Xxyion

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!

cybers3c

Obviously personal decisions. Please do not take offense. Not familiar with balloon financing in the context of autos, but I’d highly recommend looking into cheaper loan options through credit unions and the like rather than leasing due to poor residuals on Pcars. I’d personally never lease any car unless I could deduct from a business. With increasingly higher interest rates there is a stronger argument to pay a larger portion in cash outright rather than finance the majority, but that’s obviously up to you to determine if that’s a good fit for you or not. Personally I’m a cash buyer but I have financing options ready if needed when the time comes.

Xxyion

Yeah leasing will be the absolute final option if i have to. Luckily i can actually deduct it from my business but it still wouldnt be ideal. I have great credit so i dont see myself getting denied a loan anytime soon.

Zhao

Hard to answer as everyone's situation is different. My plan was to pay for mine in cash, but ultimately I only paid for most of it as I didn't want to liquidate some investments that the stars were starting to align on and financed the rest. Personally I think that was a huge mistake and I should have stuck to my plan. I don't like car debt so that is why I almost never get credit when buying a vehicle.

But perhaps you are better at investing than I am though and leveraging as much credit and using your cash for investments is the wiser decision.

confused66

Could have paid cash, but with a 2.3% loan for 3 years I figured I'd invest the money and come out ahead. Now all my investments (even my bonds??!!) are down 10-20% so wishing I had paid cash. Oh well.

bulkychipmonk

I'm going down the cash/finance route, putting 25% in with cash and financing the rest with Navy Federal. Everyone's circumstance is different. I considered putting more cash down, but with the economic uncertainty right now, I don't want to tie up any more cash than necessary.

TXshaggy

Use the advanced search function, hundreds of threads…

https://rennlist.com/forums/search.p...rchid=43545028

What works best for you generally can be summed up in a couple math exercises.

Personally, I traded to avoid all state sales taxes.

85Gold

I'm a cash buyer for Toys. If you finance line up your best rate then see if the dealer can beat it, lots of times they can.

Peter

dmboone25

Agreed - the dealers seem to be very motivated to earn the financing business as much as the sale of the actual car. I gave them the best rate for which I qualified, and they beat it. Everyone wins.

bulkychipmonk

Interesting. Did this happen recently? And what kind of rates are you talking about in this case?

Zhao

There is a large dealer group in my region that refuses to sell a car unless it is financed. 20-30 dealerships big. My understanding from people that tried to pay cash for cheap stuff was they’d let you walk rather than take cash and it was like that pre-covid.

slowdown

I'm going to just use Porsche financing. They let me finance as much as possible (90% or more). With my Cayenne GTS, Porsche financing let me finance the entire purchase - I didn't spend a single penny. The difference between Porsche and my credit union is less than 100bps. But my credit union requires much bigger down payments. And when I make additional payments to pay off the loan quickly, the difference in interest rates is not that much in my mind. Personal choice. Moreover, I prefer financing as much as possible for cars and not tie down hard cash, particularly with so many stupid drivers around that can potentially crash into my cars.

Klepper

As others have said, everyone's personal situation is different, but for me, I always pay cash for cars unless it's some stupid cheap 0.9% financing or something close. I hate car payments.

996toomey

Logix Credit Union had 2.69, 5 years, 100% on my GTS at the end of May.

dmboone25

Yes sir - this past May.

I was one of the lucky people, in that I secured my allocation for the Spyder @ MSRP. So the dealer politely requested that I consider financing through them - aka, they weren't making the 25K ADM or whatever, but would appreciate the financing business.

The Porsche rates started @ 5% APR. I was like, no thanks...shopped around and qualified for 2.9%, which they were able to beat.