Porsche Macan Forums

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.

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.

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?

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...

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?

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

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

Congrats!

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

Congrats!

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.