Ballon values...
-
- Posts: 273
- Joined: Wed Sep 22, 2021 11:58 pm
- Location: Cheshire
If you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term.Isleaiw wrote: ↑Thu Jan 06, 2022 10:48 pmOr just over pay every month. You may want a realistic GFV so you have protection of that floor should the arse fall out of used car values, but want to keep your interest down by getting towards the GFV sooner - so set it accurately but overpay either monthly or regular lump sums. 15 months in I only owe the GFV plus £5k now....and the interest of course!
Macan S on order in Black. Leather and 21’ GT’s- Cancelled. Coming soon 911 GTS.
Yes you’re right - I have it over three years as was cheaper (monthly) than four years in any eventSweetmeister wrote: ↑Sat Jan 08, 2022 10:52 amIf you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term.Isleaiw wrote: ↑Thu Jan 06, 2022 10:48 pmOr just over pay every month. You may want a realistic GFV so you have protection of that floor should the arse fall out of used car values, but want to keep your interest down by getting towards the GFV sooner - so set it accurately but overpay either monthly or regular lump sums. 15 months in I only owe the GFV plus £5k now....and the interest of course!
718 Boxster - lava orange (2019)
992 C2 racing yellow (2020)
https://configurator.porsche.com/porsche-code/PRIMAJB4
Ex - Macan S - Carmine (2022)
http://www.porsche-code.com/PNZVYTE0
992 C2 racing yellow (2020)
https://configurator.porsche.com/porsche-code/PRIMAJB4
Ex - Macan S - Carmine (2022)
http://www.porsche-code.com/PNZVYTE0
But how do you know if you can afford to overpay until life happens? I take 4 years in the forlorn hope I might keep it that long, I throw spare cash in to reduce amount outstanding as it happens and then I probably decide to buy a new car way too early. If all I wanted to do was save money I wouldnt buy an expensive car in the first place!Sweetmeister wrote: ↑Sat Jan 08, 2022 10:52 amIf you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term.Isleaiw wrote: ↑Thu Jan 06, 2022 10:48 pmOr just over pay every month. You may want a realistic GFV so you have protection of that floor should the arse fall out of used car values, but want to keep your interest down by getting towards the GFV sooner - so set it accurately but overpay either monthly or regular lump sums. 15 months in I only owe the GFV plus £5k now....and the interest of course!
And its no good the car being worth more if I owe more, and no good it being worth more if I want to buy it out at the end. I've decided that cars are a waste, the scientific way to waste less is not buy one, or buy and keep forever, but I know the reality is I will buy and I will swap too often. So in that scheme of things, whilst still giving me flexibility should the backside fall out of my work world, I buy on 4 years, pay down when I have cash doing nothing, and accept its an expensive hobby full stop....
Really? wasnt with either of my last 3 cars. That suggests that year 4 depreciation is higher than the average for the first 3 years.... which would suggest people dont want Porsche's without a warranty!Jon A wrote: ↑Sat Jan 08, 2022 10:57 amYes you’re right - I have it over three years as was cheaper (monthly) than four years in any eventSweetmeister wrote: ↑Sat Jan 08, 2022 10:52 amIf you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term.Isleaiw wrote: ↑Thu Jan 06, 2022 10:48 pm
Or just over pay every month. You may want a realistic GFV so you have protection of that floor should the arse fall out of used car values, but want to keep your interest down by getting towards the GFV sooner - so set it accurately but overpay either monthly or regular lump sums. 15 months in I only owe the GFV plus £5k now....and the interest of course!
-
- Posts: 273
- Joined: Wed Sep 22, 2021 11:58 pm
- Location: Cheshire
I know how much my monthly income is every month, so I and probably most people know if they can overpay or not, if you are unsure of your monthly income every month don’t take out a pcp. It’s not about saving money, it’s about paying as little as possible in interest. A lot also depends on the deposit put down.Isleaiw wrote: ↑Sun Jan 09, 2022 3:54 pmBut how do you know if you can afford to overpay until life happens? I take 4 years in the forlorn hope I might keep it that long, I throw spare cash in to reduce amount outstanding as it happens and then I probably decide to buy a new car way too early. If all I wanted to do was save money I wouldnt buy an expensive car in the first place!Sweetmeister wrote: ↑Sat Jan 08, 2022 10:52 amIf you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term.Isleaiw wrote: ↑Thu Jan 06, 2022 10:48 pm
Or just over pay every month. You may want a realistic GFV so you have protection of that floor should the arse fall out of used car values, but want to keep your interest down by getting towards the GFV sooner - so set it accurately but overpay either monthly or regular lump sums. 15 months in I only owe the GFV plus £5k now....and the interest of course!
And its no good the car being worth more if I owe more, and no good it being worth more if I want to buy it out at the end. I've decided that cars are a waste, the scientific way to waste less is not buy one, or buy and keep forever, but I know the reality is I will buy and I will swap too often. So in that scheme of things, whilst still giving me flexibility should the backside fall out of my work world, I buy on 4 years, pay down when I have cash doing nothing, and accept its an expensive hobby full stop....
If you want to buy the car at the end,don’t take out a pcp! I thought everybody knew that! It’s the most expensive way to buy a car.
Macan S on order in Black. Leather and 21’ GT’s- Cancelled. Coming soon 911 GTS.
I know what my income is going to be every month, I dont know what my bonus will be every year, I dont know how much I'll waste on a holiday, how much I'll gift my kids as they make their way in the grown up world, and how much I will shovel into pensions and other sensible investments like ISAs. So I never know how much I will have spare...Sweetmeister wrote: ↑Sun Jan 09, 2022 4:07 pmI know how much my monthly income is every month, so I and probably most people know if they can overpay or not, if you are unsure of your monthly income every month don’t take out a pcp. It’s not about saving money, it’s about paying as little as possible in interest. A lot also depends on the deposit put down.Isleaiw wrote: ↑Sun Jan 09, 2022 3:54 pmBut how do you know if you can afford to overpay until life happens? I take 4 years in the forlorn hope I might keep it that long, I throw spare cash in to reduce amount outstanding as it happens and then I probably decide to buy a new car way too early. If all I wanted to do was save money I wouldnt buy an expensive car in the first place!Sweetmeister wrote: ↑Sat Jan 08, 2022 10:52 am
If you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term.
And its no good the car being worth more if I owe more, and no good it being worth more if I want to buy it out at the end. I've decided that cars are a waste, the scientific way to waste less is not buy one, or buy and keep forever, but I know the reality is I will buy and I will swap too often. So in that scheme of things, whilst still giving me flexibility should the backside fall out of my work world, I buy on 4 years, pay down when I have cash doing nothing, and accept its an expensive hobby full stop....
If you want to buy the car at the end,don’t take out a pcp! I thought everybody knew that! It’s the most expensive way to buy a car.
And I never set out to buy it at the end. But life takes strange turns and events so who knows, last two have lasted 23 months and 11 months, current one is up to 14 months but I have no idea if it will go after 15, 24, 36, 48 or longer..... who'd want a life that was that predictable!
Locked our build for Macan S yesterday. OPC confirmed GFV had increased from £29k (4 years, 12k miles) up to around £33K.
Seems when the original quote was done in August, the GFV was based on the Gen 2 as they didn’t have the new Gen 3 residuals in place, hence the change.
Plus OPC honoured original price (prior to increase) as well as the lower interest rates as the credit check had been run back in August too. Seems any car built post 1st June will be subject to new price increase. Hopefully the above is useful for some due to lock their build next few weeks!
Seems when the original quote was done in August, the GFV was based on the Gen 2 as they didn’t have the new Gen 3 residuals in place, hence the change.
Plus OPC honoured original price (prior to increase) as well as the lower interest rates as the credit check had been run back in August too. Seems any car built post 1st June will be subject to new price increase. Hopefully the above is useful for some due to lock their build next few weeks!
When you consider the end value though don’t forget to add in the massive chunk of interest you’ve paid. If it’s doable you’re better off funding a chunk with a bank loan which are generally half the cost of a PCP.
Macan S MY 2023
-
- Posts: 121
- Joined: Tue Aug 17, 2021 5:26 am
That's exactly what I'm looking at doing.
In fact I'm going to take out 2 personal loans and not do PCP at all. If I do it with 2 loans (the interest rate is much lower for loans of £25k or below (2.8%) which is why 2), I am saving over £5k vs using PCP and paying the balloon at the end.
Sure it's a fair bit more per month, but if you intend on owning the car and can afford it you can save a lot on interest and the overall amount paid.
Macan S
http://www.porsche-code.com/PNXGPN66
Miami|Bl Lthr|Pano|Blk Rails|Blades ext. clr|Model matt blk|Air|Sports Chrono|Blk T/pipes|75l|21" Spyder (satin blk)|18" spare|Tinted Tailights|Privacy|ParkAssist|LCA|18w|GT Race tex wheel|Bose
http://www.porsche-code.com/PNXGPN66
Miami|Bl Lthr|Pano|Blk Rails|Blades ext. clr|Model matt blk|Air|Sports Chrono|Blk T/pipes|75l|21" Spyder (satin blk)|18" spare|Tinted Tailights|Privacy|ParkAssist|LCA|18w|GT Race tex wheel|Bose
-
- Similar Topics
- Replies
- Views
- Last post
-
- 8 Replies
- 508 Views
-
Last post by MCDK