Financing your Macan

All Porsche Macan Related Discussion
mavg1986
Posts: 93
Joined: Sat Feb 25, 2017 10:12 am

Post by mavg1986 »

Peteski wrote: Fri Dec 14, 2018 12:31 pm
GMAN75 wrote: Fri Dec 14, 2018 12:01 pm Generating 6% per annum elsewhere is easy so utilising your free capital to beat that hurdle shouldn't present any issues whatsoever.
I just knew that would come up!

It's just the same as saying that you don't actually have the cash to put directly into the car, which is fine. Any cash you do have generating more than 6% per annum is either at risk or you are putting considerable time and effort into making it perform at that level. It's certainly not sitting around in a safe bank account generating that kind of interest.

For those who have enough personal savings and don't want the hassle and risk of chasing investment opportunities above 6% just to break even, it's just easier and cheaper to buy the car outright and forget about it.
summarises my view as well
Deposit paid: Cayenne 3.0
Current: Audi Q7 272hp (2016)/ SQ5 (2015)
Weekend: 911 Carrera 4 (1999)
Daily: BMW i3 (2016)

GMAN75
Posts: 463
Joined: Wed May 09, 2018 11:21 am

Post by GMAN75 »

Peteski wrote: Fri Dec 14, 2018 12:31 pm
GMAN75 wrote: Fri Dec 14, 2018 12:01 pm Generating 6% per annum elsewhere is easy so utilising your free capital to beat that hurdle shouldn't present any issues whatsoever.
I just knew that would come up!

It's just the same as saying that you don't actually have the cash to put directly into the car, which is fine. Any cash you do have generating more than 6% per annum is either at risk or you are putting considerable time and effort into making it perform at that level. It's certainly not sitting around in a safe bank account generating that kind of interest.

For those who have enough personal savings and don't want the hassle and risk of chasing investment opportunities above 6% just to break even, it's just easier and cheaper to buy the car outright and forget about it.
As I said, if you think that parking your savings no less into a permanently depreciating asset is a good idea, knock yourself out. It has absolutely nothing to do with it being cheaper in the long run. You've just spunked that money away. But...if it doesn't affect your financial position and you consider it as disposable wealth (LOL!)...go for it! :lol:
Deleted User 1874

Post by Deleted User 1874 »

GMAN75 wrote: Fri Dec 14, 2018 12:41 pm As I said, if you think that parking your savings no less into a permanently depreciating asset is a good idea, knock yourself out. It has absolutely nothing to do with it being cheaper in the long run. You've just spunked that money away. But...if it doesn't affect your financial position and you consider it as disposable wealth (LOL!)...go for it! :lol:
So am I supposed to treat every single penny to my name as an asset capable of generating more than 6% interest so I can justify paying even more for that depreciating car? However you dress it up, buying an expensive depreciating car is a bad financial move and financing it just makes it even more expensive in the long run. The only difference is that you are forced to make 6% interest on the remaining capital just to break even on the finance cost. If that happens to be convenient for you then I can fully understand why you would finance the car, but for most people finance simply adds to the overall cost and they don't actually invest any significant amount of the money they saved up front into any worthy investment at all!
User avatar
Rab J
Posts: 1590
Joined: Fri Oct 30, 2015 7:48 am
Location: Ballymena

Post by Rab J »

mavg1986 wrote: Fri Dec 14, 2018 12:09 pm Generating 6% per annum elsewhere is easy so utilising your free capital to beat that hurdle shouldn't present any issues whatsoever.
I am not sure I would call it "easy" to generate 6% (break even) per annum - it beats real estate (perhaps not student accomodation), most dividend yields and bonds - unless this money is going to your business with a greater than 6% profit margin.

Care to share some other investment ideas? :lol: ;)
[/quote]

+1 Please
Macan GTS Carmine with 21" black sports classics ---Gone
991.2 GTS Carmine 2WD ---Gone
Cayenne E-Hybrid Coupe Jet Black
http://www.porsche-code.com/PL86QK50
GMAN75
Posts: 463
Joined: Wed May 09, 2018 11:21 am

Post by GMAN75 »

Peteski wrote: Fri Dec 14, 2018 12:59 pm
GMAN75 wrote: Fri Dec 14, 2018 12:41 pm As I said, if you think that parking your savings no less into a permanently depreciating asset is a good idea, knock yourself out. It has absolutely nothing to do with it being cheaper in the long run. You've just spunked that money away. But...if it doesn't affect your financial position and you consider it as disposable wealth (LOL!)...go for it! :lol:
So am I supposed to treat every single penny to my name as an asset capable of generating more than 6% interest so I can justify paying even more for that depreciating car? However you dress it up, buying an expensive depreciating car is a bad financial move and financing it just makes it even more expensive in the long run. The only difference is that you are forced to make 6% interest on the remaining capital just to break even on the finance cost. If that happens to be convenient for you then I can fully understand why you would finance the car, but for most people finance simply adds to the overall cost and they don't actually invest any significant amount of the money they saved up front into any worthy investment at all!
No, you have to compartmentalise your capital and to what use that capital is being put.

As per most people, that's more than possible, it's probable. But where there is flexibility, you've got to take advantage of it as much as possible. I would also argue now that renting a property is preferable to borrowing to purchase one given the outlook and investment climate (that's looking at what has been traditionally to borrow to purchase a historically appreciating asset). Things may change, but not short term. That's I guess where this makes more sense...short term.
GMAN75
Posts: 463
Joined: Wed May 09, 2018 11:21 am

Post by GMAN75 »

Rab J wrote: Fri Dec 14, 2018 1:15 pm
mavg1986 wrote: Fri Dec 14, 2018 12:09 pm Generating 6% per annum elsewhere is easy so utilising your free capital to beat that hurdle shouldn't present any issues whatsoever.
I am not sure I would call it "easy" to generate 6% (break even) per annum - it beats real estate (perhaps not student accomodation), most dividend yields and bonds - unless this money is going to your business with a greater than 6% profit margin.

Care to share some other investment ideas? :lol: ;)
+1 Please
[/quote]

Here's one...purchasing used diesels in the Nordics, Europe and the UK and selling them to Eastern European countries. Annualised returns of over 22%! You didn't hear it here! :lol:
Deleted User 1874

Post by Deleted User 1874 »

GMAN75 wrote: Fri Dec 14, 2018 1:17 pm
Peteski wrote: Fri Dec 14, 2018 12:59 pm
GMAN75 wrote: Fri Dec 14, 2018 12:41 pm As I said, if you think that parking your savings no less into a permanently depreciating asset is a good idea, knock yourself out. It has absolutely nothing to do with it being cheaper in the long run. You've just spunked that money away. But...if it doesn't affect your financial position and you consider it as disposable wealth (LOL!)...go for it! :lol:
So am I supposed to treat every single penny to my name as an asset capable of generating more than 6% interest so I can justify paying even more for that depreciating car? However you dress it up, buying an expensive depreciating car is a bad financial move and financing it just makes it even more expensive in the long run. The only difference is that you are forced to make 6% interest on the remaining capital just to break even on the finance cost. If that happens to be convenient for you then I can fully understand why you would finance the car, but for most people finance simply adds to the overall cost and they don't actually invest any significant amount of the money they saved up front into any worthy investment at all!
No, you have to compartmentalise your capital and to what use that capital is being put.

As per most people, that's more than possible, it's probable. But where there is flexibility, you've got to take advantage of it as much as possible. I would also argue now that renting a property is preferable to borrowing to purchase one given the outlook and investment climate (that's looking at what has been traditionally to borrow to purchase a historically appreciating asset). Things may change, but not short term. That's I guess where this makes more sense...short term.
One thing about having to fork out £70k up front is that it provides a stark reminder of how expensive these things really are! But getting roughly half of your money back after 3 or 4 years makes you feel a bit better and makes your next outright purchase considerably less painful. Finance packages, especially PCP, are specifically designed to hide the true cost of high end motoring, but they serve a purpose if you don't have the cash or prefer to invest it in Nordic diesels to offset the finance costs!

I bought my Tesla on PCP because it was such a good deal (1.5% APR) and the high guaranteed residual (even options are added in the residuals to give a genuine 50% return over 4 years) hedges against depreciation, which I thought was important with an EV. I might not even have taken the plunge with an outright purchase due to concerns over residuals. With Porsches on the other hand I have always bought outright simply because I think their finance deals are expensive (especially on used cars) and residuals are usually strong enough anyway without any guarantees. I've had some surprisingly cheap motoring from that approach.
User avatar
Miopyk
Posts: 1066
Joined: Sun Feb 02, 2014 2:55 pm
Location: A field somewhere west of London

Post by Miopyk »

I look at it in a different way. I know that one day I’m going to die and at my age that event is getting closer much more quickly than if I was still in my twenties or thirties. I’m at a point in my career where I can generate more income than I need to live a comfortable life and I have assets and cash in the bank which I’m probably not going to be able to take with me when my times up so will go to my family for them to enjoy.

But I buy my cars on finance. Why? Because so long as I get a deal on the rate I prefer to use someone else’s money to buy cars and keep my money where I can get it when I want it.

I know it’ll cost more in the long run but I fully intend to enjoy my life and buy what I want when I want and accept the associated costs because it has little impact on the overal picture. Life costs money so enjoy life while you spend it.
Current
  • Guards Red 981 Cayman
    GT Silver 718 Boxster 25
Deleted User 1874

Post by Deleted User 1874 »

Miopyk wrote: Fri Dec 14, 2018 4:25 pm I know it’ll cost more in the long run
That's the part many people simply refuse to acknowledge when doing their man maths!
User avatar
VanB
Posts: 3730
Joined: Wed Sep 21, 2016 6:58 pm

Post by VanB »

Miopyk wrote: Fri Dec 14, 2018 4:25 pm I look at it in a different way. I know that one day I’m going to die and at my age that event is getting closer much more quickly than if I was still in my twenties or thirties. I’m at a point in my career where I can generate more income than I need to live a comfortable life and I have assets and cash in the bank which I’m probably not going to be able to take with me when my times up so will go to my family for them to enjoy.

But I buy my cars on finance. Why? Because so long as I get a deal on the rate I prefer to use someone else’s money to buy cars and keep my money where I can get it when I want it.

I know it’ll cost more in the long run but I fully intend to enjoy my life and buy what I want when I want and accept the associated costs because it has little impact on the overal picture. Life costs money so enjoy life while you spend it.
Thank you for a nice, well-balanced and sanguine comment which I think people should appreciate.
Current - 991.2 GTS C4 GT Silver
Previous: Macan GTS Night Blue
Previous: 981 Cayman S Agate
Post Reply

  • Similar Topics
    Replies
    Views
    Last post