Stealer's Deal
Discussion
I'm in the process of buying a new 997 C2S from my local Porsche stealer on finance, this is what I'm being offered:
Car & options total = £79,707.00
Deposit = £25,000.00
36 payments of £856.59 = £30,837.24
Final payment = £35,000.00
Total cost = £90,837.24
Cost of credit = £11,130.24
The stealer seemed reluctant to quote an APR, but I make it approx. 9% using the following car loan calculator...
www.grosvenor-butterworth.co.uk/car_loan_calculator.html
Is this deal typical? It doesn't look too attractive to me.
Given that over three years the car is going to depreciate 15% year 1, 10% in years 2 & 3, I'm looking at a car worth £45,000, having paid £90,000, so it's cost me £15,000 per year.
Am I bonkers? What do you think?
Car & options total = £79,707.00
Deposit = £25,000.00
36 payments of £856.59 = £30,837.24
Final payment = £35,000.00
Total cost = £90,837.24
Cost of credit = £11,130.24
The stealer seemed reluctant to quote an APR, but I make it approx. 9% using the following car loan calculator...
www.grosvenor-butterworth.co.uk/car_loan_calculator.html
Is this deal typical? It doesn't look too attractive to me.
Given that over three years the car is going to depreciate 15% year 1, 10% in years 2 & 3, I'm looking at a car worth £45,000, having paid £90,000, so it's cost me £15,000 per year.
Am I bonkers? What do you think?
You could probably hire one every weekend for less than 15kpa I'm probably going to get caned by the banker boys for this but..
Could you not get a mortgage top up for 'home improvements' to the tune of 80k over 30 years and pay it off in 5 .. The bank would hate you for paying so little interest .. But do you really want to see your bank manager smiling!!??
You'd also end up owning it outright with no balloon when it comes time to trade.
Could you not get a mortgage top up for 'home improvements' to the tune of 80k over 30 years and pay it off in 5 .. The bank would hate you for paying so little interest .. But do you really want to see your bank manager smiling!!??
You'd also end up owning it outright with no balloon when it comes time to trade.
Edited by ballcock on Wednesday 30th August 09:11
Try Bank of Scotland direct and cut out the middle man, they are also Capital bank who do porsche finance so they will give you the same residuals but not pay any commission. As an intermediary for mortgages it annoys me that car finance commission is paid out on how high you can get a person to take payments at.
0845 0600 5609
0845 0600 5609
Crap deal. Also just a quick point - Porsche Finance are regulated by the FSA and so they have to provide you with a clear calculation and APR if requested.
Remember that Porsche is not a bank and they simply act as a middleman. Do your own financing and save on their profit margin.
Go for a one year old (save £10k and you'll never know the difference) and finance externally. That's what I ended up doing and you'll save thousands.
Remember that Porsche is not a bank and they simply act as a middleman. Do your own financing and save on their profit margin.
Go for a one year old (save £10k and you'll never know the difference) and finance externally. That's what I ended up doing and you'll save thousands.
kayc said:
Buy a car with cash that you can afford would seem more prudent
Why do people buy 70k cars when they need to borrow the money?Porsches and other such expensive cars lose money so they are a luxury not an investment and should only be bought with spare cash...imo of course.
Why do people buy 70k cars when they need to borrow the money?Porsches and other such expensive cars lose money so they are a luxury not an investment and should only be bought with spare cash...imo of course.oh my god i find myself in agreement with kc! borrowing money to buy an asset guaranteed to halve in 3 years... crazy... but if you must, mortgage obviously far cheaper than any convoluted finance deal.
mortgage is cheapest lending
or if you want to keep it separate and like doing the car finance/service etc in one place just go and get a competitive quote (Porsche first quote is usually a crap 8.9%) and go back to Porsche
they always match the written quote elsewhere so you shoud get high 6s if you hunt about
or if you want to keep it separate and like doing the car finance/service etc in one place just go and get a competitive quote (Porsche first quote is usually a crap 8.9%) and go back to Porsche
they always match the written quote elsewhere so you shoud get high 6s if you hunt about
kayc said:
Buy a car with cash that you can afford would seem more prudentWhy do people buy 70k cars when they need to borrow the money?Porsches and other such expensive cars lose money so they are a luxury not an investment and should only be bought with spare cash...imo of course.
Why do people buy 70k cars when they need to borrow the money?Porsches and other such expensive cars lose money so they are a luxury not an investment and should only be bought with spare cash...imo of course.If you can invest your equity in something that gives a higher return than the cost of financing, then it makes sense not to tie up your cash in a car. IMHO obviously...
There's an argument to say that to pay for a car with cash, it's "costing" you the interest that you could be earning with the cash in the bank - the oportunity cost perhaps.
I suppose it all depends on how you want to manage your money and the utility you prescribe to owning a nice car.
Of course there are also loads of people who haven't got £70k lying around to pay for a car! Financing means they can drive a car they wouldn't otherwise be able to afford. Similar to buying a house with a mortgage. Just look at the number of "prestige" (BMWs Merc etc) on the road today vs 10 years ago - i think it's mainly due to the availbility of finance to joe public. IMHO etc
should be nearer 7% apr. What is really bonkers is this. Its likely that the car will be worth £35k trade in 3 years (so hand back)
£8k per year for deposit (deposit of £25/3)
£10K per year in payments (monthly payments x12)
£18k of cash out of the door per annum. Thats £30k of untaxed annual income needed to pay for a 997!
£8k per year for deposit (deposit of £25/3)
£10K per year in payments (monthly payments x12)
£18k of cash out of the door per annum. Thats £30k of untaxed annual income needed to pay for a 997!
Lombard will lend you money at 1% over base - get on google and you'll find them. Tell the Porsche 'business manager' that you'll do it if he can match that and see if he can. They make ALL of their money from customers that don't ask / understand the APR %, I know because I just employed one in my business (not car related)!
James
James
kayc said:
Buy a car with cash that you can afford would seem more prudentWhy do people buy 70k cars when they need to borrow the money?Porsches and other such expensive cars lose money so they are a luxury not an investment and should only be bought with spare cash...imo of course.
Why do people buy 70k cars when they need to borrow the money?Porsches and other such expensive cars lose money so they are a luxury not an investment and should only be bought with spare cash...imo of course.Hang a minute, let have a reality check here. A car is for the purpose of getting from A to B. Surely a wise man will invest a minimal amount in this process thus saving a fortune and will, on his death bed, happily be able to reflect on his life and all the money he has wisely invested and accumulated.
Any advances on Dagenham?
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