Ballon values...
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?
Current: 911 Carrera T - PPM9RU51
On order: 911 Targa 4S - PPDV8NY4
On order: 911 Targa 4S - PPDV8NY4
- Wing Commander
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Sweetmeister wrote: ↑Sun Jan 09, 2022 4:07 pmI 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.Isleaiw wrote: ↑Sun Jan 09, 2022 3:54 pmBut 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!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.
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....
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.
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.
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 06/04/2018
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 06/04/2018
- Wing Commander
- Posts: 19914
- Joined: Tue Oct 06, 2015 5:43 pm
- Location: Wiltshire
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 06/04/2018
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 06/04/2018
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I’m in the same ‘club’ as you Simon…. 41 years with same employer and still going
Macan S
http://www.porsche-code.com/PNXGPN66
Miami|Bl Lthr|Pano|Blk Rails|Blades ext. clr|Model matt blk|Air|Sports Chrono|Blk T/pipes|75l|21" Spyder (satin blk)|18" spare|Tinted Tailights|Privacy|ParkAssist|LCA|18w|GT Race tex wheel|Bose
http://www.porsche-code.com/PNXGPN66
Miami|Bl Lthr|Pano|Blk Rails|Blades ext. clr|Model matt blk|Air|Sports Chrono|Blk T/pipes|75l|21" Spyder (satin blk)|18" spare|Tinted Tailights|Privacy|ParkAssist|LCA|18w|GT Race tex wheel|Bose
Wing Commander wrote: ↑Sat Jan 15, 2022 12:36 pm
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.
Current: 911 Carrera T - PPM9RU51
On order: 911 Targa 4S - PPDV8NY4
On order: 911 Targa 4S - PPDV8NY4
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- Posts: 121
- Joined: Tue Aug 17, 2021 5:26 am
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
Macan S
http://www.porsche-code.com/PNXGPN66
Miami|Bl Lthr|Pano|Blk Rails|Blades ext. clr|Model matt blk|Air|Sports Chrono|Blk T/pipes|75l|21" Spyder (satin blk)|18" spare|Tinted Tailights|Privacy|ParkAssist|LCA|18w|GT Race tex wheel|Bose
http://www.porsche-code.com/PNXGPN66
Miami|Bl Lthr|Pano|Blk Rails|Blades ext. clr|Model matt blk|Air|Sports Chrono|Blk T/pipes|75l|21" Spyder (satin blk)|18" spare|Tinted Tailights|Privacy|ParkAssist|LCA|18w|GT Race tex wheel|Bose
- Wing Commander
- Posts: 19914
- Joined: Tue Oct 06, 2015 5:43 pm
- Location: Wiltshire
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!
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 06/04/2018
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 06/04/2018
A dieing breed, I jacked it in on 23 April 2019 after 44 years, 6mths and 3 days. Only started counting after the 40th yearWing Commander wrote: ↑Sat Jan 15, 2022 1:06 pmalians1109 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!
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.
http://www.porsche-code.com/PP37WLA6, a Dolomite Silver S, collected from Stockport OPC on Valentine's Day 2023, after a 399 day wait.
Ex.: Gen2 S, Volcano grey 1/9/19 - 3/2/23 & 39,235 Smiles, RIP
Ex.: Gen2 S, Volcano grey 1/9/19 - 3/2/23 & 39,235 Smiles, RIP
I imagine it's also important when retired to keep active and have routines.Neil1911 wrote: ↑Sat Jan 15, 2022 6:04 pmA dieing breed, I jacked it in on 23 April 2019 after 44 years, 6mths and 3 days. Only started counting after the 40th yearWing Commander wrote: ↑Sat Jan 15, 2022 1:06 pmalians1109 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!
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 know a few people who retired and just fritter the days away, often not knowing what day it is.
Previously owned:
2022 Macan GTS Gentian Blue
Macan SD - Volcano Grey
Boxster S - Polar Silver
2022 Macan GTS Gentian Blue
Macan SD - Volcano Grey
Boxster S - Polar Silver
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
2020 GTS in Sapphire Blue
(sold) 2017 SD in Rhodium Silver
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