Financing a second-hand Porsche for the every first time - Page 2 - Porsche General - PistonHeads UK

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: 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. Two brokers I've seen mentioned thus far are Charles and Dean, and Fast n Funded. Advice and guidance gladly received as a finance newbie.

Madness at current rates, surely?

My gut feeling suggests so, but having yet to phone around I'm not yet certain as to what a good rate looks like in the current climate. Sad to have missed the golden era a few years back, but family priorities required a less exciting vehicle. Sigh.

It’s going to be expensive, likely £4K interest per year.

Just make sure you’re happy with the total cost in interest over the term and remember depreciation (hopefully minimal but) will also be on top. I was quoted 11% by Porsche finance on a PCP recently. Needless to say I didn’t take the finance lol. Good luck.

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?

Only you can know how much it’s worth paying to get in the car you want now rather than later. If it was me I’d likely buy a more “entry level” Porsche now and then save as hard as I could with the intention of buying the one I really wanted in a couple of years.

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 Edited by stuthe on Saturday 18th May 12:34

stuthe 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 Edited by stuthe on Saturday 18th May 12:34 +1. perhaps a small loan or a 20k Z4M/something else is the best compromise?

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.

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.

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.

https://www.pistonheads.com/buy/listing/16711173

If you’re worried about cost now is probably not the best time to jump in and sign up to the crazy rates being charged.

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.

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: 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. Two brokers I've seen mentioned thus far are Charles and Dean, and Fast n Funded. 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. 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

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.

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.

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. + 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"

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.

KittyLitter said: 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. Worth considering. I picked up a well sorted Cayman R on Collecting Cars for your budget about 6 weeks ago. Feels special, and a great drive. Have done 2,000 miles already including a track day and a trip to Nurburgring. Had 2 GT3s in our group that went to Germany and whilst they were of course quicker, was able to keep up. Minimal depreciation now, and no interest payments makes it a good buy if on a (relative) budget.

kmpowell said: 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. This is precisely the market information that I'm after. My mortgage is with Lloyds, so made some enquiries with them last week. Exactly as you've found: they appear to offer the best rate I've seen, at just under 7%. Likewise a high 0% credit limit if I end up going down a different route. Thanks for taking the time!

Not sure you will get many if any car dealers that will accept full payment by Credit Card as they will not want to pay the processing fees on the card you want tyo use, but you might beable to use it by offering to pay the fees usually about 1%. I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years. I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4 So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky. It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable) As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me. Hope that helps bud

Not sure you will get many if any car dealers that will accept full payment by Credit Card as they will not want to pay the processing fees on the card you want tyo use, but you might beable to use it by offering to pay the fees usually about 1%. I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years. I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4 So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky. It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable) As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me. Hope that helps bud

EvoSid said: Not sure you will get many if any car dealers that will accept full payment by Credit Card as they will not want to pay the processing fees on the card you want tyo use, but you might beable to use it by offering to pay the fees usually about 1%. I actually did exactly what you are trying to do. I bought my Cayman GT4 in Nov 2020 for £67.5K and paid for it in cash. I then refinanced it (allowing me to take out £550K to invest) using Lombard Assest finance at a rate of 1.9% over 4 years (flat rate as I do not understand APR ) . Basically I pay £1122 per month over 4 years, total paid back on £50k borrowed will be £53,856 or £3856 in interest over 4 years. I then drip fed the freed up cash (£50k) in to a stock & shares Isa using Moneybox App and it is up by £6900 so far on a sum of £40k invested , the idea being by the time I have paid the loan I will have invested £50k and this will give me a pot of cash to use against a new car, whilst having a paid up GT4 So basically by financing I got lucky as my returns on the ISA was greater than the interest paid but I repeat I got lucky. It can work if you are in luck but at the moment you are going to struggle to get less than 8% on from a car lender maybe better form your bank , but you can offset it if you can put money away in a high savings account (4-5% instant access acounts are avialable) As for the GT4 it is bloody awesome and you could eaisly daily it even with the bucket seats , they arre so comfortable and so is the car. Fuel economy is ok and it is perfect for our Scottish roads and the odd track day. Only thing is I think you will get the urge to buy a 911 as I did . I ended up buying a 992 GTS but find the 981 Cayman GT4 so much betetr . In fact the GT 4 has deprecuated way less that people predicted as I was expecting it be worth less than £50k now but it seems they are still around £65k so win win for me. Hope that helps bud Interesting. I have never heard of anyone doing this (refinancing a car). Great if you have the cash to buy in the first place. The return you got should be do-able with any decent fund, id expect.

Cayman R suggestion makes a lot of sense around your budget. Great car and likely a free car in relation to lack of depreciation. Win win to enjoy whilst u save for a GT4 and in the meantime realise as a road car the R is probably better to live with day to day than the GT4 will be lol. Poor headlights and lack of modern CarPlay aside being obvious elephants in the room.

The main brokers I see floated around for sports car finance are Magnitude Finance, Charles & Dean, Lillian Stanley and Apollo Capital, but of course, there are other brokers available. Magnitude do have an online calculator/instant quote but be prepared to receive a call from their customer care team afterwards. The brokers will generally be able to obtain a lower APR rate than an OPC but you're still looking at 9.9% APR, potentially 8.9% if you have an excellent credit score. This is the best rate I have seen personally at the moment. Personal loans tend to be around 6.9% but only upto £25k. The APR usually increases above this level. As suggested above, Lloyds and Halifax are offering good PCP rates that better than most lenders at the moment but you have to bank with them. Car finance is expensive at the moment and many just look at the monthly payments on PCP deals, rather than the total cost of borrowing with the interest payable. Hope this helps.

I've used the Magnitude calculator to compare PCP and HP - the difference in interest charged is certainly eye opening.

jasonrobertson86 said: Interesting. I have never heard of anyone doing this (refinancing a car). Great if you have the cash to buy in the first place. The return you got should be do-able with any decent fund, id expect. TBH I did not even know that refinancng a car I was already bought was even an option. Only a chance converstaion with our leasing company ( Lombard finance ) meant they were happy to lend me money against my car and I took advantage of the crazy deal they offered. Hopefully in about 6-7 months £50K plus interrest will be paid off an there is nice healthy investment sititng in an ISA waiting to be used for a new car maybe. You are probaly right that most funds will / should deliver that kind of return. Main thing is I now have a GT4 worth £60K plus and a intial money plus interest in the bank so win win for me Hopefully give others an option as you could buy a car on higher interest rates now and refinance it later on when ( if ) interest rate ever come down again Sid