Sell or Hold

[Deleted User 1874]

Most are bought on 3-4 year finance deals with a huge balloon payment at the end or chop in, rinse and repeat. Plenty are on lease deals too. Last time I was in our local OPC talking about buying outright the sales guys thought I was mad!

He's clearly no accountant then!! I've done the maths on lease/lease purchase deals and with a Macan it will actually end up costing hundreds more a month than buying outright!! Example: £60k cash purchase should be worth around £42k (trade) after 3 years (I've heard people say that's ambitious but it really isn't according to all the valuation guides) that's cost you £18k depreciation = £500 a month!

Look at lease deals on a Macan S and you'll be paying over £800 a month, taking into account the initial rental deposit!

For sure, but luckily my wife is an accountant! There are some cars that can actually work out cheaper on finance (providing the interest rate is very low with inflated residuals etc) but I've never seen it work that way on any Porsche finance. We ended up taking out the finance and paying the balance off in full just so they could offer a slightly lower price on the car. It was one big farce and turned out to be a load of paperwork hassle. In most cases buying outright works out cheaper overall, but you already knew that. Finance is there for those who don't have the cash to put up front, which to be fair is most people. But the man maths is always funny to see when people try to argue that it's cheaper on finance. I'm sure someone will be along in a minute to argue that point

[VanB]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

That being said I have nearly always paid cash for my cars as it usually works out cheaper over the period of ownership. Right now, with Brexit uncertainty, I wouldn't. Porsches are luxury vehicles and their residuals could be badly hit if a Brexit related recession is around the corner.

You pays your money you takes your choice (or is that chance)

[Caster]

Is not getting the bonnet up anymore a euphemism?

[Pivot]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

VanB, excellent point about the stop loss! I will definitely finance it. What period would you suggest? In 3 years Brexit should be just a bad dream...?


Sent from my iPad using Tapatalk

[Kasfranks99]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

That being said I have nearly always paid cash for my cars as it usually works out cheaper over the period of ownership. Right now, with Brexit uncertainty, I wouldn't. Porsches are luxury vehicles and their residuals could be badly hit if a Brexit related recession is around the corner.

You pays your money you takes your choice (or is that chance)

Check with your OPC. I have not checked if in the last 12 months what the short term loan rates are.
All OPC’s may offer something different.
I got under 1% over £40k. Kept cash and earned more interest on it than I paid for the loan.

Always worth checking every time as things change very often. Not always for the better though.

[mavg1986]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

VanB, excellent point about the stop loss! I will definitely finance it. What period would you suggest? In 3 years Brexit should be just a bad dream...?


Sent from my iPad using Tapatalk

It is worth consider the interest paid against the value you expect the car to be worth in 36, 48, 60 months. If you are giving 5k deposit on a 55k car you can pay up to 15k interest in 48 months. If the car "should" be 30k then, you need to sell it for less than 15k to call it a win....

[Kasfranks99]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

That being said I have nearly always paid cash for my cars as it usually works out cheaper over the period of ownership. Right now, with Brexit uncertainty, I wouldn't. Porsches are luxury vehicles and their residuals could be badly hit if a Brexit related recession is around the corner.

You pays your money you takes your choice (or is that chance)

Check with your OPC. I have not checked if in the last 12 months what the short term loan rates are.
All OPC’s may offer something different.
I got under 1% over £40k. Kept cash and earned more interest on it than I paid for the loan.

Always worth checking every time as things change very often. Not always for the better though.

To add to the above. This is NOT pcp but purchased outright at the end of the loan. Just to save any confusion

[VanB]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

VanB, excellent point about the stop loss! I will definitely finance it. What period would you suggest? In 3 years Brexit should be just a bad dream...?


Sent from my iPad using Tapatalk

Pivot

I have no more idea than you about what the world will look like next week let alone in 3 years’ time. What I do know is that a fair few members (believe Kasfranks is one) have managed to get very low cost short-term loans from Porsche but I doubt they come with a guaranteed minimum future value. You will be paying somewhere between 5 and 6% on a PCP from Porsche but you know what you will get back AS A MINIMUM in 3 or 4 years’ time. In a normal world I would always pay cash but these are not normal times


Sent from my iPhone using Tapatalk

[mavg1986]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

That being said I have nearly always paid cash for my cars as it usually works out cheaper over the period of ownership. Right now, with Brexit uncertainty, I wouldn't. Porsches are luxury vehicles and their residuals could be badly hit if a Brexit related recession is around the corner.

You pays your money you takes your choice (or is that chance)

Check with your OPC. I have not checked if in the last 12 months what the short term loan rates are.
All OPC’s may offer something different.
I got under 1% over £40k. Kept cash and earned more interest on it than I paid for the loan.

Always worth checking every time as things change very often. Not always for the better though.

To add to the above. This is NOT pcp but purchased outright at the end of the loan. Just to save any confusion

true, but the backstop above (brexit hedging) is only an argument on PCP and PCP is very expensive on interest rate which means paying thousands more over the term of the loan to guarantee the gfv

[nozydog]

There are 2 sides to every coin and in the current uncertain economic climate, I would not necessarily pay cash for a depreciating asset when you have a built-in stop-loss on a finance deal. Sometimes the peace of mind is worth the additional interest payments. Also, try and get a personal loan for more than £25k and you will find it nigh on impossible.

That being said I have nearly always paid cash for my cars as it usually works out cheaper over the period of ownership. Right now, with Brexit uncertainty, I wouldn't. Porsches are luxury vehicles and their residuals could be badly hit if a Brexit related recession is around the corner.

You pays your money you takes your choice (or is that chance)

Surely that could also work the other way, for instance if German cars go up in cost after a bad brexit deal, residuals would also climb!!