although you wouldn't want it to be over the term of the mortgage........unless you are keeping the car until its a classic (it is already of course)
If you have neither a mortgage or equity then please ignore the above!!

timhum2002 · Oct 22, 2004

Try your bank. I use Nat West and they have been quite comfortable, in the past, lending with a balloon payment etc. Their rates are also more competitve than Porsche.
My personal warning is to beware of finance shemes that dramatically reduce payments with a balloon at the end. Firstly you're gambling on residuals and secondly work our what it really costs you. Significant upfront payment, monthly instalments and nothing at the end. To me its the equivalent of renting the car.

chrisr · Oct 22, 2004

Working as a Finance Manager within the motor trade do I answer this with my company hat on or the guy attempting to arrange finance on his Porsche [

] firstly PCP's can look attractive due to the deferment / guaranteed risdual / balloon payment ( be careful as to which of these the PCP carries ) but overall CAN be an expensive way to fund the vehicle and may not be cheaper than a traditional HP deal with rebate of interest charges if obtainable on HP being a reasonable way of repaying the loan early. PCP with rebate of interest charges are also quiet common. 4% Flat should be obtainable from a main dealer and a large balance of borrowing will normally help negotiate better terms.

Direct Lender eg Northern Rock, A&L, Direct Line and Natwest can be very cheap on the APR front but be careful to ensure you have got the competive APR as clever advertising and stringent credit scoring can be used to entice but beating a dealer rate on straight Personal Loan should be 8/10 but again convenience and speed if only down to a nominal amount may make the dealer finance seem ok.

Always shop and then give the OPC a bell if they want the business and it can be done without a financial loss then they are likely to do it .

Cheers