Devaluing the Brand for a Sales Finance joke .

[David Baldwino]

Oh dear, Leicester Porsche breaks cover out of desperation ? . The headline devalues the brand when really only a fool would take 4 yrs, 5000m at 11.3% apr and a £60k balloon and no final guaranteed value! Same on you Leicester Porsche.

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[WuffvonTrips]

I'm not so sure that's worse than the equivalent outright ownership scenario:
Assuming savings account interest of 5% over that period, that finance offers an alternative to outright purchase that costs pretty much £20,000 p.a. Comparing that with expected* depreciation for the same car over that period, the finance option could be the most cost effective, and at least it brings certainty to the ownership cost.
I considered Porsche finance when the rate was 5.9% but decided against it because I wanted more flexibility of ownership through outright purchase- with a crystal ball, it would have worked out almost "free" (because of current savings rates).
* = I mean as we now expect it to depreciate, rather than basing it on the finance's optional final payment.

 

[David Baldwino]

Agree, in hindsight, contract hire /monthly may have been the better route. I bought outright, claimed the VAT ( 20% tax ) and Company corp tax at 130% post covid so it probably stands on the books at less than half what I paid. I don't really care, awesome, exciting, practical car and with the porsche Ionity discount card -66% discount , its cheap to fuel, europewide. Add to that 2% P11D, no road tax, no ULEZ, and no Congestion charge, plus a 20k mile service for £395 nett, we are still the winners I recon..plus I'm not fretting about the miles per month.
Once oil rockets to £10 a gallon again ( it will ) and the world spins in the other direction once more, values may firm up and may even improve.

 

[Fish Fingers]

Bought mine on a 4yr personal PCP (5.9%?) but with a hefty deposit and a final payment of about £30k - which I forecast I would repay as I assumed the car would be worth way more than this.
But now I'm not so sure. Worst case is I hand it back and keep my £30k. Best case is I pay balloon and it's worth more.

But as said above. In the meantime very cheap driving for such a capable car.
And anything can (and will) happen going forward.
It may just be a bad phase for used EV values - in the same way 2021/22 were incredibly good.

 

[Blingrhino]

5000 miles useless if its going to be your daily

 

[Finbo]

Agree, in hindsight, contract hire /monthly may have been the better route. I bought outright, claimed the VAT ( 20% tax ) and Company corp tax at 130% post covid so it probably stands on the books at less than half what I paid. I don't really care, awesome, exciting, practical car and with the porsche Ionity discount card -66% discount , its cheap to fuel, europewide. Add to that 2% P11D, no road tax, no ULEZ, and no Congestion charge, plus a 20k mile service for £395 nett, we are still the winners I recon..plus I'm not fretting about the miles per month.
Once oil rockets to £10 a gallon again ( it will ) and the world spins in the other direction once more, values may firm up and may even improve.

Hi David. My accountant says it’s only 100% capital allowance and unless using car 100% for business how did you claim the VAT. Interested by my accountant wouldn’t allow me on either

 

[LHitchen]

Hi David. My accountant says it’s only 100% capital allowance and unless using car 100% for business how did you claim the VAT. Interested by my accountant wouldn’t allow me on either

The 130% super tax/capital allowance ended March 2023. Unsure how 100% vat was claimed unless the car is only used for business would be interested to know please? Thanks Liam

 

[Hanny]

lol - 5000 miles per annum, barking mad to pay so much on a lease scheme to sit in a garage or on a driveway whilst you pay the monthly fee - very expensive ornament.

Have now had my 4 weeks and have done 1400 miles - obviously a lot of miles being from it being new and feeling the need to drive it...will slow down but I will do between 10k and 12k per annum and in my view a true 'daily'

 

[Finbo]

The 130% super tax/capital allowance ended March 2023. Unsure how 100% vat was claimed unless the car is only used for business would be interested to know please? Thanks Liam

Yes I know the 130% ended in Mar/Apr 23 but I didn’t think it was allowable on cars, only on equipment

 

[LHitchen]

Yes I know the 130% ended in Mar/Apr 23 but I didn’t think it was allowable on cars, only on equipment

It was allowed on commercial vehicles tbh I just assumed it was the same with EVs I could be wrong?

 

[David Baldwino]

It was allowed on commercial vehicles tbh I just assumed it was the same with EVs I could be wrong?

No, we did it on absolutely everything for two years. We use a national accountant so nothing dodgy!!

 

[Jm13rs]

Hi David. My accountant says it’s only 100% capital allowance and unless using car 100% for business how did you claim the VAT. Interested by my accountant wouldn’t allow me on either

Your accountant is right, its only 130% cap on commercial vehicles (electric cars dont count) & it would have to be for 100% business miles, so for example no trips to the supermarket at weekends etc. Ive been advised the same.

But it wouldnt work anyway, as a company EV isnt a commercial vehicle, would need to be something like a Nissan Navara or one of those new Commercial Defenders. If i remember correctly a commercial vehicle does not have any rear seats & needs to be a van or pickup.

 

[Dan1210]

Oh dear, Leicester Porsche breaks cover out of desperation ? . The headline devalues the brand when really only a fool would take 4 yrs, 5000m at 11.3% apr and a £60k balloon and no final guaranteed value! Same on you Leicester Porsche.

How do you know there is no GFV? Isn’t that normally a part of pcp?

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