Porsche finance

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Algsnowden

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Hi I’m new here ! Just wanted to say I ordered my Taycan in April from Cambridge and had a pcp quote at 6.9% apr , obviously now it had gone up and was very concerned about it going up even more and making the payments Ridiculous! So I rang today and spoke to the SA and she assured me that she knows it has gone up but they will honour the apr and the monthly payments that I was quoted, but obviously I will still get the price increase of the base price. I’m not sure if that’s helpful to anyone
That’s not what I was told by my dealership but I have no allocation, sounds good if they can honour it? Have you already got an allocation/locked in your order?
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AlexR

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Mine went up by 1% with Porsche. Clydesdale was much lower APR but indeed a higher balloon. Porsche offered to inflate the balloon even more (ha) but that's kind of missing the point. Will your future self in 3/4 years be happy with that decision when you've £5-£10k less equity?! Be nice to your future self.
 

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That’s not what I was told by my dealership but I have no allocation, sounds good if they can honour it? Have you already got an allocation/locked in your order?
Hi no I haven’t got an allocation , I was actually really surprised too . I have it written in an email also , wanted to make sure I had it in writing!
 

Evie0146

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Porsche Taycan Porsche finance 5C96BD20-F31D-49D7-8611-6C200B63E570

This is my email confirmation
 
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Algsnowden

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5C96BD20-F31D-49D7-8611-6C200B63E570.jpeg

This is my email confirmation
Thanks for this! Will be on the phone to my dealership tomorrow…I did call them about this a month ago and they said it was not possible but maybe the policy has changed
 


Evie0146

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Your welcome , good luck !
 

TaycanHero

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The APR might be locked in, but they will claw it back through a worse residual / bigger balloon.

Beware of Greeks bearing gifts.
 
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Algsnowden

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The APR might be locked in, but they will claw it back through a worse residual / bigger balloon.

Beware of Greeks bearing gifts.
Is this right? If the balloon is higher surely you are more likely to be in negative equity and therefore hand it back and the finance company will take the loss?
 


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Is this right? If the balloon is higher surely you are more likely to be in negative equity and therefore hand it back and the finance company will take the loss?
That’s definitely what I would be doing
 

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There was a separate thread on this quite recently.
Iirc honouring the Apr varies from dealer to dealer.

I will try and find it....
 

TaycanHero

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Is this right? If the balloon is higher surely you are more likely to be in negative equity and therefore hand it back and the finance company will take the loss?
Using roughly the quoted figures from a Porsche finance deal, what they might do is arrange finance as below.

We will assume APR increases to 10% by next year, which would be a big hike. For that reason, buyer puts down a slightly higher deposit:

Scenario 1: APR 6.9%
Car Price: £75,555
Deposit: £14,756
Final Payment: £46,918
Finance: £13,881
Term: 35 months
APR: 6.9%
Monthly payment: £698
Total interest paid: £11,247
Assumed value of car: £52,000

Scenario 2: APR 10%
Car Price: £75,555
Deposit: £16,000
Final Payment: £35,000
Finance: £24,555
Term: 35 months
APR: 10%
Monthly payment: £1,084
Total interest paid: £14,469
Assumed value of car: £52,000

Even with a big hike in interest rate, scenario 2 doesn't actually see that much more interest paid, however, the balloon is much smaller meaning either the car can be purchased outright where the car is likely to be worth a lot more; or there is a far bigger deposit to put on a new car.

That also means lower interest payments for someone in scenario 2 vs. scenario 1 buyer where if they do purchase another car (likely because of the much higher balloon), there is a larger sum to finance, and so more interest to pay on a new deal for the new car.
 

Sidicks

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Using roughly the quoted figures from a Porsche finance deal, what they might do is arrange finance as below.

We will assume APR increases to 10% by next year, which would be a big hike. For that reason, buyer puts down a slightly higher deposit:

Scenario 1: APR 6.9%
Car Price: £75,555
Deposit: £14,756
Final Payment: £46,918
Finance: £13,881
Term: 35 months
APR: 6.9%
Monthly payment: £698
Total interest paid: £11,247
Assumed value of car: £52,000

Scenario 2: APR 10%
Car Price: £75,555
Deposit: £16,000
Final Payment: £35,000
Finance: £24,555
Term: 35 months
APR: 10%
Monthly payment: £1,084
Total interest paid: £14,469
Assumed value of car: £52,000

Even with a big hike in interest rate, scenario 2 doesn't actually see that much more interest paid, however, the balloon is much smaller meaning either the car can be purchased outright where the car is likely to be worth a lot more; or there is a far bigger deposit to put on a new car.

That also means lower interest payments for someone in scenario 2 vs. scenario 1 buyer where if they do purchase another car (likely because of the much higher balloon), there is a larger sum to finance, and so more interest to pay on a new deal for the new car.
But under your option 2, you’ve already paid an extra 35 x (£1,084 - £698) + (£16,000 - £14,756) = £14,754 !!
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