finance
Author
Discussion

COLCERB

Original Poster:

127 posts

276 months

Sunday 10th December 2006
quotequote all
hi guys, hope you can help, im going to buy a 996 from a porsche dealer
they have mentioned a 50 50 finance plan, has anyone got experiance with this plan, the car is 49995 and i plan to put 25000 down, is this the best way of doing it

ragtop

919 posts

275 months

Sunday 10th December 2006
quotequote all
Can of worms really.

There is no 'right' way of doing it, nor a 'best' way of doing it.

Either way you want to negotiate on several aspects - the sticker price, the APR and the 'free' extras.

You want to be paying the minimum Total Amount Payable (TAP) that you can - that's the figure that matters in the long run.

If there is a 'best' way , it's to pop it on your mortgage.


fuji

43 posts

241 months

Sunday 10th December 2006
quotequote all
Why dont you get a personal loan over 3 or 5 years , your looking at 5.9% and then its all yours at the end .

COLCERB

Original Poster:

127 posts

276 months

Sunday 10th December 2006
quotequote all
im just trying to keep my monthly payments as low as poss

fuji

43 posts

241 months

Sunday 10th December 2006
quotequote all
whats it coming out at with the 50/50 ?

Edited by fuji on Sunday 10th December 16:54

COLCERB

Original Poster:

127 posts

276 months

Sunday 10th December 2006
quotequote all
about 180 a month

Yex

4,611 posts

250 months

Sunday 10th December 2006
quotequote all
Are you saying you give the dealer £25K, then £180 a month for a set period (possibly 36 months) and then another lump sum after that????

Seems an expensive way to buy a car if that is the case as the final lump sum would be about £25K if the interest rate charged by the dealer is at their usual levels. I suggest you have a good look around as you might be getting burnt here.

Yex

964RS

1,357 posts

277 months

Sunday 10th December 2006
quotequote all
Colcerb

post the details and I'll tell you how it compares to my recent deal...

sidicks

25,218 posts

251 months

Sunday 10th December 2006
quotequote all
ragtop said:
You want to be paying the minimum Total Amount Payable (TAP) that you can - that's the figure that matters in the long run.


Not a bad second best, but the APR will show the true cost of the finance....

Sidicks

fieldl

1,320 posts

261 months

Sunday 10th December 2006
quotequote all
Call Classic and Sports Finance and mention you saw their advert on the PCGB website:
www.classicandsportsfinance.com/_pcgb/

Worth a comparison.

croyde

26,418 posts

260 months

Tuesday 12th December 2006
quotequote all
I was offered that kind of deal when I bought my 987. Half down and the other half in 3 years time and in the mean time you pay the interest on the loan monthly.

Porsche's APR was 10% so I went to Lombard who did a similar system for about 7% then Porsche beat that, but in the end I went to my Mortgage provider and borrowed half the cost of the car, interest only, promising myself that I would settle the outstanding amount within 2 years. Their interest rate was 5.5% so I got my 987 for £18,000 down and then £80/month until I paid of the rest, whether next week or in 20 years time.

kayc

4,492 posts

251 months

Tuesday 12th December 2006
quotequote all
COLCERB said:
hi guys, hope you can help, im going to buy a 996 from a porsche dealer
they have mentioned a 50 50 finance plan, has anyone got experiance with this plan, the car is 49995 and i plan to put 25000 down, is this the best way of doing it
Just pay cash,surely thats the best way?paperbag

911wise

1,887 posts

239 months

Tuesday 12th December 2006
quotequote all
I was also offered this deal too. It sounded quite good at first until I thought about it.

25k down
180 x 24= 4320
after 2 years another payment of 25k and the cars yours. So you now have to pay 25k to keep the car. only the car is now worth 35k, and its cost you £54320. Or as the finacial EXPERT told me in 2 years bring the car back pay another lump sum and have another car. Either way your gonna lose 20k.

paulatte1968

46 posts

267 months

Tuesday 12th December 2006
quotequote all
That would be similar if paid with cash though surely? You would just save the interest. depreciation would still happen.

911wise

1,887 posts

239 months

Tuesday 12th December 2006
quotequote all
Yes it would happen, but he would be able to keep most of his capitol. Whatever way you look at it buying a car is never an investment.

hutchingsp

67,930 posts

240 months

Tuesday 12th December 2006
quotequote all
paulatte1968 said:
That would be similar if paid with cash though surely? You would just save the interest. depreciation would still happen.


Yes, but it makes no sense to pay interest on a loan to buy something that is depreciating if (big if) you have the cash to do it.

As someone put it to me "it's always cheapest to borrow money from yourself".

croyde

26,418 posts

260 months

Tuesday 12th December 2006
quotequote all
But most people, myself included, want these type of cars now, so having £25k lying around for a deposit is pretty impressive, in my book, especially as that amount on its own would bag you a nice, interesting car.

The way I see it is that the purchase of a 997 will lose you a ton of money, whatever way you pay for it, so a paying a little extra in interest, the same amount as a few options, really does not factor.

Agreed, if you have the cash spare, its the best way to go, but if not, an interest only loan off your mortgage or a remortgage, if you have plenty of equity in the house, is the next cheapest? way of owning the car of your dreams.

jjr1

3,042 posts

290 months

Tuesday 12th December 2006
quotequote all
What 996 are you buying for 50k?

I have a 997S for sale for a few pennies more which might be of interest to you. If of course you are buying a Turbo maybe not

COLCERB

Original Poster:

127 posts

276 months

Tuesday 12th December 2006
quotequote all
ITS AN 04 996 C4S 27000 MILES

jjr1

3,042 posts

290 months

Tuesday 12th December 2006
quotequote all
Well an 05 18,000 mile 997 C2S is the same money more or less.