992 PCP deal offer opinions

[MikeM3Power]

Hello

Been eyeing a 992 C2 for a while now and about to pull the trigger.

The deal that I've got is

£105k value
Deposit £26k
36mth term
£1000 p/m
55k GFV
10k pa
5.9%
Porsche finance

They kept pushing a 48mth deal but that is too long for me to have a car.

As I've never done a PCP before just wanted some opinions on the deal.

Thanks

[Gnevans]

Lease one.
Try niche leasing or look at lease loco

[Twinfan]

• If you're handing the car back in 3 years and walking away it's going to cost you £62k + servicing and maintenance
• If you want to buy it outright after 3 years it's going to cost you £117k + servicing and maintenance
• If you're planning on trading it in for another Porsche after 3 years it'll cost you £62k - any residual value over £55k at the time of trade in + servicing and maintenance

So it depends what you're planning on doing in 3yrs and your feelings on cost of ownership as to whether it's a good deal for you or not.

[MikeM3Power]

Thanks for the replies.

Regarding leasing, it's a smaller deposit and similar monthly although when I put spec on it it'll be higher. And at end of the term I give it back? Do many people do this?

And also I was thinking the third option of trading for another model but isn't there an option of selling it to a specialist towards end of term and paying off what is owed and keeping the rest or putting that down on a deposit on another car etc?

Thanks

[Twinfan]

MikeM3Power said:

And also I was thinking the third option of trading for another model but isn't there an option of selling it to a specialist towards end of term and paying off what is owed and keeping the rest or putting that down on a deposit on another car etc?

Yep, that's possible too or using WBAC to just sell the car outright.

[Fnumber1user]

MikeM3Power said:

Thanks for the replies.

Regarding leasing, it's a smaller deposit and similar monthly although when I put spec on it it'll be higher. And at end of the term I give it back? Do many people do this?

And also I was thinking the third option of trading for another model but isn't there an option of selling it to a specialist towards end of term and paying off what is owed and keeping the rest or putting that down on a deposit on another car etc?

Thanks

As long as you pay off any residual of the PCP before it reaches last date its your choice of what to do at the end of the term. Sell it to a specialist, a private individual, or part-ex it with Porsche themselves on a replacement.

I like with PCP you can pretty much calculate the true cost of the car over the period of time you plan to have it.

Most people do not just hand the car back, as in effect you have lost in full whatever deposit you put in to it in the first instance. Porsche always quote a low MGFV so that there is equity in the deal come the end of the PCP term. If you search out 911's that are 3 years old and of a similar spec (even if they're 991.2's) you'll get an idea (albeit somewhat slightly inflated currently) as to what to expect your car to be worth at the same age (but don't bank on it - the only thing you can 100% bank on is the MGFV figure Porsche have given you).

[n12maser]

yes, but surely they won't pay out market value at that point? won't Porsche give you say £10k less that mkt value so that they can make a profit when selling it on?

[Iknownothin]

The thing to also remember is you can get out of PCP at anytime. Trade in after 6 months if you want to move on, term length doesn't really matter unless you really want to hold on to it. I've just had a Golf Mk8 R on PCP, kept it 3 months, put 5k miles on it, sold it back to the dealer I bought it from for 2.5k more than I paid so made money and had 5k miles free. With a lease you are in for the whole term and cost really, makes sense for a fleet vehicle, the specialist stuff not so much in my opinion.

Lease cost = monthly * no of months + deposit
PCP cost = depreciation + interest
Buying outright = depreciation + opportunity cost of tied up capital

Edited by Iknownothin on Thursday 9th December 11:34

[Twinfan]

n12maser said:

yes, but surely they won't pay out market value at that point? won't Porsche give you say £10k less that mkt value so that they can make a profit when selling it on?

So pay off the GFV and sell it elsewhere as has been mentioned above

[tyrrell]

Twinfan said:

So pay off the GFV and sell it elsewhere as has been mentioned above

+1

[SmithCorona]

Iknownothin said:

The thing to also remember is you can get out of PCP at anytime. Trade in after 6 months if you want to move on, term length doesn't really matter unless you really want to hold on to it. I've just had a Golf Mk8 R on PCP, kept it 3 months, put 5k miles on it, sold it back to the dealer I bought it from for 2.5k more than I paid so made money and had 5k miles free.

Edited by Iknownothin on Thursday 9th December 11:34

Yes, but this is likely an exception not the rule. Many will be in negative equity so early on in the deal.

The reality is, on many PCPs if you want out you will have to pay.

The GFV is set way too low on that 911, but this is not to ensure that you have equity at trade in time, it is to ensure Porsche FS are getting a guaranteed higher monthly income.

Also note the spread between dealer offer and retail. Porsche Centres have form for offering low, and selling privately and easily won't likely be an option on a low spec 911 - people will want to buy from the centre and get the experience and piece of mind.

You will not see the 26k back, maybe eight thousand at trade if lucky - and that will be trying to roll you into a new car.

If you can afford it I would reduce deposit down to Porsche min of 10%, deal with the higher monthly payments, and if you need to get out at any point use some of the unused deposit to do so.

I'm also not convinced anyone would stick with a C2 for that long without wanting to try something with a bit more oomph.

[Iknownothin]

SmithCorona said:

Iknownothin said:

The thing to also remember is you can get out of PCP at anytime. Trade in after 6 months if you want to move on, term length doesn't really matter unless you really want to hold on to it. I've just had a Golf Mk8 R on PCP, kept it 3 months, put 5k miles on it, sold it back to the dealer I bought it from for 2.5k more than I paid so made money and had 5k miles free.

Edited by Iknownothin on Thursday 9th December 11:34

Yes, but this is likely an exception not the rule. Many will be in negative equity so early on in the deal.

The reality is, on many PCPs if you want out you will have to pay.

The GFV is set way too low on that 911, but this is not to ensure that you have equity at trade in time, it is to ensure Porsche FS are getting a guaranteed higher monthly income.

Also note the spread between dealer offer and retail. Porsche Centres have form for offering low, and selling privately and easily won't likely be an option on a low spec 911 - people will want to buy from the centre and get the experience and piece of mind.

You will not see the 26k back, maybe eight thousand at trade if lucky - and that will be trying to roll you into a new car.

If you can afford it I would reduce deposit down to Porsche min of 10%, deal with the higher monthly payments, and if you need to get out at any point use some of the unused deposit to do so.

I'm also not convinced anyone would stick with a C2 for that long without wanting to try something with a bit more oomph.

GFVs, monthly payments etc still have no bearing on the actual cost of PCP. The cost of PCP is depreciation + interest, it's that simple and then completely up to the individual as to when they want to jump out. I had a GT4 prior to the golf, made money on that as well but agree you should factor in where you are on the depreciation curve when you want to move on.

[anonymous-user]

4 grand (?) interest per year. Holy crap!

Personally I'd HP, those PCPs are always high interest due to the balloon.

[anonymous-user]

Iknownothin said:

GFVs, monthly payments etc still have no bearing on the actual cost of PCP.

Lower GFV and higher monthly payments would reduce the interest cost as you are borrowing less and repaying sooner.

[pt964]

Have you looked at a personal loan, much cheaper the Porsche finance even on borrowings of £25K+

[gregd]

pt964 said:

Have you looked at a personal loan, much cheaper the Porsche finance even on borrowings of £25K+

This is the route I will be going

[WG]

Good luck getting an unsecured personal loan for £100 K - at a reasonable rate anyway!

[Twinfan]

WG said:

Good luck getting an unsecured personal loan for £100 K - at a reasonable rate anyway!

Around £50k is the easily obtained limit for most normal people I suspect.

[Francois de La Rochefoucauld]

WG said:

Good luck getting an unsecured personal loan for £100 K - at a reasonable rate anyway!

I've had two in the last eighteen months, 4.1%APR.

[Iknownothin]

Schmed said:

Iknownothin said:

GFVs, monthly payments etc still have no bearing on the actual cost of PCP.

Lower GFV and higher monthly payments would reduce the interest cost as you are borrowing less and repaying sooner.

Yes agreed, so PCP cost is still Depreciation + interest.