3 year or 4 year PCP?

The_Fat_Controller

Having been down the bonkers supercar route myself, unless you plan to do lots of Autobahn driving, find yourself something more suitable to British roads.

You'll have more fun at much less cost, a Cayman or something from Lotus comes to mind.

A 6 year old Porsche 911 Turbo could easily turn into the money pit from hell and cost much more than you have planned.

Goudy

The industry rarely get GFV's wrong and you are working your figures out on the sale price, not the actual value of the car as it might be in say the Glass's guide.

You are buying from a dealer, so they will mark up the actual sale price above it's value somewhere north of 20%.

So, say the car new was 170k and it's lost around 45% in the first year years.
It's value is 93.5k.
Add the dealer markup of say around 20% and you pay close to 110k. (plus all the interest of borrowing)

The GFV will be worked out on the 93.5k and if it loses another 45% of that in the next three years, the GFV will be 51.5k.

They don't work out what the GFV on what you may or may not over pay the dealer, but the value of the car now and it's expected value in the future.

Alexeales

The_Fat_Controller said:

Having been down the bonkers supercar route myself, unless you plan to do lots of Autobahn driving, find yourself something more suitable to British roads.

You'll have more fun at much less cost, a Cayman or something from Lotus comes to mind.

A 6 year old Porsche 911 Turbo could easily turn into the money pit from hell and cost much more than you have planned.

So I currently have a 60 plate Cayman S which is great but just a little old now. I'm currently overpaying my mortgage by 1k per month and haven't noticed it and will soon stop for complicated reasons, so my logic is that my monthly spending income won't change by doing this, a deposit is my car plus other debt which totals around 1k per month. I just thought I'd get the best car that I could. 

The_Fat_Controller

@alexeales, I've never had a 911 Turbo but even if I was in your position I would not be taking that sort of risk on a car that is getting on a bit.

You'll know what "Porsche prices" are from your Cayman ownership, not cheap even at independent specialists.

Best of luck whichever way you go. 

Alexeales

The_Fat_Controller said:

@alexeales, I've never had a 911 Turbo but even if I was in your position I would not be taking that sort of risk on a car that is getting on a bit.

You'll know what "Porsche prices" are from your Cayman ownership, not cheap even at independent specialists.

Best of luck whichever way you go. 

Thanks for the best wishes. 

Honestly, my Cayman is now 11 years old and is an absolute dream, even with 80k on the clock.

Grumpy_chap

Alexeales said:

What do we think?

I think you haven't really given enough information.

This is a real decision that can vary from "absolute madness" to "why ever wouldn't you?". 
Where on that scale this is for you all depends on financial position, income, job security, assets, liabilities, future plans (bigger house, family etc), pension provision.
No need for you to share that here, but they are the sort of things to consider in making this decision.

This is the purchase of a toy, basically, and IMO, the current 80k mile Cayman (which you say is still an absolute dream) is enough to tick that box.

I wouldn't do this while I still had a mortgage, until my future pension provision was secured and unless I had sufficient financial resilience that I could afford to make the purchase with the security that it would never be one that leaves me restricted in other areas financially.

I also think you can't really afford this as the £50k deposit is not a deposit, but half loan, plus it is already an older car that could easily become a money-pit and you still have a mortgage.  By the end of this process, you will be £70k down on remaining assets just paying for the car to be there for 3 years - overall that will quite easily be £100k.  

It's not something I would do.  If I was to do this, I'd only do so if it was a brand new car and cash purchase.

On the other hand, there has been criticism in the press recently of an individual wearing £3k suits as indicating they may be out of touch.  If you consider that individual has wealth of £100's millions, it would be far more odd if they wore a £50 suit from Primark.

It likely does not matter what I, or anyone else on the forum, thinks.  It is prudent for you to assess the position of this choice on the "absolute madness" to "why ever wouldn't you?" sanity scale.  Consider the points I mentioned and others, but only you can set your own priorities.  Given you still have a mortgage, you probably haven't reached the "why ever wouldn't you?" point on the sanity scale but it is hard for anyone else to suggest where you are on that scale.

Whatever you decide, make sure you enjoy!

ontheroad1970

DrEskimo said:

ontheroad1970 said:

Ibrahim5 said:

I have looked at it. Apparently it has 4 seats, but only 2 doors. The back seats are so small that they are NOT USEABLE BY ADULTS. Rather impractical I would say. Think again about the make and model.

Oh dear.  

Not all cars are about practicality.  If you aren't interested in cars that are outside the practicality range, move on.  

I wouldn't want to throw away a 50k deposit myself, I wouldn't be putting in 40%+ deposit unless I intended to keep it at the end and in that situation I think I would prefer to be on proper HP terms.

Whether you 'throw away' £50k as a deposit and pay £20k in monthly payments, or 'throw away' £20k as a deposit and pay £50k in monthly payments is just academic.

The fact is, the deposit and monthlies are all 'thrown away' as part of the expected depreciation costs and interest for running the car for 3years. The whole cost is the important bit. Quite how you divide that up is up to the individual (although I argue a larger deposit is better as it reduces interest charges).

I do agree though, by increasing the monthly payment and moving to a HP agreement, the OP could save thousands in interest charges, particularly if its at a lower rate (either secured HP, or unsecured personal loan).

My point is that with absolutely no intention to hold on to the car at the end of the term, the 50k is empty money.  A lease on a new car with maintenance included perhaps would be the way to go if the OP really has no intention of keeping the car.  

DrEskimo

ontheroad1970 said:

DrEskimo said:

ontheroad1970 said:

Ibrahim5 said:

I have looked at it. Apparently it has 4 seats, but only 2 doors. The back seats are so small that they are NOT USEABLE BY ADULTS. Rather impractical I would say. Think again about the make and model.

Oh dear.  

Not all cars are about practicality.  If you aren't interested in cars that are outside the practicality range, move on.  

I wouldn't want to throw away a 50k deposit myself, I wouldn't be putting in 40%+ deposit unless I intended to keep it at the end and in that situation I think I would prefer to be on proper HP terms.

Whether you 'throw away' £50k as a deposit and pay £20k in monthly payments, or 'throw away' £20k as a deposit and pay £50k in monthly payments is just academic.

The fact is, the deposit and monthlies are all 'thrown away' as part of the expected depreciation costs and interest for running the car for 3years. The whole cost is the important bit. Quite how you divide that up is up to the individual (although I argue a larger deposit is better as it reduces interest charges).

I do agree though, by increasing the monthly payment and moving to a HP agreement, the OP could save thousands in interest charges, particularly if its at a lower rate (either secured HP, or unsecured personal loan).

My point is that with absolutely no intention to hold on to the car at the end of the term, the 50k is empty money.  A lease on a new car with maintenance included perhaps would be the way to go if the OP really has no intention of keeping the car.  

It's irrelevant if your keeping the car or keeping it 3 yrs, it costs ~£70k no matter how big or small the deposit is.

The whole cost is empty money, not just the arbitrary amount you decide to put upfront to tailor the monthly payment amount.

jimjames

Ibrahim5 said:

I have looked at it. Apparently it has 4 seats, but only 2 doors. The back seats are so small that they are NOT USEABLE BY ADULTS. Rather impractical I would say. Think again about the make and model.

Not actually true. Rear seats can be used by adults including six footers but not comfortable for a long journey