A bloke at work has just got a quote on a 6 month old Boxster s (£39000).

Get this - stick £12,000 in and on an assumed residual value in 3 yrs of 55% the monthly repayment is £311 !!!!

Bloody hell, my scoob looks very expensive. Does everyone finance porsches in this way. Seems a cracking deal.

Cheers

MAtt

 

If you consider paying £7732 a year to basically lease a Porsche and have nothing at the end then i suppose it is, I personally think that's madness but that's just me

 

I've just looked into this as I was offered a nearly new S2000 for a great price. I was going to get an older one (02) at the end of the year.

The figures can look very tempting, but when you actually work out how much interest you are paying it is very scary. Far better to put down a decent deposit and go for a longer term loan. At least the car is yours at the end of it.

You can get loans for 6.9% at the moment, you won't find a pcp for under 9.9% IIRC. And you are paying interest on the FULL amount not just the amount you are going to have to repay.

 

A friend of mine has just done this with a £64K 911 Carrera 4.

Sounds like a good deal except for the huge amount he is left to pay at the end - about £30K!!!

 

This playing with figures is really just a Jedi mind trick. As Has been previously said in this thread although he may only be paying £311 a month for this car you can't forget the fact that he has put down £12K as a deposit as well.

Dealers love these PCP schemes as the buyer is basically tied to it for the 3 years and will then have to buy another car anyway. Also because the buyer usually puts a small deposit down the car will never be worth as much as the outstanding finance so the buyer won't be able to change the car even if they want to.

I purchased my Impreza on a PCP with a £5000 deposit and a residual value of £9500. When I sat down one day and worked out how much I would have paid over 3 years and still wouldn't own the car I felt pretty sick. It's also a major pain in the bum when you want to get rid of the car as you have to clear the finance first. Luckily I managed to sell mine to a dealer who cleared the finance but I still owed £500 more than the car was worth so had to pay them to take the car away!

 

This is the thing with PCP deals and the like. I was given figures for a Civic type R, usual deposit, monthly payment, final payment

I work for a bank so took the figures that, for example were 5% flat rate (10%apr) I looked and looked at these figures and tried every calculation i could think of. With this the lowest apr figure i could get out them was about 16% with one as high as 30% apr!!!!

I went back to the nice finance lady at honda and showed her my figures and she said "no, that's wrong sir, PCP doesn't work like that"

Eh, well, how does it work??

"Oh, er, we just put the figures in the computer and it gives us the monthly payments"

This wasn't the answer i was looking for so i just got a small loan (which is now paid off i might add) and put it along with my deposit and bought a second hand scoob

From there i've never looked back

Moral of the story: do as much research into their figures as you can, they often seem a LOT better than they are

 

I always look at a car as an expense, as it will depreciate and therefore cannot really be treated as an asset. So what you are doing, whether you opt for a straight repayment loan or otherwise is financing the cost of depreciation on a car.

If a car has a high residual value then the depreciation is lower, therefore the finance is lower. All you are doing is in effect 'renting' it.

You will lose more money but relative to value the figures look good. Running an sti8 over 3 yrs may cost £14,000 ish (if you put £12,000 in) and the porsche will cost £18,000 ish (if you put 12,000 in)

Relative to value the figures look good to me

 

just get a bank loan, dont kow why people mess about with car finance

 

People will haggle down to the last £5 and then blow it all on a bad finance deal . Only had finance on one car and it was £1500 off list and 0% so I thought it was a good deal.

 

Surely then he's just renting it for 634quid per month, the residual value stays with lease company. He can also buy it out obviously for the remaining 25 grand. How many people on here are paying that for their scoob, not many. You'd probably finance a new Sti with 0 deposit for that and at the end its you and not the finance company left with the residual which could be 10 grand. A big difference.

[Edited by camk - 5/9/2003 12:01:30 PM]