Financing Options
07-21-2022 | 04:17 PM
#16
Thread Starter
Drifting
Joined: Jan 2022
Posts: 2,360
Likes: 1,559
From: SF Bay Area
Thanks for all the responses! Actually this helps a lot. After thinking about it some more I'm actually going to put down less. I've always been of the mindset to lower my monthly as much as possible, however that is actually not the right move right now. I'll actually be in a better spot financially if I only put down like 20% instead of the 40% I was thinking. Its more monthly payment but the money that I originally saved for the downpayment will actually take care of monthly payments for a little over a year. During that time I'll be saving the money that would originally be going towards my monthly payments and investing it.
I'll probably go with Porsche financing and see if they can beat the 2.99% I've been quoted by other credit unions.
Thanks for all the responses!
I'll probably go with Porsche financing and see if they can beat the 2.99% I've been quoted by other credit unions.
Thanks for all the responses!
07-21-2022 | 04:24 PM
#17
Track Day
Joined: Oct 2021
Posts: 24
Likes: 23
Few months ago, I was initially offered over 5% (5yr loan) from Porsche financing (lol); 800+ credit, then went to a local credit union and got quoted 1.99% the same day. I went back to porsche and they were able to beat even the 1.99% (I chose to do $10k down. They had offered $0 down for the same rate.) You just have to play their game. Happens everyday.
Get a quote from a credit union and bring in the quote to Porsche financing.
Get a quote from a credit union and bring in the quote to Porsche financing.
The following 3 users liked this post by Richardkun:
07-21-2022 | 04:34 PM
#18
Thread Starter
Drifting
Joined: Jan 2022
Posts: 2,360
Likes: 1,559
From: SF Bay Area
Few months ago, I was initially offered over 5% (5yr loan) from Porsche financing (lol); 800+ credit, then went to a local credit union and got quoted 1.99% the same day. I went back to porsche and they were able to beat even the 1.99% (I chose to do $10k down. They had offered $0 down for the same rate.) You just have to play their game. Happens everyday.
Get a quote from a credit union and bring in the quote to Porsche financing.
Get a quote from a credit union and bring in the quote to Porsche financing.
The following users liked this post:
Xxyion (07-21-2022)
07-21-2022 | 08:38 PM
#20
Rennlist Member
Joined: May 2008
Posts: 1,473
Likes: 1,155
My $0.02.....
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
07-21-2022 | 08:59 PM
#21
Thread Starter
Drifting
Joined: Jan 2022
Posts: 2,360
Likes: 1,559
From: SF Bay Area
My $0.02.....
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
Honestly I largely agree. I wish I was in a position to just pay for the car in cash. I hate having car debt and I paid for my daily (Veloster N) in cash. However I'm just not in a position where I can gather enough funds in a small enough time to be able to pay off 80% or more of the car. Financing is just going to be the way to go for me with this car with the prospect that I'll try and pay it off faster than my loan is set for so I'll try and save money there.
In terms of building wealth, its not actually a huge goal of mine. I just want to make enough money to afford the things that I want. No more, no less. I know a lot of people are in the mindset of trying to be as efficient with money and making sure its always growing...but that's just not me. Yes I'll probably never be a millionaire or whatever due to it. but that's never been my goal. I'm really happy with where I am financially in life right now and that's honestly all I could ask for.
07-21-2022 | 09:07 PM
#22
Instructor
Joined: Jan 2022
Posts: 121
Likes: 89
My $0.02.....
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
The following users liked this post:
Spike Spiegel (08-21-2022)
07-22-2022 | 12:49 AM
#23
Instructor
Joined: Nov 2021
Posts: 219
Likes: 167
From: Park City
My $0.02.....
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
Depends how long you plan on keeping the car. I think in the near future, you could actually flip it for a profit. Longer term, I think the car pricing bubble will pop. With that in mind, it makes no financial sense to pay interest to finance a depreciating asset. You lose double. I think for a daily driver, and up to a certain price point to get a reasonably good car, if you need to finance to be able to afford the car, that is fine. We all need some form of automotive transportation. However, financing luxury items just isn't a good way to build wealth. There is the point of financing then investing the cash, even if you have it, and that is sound reasoning. However given current rates, and after tax investment returns, that doesn't make sense either in the current economy.
If I were truly financially prudent, I should have bought a RAV4 hybrid at 0.9% financing before the world went mad and one drove it as my sole car...
07-23-2022 | 02:49 PM
#24
Rennlist Member
Joined: Dec 2020
Posts: 1,869
Likes: 1,507
From: Franklin, TN. USA
MODS please remove or move as i tried searching for a financing section but couldnt find one.
Hey Folks, so i was trying to figure out some financing stuff and i was wondering what everyone is doing to purchase their cars. Are you just doing standard financing? Paying Cash? Special Financing?
Currently i'm thinking about financing about 60% of the cost of the car through Porsche Financing just to get that out of the way and then re-financing with a Credit Union later for a lower rate.
That being said i was curious to look at some other options.
Balloon Financing: I did this when i bought my M2 Competition, i actually really liked this option as it allowed me significantly lower monthly payments and since i knew i wasnt keeping the car, this helped me cut down on initial cost. When i ended up selling the car, i was able to sell it for the amount i owed, so at most i was only out the money i had already paid. However this seems to be something that only BMW seems to really offer and promote. I know in the UK there is a balloon payment option however it seems like Porsche Finance doesnt offer that here in the US. If anyone is financing this way, i'd love to know which banks/credit unions you are doing it with so i can explore the option better.
Lease: This is kinda like the balloon financing option. However i'm less likley to go this route as lease options are generally pretty bad and i'll end up paying a lot more for the car overall. Not to mention it technically is not considered mine and i'm limited to a specific number of miles. The numbers werent terrible when i did ask about it, but i think this would really be a last option if for whatever reason nothing else worked out.
Just curious what some of you have done or are planning to do and if its something that isnt really considered standard. I'd love to know so i can explore more options. Thanks!
Hey Folks, so i was trying to figure out some financing stuff and i was wondering what everyone is doing to purchase their cars. Are you just doing standard financing? Paying Cash? Special Financing?
Currently i'm thinking about financing about 60% of the cost of the car through Porsche Financing just to get that out of the way and then re-financing with a Credit Union later for a lower rate.
That being said i was curious to look at some other options.
Balloon Financing: I did this when i bought my M2 Competition, i actually really liked this option as it allowed me significantly lower monthly payments and since i knew i wasnt keeping the car, this helped me cut down on initial cost. When i ended up selling the car, i was able to sell it for the amount i owed, so at most i was only out the money i had already paid. However this seems to be something that only BMW seems to really offer and promote. I know in the UK there is a balloon payment option however it seems like Porsche Finance doesnt offer that here in the US. If anyone is financing this way, i'd love to know which banks/credit unions you are doing it with so i can explore the option better.
Lease: This is kinda like the balloon financing option. However i'm less likley to go this route as lease options are generally pretty bad and i'll end up paying a lot more for the car overall. Not to mention it technically is not considered mine and i'm limited to a specific number of miles. The numbers werent terrible when i did ask about it, but i think this would really be a last option if for whatever reason nothing else worked out.
Just curious what some of you have done or are planning to do and if its something that isnt really considered standard. I'd love to know so i can explore more options. Thanks!
We, wife and I decided to finance $20K US Dollars.
Reason we need to have revolving on going credit.
Speaking of Porsche Dealer here is Porsche of Nashville which is part of the Sonic Automotive Group.
I've had an Audi and that dealer was also part of the same as above Porsche dealer, Sonic Automotive Group.
We are a Bank of America Gold Club Members.
Sonic Automotive Group could NOT match BOA even though Sonic Automotive Group used BOA for financing.
The rate was,
2.14% for 72 Months.
Monthly $296.50.
This might give you something to go on ^^^
Terry
The following 2 users liked this post by tigerhonaker:
Spike Spiegel (08-21-2022),
Xxyion (07-24-2022)
07-23-2022 | 03:15 PM
#25
Rennlist Member
Joined: Feb 2013
Posts: 16,866
Likes: 4,156
Buy it financed and then pay off the loan once you get the first statement, easy enough. If you dont want to burn the dealer then make 3-4 payments then pay off the loan in full.
07-23-2022 | 03:19 PM
#26
Drifting
Joined: Oct 2020
Posts: 2,607
Likes: 1,879
From: Alberta/BC
That is exactly what the salesman or finance manager will usually tell you at that dealer group when they say you have to finance it. Not a big deal as long as there are no penalties (there shouldn't be) but I still would find that extra step annoying. They know a good number will just keep the financing even if they don't need it because it is out of sight, out of mind.
08-19-2022 | 11:42 AM
#28
Burning Brakes
Joined: Oct 2020
Posts: 841
Likes: 585
From: Jooor-jah
So I bought my Spyder in July of 2021 and finance rates have definitely changed since then - but my dealer got me done through US Bank at 1.89% over 60 months - which at the time was a full 0.5% better than any of the other rates I had found on my own, **including** my credit union. And that was with barely anything down (at that rate, why not?) So maybe give US Bank a look.
My usual process when financing is to get a couple quotes from banks on my own, then see what the dealer can do. So long as they can match it, I go with the dealer (if they make a point or so... meh... they gotta eat too and it's not costing me anything over what I'd do on my own.)
My usual process when financing is to get a couple quotes from banks on my own, then see what the dealer can do. So long as they can match it, I go with the dealer (if they make a point or so... meh... they gotta eat too and it's not costing me anything over what I'd do on my own.)
08-19-2022 | 11:44 AM
#29
Instructor
Joined: May 2018
Posts: 160
Likes: 168
From: Marlborough, MA
current rates
Currently, if you are doing 60-72 months, most places are hovering around mid 3's to high 3's. I use DCU and got 1.49% in April. They are now at 3.99%. NFCU is mid 3's. PenFed used to be amazing... now in the 5's!! yikes!