Financing a second-hand Porsche for the every first time
Discussion
Morning, everyone.
In the past I've either bought cheaper cars outright, or taken on new but inexpensive cars as leases.
I'm reaching my mid-life crisis and I'd love to own a GT4 after falling in love with them over a couple of track events.
I'll likely have accumulated a deposit of ~£20k by the time the current lease goes on its merry way, meaning that around £50k+ would need to be financed.
I've seen mention that PCP can be a good candidate for second-hand Porsches of this kind as their depreciation is likely to be quite low over a 3-4 year period, though interest would likely be higher than for HP.
For people who have recently (2023+) taken out finance on their cars, do you mind giving me the low down:
Advice and guidance gladly received as a finance newbie.
In the past I've either bought cheaper cars outright, or taken on new but inexpensive cars as leases.
I'm reaching my mid-life crisis and I'd love to own a GT4 after falling in love with them over a couple of track events.
I'll likely have accumulated a deposit of ~£20k by the time the current lease goes on its merry way, meaning that around £50k+ would need to be financed.
I've seen mention that PCP can be a good candidate for second-hand Porsches of this kind as their depreciation is likely to be quite low over a 3-4 year period, though interest would likely be higher than for HP.
For people who have recently (2023+) taken out finance on their cars, do you mind giving me the low down:
- Whether you went PCP, HP or a loan.
- Which brokers or lenders you tried.
- Who you settled with and who to avoid (is Porsche Financial Services to be considered?).
- What rates you were offered.
Advice and guidance gladly received as a finance newbie.
https://www.oraclefinance.co.uk/
You might get a better rate here but you're still looking at >10k of interest for a gt4, is it really worth it v's a nice cayman/boxster at 20-40k?
You might get a better rate here but you're still looking at >10k of interest for a gt4, is it really worth it v's a nice cayman/boxster at 20-40k?
On one hand you’re a long time dead, the other, seeing £1k/month go out to cover a loan can get tiresome quickly, especially in months with tyres/service etc…
I’ve leased an expensive car in the past (relative to my earnings) and tbh I’ve really not missed not doing it again.
The only examples where it could make lots of sense are with the silly pcp deals that sometimes come up where you get a billy bargain way cheaper than pure cash purchase.
Basically, I’m not sure a gt4 gives that many more thrills than a sorted boxster / cayman and lots of money in your account each months to enjoy it with. You could go to a track day once a month to drive a gt4 the money you’d save.
Caveat emptor
I’ve leased an expensive car in the past (relative to my earnings) and tbh I’ve really not missed not doing it again.
The only examples where it could make lots of sense are with the silly pcp deals that sometimes come up where you get a billy bargain way cheaper than pure cash purchase.
Basically, I’m not sure a gt4 gives that many more thrills than a sorted boxster / cayman and lots of money in your account each months to enjoy it with. You could go to a track day once a month to drive a gt4 the money you’d save.
Caveat emptor
Edited by stuthe
on Saturday 18th May 12:34
on Saturday 18th May 12:34stuthe said:
said: On one hand you’re a long time dead, the other, seeing £1k/month go out to cover a loan can get tiresome quickly, especially in months with tyres/service etc…
I’ve leased an expensive car in the past (relative to my earnings) and tbh I’ve really not missed not doing it again.
The only examples where it could make lots of sense are with the silly pcp deals that sometimes come up where you get a billy bargain way cheaper than pure cash purchase.
Basically, I’m not sure a gt4 gives that many more thrills than a sorted boxster / cayman and lots of money in your account each months to enjoy it with. You could go to a track day once a month to drive a gt4 the money you’d save.
Caveat emptor
+1. perhaps a small loan or a 20k Z4M/something else is the best compromise?I’ve leased an expensive car in the past (relative to my earnings) and tbh I’ve really not missed not doing it again.
The only examples where it could make lots of sense are with the silly pcp deals that sometimes come up where you get a billy bargain way cheaper than pure cash purchase.
Basically, I’m not sure a gt4 gives that many more thrills than a sorted boxster / cayman and lots of money in your account each months to enjoy it with. You could go to a track day once a month to drive a gt4 the money you’d save.
Caveat emptor
Edited by stuthe on Saturday 18th May 12:34
on Saturday 18th May 12:34Sounding this out is proving helpful.
It's seeming increasingly sensible to aim for a ~£40k car in the first instance, whack everything I can on a 0% credit card, pay the minimum monthlies, and pop everything else in savings for the period.
Then, if rates drop nicely over the coming couple of years, I can sell it on and finally make the jump.
It's seeming increasingly sensible to aim for a ~£40k car in the first instance, whack everything I can on a 0% credit card, pay the minimum monthlies, and pop everything else in savings for the period.
Then, if rates drop nicely over the coming couple of years, I can sell it on and finally make the jump.
CK369 said:
Sounding this out is proving helpful.
It's seeming increasingly sensible to aim for a ~£40k car in the first instance, whack everything I can on a 0% credit card, pay the minimum monthlies, and pop everything else in savings for the period.
Then, if rates drop nicely over the coming couple of years, I can sell it on and finally make the jump.
It also gives you a chance to see how comfortable you are having to put away £1,000 per month, as you’ll be committing to with the loan.It's seeming increasingly sensible to aim for a ~£40k car in the first instance, whack everything I can on a 0% credit card, pay the minimum monthlies, and pop everything else in savings for the period.
Then, if rates drop nicely over the coming couple of years, I can sell it on and finally make the jump.
CK369 said:
Sounding this out is proving helpful.
It's seeming increasingly sensible to aim for a ~£40k car in the first instance, whack everything I can on a 0% credit card, pay the minimum monthlies, and pop everything else in savings for the period.
Then, if rates drop nicely over the coming couple of years, I can sell it on and finally make the jump.
Go for a Cayman R, its like a precursor to the GT4. It would be close to half the costs you are contemplating for the GT4 and doubtful half the car. It's seeming increasingly sensible to aim for a ~£40k car in the first instance, whack everything I can on a 0% credit card, pay the minimum monthlies, and pop everything else in savings for the period.
Then, if rates drop nicely over the coming couple of years, I can sell it on and finally make the jump.
CK369 said:
Morning, everyone.
In the past I've either bought cheaper cars outright, or taken on new but inexpensive cars as leases.
I'm reaching my mid-life crisis and I'd love to own a GT4 after falling in love with them over a couple of track events.
I'll likely have accumulated a deposit of ~£20k by the time the current lease goes on its merry way, meaning that around £50k+ would need to be financed.
I've seen mention that PCP can be a good candidate for second-hand Porsches of this kind as their depreciation is likely to be quite low over a 3-4 year period, though interest would likely be higher than for HP.
For people who have recently (2023+) taken out finance on their cars, do you mind giving me the low down:
Advice and guidance gladly received as a finance newbie.
Rates are what they are and generally about the 10-11% margin (depending on the age of the car)....and have been for the last 1.5 years since the Truss disaster. That is public information. No one here has a lower rate setter they are hiding.In the past I've either bought cheaper cars outright, or taken on new but inexpensive cars as leases.
I'm reaching my mid-life crisis and I'd love to own a GT4 after falling in love with them over a couple of track events.
I'll likely have accumulated a deposit of ~£20k by the time the current lease goes on its merry way, meaning that around £50k+ would need to be financed.
I've seen mention that PCP can be a good candidate for second-hand Porsches of this kind as their depreciation is likely to be quite low over a 3-4 year period, though interest would likely be higher than for HP.
For people who have recently (2023+) taken out finance on their cars, do you mind giving me the low down:
- Whether you went PCP, HP or a loan.
- Which brokers or lenders you tried.
- Who you settled with and who to avoid (is Porsche Financial Services to be considered?).
- What rates you were offered.
Advice and guidance gladly received as a finance newbie.
Only you know your personal finances so asking others to guide you on PCP vs HP etc is irrelevant. I will say from an economics perspective putting down 14% of the value of a car is a high leverage rate. Your borrowing rate has to be relative to your income and only you know those details. This is home economics 101 so I am not sure what exactly you are trying to find out by posting this question.
PCP vs HP vs Loan. Again only you know what your circumstances are. Some people buy a car on HP to own the car outright or pay down a substantial amount to have to trade in......again very personal.
Questions like these cannot be answered by the forum. If you need advice is on whether you should buy a GT4 for the driving experience or mechanical issues then bring it on.
Edited by FrancisA on Saturday 18th May 20:10
Currently going through the process of refinancing the balloon on my GT4 which I bought brand new in the summer of 2022. APR on my original PCP deal was 4.9%, and to refinance the balloon through Porsche finance (VWFS) today on another PCP, they want 11.4%! They were promptly told to foxtrot Oscar.
Having rung around most brokers, they are at circa 9-10%, but the cheapest so far I’ve found is through my bank (Lloyds), using their refinancing ‘flex PCP’ offered to me at 6.9%. The max they will fund is £60k, so I’ll have to put the £6.3k balance in myself, however that’s a no brainer to secure that rate in the current climate.
I’ve got a couple of months to go until it’s due so I’m still ringing around, but nobody has come come close to Lloyds yet, so OP if you bank with them or Halifax, give them a try.
Having rung around most brokers, they are at circa 9-10%, but the cheapest so far I’ve found is through my bank (Lloyds), using their refinancing ‘flex PCP’ offered to me at 6.9%. The max they will fund is £60k, so I’ll have to put the £6.3k balance in myself, however that’s a no brainer to secure that rate in the current climate.
I’ve got a couple of months to go until it’s due so I’m still ringing around, but nobody has come come close to Lloyds yet, so OP if you bank with them or Halifax, give them a try.
I got mine via Magnitude last year which was a fair chunk cheaper than OPC could offer (although ended up buying a car which was on SOR from an indi.
Got a 718 2.5 GTS with slightly higher mileage for 50k and put 20k down. There's a lot more on offer for 50k now, I bought right before prices started coming down.
Got a 718 2.5 GTS with slightly higher mileage for 50k and put 20k down. There's a lot more on offer for 50k now, I bought right before prices started coming down.
EddieSteadyGo said:
Ken_Code said:
It also gives you a chance to see how comfortable you are having to put away £1,000 per month, as you’ll be committing to with the loan.
Very good point.KittyLitter said:
+ factor in depreciation. They could be starting at low 5's in 4 years time (currently high 5's)- and by then the mojo of people wanting to buy ICE cars could actually be surprisingly high - as a final hurrah - but the tide will be turning all the more against ICE by regulations/taxes so I wouldn't bet the farm that '"their depreciation is likely to be quite low over a 3-4 year period"
If I was honest, I think the OP can't afford the car he wants. No shame in that; it has happened to all of us. But for me personally, I like the advice of buying a cheaper car, saving the extra, and then seeing where he can get to after a couple of years of saving.Gassing Station | Porsche General | Top of Page | What's New | My Stuff