Financing an approved used Porsche vs cash

[fflump]

I was wondering whether anyone has any insight into whether main dealers prefer to receive cash for their used sales, or finance?

I'd be in a position to pay off the finance very quickly (assuming it is allowed) so the main question is whether I can get a better sticker price going with finance or not.

Thanks for any advice!

[woodysnr]

Doubt it .they prefer you to take their finance commission for them ...if a new car say on PCP sign up get discounts then pay off within 14days can do nothing about .Bought 2cars not Porsche and saved approx £ 3.500

[GT3Gooner]

I recently had a similar discussion with a pretty straight, non Porsche, main brand sales manager. His comments, for what it’s worth, was would prefer a financed sale as of course they take a kick back. Finance protection allows the customer to settle the outstanding date quickly if that’s a preference but might have a negative impact on an individual’s credit rating. The rating is not just a measure of ability to pay, also a measure of the profit to be amassed over the duration of the loan. Not good business for the financer if you make a minimal number of payments before the loan is settled.

[Cheib]

I’m amazed you’d be penalised on a credit rating for settling early….surely you could challenge that ?

As others have said OPC’s do like finance for obvious reasons and some will definitely flex on price if you do take finance. If you pay off the loan quickly the OPC will lose their commission so won’t be best pleased if you have negotiated a discount on the back of it. That may not matter to a lot of people but personally I’ve found having a good relationship with my OPC helps with after sales etc

[bitchstewie]

Cheib said:

I’m amazed you’d be penalised on a credit rating for settling early….surely you could challenge that ?

As others have said OPC’s do like finance for obvious reasons and some will definitely flex on price if you do take finance. If you pay off the loan quickly the OPC will lose their commission so won’t be best pleased if you have negotiated a discount on the back of it. That may not matter to a lot of people but personally I’ve found having a good relationship with my OPC helps with after sales etc

Pretty sure a modern finance agreement shouldn't have penalties for paying it off early.

It wasn't a Porsche but I paid my last PCP early as I needed to take it to get the dealer contribution and that was with Santander finance.

Far as I know it's pretty common practise.

Voluntary Termination or other ways of ending the agreement presumably may have an impact.

[SV_WDC]

Yes paying it off early can impact credit rating.

It doesn't always. If you pay off with cash then on file it reduces the amount of debt against your name - likely viewed positively

If replaced with another loan then there is another search for / completed credit application which can lower the score in the short term.

And cancelling within a cooling off period may be deemed different to not

[fflump]

Thanks-I suspected they'd prefer finance so will go with that as long as no early payment penalties.

[3xAAA]

Please keep us posted how you get on, OP.

[supersport]

Interesting.

When recently dealing with a non Porsche main dealer they,said they couldn’t care less and it made no difference to them, cash made the paper work easier.

[_speedyellow_]

fflump said:

Thanks-I suspected they'd prefer finance so will go with that as long as no early payment penalties.

I believe it was 1 months interest if settled early - I don't think you will see it, as it's calculated in the Interest saved. That was Dec 2022 when I last bought a Porsche.

[2ono]

It depends if you want to get further cars from the same salesperson, when we bought a new RRS in '21 I asked the salesman how long he needed the finance to stay in place so he got his commission, he said a month, left it a month and then cleared it, saved a lot of money because JLR gave a £9k contribution to cost for taking out finance, happy customer happy salesman.

[Stella Tortoise]

GT3Gooner said:

I recently had a similar discussion with a pretty straight, non Porsche, main brand sales manager. His comments, for what it’s worth, was would prefer a financed sale as of course they take a kick back. Finance protection allows the customer to settle the outstanding date quickly if that’s a preference but might have a negative impact on an individual’s credit rating. The rating is not just a measure of ability to pay, also a measure of the profit to be amassed over the duration of the loan. Not good business for the financer if you make a minimal number of payments before the loan is settled.

Sorry, this is not the case at all.

[Discombobulate]

Stella Tortoise said:

Sorry, this is not the case at all.

Agree.

[toddygti]

Hi

I recently bought mine in December 23 in cash; the OPC was still quite open to negotiation on the price as I thought it was a little over for the spec. I offered 2K less, they met me in the middle at £1k discount. In addition to that, they paid for my (very nice) hotel the night before as I was travelling quite some way from home; gave me some nice accessories for the car and a full tank of fuel to travel home with which was all unexpected - they will retain my business going forwards purely for the level of service provided.

[GT3Gooner]

Discombobulate said:

Agree.

Okay I’ll stand corrected but the sales manager was talking from his own personal experience where he had settled within 6 months and took a consequential hit on his credit score.