Porsche PCP - Help !!!

All Porsche Macan Related Discussion
Astrograph
Posts: 8
Joined: Mon Sep 23, 2019 3:02 pm

Post by Astrograph »

Hi,

Well I would shop around on the finance to start with and avoid any dealer finance and a PCP. I was initially burnt on a BMW with dealer PCP and ended up (as is usual with a BMW) with the car being worth less than the outstanding finance. I gave it back. I did not learn my lesson and ended up with another BMW PCP which I refinanced as times became tough after the banking crisis.

When things got a bit better I finally got rid of the BMW (after 9 yrs!) and picked up a nice Jag Sportbrake. Jags own finance was hilarious so I looked around and ended up with a deal through Oracle. This was via Alphera (who are BMW Finance). Interestingly an hour after I spoke with Oracle I got a call off my local BMW dealer offering me a new car. MMmmm.

The Jag deal was fine but what I should have realised at the time was that buying an 18month old car that had cost about £65K new for £29K was a warning. 3 years later I still owed £16K on it and all my dealer wanted to offer against another Jag was £13K, despite them being on the forecourt for £20K! Not amused.

I ended up looking at a Macan but despite the (much higher) residuals on a Porsche, the cost was just more than I was prepared to swallow. I called Oracle but they were not much better. In the end I did a deal with Capital Car Finance and instead of a PCP, just got a straight lease purchase with Santander which has worked out much cheaper with a lot less strings attached. I ended up with about £30K of finance which is costing me £340/month. I'm comfortable with that.

Of course time will tell but to cut my waffle short 1) if you want the car now then buy it because you never know what will happen from November onward, and 2) don't for one minute expect a Jag to hold any value. They have always lost money like a stone and now is no different. Its strange really but its a fact.

I would also consider the ongoing cost depending on how long you plane to keep it. I looked for a car registered no later than March 17 so I would keep paying £260 as opposed to £465. I also made sure it was ether serviced or within 3 month of needing a service so it would be done free when I got the car. That saved another £4-500 worth of service costs.
Macan S Diesel

Cheshire Cat
Posts: 505
Joined: Wed Aug 15, 2018 9:17 pm

Post by Cheshire Cat »

I'm lucky that for the last ten years or so I pay cash for my vehicles. I'm very familiar with the nightmare that is Jaguar (and Land Rover) when it comes to depreciation and reliability. I have traded up so to speak each purchase that I have made usually not keeping cars for more than a year. Similar to Astrograph, I'll buy used cars that will be serviced prior to delivery and in the case of my SD, new tyres all around. In 15 months of ownership I have spent £0 on the car apart from fuel, VED and insurance. Not that I'm feeling smug as the trade-in value is ridiculous. Doesn't matter as I'm keeping it until one of us dies.

With PCP, ask yourself why is it being offered? To do you favour? No, to make money for the lender. Personal loans can be as low as 3% so look them. The more people involved, the more money it costs.
Dolomite Silver 'S' with red leather 14 way seats, Pano roof, Bose, Air suspension with pasm, Chrono pack, PDLS, Surround view, 911 turbo wheels, heated screen, spare wheel, ioniser,75 lt tank, black tail pipes, black roof rails.
Jeffb
Posts: 10
Joined: Sat Sep 14, 2019 3:09 am

Post by Jeffb »

Thanks for the input, I hear what you’re saying but we have to realise that any car is a depreciating asset and you’ll never get your money back, it’s a luxury. My Jag has halved in value over two and a half years ( I bought it at a year old and it lost 50% of its value ). I drove Audi’s for 20 years before that and the depreciation is crippling. It’s something we need to accept. The PCP strategy works better in my circumstances as I’ll simply hand it back in 4 years depending on how advanced electric vehicles have become. I’ve taken loans in the past all around the 3% mark but you still get done by the residual value when you come to sell.

I was looking at taking a loan for a second hand diesel Macan but as Porsche have now stopped selling the best selling version of their car, the alarm bells rang. I suspect it would be worthless when I sold it as Diesel now seems to be the worst of choices after being told they were environmentally the best choice.

I’ve still got time to shop around but I doubt buying cash or a loan will be my preference.
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PaulR
Posts: 436
Joined: Sat Dec 15, 2018 11:22 am
Location: Scotland

Post by PaulR »

Here's my advice: never ever ever buy a car on PCP. There you go!
Current - Macan III GTS
Previous - Macan II GTS, Macan I GTS
Astrograph
Posts: 8
Joined: Mon Sep 23, 2019 3:02 pm

Post by Astrograph »

On residuals, Porsche is one of the better bets but the original option spec seems to be a big factor. Its always a gamble.

As far as diesels go, I reckon that the 3.0 SD will hold its value well. It was tne most popular version and is Euro 6 so meets the ULEZ requirements in London. Fuel stations will be around for a long time yet and unless government starts trying to tax non electrics off the road, people will still buy them. Put it like this. 2.0 Macans like other 2.0 SUV’s are fuel hungry monsters with zero performance in comparison.

On electric, I was loaned a Panamara Hybrid when my car went for a service. Nice car but the drivetrain was shockingly bad. It was basically dangerous. Electric till about 50mph but then hit a brick wall and made the engine cut in. Battery lasted about 30 min total. For a £100K and 450+ BHP it was hopeless and I told the dealer so. Getting back in the Macan was was a bit more spartan but 10x better on the move!
Macan S Diesel
Jeffb
Posts: 10
Joined: Sat Sep 14, 2019 3:09 am

Post by Jeffb »

I agree, I think the infrastructure for electric vehicles is years away yet. Still don’t understand how people will charge their vehicles on long journeys or afford the time to waiting at a charging station for hours. The initial vehicle cost is ridiculous in a lot of electric cars, I know someone who has paid in excess of £100K for a Tesla and I honestly think they look very average. I think whatever payment choices we make and whatever the choice of fuel/ electric, we’re taking a gamble.
Clive
Posts: 69
Joined: Fri Aug 16, 2019 3:40 pm

Post by Clive »

EVs can't fully take over until there's a way for people who can only park on the road and other who live in flats have charging points. To put such an infrastructure in place would be a massive project. I don't see it happening.

Re PCP (and leasing too) - if you are buying a new car and changing it after say 3 years, no matter how you finance it you are paying for the highest portion of its depreciation in its life. Either swallow that but find the lowest cost money, consider keeping the car longer or even out the depreciation somewhat or buy used.
Panthera
Posts: 177
Joined: Tue Jan 22, 2019 11:34 am
Location: Northern Ireland

Post by Panthera »

Clive wrote: Thu Sep 26, 2019 10:43 am EVs can't fully take over until there's a way for people who can only park on the road and other who live in flats have charging points. To put such an infrastructure in place would be a massive project. I don't see it happening.
Maybe they'll just have to ride the electric bus ;-)
Ray :geek:
Macan SD
Rhodium Silver, 21” Wheels on Air, ACC, Pano Sunroof, 14way Seats, 4x Heated and Steering, Reversing Cam, Spare Wheel, Privacy Glass, PDK Gears, Folding Mirrors,
happy days
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Location: Warrenpoint, N Ireland

Post by happy days »

Panthera wrote: Thu Sep 26, 2019 11:53 am
Clive wrote: Thu Sep 26, 2019 10:43 am EVs can't fully take over until there's a way for people who can only park on the road and other who live in flats have charging points. To put such an infrastructure in place would be a massive project. I don't see it happening.
Maybe they'll just have to ride the electric bus ;-)
Isn't that the grand plan? Fine if you live in a city, but rather a lot of us don't, actually.
Macan S D
718 S
adam b
Posts: 449
Joined: Tue May 14, 2019 2:50 pm

Post by adam b »

Jeffb wrote: Tue Sep 24, 2019 4:45 pm The PCP strategy works better in my circumstances as I’ll simply hand it back in 4 years depending on how advanced electric vehicles have become. I’ve taken loans in the past all around the 3% mark but you still get done by the residual value when you come to sell.
Not sure I understand your logic, you "get done by the residual" which ever you choose, the only difference is the PCP gives you a GFV but that usually is worse than market rate to give the lender a buffer.

And in the mean time you pay a much higher % interest rate on the full value of the credit.

the only way I can see PCP making sense is if you know better than the market and correctly predict a price crash 3 years from now such that the GFV is more than the car's value (significantly more to compensate the extra interest paid)
2017 - Macan Turbo, with most of the toys (sold)
2008 - manual 997.1 Turbo (sold)
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