I'm teaching my 10 year old grandson how to become financially independent by the time he's 30. Rule #1, stay out of consumer debt.

The Porsche dealer is doing you a huge favor by denying you this loan. A Porsche should be a symbol of success but in too many cases it's a symbol of massive debt. If you can't afford three of something, you can't afford one. In your case the dealer is saying you can't afford one. Save and invest your money and come back in a few years stronger and wiser. Perhaps find a financial mentor who will help you avoid making monumental mistakes.

 

Asking a GF to co-sign a loan? That's bizarre.

 

You likely got denied because you don't have enough history and it's too large of a monthly payment jump (or D:I is off) -- irrespective of co-signer/income. You need to make a significantly smaller jump first. Ran into the same issue when I was young and dumb (not saying you are -- but I was).

I would save a lot more cash and get something CPO'd later in the year (for ~15% less than MSRP).... put $60k down, not $20k down. You'll probably be fine then (as the loan would be well under $100k), and save quite a bit on depreciation with a model year old -- all while your M4 probably won't have depreciated much more. You're going to have a hell of a time getting a bank to loan you $100k at 26 regardless of your credit, income, etc.

Congrats on your career jump though -- I understand the desire to celebrate and get something you really want.

 

This. Don't have your GF co-sign, absolutely terrible idea. Stop.

Don't buy a car if you can't pay off the full cost of taxes, fees & depreciation up front and still have a good savings safety net left over.

 

Hey OP, I’m chiming in because I was in your shoes a few years ago.

Ultimately do what you want, but the best thing for you to do right now is get your deposit back and walk away. Spend a few years saving & paying off debt, then come back and buy a face lifted 992.2 in cash.

I know this isn’t the advice you want to hear, but life is long. Don’t let this be your first and last Porsche. Be responsible and put your future self in a situation to own several Porsche’s throughout your life, not dig your own financial grave with this one.

 

​​​​​​ I have a different take on this - if you can get that poor girl to co-sign for you, absolutely take advantage of that. On the other hand, any human who is willing to cosign for you has serious mental deficiency.

 

Personally sounds like you’re blowing a lot of cash on an apartment, and a car both zero equity/wealth building. Be careful not to dig a financial hole, and not a fan of others co-signing on dept. Good luck on your decisions just seams like bad choices to me sorry.

 

I saw this article recently which discusses the practice of defaulting on a car loan!

https://www.wsj.com/articles/dealers...imessage_share

 

PFS is like the AMEX (or at least the way AMEX used to be) of captive lenders. They have very strict underwriting criteria, especially on leases. It sounds like you don't have a comparable tradeline in your profile with long-term high performance. That's another factor, especially with the 1099 income. Honestly, you should count your lucky stars that this wasn't approved. Taking this on would be an absolute disaster for you financially given the state of affairs you described in your post. It's just a car. You need to detach from this emotionally and apply some objective pragmatism. A 911 isn't something you want to take debt on at anything other than top tier/prime rates.

 

Technically, it’s not the article telling you to do this. It’s describing a dealer practice that has popped up given that so many people are upside down in their 72/84/96 month car loans. The WSJ has also covered another practice of rolling the debt from a prior car into the new car loan. With new car prices averaging around $35k, a lot of Americans are overextending themselves.

It’s not just a problem at the lower end of the middle class either. There are a lot of folks causing themselves financial distress for the status and image of the Tesla.

 

What will a 24 month lease look like with that down payment? Not a lot of risk to Porsche if it’s largely prepaid...

Then buy out the lease

 

credit score has little to do with how much money you make, or your net worth. It’s mostly about how well you play the credit game. If you pay off everything and never borrow, you’ll have a mediocre score. Net worth is totally irrelevant. The agencies have also moved to independently scoring different types of credit, so how well you use one type has a limited influence over others. Haven’t taken a car loan in 7 years ? Well that section will be zero’d out no matter how awesome you do at everything else. It’s a bull**** game that penalizes people who play by traditional fiscal responsibility rules (don’t borrow, pay off loans quickly, save up, budget purchase from savings). No, credit rating is about how well and how much you borrow.

if you have money, it’s easier to play the game. But the credit agencies will jerk your chain if you refuse to play by their rules.

 

this isn’t as effective as the OP hopes which is why they got denied again. It would be much more effective for her to be the sole financer. Co-signing often isn’t a good arrangement anymore. They’ll look at the worse of the scores independently or the mean which is less advantageous for you. Additionally if the GF is loaded from family money, but hasn’t taken a car loan or mortgage in her own name recently, then it basically counts for ****. She needs a history of car or house loans and matching pay offs.

 

‘Not totally accurate I have zero debt, and have 3 charge cards and pay the full balance off monthly with a 835 score. The ratings look at available credit vs what I charge monthly as I use my card on 95% of my transactions. The key is how much open credit do you have vs what you use.

 

And there it is, the first negative comment about the OP when he's looking for advise, not trouble. Didn't have to scroll that far down either.

I expected this after reading OPs post.

To the OP, the negative equity is partly what really hammers it...they look at loan/value ratio. And of course it's possible the dealer is low-balling you, as they like to do. It's an M4? Those are great cars too. One thing I did is I have an Experian account, where I can monitor all inquiries, balances, and credit score real time. It helps! You may want to pay down that M4 further, wait maybe till fall (?), and try again. You never know, you might be in much better spot.

Age 26 you're doing great! I didn't even consider a Porsche until I was 32.