Hello all, just received my allocation. MSRP deal. 992.2 Carrera base. Was not planning on financing but dealership wants me to finance for 4 months which I have no problem doing. I understand they get a kickback . Will pay off after month 4
My question is for people who have done this. Is the interest structure set up like a conventional home mortgage or is the interest/ principal amount the same each month for the 72 months for the finance length of the loan . Called Porsche financial before and they said no penalty paying early but they were not understanding the interest part of the question I had
Thanks

 

The interest is based on the remaining balance of the loan, so as the balance goes down, more of your monthly payment goes to principal each month.

 

I'd assume it is amortized vs straight/simple loan.

 

Thank you for clarifying Fishah

 

Yes, it follows the basic Time Value of Money formula for loans.

 

Thanks again I will see if I can put down the maximum in cash they will let me.

 

Pay off 90-95% right after purchase and then pay the remaining balance over the next 4 months. That’ll save you some interest.

 

Thanks I will do this !

 

This right here.

If you're being forced to take out a loan to hold for some period of time, there's nothing that says you can't essentially pay it down to nothing and hold it for the remainder of the (gentleman's agreement) timeframe agreed upon. Looking at an amortization schedule is nauseating. Keep that initial balance as low as possible to prevent the banks from making any money off you.

 

This is correct. I am a finance manager/director in a dealership (27 years)-- the best move is simply see what your payment is and then when you get first bill, send all the money except 4-6 times that payment and just let it trickle out on autopay...

and to be clear, the reason they want you to finance is... not for a 'kickback' so to speak- it is the reserve the bank will pay the dealer... so the more amount financed over the longest term and marking the rate up 2 points = money to the dealer... 99% of lenders will charge the dealer back that reserve if paid off within 90-120 days... So the dealer will want you to finance the maximum rather than putting down 90% at time of signing etc... if they make 2 points on 150k over 72 months, for example, the dealer will be paid ~$7,600-8k in reserve. This is a significant amount obv which justifies them not marking up the car price.... So, it wont hurt you to just pay it all down except about 11k and let 4-5 payments go out on auto pay since the interest on the tiny 11k balance is basically nothing anyway.... it's a win win situation.... but IF YOU AGREE TO THIS, stick to it!!! It's an awful thing if a dealer asks this of you as a reason for less price of the car and you say yes but then pay it all off anyway and they get charged back the whole reserve.

 

It is sort of an ADM (of a few hundred bucks), interest starts to accrue immediately. If you can, try to calculate the amount of interest you will pay in the 4 months and ask them to knock that off the price of the car so you break even and they get whatever they get by putting the loan in place. Regardless, pay off say 98% or more in the first month and leave little to pay off ($1K-$2K) in months 2-4. Another thought…..you could get the lender’s and your account information and after you drive away, you can make a payment the next day (or any date before the bill comes) to reduce the interest. I have no idea what type of arrangement the dealer has with Porsche/lender so this type of payment process may or may not screw up their incentives.

With the price of the vehicle as much as it is, a few hundred dollars is not a big deal but recognize that effectively you are paying more than MSRP.

 

How times change my wife’s loan on her 2022 Lexus from Delta CU was 1.38%

 

I got 0% interest on my new 2024 T.

I wrote one big fat check and drove off, I think they call it "Sign & Drive" 😂

 

My BMW X3MC is at 0.9%. I would have paid it off a while ago, but that's free money so I'm letting it go to full term.

 

ask them to finance thru bank of america, they still get a kick back, PCNA will be 7.99%

i got 6.29% on 72 months (150K note)