PCP financing help

Amy84

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Hey guys

Just wondered if anyone is aware of any alternative personal PCP financing for the Taycan 4S as the Hatfield dealership is offering it at around 7% which seems a bit high. There doesn’t seem to much better out there at the moment...

I’ve had a look online and only seen the Lloyds one which I think is around 4.5% APR but requires the value of the car to be no more than 100k which it isn’t, and also a current customer which I’m not either.
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Hey guys

Just wondered if anyone is aware of any alternative personal PCP financing for the Taycan 4S as the Hatfield dealership is offering it at around 7% which seems a bit high. There doesn’t seem to much better out there at the moment...

I’ve had a look online and only seen the Lloyds one which I think is around 4.5% APR but requires the value of the car to be no more than 100k which it isn’t, and also a current customer which I’m not either.
I am not a finance guy but I was able to borrow the entire purchase amount from Fidelity using assets in my investment account as collateral. The assets greatly exceed the purchase price. My advisor negotiated a bit and I pay 2 % plus the US federal funds rate (.25%) . One thing to understand is you are charged interest monthly but no principal is paid . So,
the loan goes forever unless you make specific principal payments. CHECK with your financial/investment advisor or brokerage.
 

wmras

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I am not a finance guy but I was able to borrow the entire purchase amount from Fidelity using assets in my investment account as collateral. The assets greatly exceed the purchase price. My advisor negotiated a bit and I pay 2 % plus the US federal funds rate (.25%) . One thing to understand is you are charged interest monthly but no principal is paid . So,
the loan goes forever unless you make specific principal payments. CHECK with your financial/investment advisor or brokerage.
Had a different strategy - paid cash so the family would be more inclined to keep it if I died unexpectedly. They would sell it in a heartbeat if it had $3,000 car payments. ?
 

1AX

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Hey guys

Just wondered if anyone is aware of any alternative personal PCP financing for the Taycan 4S as the Hatfield dealership is offering it at around 7% which seems a bit high. There doesn’t seem to much better out there at the moment...

I’ve had a look online and only seen the Lloyds one which I think is around 4.5% APR but requires the value of the car to be no more than 100k which it isn’t, and also a current customer which I’m not either.
Hitachi Capital are worth a try
 
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Amy84

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Thank you everyone :)
 


putty_thing

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Porsche Financial Services aren't the best with regard to interest rates but generally provide the highest residual values which made them the lowest cost option for me (higher interest on a smaller loan).
 
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Amy84

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putty- did you take it over 3 years? Thinking we're going to put down the max deposit possible
 

TAYC4N

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Hello Amy, it depends on how you want to finance the car.

PCP - advantage is that you have a fixed value at the end. If your balloon is £50k and when you give the car back the car is worth £35k then you don't have to worry stumping up the additional £15k shortfall - just hand the keys and walk away. If the car is worth £65k at the end and your balloon is £50k then you have £15k in equity which you an use as a deposit towards your next car. The advantage therefore is a fixed priced motoring with peace of mind but the disadvantage is that it's a slightly expensive way to finance.

Another option is someone like Metro Bank or Halifax etc - take out a loan for £100k (pay the rest as deposit) APR is circa 3% (maybe less!) - at the end you own the car however if its worth £25k at the end of your agreement you take the hit on the chin.

Porsche APR right now is around 6.9% APR. When I bought mine in May 2020 I got 5.8% but they wont do that anymore.

PCP makes a lot of sense on an electric car. God knows where technology will be in 3/4 years. We could have a 1000BHP Taycan giving us 500+ miles who knows! If that happens our cars will be worth peanuts. I wanted the security so went PCP.

Also if you own a business speak to your accountant as there are many savings to be made on buying this car through your company (corporation tax write down, 0% Benefit in Kind etc.)

Hope this helps.
 


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Amy84

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Thanks so much x
 

Taycanturbolondon

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i always use a finance broker who always beats the dealer. also consider running it through a business given the tax advantages
 
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Amy84

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Hello Amy, it depends on how you want to finance the car.

PCP - advantage is that you have a fixed value at the end. If your balloon is £50k and when you give the car back the car is worth £35k then you don't have to worry stumping up the additional £15k shortfall - just hand the keys and walk away. If the car is worth £65k at the end and your balloon is £50k then you have £15k in equity which you an use as a deposit towards your next car. The advantage therefore is a fixed priced motoring with peace of mind but the disadvantage is that it's a slightly expensive way to finance.

Another option is someone like Metro Bank or Halifax etc - take out a loan for £100k (pay the rest as deposit) APR is circa 3% (maybe less!) - at the end you own the car however if its worth £25k at the end of your agreement you take the hit on the chin.

Porsche APR right now is around 6.9% APR. When I bought mine in May 2020 I got 5.8% but they wont do that anymore.

PCP makes a lot of sense on an electric car. God knows where technology will be in 3/4 years. We could have a 1000BHP Taycan giving us 500+ miles who knows! If that happens our cars will be worth peanuts. I wanted the security so went PCP.

Also if you own a business speak to your accountant as there are many savings to be made on buying this car through your company (corporation tax write down, 0% Benefit in Kind etc.)

Hope this helps.
Hey just a quick question if you don't mind, and apologies it's probably a bit thick!

The bit highlighted in bold - is that determined by the dealer, or would I need to look around at similar spec cars/mileage around the time of hand back and check what the value of those are to compare against the ballon?

I also spoke to Porche, seems they are doing the 5.8% APR :)
 

W1NGE

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Hey just a quick question if you don't mind, and apologies it's probably a bit thick!

The bit highlighted in bold - is that determined by the dealer, or would I need to look around at similar spec cars/mileage around the time of hand back and check what the value of those are to compare against the ballon?

I also spoke to Porche, seems they are doing the 5.8% APR :)
On PCP the minimum future value is set at the start and so you know precisely the minimum amount you would get for your vehicle at the end of the PCP term. In reality you could get more as it is generally set conservatively. Mind that you look after the car as there are some conditions attached - mileage & general condition etc. No shopping around necessary unless you want to pit one dealer against another of course.
 
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Amy84

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And one more question. We were going to put in the max deposit possible to reduce the monthlies - assume there's no issues with that, or is there a reason it's not advisable to do that?
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