Porsche ownership, Cash or Finance?
11-17-2016, 02:58 PM
#31
Rennlist Member
^I agree. It's a very personal decision and yours is certainly one school of thought that plenty of folks subscribe to. It all comes down to the numbers, and how they work for your situation, and your tolerance for debt and commitment to payments.
11-17-2016, 03:01 PM
#32
Reverse mortgage. On your elderly parent's house. Default. Keep Porsche. Winning!
11-17-2016, 04:19 PM
#34
Burning Brakes
If a person requires basic transportation, you get it any way you can: lease, finance or cash. It's a necessity of life.
That being said, buying a Porsche is not basic transportation. First of all it is a toy and really serves no practical purpose. It lacks space, comfort and has no spare tire. It is also expensive to maintain. It will lose 50% of its' value in the first three years. In time, all you will have is an old car with little value.
If, after all these negatives, you still want a Porsche, pay cash so you are not reminded every month of the stupidity of such a purchase. Finally, enjoy the car because that is as much fun you can have with your clothe on.
That being said, buying a Porsche is not basic transportation. First of all it is a toy and really serves no practical purpose. It lacks space, comfort and has no spare tire. It is also expensive to maintain. It will lose 50% of its' value in the first three years. In time, all you will have is an old car with little value.
If, after all these negatives, you still want a Porsche, pay cash so you are not reminded every month of the stupidity of such a purchase. Finally, enjoy the car because that is as much fun you can have with your clothe on.
11-17-2016, 04:56 PM
#35
Instructor
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I have found one of the best paths for me is to finance with no early payoff penalty and then pay more each month.
I feel I get a better deal on the car, since they have the interest rates they think they are getting me with.
If you take out a 3 year note, try to aim to pay it off in 1.5.
I feel I get a better deal on the car, since they have the interest rates they think they are getting me with.
If you take out a 3 year note, try to aim to pay it off in 1.5.
11-17-2016, 05:08 PM
#37
I agree, no need for anyone to put on the Nomex Suit. Cars cost money, Porsche's a little bit more than most. How we each choose to pay for them is dependent upon our own circumstances and life style choices, its all good to me.
If you happen to win a PCA raffle, even that much better.
If you happen to win a PCA raffle, even that much better.
11-17-2016, 07:49 PM
#38
Rennlist Member
I have decided to lease from now on. When I purchase the car my ocd gets out of control a bit, always thinking about trade in value. When I did purchase I financed and kept my money invested, I think I have always beat the rate. Either way I figure if I cannot afford the payment I should not be driving the car.
Eric
Eric
11-17-2016, 08:15 PM
#39
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Never finance a depreciating asset.
11-17-2016, 08:37 PM
#40
Track Day
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Do what you can financially. I put $50,000 down and financed $65,000, so my monthly is around $1,300. This amount is completely doable as it is only 15% of my monthly income. I didn't want to wait any longer for a 911 as i promised myself back in college that I was going to buy a 991. I'm also the nostalgic N/A flat-six lover type, thus I couldn't wait as new 2016 availability was drying up with the color and options that I wanted. After searching the nation, I found the car of my dream, pulled the trigger, and never looked back. Best decision I've ever made. Life is too short. Pay what you can for your dream to come true...and the rest...finance it.
11-17-2016, 08:44 PM
#41
Rent it (lease). Lowest payment, least paid over time, only owe sales tax on portion of car you use (varies by state), someone else's problem when you want to try the next thing. On the off chance you love it--and want to be buried in it, no biggie. Buy out residual, or sooner.
Why used? New. Know how treated from day one. Control break in (or lack of depending on your thought). Order custom. Car too expensive to not get EXACTLY what you want.
Caveat: you have a cash hoard and can literally write a check. Good on you--why give interest to anyone. Write the check.
Why used? New. Know how treated from day one. Control break in (or lack of depending on your thought). Order custom. Car too expensive to not get EXACTLY what you want.
Caveat: you have a cash hoard and can literally write a check. Good on you--why give interest to anyone. Write the check.
11-17-2016, 08:48 PM
#42
Do what you can financially. I put $50,000 down and financed $65,000, so my monthly is around $1,300. This amount is completely doable as it is only 15% of my monthly income. I didn't want to wait any longer for a 911 as i promised myself back in college that I was going to buy a 991. I'm also the nostalgic N/A flat-six lover type, thus I couldn't wait as new 2016 availability was drying up with the color and options that I wanted. After searching the nation, I found the car of my dream, pulled the trigger, and never looked back. Best decision I've ever made. Life is too short. Pay what you can for your dream to come true...and the rest...finance it.
11-17-2016, 09:20 PM
#43
Rennlist Member
Buying lightly used and financing makes the most sense to me. I think financing lines up your cash outlay/depreciation expense much better with the value you get from a car.
Let me try to demonstrate what I mean with an example. Let's say you buy a lightly used fairly new CPO for 80k, put 10k down, and finance the rest.
At day 1, if you tried to fire-sell this car immediately due to some unforeseen circumstance, you'd probably get at least 70k back, so your 10k seems fairly in-line.
Let's say you drive it for 2 years, during which you pay 25-30k of the 5y loan amount (math not meant to be exact). Over this time, you've been paying monthly payments, but in return getting the value of driving the car. If you sold it after these 2 years, you'd hopefully get 40-50 back if not more, which'd hopefully/roughly line up w your remaining loan balance.
I know the numbers were super rough there but what i meant is, I'd rather not do buy, minus 80, drive drive drive, sell, plus 40. I'd rather do buy, minus 10, drive and pay/consume that depreciation monthly, and sell, for roughly neutral-ish.
Having said that, doesn't leasing exactly do that - yes, but in general i found the money factors and the math around leases to be substantially worse than financing deals + you can rarely lease 1-2 yr used, which gets you out of the worst part of the depreciation curve.
Let me try to demonstrate what I mean with an example. Let's say you buy a lightly used fairly new CPO for 80k, put 10k down, and finance the rest.
At day 1, if you tried to fire-sell this car immediately due to some unforeseen circumstance, you'd probably get at least 70k back, so your 10k seems fairly in-line.
Let's say you drive it for 2 years, during which you pay 25-30k of the 5y loan amount (math not meant to be exact). Over this time, you've been paying monthly payments, but in return getting the value of driving the car. If you sold it after these 2 years, you'd hopefully get 40-50 back if not more, which'd hopefully/roughly line up w your remaining loan balance.
I know the numbers were super rough there but what i meant is, I'd rather not do buy, minus 80, drive drive drive, sell, plus 40. I'd rather do buy, minus 10, drive and pay/consume that depreciation monthly, and sell, for roughly neutral-ish.
Having said that, doesn't leasing exactly do that - yes, but in general i found the money factors and the math around leases to be substantially worse than financing deals + you can rarely lease 1-2 yr used, which gets you out of the worst part of the depreciation curve.
