Higher Purchase with a view to own or PCP (UK) GTS Saloon

[Justy182]

Been on the list close to a year now and think I may have an allocation in a few months for a GTS Saloon. I have also been offered an allocation straight away from another dealership. However I am having second thoughts. It has become really expensive compared to when we reserved the car in the first place. 2 price rises and a 3% increase in rates. I am looking at options to finance it. I am worried about the value of it in 5 years time or so if I decide to buy it with HP and a larger deposit. I know its crystal ball stuff trying to predict an accurate rate of depreciation for a luxury EV considering the moves in the last year. Other option is Porsche PCP with a GFMV of £52500 or so after 48 months (purchase price of £118,000). Obviously we have the choice to hand it back in this instance and on the other hand worried that no-one will want a 5 year old EV with a little dated tech and battery etc.. if we take ownership. This would have been our first Porsche so I have zero experience of ownership and what to expect. Wife wants to through the towel in an get an available M50

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[Crazymind]

I decided for pcp. Had my Jag I-pace on HP for 3 years and I wish I had it on pcp. It would have been cheaper. Only 11k miles and it’s like new. In 5 years my CT will have 18/20k miles on it and people buying second hand EV will double (if not triple) from now.

 

[Cosmicblue]

UK market - PCPs are a terrible idea!

Dealer finance is easy - the business manager is right there in the showroom, they are all over you, making you feel special, helping you feel that you are getting a good deal and making a sound decision. It's sales....and making the customer feel good about the decision, signing on the line is what it's all about. The customer is emotionally vulnerable too - wanting to give the new baby/pride and joy a good start in life so a really good time to tuck them up with fancy polish applied in the cleaning bay, lets have the interior protection and the alloy wheel insurance oh yes better have GAP too - so then clawing back the margin they just gave away as 'discount'.

Am I cynical, have I been screwed over like this a few times? (the place the Devil resides in) yes! Especially with PCP deals. I have learned from the experience:

So on a PCP you put down a deposit, usually a few thousand pounds plus whatever trade-in equity you have got (if any), you then pay several hundred pounds a month for a vehicle you'll never own because at the end of the term there will be a final payment to make (which you most likely can't afford) so you give the car back and start all over again.

At the end of the term of each car you will have lost a lot of money:

All of your deposit (down payment plus equity in the PX)
All of the cost of the options
All of the cost of the 'extras' i.e. paint protection, GAP etc.
All of the VAT in the original purchase
All of the monthly payments

And you have nothing to show for it at the end - no physical asset, i.e. the car owned outright.

The raw realisation of the above sends a shiver down one's spine - because we are all car buffs (hence being here) we tend to get lost in the excitement of choosing a car, arriving at spec, test drives and visiting the dealer - the whole buying experience and yet financially it is an absolutely terrible decision. By the very fact one chooses to buy a car in this way is testament to not being able to afford it financially and one is truly stiffed in the process too.

EV residual values and the elephant we have in the room...
Just as was the case during the Covid nightmare in 2020/21 when the best scientists work together on a common goal the rate of technical capability moves forward rapidly. For EVs we are in the the more range = heavier battery = larger wheelbase loop. Battery technology is changing, and quickly too, 24 months from now we will see much greater ranges. What will that do to residual values - will be 'yesterday's tech', lack last year's mobile phone - depreciating rapidly.

 

[Crazymind]

It depends. The baloon payment at the end is there to make you buy a new car. However the last 10 Years, 3 times I have paid the final baloon payment and sold the car privately for profit.
Technology will develop of course but the Taycan It’s not Nissan Leaf. I have still got my 1966 Eames lounge chair. And still is the only chair I want to relax on at the end of the day.

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