Ballon values...

All Porsche Macan Related Discussion
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Pivot
Posts: 922
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Post by Pivot » Sat Jan 15, 2022 12:28 pm

Fascinating discussion. I am planning to put down 40-50% deposit with HP agreement, which gives me manageable repayments and I own the vehicle at the end. Am I missing a trick somewhere?
Expecting: 911 Carrera S - PNHZDZN2
Current: 718 Boxster, Ducati TK01-RR
Ex: Macan S gen II, BMW R nineT

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Wing Commander
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Post by Wing Commander » Sat Jan 15, 2022 12:32 pm

Sweetmeister wrote:
Sun Jan 09, 2022 4:07 pm
Isleaiw wrote:
Sun Jan 09, 2022 3:54 pm
Sweetmeister wrote:
Sat Jan 08, 2022 10:52 am


If you can afford to overpay then the best option is to opt for a shorter term, you’ll pay less interest and the car will be worth more. There’s no point taking a 4 year term and overpaying if you can afford to take a 3 or even 2 year term. :D
But how do you know if you can afford to overpay until life happens? I take 4 years in the forlorn hope I might keep it that long, I throw spare cash in to reduce amount outstanding as it happens and then I probably decide to buy a new car way too early. If all I wanted to do was save money I wouldnt buy an expensive car in the first place!

And its no good the car being worth more if I owe more, and no good it being worth more if I want to buy it out at the end. I've decided that cars are a waste, the scientific way to waste less is not buy one, or buy and keep forever, but I know the reality is I will buy and I will swap too often. So in that scheme of things, whilst still giving me flexibility should the backside fall out of my work world, I buy on 4 years, pay down when I have cash doing nothing, and accept its an expensive hobby full stop....
I know how much my monthly income is every month, so I and probably most people know if they can overpay or not, if you are unsure of your monthly income every month don’t take out a pcp. It’s not about saving money, it’s about paying as little as possible in interest. A lot also depends on the deposit put down.
If you want to buy the car at the end,don’t take out a pcp! I thought everybody knew that! It’s the most expensive way to buy a car. :D

Are you retired & on a guaranteed pension? If not, can any of us say that we know exactly what our income will be each month for the next 2, 3, 4 years...? ;) Aren’t the good old days of a ‘guaranteed job for life’ over now? I’ve just celebrated 36 years with my employer, but nearly everyone says to me that’s very much the exception in this day and age. :geek:
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow http://www.porsche-code.com/PJCIIPK4

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Wing Commander
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Post by Wing Commander » Sat Jan 15, 2022 12:36 pm

Pivot wrote:
Sat Jan 15, 2022 12:28 pm
Fascinating discussion. I am planning to put down 40-50% deposit with HP agreement, which gives me manageable repayments and I own the vehicle at the end. Am I missing a trick somewhere?

I think the trick is, if you have cash lying around, use that, as it’s currently enjoying a negative real rate of return. Borrow as little as possible. Go for the lowest interest rate you can find. Pay it back as quickly as possible. ;)

I guess the only other aspect to consider is the concept of the guaranteed future value that’s offered by PCP type of arrangements... 🤔
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow http://www.porsche-code.com/PJCIIPK4

alians1109
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Joined: Tue Aug 17, 2021 5:26 am

Post by alians1109 » Sat Jan 15, 2022 12:46 pm

I’m in the same ‘club’ as you Simon…. 41 years with same employer and still going :D :D

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Pivot
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Post by Pivot » Sat Jan 15, 2022 12:47 pm

Wing Commander wrote:
Sat Jan 15, 2022 12:36 pm
Pivot wrote:
Sat Jan 15, 2022 12:28 pm
Fascinating discussion. I am planning to put down 40-50% deposit with HP agreement, which gives me manageable repayments and I own the vehicle at the end. Am I missing a trick somewhere?

I think the trick is, if you have cash lying around, use that, as it’s currently enjoying a negative real rate of return. Borrow as little as possible. Go for the lowest interest rate you can find. Pay it back as quickly as possible. ;)

I guess the only other aspect to consider is the concept of the guaranteed future value that’s offered by PCP type of arrangements... 🤔

Aha! That’s what GFV stands for… currently second hand values are high, but who knows what the future holds, so guarantee might be useful.
Expecting: 911 Carrera S - PNHZDZN2
Current: 718 Boxster, Ducati TK01-RR
Ex: Macan S gen II, BMW R nineT

alians1109
Posts: 45
Joined: Tue Aug 17, 2021 5:26 am

Post by alians1109 » Sat Jan 15, 2022 12:49 pm

Pivot wrote:
Sat Jan 15, 2022 12:28 pm
Fascinating discussion. I am planning to put down 40-50% deposit with HP agreement, which gives me manageable repayments and I own the vehicle at the end. Am I missing a trick somewhere?
That’s what I’m doing. 40% deposit and the rest on HP. You may want to consider splitting them loan element as interest rates for loans of less than £25k are 2.8% (TSB) and above 25k it’s 7.8%

Worth looking at that option

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Wing Commander
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Post by Wing Commander » Sat Jan 15, 2022 1:06 pm

alians1109 wrote:
Sat Jan 15, 2022 12:46 pm
I’m in the same ‘club’ as you Simon…. 41 years with same employer and still going :D :D

Congrats! :D :D
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow http://www.porsche-code.com/PJCIIPK4

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Neil1911
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Location: Sheffield, England

Post by Neil1911 » Sat Jan 15, 2022 6:04 pm

Wing Commander wrote:
Sat Jan 15, 2022 1:06 pm
alians1109 wrote:
Sat Jan 15, 2022 12:46 pm
I’m in the same ‘club’ as you Simon…. 41 years with same employer and still going :D :D

Congrats! :D :D
A dieing breed, I jacked it in on 23 April 2019 after 44 years, 6mths and 3 days. Only started counting after the 40th year :)
I keep telling anybody that'll listen to learn from my mistake as it's better to have more retirement and less money the t'other way around.
2020 S: another Volcano Grey, 18" Macan Wheels +Spare, 14 way seats, ACC, Air Susp, PASM, Roof rails, Heated Screen & Front Seats, 75l tank, Comfort Lighting, PS+, Rev camera.
PNIX29HA ordered, 11 Jan 2022 @ Stockport.

Bazza06
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Post by Bazza06 » Sat Jan 15, 2022 8:06 pm

Neil1911 wrote:
Sat Jan 15, 2022 6:04 pm
Wing Commander wrote:
Sat Jan 15, 2022 1:06 pm
alians1109 wrote:
Sat Jan 15, 2022 12:46 pm
I’m in the same ‘club’ as you Simon…. 41 years with same employer and still going :D :D

Congrats! :D :D
A dieing breed, I jacked it in on 23 April 2019 after 44 years, 6mths and 3 days. Only started counting after the 40th year :)
I keep telling anybody that'll listen to learn from my mistake as it's better to have more retirement and less money the t'other way around.
I imagine it's also important when retired to keep active and have routines.
I know a few people who retired and just fritter the days away, often not knowing what day it is.
Current - 2022 Macan GTS Gentian Blue: http://www.porsche-code.com/PNBK7KR6
Previously owned:
Macan SD - Volcano Grey
Boxster S - Polar Silver

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SAC1
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Location: near BATH

Post by SAC1 » Sat Jan 15, 2022 8:30 pm

I retired at 60 yrs having spent 39.5 yrs with the same company. Of the many pieces of sage advice I was given at the time, the one that I adhere to is "never go to bed without knowing what you're going to do the next day". As a minimum forward plan. Works for me.😉
Steve

2020 GTS in Sapphire Blue
(sold) 2017 SD in Rhodium Silver

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