My Macan SD ... Nearly

[MCDK]

£33k to £21k in another 4 years seem a great underwrite to me. Would avail of that certainty and keeps your monthly down as you say.

[Connoisseur]

A final payment of £21k after 4 years starting from £33/£31k offers little value to you unless the monthlies are more important and you will be happy to walk away?

To be fair in 4 years time walking away from a Diesel may be the only realistic option due to the burden of increasing taxation and likelihood of tight geographical limits on use etc.

If the monthly payment works then that has to be good, no?

hth

[jk88]

Sale Price: £33,000
(Order Form: £31250 - Car / £250 - 2 years Road side assistance / £1500 - 2 years warranty)
Deposit: £1500
To Pay: £31500
48 months PCP, 8000 miles
6.8% APR
Final Payment: ~£21400
Total Amount Payable: ~£40200

My thoughts - the monthly is great, the final payment seems high, total amount payable means there is no "hand it back option at 50%", meaning keeping the car the full term.

I plan on keeping the car the full term but with all the uncertainty of the economy, the final payment and lack of "get out" concerns me.

Looking at it another way, assume you walk away after 4 years, it will have cost you a total of £18,800 or £4,700 a year. If that feels OK then go for it as it takes away any uncertainty about diesel residuals 4 years hence. If there is any equity in the car, just treat that as an unexpected bonus.

[MCDK]

Exactly. If there is some equity happy days and as your deposit is small then it’s no big issue if no equity. If the bottom falls out of the market and it’s value plummets then hand it back after the term with a smile on your face.

[CharlesElliott]

Is the £21,400 an actual guaranteed future value, or just a balloon payment? On a second hand car I suspect the latter, and I think that £21,400 is going to be more than an 8 year old car is worth.

[Paul]

If you are buying on a Porsche PCP I thought the final payment (£21400) was optional? It is on mine - that’s the whole point of a PCP; to give a safety net if residuals do plummet (which they won’t )
PCP is “expensive” because you are always paying interest on that final balloon right up until the end and not on a reducing balance to zero as with typical finance.
If you like / want the car, are comfortable with the deposit and monthlies then just go with it.

[PaulB]

I am assuming the final payment is optional with it being a PCP. The dealership believes the trade in value of the car after 4 years will in line with the final payment and they are "hopeful" there may be some equity (based on low mileage and reasonable spec of car as is at my time of purchase).
Would the future value of a Macan that is 2 years younger but with more miles and a lesser spec be greater than an example like mine where the car is a bit older but has less than half the miles with doube the spec?
In short, does age of car benefit over lower mileage and spec when it comes to GFV?

[CharlesElliott]

I would double check that 'assumption'. If it is really a PCP then you would expect the final payment to be optional as well.

[MikeM]

I agree with Charles cautionary note here, just be absolutely clear that you are NOT committed to settle the final payment. As a then 9 year old SD with c50k miles will certainly not come close to that level of “trade in value” plus you will be liable to cover any faults or flaws considered over and above the accepted condition for the year.

[PaulB]

Thanks guys. The email correspondence with the business manager mentions "optional final payment" a few times on recent emails but i have asked for confirmation of such to be included in my paperwork when signing on Saturday. Although, i suspect it will already be there.