TheDogPack

I am looking at a few cars greater than 175K. What are my options for financing? Do Porsche dealers have open-ended leases with a purchase option? What do others do, typical loan?

DiscoWagon

I would start with your local credit union.

darylbowden

Porsche offers 2.99% on new and used GT cars in my experience (as recent as 2 months ago). Might be able to get a slightly lower rate at your credit union, but it's not likely to be massively different.

mithiral67

Went to my local credit union for a rate quote (they usually always have a lower rate than the market, right now 1.99% for cars and 3.25% for 30 year home loans). Take that to the dealer and tell them to match with the least amount down as possible to get that rate as my cash makes a heck of a lot more than the crazy low rates we have seen for the last decade.

I leased a car once in my 20s and hated it. Never felt like my car for some reason, even though its the same as a loan and my cars only last about 3 years, lols.

Palting

One thing I considered but didn't use is a Home Equity loan. Historically home eq loans have the lowest interest rates. Usually about 0.5% below prime.

TheDogPack

I found this credit union from a Reddit thread - https://www.woodsidecredit.com/exotic-car-loans/

konaforever

In before someone says you should only pay in cash.

mithiral67

Understanding that a car is a bad financial decision off the bat, but paying cash is even worse unless you have terrible credit and would pay an interest rate near or in excess of the rate of returns on your investments. Its simply math, but some folks like to brag about paying cash and odds are they just like to brag.

PS, spot on that someone will eventually say that . . .

TheDogPack

Exactly, I have great credit and I do not want to sell investments that are doing great. So for me a small down payment and leverage my cashflow is my best option.

darylbowden

No to go super deep here, but if you use something like Schwab brokerage, you can borrow at low rates against your investments, while the capital gains continue to grow in the account. So there's multiple ways to allow your investments to continue to grow while also using them as a path to borrow at very low rates.

Anyhow, I imagine most, if not all, people who are buying GT3s probably have financial advisors (and if you don't you should consider it). I just ask him what to do and he gives me the pros/cons of each option.

josephvman

Taking the equity out of what is most people’s only appreciating tangible asset to put it into a depreciating toy car is a tragically bad idea IMO.

ipse dixit

I use discretionary cash to buy my toys.

Yes, of course, I can leverage my discretionary cash to make money.

But, unlike some, I don't feel the need to leverage every s-i-n-g-l-e dollar I have just to make sure I come out ahead.

Life should not be that stressful.

itrsteve

IIRC, that place has significant pre-payment penalties if you payoff before two years.

That's on top of their rates sucking on stretched out loans in general.

I believe they were initially in the RV financing market and branched out to exotic automotive youtubers and desperate dudes at Barrett Jackson auctions as being a dumber customer segment. They're still around, so it must be working well.

mithiral67

Hmmm, every single dollar tracked in excel, projected into the future until retirement. And man do I love it

usrodeo4

NFLX, MSFT, AMZN...and write the check