Current Macan PCP quote

[Guy]

Or trade-in your old car and cover the difference with a personal loan. Tesco Bank 2.9% APR up to £25k up to 3 years £725 per month or Yorkshire Bank 3.2% APR up to 7 years (4 years £555 per month, 7 years £332 per month)

Forgive me if I am being slow (never used PCP, so I may be missing something) but wouldn't he have to buy the current car first (i.e pay off the finance)? At such a low mileage, I would have thought the the most financially beneficial 'new car' approach would be to buy the current car, sell privately, and then start again. I suppose that the only dealer 'trade-in' option would reflect the difference between actual value and what is owed to finance.

But personally I'd hang onto the car (re-financing the balance with a personal loan if required), and use some of the (considerable) money saved to extend the warranty.

[Madelvic]

Or trade-in your old car and cover the difference with a personal loan. Tesco Bank 2.9% APR up to £25k up to 3 years £725 per month or Yorkshire Bank 3.2% APR up to 7 years (4 years £555 per month, 7 years £332 per month)

Forgive me if I am being slow (never used PCP, so I may be missing something) but wouldn't he have to buy the current car first (i.e pay off the finance)? At such a low mileage, I would have thought the the most financially beneficial 'new car' approach would be to buy the current car, sell privately, and then start again. I suppose that the only dealer 'trade-in' option would reflect the difference between actual value and what is owed to finance.

But personally I'd hang onto the car (re-financing the balance with a personal loan if required), and use some of the (considerable) money saved to extend the warranty.

Guy yes of course you are right. Forgetting the current car is on PCP. Personally I'd be more inclined to follow your approach, or buy a newer used car and save a fortune.

[Tracky]

I sort of understand why people do PCPs (my daughter has had three cars on PCP) however this is £60k of payments on a car worth worst case £30k at the end.

GFV is set low as always. Cheapest GTS on sale now is £35k so not much of a guarantee unless the bottom completely falls out of the market. Personal loan strikes me as a much better deal. You could borrow £50k for £150 a month less, own the car at the end and not be constrained over mileage.

Guess that is why I've often looked at PCPs and never gone down that route

Agreed - they don’t tend to be high risk but again nothing is guaranteed.

I think I’ve done pcp a couple of times on non-dailies

My very first lotus because I wanted low repayments on something that was bought on a whim. On that one he pretty much gave me what I paid for it after 16 months and yet I’d been make repayments which was handy

The others were on two Nissan Leafs I had for the dog. First one was £30k new after two years and 16k miles the final payment was I think £14k. I tried to part ex it and was offered £8k!

[pmg]

Or trade-in your old car and cover the difference with a personal loan. Tesco Bank 2.9% APR up to £25k up to 3 years £725 per month or Yorkshire Bank 3.2% APR up to 7 years (4 years £555 per month, 7 years £332 per month)

Forgive me if I am being slow (never used PCP, so I may be missing something) but wouldn't he have to buy the current car first (i.e pay off the finance)? At such a low mileage, I would have thought the the most financially beneficial 'new car' approach would be to buy the current car, sell privately, and then start again. I suppose that the only dealer 'trade-in' option would reflect the difference between actual value and what is owed to finance.

But personally I'd hang onto the car (re-financing the balance with a personal loan if required), and use some of the (considerable) money saved to extend the warranty.

PCP, the finance company owns the car at the end of the period but you have the right to buy from them at GFV. It is why dealers like the finance method. Individuals get tied to monthly payments so if still need a car at end of the period, they have to take a new car/contract out unless they have the capital to buy old which most do not. What I don't like about the method of finance is the fixed period of ownership/use as I found a problem with having company cars under contract hire in the 80's and 90's . The end of your period of use/ownership does not always fit well with manufacturers renewal cycle for a brand/size of car you are fond of. The advantage of the method of fine from the users' point of view is finance company taking depreciation risk but that has it's costs.

[MCDK]

Correct that the current car is on PCP so there is reasonable equity in it to give a decent deposit but certainly not the full value of the car to go against a new one.

[Rab J]

Totally agree. Would have thought around the 3 year point they should have been chasing up all customers with a deal ending in a year. Which salesman are you with in there Rab? I was with Paul who was great and invited us down a couple of times to see some special cars as he knew my son and I were keen. Then he left and another guy took over who I only ever talked to once and he was pretty useless, my car was in for service and I asked him to have a look and give me a value, he forgot! It was back again a few months later for exhaust tip replacement and I asked the same again. Genuinely don’t think he remembered or bothered as I had to chase it up and then he gave me a range of trade in values spanning £5000. Think he is away now too.

I seem to have been through all the junior sales men. I bough my Macan from Paul I think and then the 911 from Jonny, both long gone. I cant remember the guys name in January, but in the end, pleasant as he was, the deal was done with Connor, head of sales who still had to get Carl the DP involved. I always thought that unless the head man has to agonise over the deal you paid too much lol

[jkwade]

Or trade-in your old car and cover the difference with a personal loan. Tesco Bank 2.9% APR up to £25k up to 3 years £725 per month or Yorkshire Bank 3.2% APR up to 7 years (4 years £555 per month, 7 years £332 per month)

Forgive me if I am being slow (never used PCP, so I may be missing something) but wouldn't he have to buy the current car first (i.e pay off the finance)? At such a low mileage, I would have thought the the most financially beneficial 'new car' approach would be to buy the current car, sell privately, and then start again. I suppose that the only dealer 'trade-in' option would reflect the difference between actual value and what is owed to finance.

But personally I'd hang onto the car (re-financing the balance with a personal loan if required), and use some of the (considerable) money saved to extend the warranty.

PCP, the finance company owns the car at the end of the period but you have the right to buy from them at GFV. It is why dealers like the finance method. Individuals get tied to monthly payments so if still need a car at end of the period, they have to take a new car/contract out unless they have the capital to buy old which most do not. What I don't like about the method of finance is the fixed period of ownership/use as I found a problem with having company cars under contract hire in the 80's and 90's . The end of your period of use/ownership does not always fit well with manufacturers renewal cycle for a brand/size of car you are fond of. The advantage of the method of fine from the users' point of view is finance company taking depreciation risk but that has it's costs.

Dont see what is wrong with the finance method. So long as you go into it with your eyes open.

You can get out of it any time you want. You just have to realise that unless you put in a massive deposit you’re a)always going to be in negative equity, and b)very unlikely to hit the 50% VT point until near the very end.

There is no difference in having a 48month PCP, keeping the car and refinancing the balloon for another 48months to having a 96 month HP or loan running on it.

With regards to GFV, yes in theory the finance house is taking the risk, but they’ve priced that risk and you’re paying for it in reality. If you end up with equity in the car, it just means you’ve paid inflated monthlies, however you’ve benefitted by paying down more capital than if you’d had lower monthlies and a higher GFV.

You can rest assured that they take what they think the car will be worth at the end and then take another 20% off it to make sure they’re safe. Then you get to the end all happy cos you’ve got your deposit for the next one already paid off in the last one.

I went for HP with a balloon that i agreed with the finance house. This gave me a balloon that i am taking the risk on and effectively is nearer what i saw the car being worth at the end, and gave me the monthlies i wanted.

Ultimately i have no option to return the car, i have to settle, but in reality what will happen is if I’m £5k short, I’ll have £5k less to spend on the next car, and if I’m £5k up I’ll be spending a bit more.

You can take a right bath on a PCP if you put in a small or no deposit, buy new and want to get out early. The depreciation curve will hammer you.

You can minimise this by changing one of the three things above. I bought 2 year old and the owner from new got 50% back at trade in.

[Juve]

All you need is the GFV from a new GTS then you can play around with the figs from there on pcp calculator as someone previously mentioned. You should be able to get circa 5.5% APR on the finance and depending on which Porsche dealer, they can go out with Porsche finance and match the APR for you which makes life a lot easier. Some dealers do it and others don’t depending on which group they’re part of.

[Rigger]

The PCP conundrum is an interesting one. I bought my GTS in Mar 2017 with a 4 year PCP fully intending to pay it off after a couple of years. Went to p/ex the car after 2 years and had a derisory PX offer. Then decided not to buy the car outright. Now in covid times WBAC are offering barely above the GFV and I suspect by the time we get to Mar 2021 the car will be worth less as a trade in than the GFV . Then comes the the decision as to what to do...... buy a car worth less than the pex value or just hand it back and buy something newer with the latest tech, possibly electric? The new Macan won’t be in the running if that ends up being my criteria. A Kia Niro with 7 year warranty might be a better bet

[Juve]

PCP is the worst way to ‘own’ a car if you’re ever considering of buying it in the future. Most of what your paying off is interest so for all you pay off there is hardly any equity left ever. Only useful if you plan to hand keys back or swap into another PCP half way through. If you ever want to ‘own’ a car then part cash part personal loan makes most sense. Also if you can afford the higher monthly payments over a PCP, you will have more equity in the car in comparison to the total payments you’ve been making as less of it is interest!