To PCP or HP?

[briomir]

Hello all, I've just received my allocation for a RWD so I'll be locking spec fairly shortly, but that's gotten me thinking about how to finance the car...

Unlike what I perceive to be a majority of owners on this forum, I am not buying the car as a company car, but purely as a personal asset. However, it's the first time I'll be buying such an expensive car, mainly because I can now afford it, I'm not really sure whether I should be buying it to keep or via a PCP arrangement?

Would be grateful for your thoughts - a PCP would be 4 years and looking at 8.5%apr whereas an HP over 5 years at 9.9%. I'm worried if I opt for PCP and later decide that I want to keep the car, I'd be paying more overall on the refinance (for the balloon payment) than I would have initially done so if I opted for an HP from the outset...

Any past experience/thoughts/guidance from members who have been in a similar situation would be highly appreciated!

Thanks

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[W1NGE]

Hello all, I've just received my allocation for a RWD so I'll be locking spec fairly shortly, but that's gotten me thinking about how to finance the car...

Unlike what I perceive to be a majority of owners on this forum, I am not buying the car as a company car, but purely as a personal asset. However, it's the first time I'll be buying such an expensive car, mainly because I can now afford it, I'm not really sure whether I should be buying it to keep or via a PCP arrangement?

Would be grateful for your thoughts - a PCP would be 4 years and looking at 8.5%apr whereas an HP over 5 years at 9.9%. I'm worried if I opt for PCP and later decide that I want to keep the car, I'd be paying more overall on the refinance (for the balloon payment) than I would have initially done so if I opted for an HP from the outset...

Any past experience/thoughts/guidance from members who have been in a similar situation would be highly appreciated!

Thanks

If you can afford it and want to keep the car then purchase outright and don't finance.

Porsche Finance is 10.9% (now cheaper than Audi and BMW but overall expensive).

Generally, I would caution against outright ownership of an EV due to the ever evolving tech and enhancements. EVs can depreciate quite quickly and for that reason I would shorten your horizon for PCP and probably the same for HP.

Take the PCP quote and look at the finance charges plus the balloon payment (normally settled with trading the car and if the depreciation has been severe then you don't need to care and the finance company takes the hit, you just won't have any equity to put back into a new vehicle) and compare to the total cost of an HP arrangement over the same periods.

I'm no expert but I wouldn't take finance out to pay off the balloon - use the car as the asset and trade in to start afresh. The balloon should be set conservatively meaning that you should expect equity at the end and able to put this as a deposit for a new car.

 

[briomir]

If you can afford it and want to keep the car then purchase outright and don't finance.

Porsche Finance is 10.9% (now cheaper than Audi and BMW but overall expensive).

Generally, I would caution against outright ownership of an EV due to the ever evolving tech and enhancements. EVs can depreciate quite quickly and for that reason I would shorten your horizon for PCP and probably the same for HP.

Take the PCP quote and look at the finance charges plus the balloon payment (normally settled with trading the car and if the depreciation has been severe then you don't need to care and the finance company takes the hit, you just won't have any equity to put back into a new vehicle) and compare to the total cost of an HP arrangement over the same periods.

I'm no expert but I wouldn't take finance out to pay off the balloon - use the car as the asset and trade in to start afresh. The balloon should be set conservatively meaning that you should expect equity at the end and able to put this as a deposit for a new car.

Thanks for the reply - does indeed make sense to keep it on PCP for now and see how the EV market pans out in the next few years...

...now just to decide on a final spec!

 

[W1NGE]

The inflated price bubble has well and truly burst in UK with depreciation now hitting Taycans. EVs are (for whatever reason) bearing the brunt of significant markdowns as the market attempts to correct.

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