PCP / finance rates to increase

[crockers]

Just heard from my SE that rats are to rise to 8.9% on October 1st. Suggested I get an application in asap. Also that until my order is locked in I’m open to any price rises.

Thinking finance isn’t a good idea so may just use cash. Also not happy about the currency risk. Sterling down 8% in one week. BOE raises rates by 0.75%. Porsche raise rates by 1.00 %. Using that logic I anticipate a 10% price rise. Score I get locked down. Now seriously wondering if I should pull out and look at used examples.

[neilj007]

Have just looked at Merc's site - used car finance is over 10% and new is currently 7.9. With their inferior residuals, monthly cost is quite high. I recall this was the man-maths that got me into Porsche 4 years ago

[vorticalspace]

I would agree, it is only the future residuals that make finance on a Porsche viable.
Currently paying 7.6% APR on used Macan S.
New GTS on order currently at 7.9% but rather than cancel, will probably migrate my deposit to a new Macan S which will push me down the queue and hopefully by more thinking time.

[New User]

Now seriously wondering if I should pull out and look at used examples.

My Sep21 order had 'price protection' applied when the prices increased in Nov21 and I had not locked down at that point. I think that lockdown protects you from a price rise in June for the next Model Year. So I imagine you are safe with a T or an S on order. Unless you are going to buy a Gen2 GTS or Turbo then I would stick with a Gen3 new order as better vfm in the long run.
I am toying with ordering a GTS now as some orders are going to get cancelled and I might be able to lock down before 24MY.

[Plyphon]

Yes, quite the conundrum.

My OPC emailed me last Friday saying they would give me an offer - agree to lock in by the end of the week at 7.9% and they will hold that rate until March 31st - my GTS is approximated for delivery early Jan.

I've just got off the phone to Clydesdale - they said they could quote me today at 6.8% - but they couldn't offer any such deal to hold the agreement for that length of time and said it would inevitably rise in that time between now and delivery. They even supposed that they may be higher than the 7.9% by the time that 3 months pass if it continues as it has.

Porsche themselves have given the GTS quite a high GFV in the PCP agreement - a double edged sword for sure; lower monthlies, but less equity in the car by the end of it all.

As the delta between Clydesdale (who were historically by far the lowest) and Porsche is only 1.1% - I may agree to go with Porsche just to lock it in. When I originally started looking for quotes in April time I was being quoted 5.4% - quite the wounder!

Thanks to the higher GFV/balloon I can still afford the repayments easily enough, but I am worried about the lower equity in the vehicle by the end of it. The other option I guess is to really ramp up the deposit I pay to reduce the interest paid over the term. I may consider this - sadly a full cash payment is not possible as I've earmarked some of my cash for a property move next year, and don't want to liquidise any investments right now...

Typical luck though, order a car 12 months ago and the world goes to pot in the meantime!

[martinto8]

Yes, quite the conundrum.

My OPC emailed me last Friday saying they would give me an offer - agree to lock in by the end of the week at 7.9% and they will hold that rate until March 31st - my GTS is approximated for delivery early Jan.

I've just got off the phone to Clydesdale - they said they could quote me today at 6.8% - but they couldn't offer any such deal to hold the agreement for that length of time and said it would inevitably rise in that time between now and delivery. They even supposed that they may be higher than the 7.9% by the time that 3 months pass if it continues as it has.

Porsche themselves have given the GTS quite a high GFV in the PCP agreement - a double edged sword for sure; lower monthlies, but less equity in the car by the end of it all.

As the delta between Clydesdale (who were historically by far the lowest) and Porsche is only 1.1% - I may agree to go with Porsche just to lock it in. When I originally started looking for quotes in April time I was being quoted 5.4% - quite the wounder!

Thanks to the higher GFV/balloon I can still afford the repayments easily enough, but I am worried about the lower equity in the vehicle by the end of it. The other option I guess is to really ramp up the deposit I pay to reduce the interest paid over the term. I may consider this - sadly a full cash payment is not possible as I've earmarked some of my cash for a property move next year, and don't want to liquidise any investments right now...

Typical luck though, order a car 12 months ago and the world goes to pot in the meantime!

I am in the exact same position as you! Porsche have also given a higher GFV and I also got a quote from Forza with a better APR rate but much higher monthlies. I also need to retain equity for some housework (ie Solar PV) So I am damned if I do and damned if I dont. I do believe you can make lump sum payments to reduce the equity balance

[neilj007]

If the world continues to go to pot, Porsche is a GFV rather than a balloon settlement

[Wing Commander]

Just heard from my SE that rats are to rise to 8.9% on October 1st. Suggested I get an application in asap. Also that until my order is locked in I’m open to any price rises.

Thinking finance isn’t a good idea so may just use cash. Also not happy about the currency risk. Sterling down 8% in one week. BOE raises rates by 0.75%. Porsche raise rates by 1.00 %. Using that logic I anticipate a 10% price rise. Score I get locked down. Now seriously wondering if I should pull out and look at used examples.

If you have cash lying around, it is a no brainer to use that, instead of expensive finance.

BoE rate was increased by 0.5% (not 0.75%) to 2.25%, but assumptions are that that could be over 5% by the end of this year, and possibly over 6% by next Spring.

[crockers]

Oops my mistake. Makes Porsche’s increase of 1% even worse.

[Wing Commander]

Oops my mistake. Makes Porsche’s increase of 1% even worse.

Yup. But thinking of the effect of sharply increasing rates on mortgage payments (as fixed rate deals mature) we may well see a few buyers sadly pull out of their planned Porsche purchase. In some cases, rocketing mortgage repayments may make the increase to energy bills seem like a drop in the ocean.