PCP financing help

W1NGE

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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?
Personal choice I'd say but I would pay max (which is annoyingly capped at 25% with Porsche Finance I think) and set a sensible residual / balloon / final payment e.g. £40K or less. No doubt you could do clever things with the money and attempt to earn some interest elsewhere but in isolation I'd go max.

If a company car then look into the tax incentives (100% capital write down in year one) - I'm not totally clued up on this but it sounds an attractive proposition and your Porsche Finance person should be able to explain the basics of this.
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Personal choice I'd say but I would pay max (which is annoyingly capped at 25% with Porsche Finance I think) and set a sensible residual / balloon / final payment e.g. £40K or less.
I paid £35460 PCP deposit to Porsche against a purchase price of £97197 which is 36.5%. I did this so that I am essentially paying interest only on the balloon.
Dealers sometimes say a maximum deposit so that you'll borrow more thereby increasing their finance commission.
 

W1NGE

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I paid £35460 PCP deposit to Porsche against a purchase price of £97197 which is 36.5%. I did this so that I am essentially paying interest only on the balloon.
Dealers sometimes say a maximum deposit so that you'll borrow more thereby increasing their finance commission.
Yep apologies, I re-checked and actually the max Porsche Finance will allow is 50% of the purchase price of a vehicle. Other non-Porsche finance companies offer a PCP like product - Hire Purchase plus a Balloon (comprises a deposit, payment term and a higher final payment).

I went with 50% (it was only last year, you'd think I'd remember!).
 

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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 :)
Apologies for the late response Amy. I suddenly lost my mother to Covid-19 so it's been a crazy few weeks. That will be your trade in price but the balloon or gfv on your documents is the minimum they will give you. The car could be worth more or less.
 

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Apologies for the late response Amy. I suddenly lost my mother to Covid-19 so it's been a crazy few weeks. That will be your trade in price but the balloon or gfv on your documents is the minimum they will give you. The car could be worth more or less.
@TAYC4N most sincere and heartfelt condolences.
 


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Apologies for the late response Amy. I suddenly lost my mother to Covid-19 so it's been a crazy few weeks. That will be your trade in price but the balloon or gfv on your documents is the minimum they will give you. The car could be worth more or less.
So sorry to hear that.
 
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Amy84

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So sorry to hear TAYC4N :(

My condolences to you
 


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Amy84

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So this is the deal I have gotten from them which I am likely to go with this week. I didn't want to do it over 4 years, it was too long.

Anyone seen any red flags or anything I should be concerned about? Max deposit was 40% but this was the most we could stretch to it.

Porsche Taycan PCP financing help 1612281575631
 

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So this is the deal I have gotten from them which I am likely to go with this week. I didn't want to do it over 4 years, it was too long.

Anyone seen any red flags or anything I should be concerned about? Max deposit was 40% but this was the most we could stretch to it.

1612281575631.png
What mileage restrictions are on the 36 mths Term to give you the GFV ? That would be my only look out...........
 

W1NGE

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Yep. check mileage - 8K, 10K, ??K per annum but other than that its a standard Porsche Finance offering.

Note (but please do the math) that if you take a lower annual mileage and exceed it over the term then it can be cheaper to pay the excess miles rather than attempt to alter your PCP deal once signed. Be wary though and do the math - I think its 17p per mile excess mileage and it cost you more monthly to alter the PCP mileage terms.
 
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Amy84

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So it's 5k miles as that's generally what we do
 

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Most likely cheaper to go with 5k miles and pay the excess mileage charges later....5k miles makes sense.
 

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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.
I like the security of underwriting the value of the car through a PCP. However, my accountant as emailed to say he doesn’t think we can put it through the Limited company if we do a PCP..... Are you able to clarify the situation please ? Many thanks Mark
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