LifesAnesthesia

They requiring any down for you?

inastrangeland

Yes. I don't think anyone is financing a Porsche without a down payment.

LifesAnesthesia

Lol that's quite an assumption

inastrangeland

Even a lease requires a down payment. But then again, you might be able to get no down financing from the local mob, but rates might be a bit high.

LifesAnesthesia

Lol I guarantee you there are tons of people out there financing without down payments from Porsche for various models including 911s

Drizz

I financed through Porsche Financial just a couple of weeks ago. C2S so no 1.99% deal, but got 2.79%. I opted to leave just enough down to cover the sales tax and finance the rest with the cost of money being so low. I could have bought this car with cash if I wanted to, but why?? At 2.79% i'm leaving my money in the market and getting much more than that in returns. With the market how it is right now I've seen 10%+ returns in the last 30 days alone, so I've already paid for the interest for the life of the loan in the last month.

Not sure why people seem to think you need to leave huge down payments. I feel like this is an older way of thinking from folks that lived through 10-20% APRs on loans and mortgages, versus the cost of money today being damn near zero.

markchristenson

That's good to hear, and basically my plan in a month. The monthly payment will be large, but the $150k (or whatever it is) will still be working for me.

Drizz

Exactly. Even if you put it in something ultra conservative (and hence much more safe) you’re likely still going to get at least a 2.79% return on it so why not?

ipse dixit

I get the arbitrage play here, no doubt.

But what ultra conservative investment are you investing in that provides at least 2.8% return? Why at least 2.8% percent? Because you would need to make more than just a break even return right? And even at 2.8%, you'd probably still wouldn't break even with transaction costs.

So then what ultra conservative investment provides at least 2.8% return, if not at least slightly more?

It's not T-Bills.

It's not most ultra conservative income bond funds, which last I checked was somewhere around 2%, and that's before taxes.

You get something more aggressive like blended stock/bond funds, then you're just speculating. Which is ok, but then you are just gambling, ahem, speculating. Again, it's ok, but just realize that's what you're doing with money for essentially a luxury, discretionary good.

Drizz

not going to get into an argument here, but you did correctly call out my use of the “ultra”, which may have been misused. I intended to mean conservative, and not ultra conservative. I’m in my mid-30s so I may have a higher risk tolerance than some others on here (though maybe not). I’m personally comfortable making higher payments on the 911 while keeping the rest of the money (which I would have otherwise used on the car) invested in a blend of ETFs that range from conservative to risky. This represents only a portion of my investments so I’m happy with this particular investment mix. If we want to talk ultra conservative, there are risk free, FDIC insured CDs than can give you a return of over 2.79%. There are also AA rated municipal bonds returning more than this. I sensed your sarcasm in your reply, so I felt I had to at least point out there are indeed ultra conservative investments giving these levels of return.

my whole point here is that I don’t believe it makes sense to put huge chunks of money down on a car when you can finance for 2-3%. That’s just me.

by the way, I saw your post in another thread about your Pista and I’m jealous. Love that car.

ipse dixit

All good.

chance6

I had the option in May at 3.74%...I put some money down but didn't have to...and now we've gone to 2.99%?? Damn!

HouTexCarreraS

Well, hopefully the market doesn't nose dive so you are losing money on that $150K that you invested and are still paying the 2.8% finance charge. The only way to guarantee that doesn't happen is to have a guaranteed return on your investment that is higher than the finance rate after taxes--anything else is a gamble. Nothing like that exists now--a few years back you could get muni bonds at 5% tax free--today they're paying less than 2%. If you pay cash, at least you're saving the 2.8% finance charge which is like making 2.8% after taxes. I know this is a conservative evaluation, but it is what it is in today's environment and likely to stay that way for some time.

lpw016

Debating on how to pay as well — when you can get rates at 2% why not finance the entire purchase?

What about if you put down 10-20% to cover the first year depreciation that way you can unload the car on the market if COVID/Economic conditions strain your income?

Curious how other people are paying; I’m not looking to pay cash for the entire amount; looking at a 992 TTS if that helps

AlexCeres

while nothing HouTexCarreraS said is wrong, good points all, everyone’s situation is a little different. For example, selling assets to raise cash for the purchase can have substantial tax consequences, up to 34% tax liabilities. If the total financing cost is less than the tax liability than ya know choices.