Gotta have that car I cannot afford...lol

A record number of Americans are 90 days behind on their car payments

 

^ Agreed.

Leasing as a company car also sweetens the deal if that's available to you, as does a chance to buy a car you ordered and/or have known since new with CPO is attractive to me also.

 

 

 

 

I can beat that, I got .75% on a car loan for part of my GTS (only reason I financed. I was planning on paying with all cash until I found this rate). I would have financed the whole thing for that rate if the credit union would have let me. Oh well.

 

The 1.74% was a PenFed rate available a year or so ago on a 3 yr payment saver loan. It was a terrific deal. It is about 3% now.

 

i looked a few days ago, and on a new car, or within 12 months of new car purchase, PenFed is still offering 2.49% on a 3 year auto loan 😊 and 1.49% of if you use their new car buying service 😒

 

Leased to owned my 991.1 GTS. It was my "company car" and a tax write-off. I am going to write a check and buy my GT3T. I see advantages and disadvantages to both leasing and buying. For the GT3T, I know am keeping the car forever so I figured why not just buy it and be done with it? It will be nice not paying about $3,000 a month every month for three years - only to have a $100,000+ residual to pay off at the end of the lease if I want to buy the car. For my $140,000 sticker GTS, I paid $2,100 a month for 36 months, 5k down and I still had about $90k left to buy the car outright when I purchased the car last October.

 

 

You're talking from both sides of our mouth. First you say borrow because you can make more interest with your money. Then you say you like to make a large down payment because you like small payment. Foolish. Did you add in the rate your "advisor" changes to the cost of that money, did you add in taxes?

Do you count the Porsche as an asset? Is it added into your net worth? Do you hope to make money on it? Is it an investment. NO!. Its a car, it depreciates, every day, every mile. Every time I see a car in someone's net worth its way over valued. It's a Toy!

There are people that have been taught their entre life to borrow every penny they can. Use other peoples money. Good luck with that.

Everyone beats the market, everyone makes more then the interest rate, How did that work out in 08? 99, 83...

This thread has turned into a questions of "can you afford a Porsche". Whether you take a loan or pay cash does not indicate if you can afford it. People should be asking what's your net worth when you purchased a Porsche. My guess is there are a lot of people that can't afford the cars they buy.

People reading this thread should not get their financial advise from Porsche owners.

 

 

cash

 

This is the approach I take as well. If the rate + depreciation is lower than I can make on my investments, then borrow the money and take home the float. Have been doing it for 20 years successfully (though I usually buy CPO demonstrator cars with very low mileage - the 911T was my first new Porsche). I tend to also want to keep payments down, so I usually end up with a large down payment.

I've learned over the years that there is another advantage to having a loan - if you have to lemon a car, having a lien holder on your side can help the process as they don't want the asset any more than you do.

cheers!

 

LOL, You want the float, but you want a low payment? Which is it? If you making money on the float, why do you care about a payment? Everyone loves to lie to themselves. The car is always worth more then it is, they always make more money in the market then the cost of a loan. People also do bad math, they say I make 5%, the loan cost 3%, I make 2% on my $100K every year.... Wrong, first the amount you are making a float on every month decreases. Second you pay taxes on your investment return. While the last 10 years has been great, 08 sucked, 99 sucked, 83 sucked. Most people pay someone to manage their money (which is another topic). And they pay way to much for the person to manage their money. Take all of the cost into consideration and see if you are really making money from the float. Let me point out the obvious - Banks make money lending money. If you can get the money at 3%, the bank is paying someone 2.5% for the money to lend to you.

If you make money on the float you should take every penny you can in a loan. But you don't, you say you don't want a big payment? But you make money on this money, the payment is already covered and then some (the float).

As I stated earlier, it all comes down to net worth, if ask, what can I cash flow or what's my net worth. People love to see a high bank account. So If I pull $100K out of my account, it might not look as good, but it looks great if I have a $100K and a Porsche. They like to just ignore the loan. It's being cashed flowed with my pay check, keep the payments low.

I'll say it, those who pay cash are on the road to financial freedom (or already there).