Price Crash & Rate Hike - My car finance options after 2 years ! | 4K

In the last 12 months or so the has been a price crash and hike in interest rates. I am 2 years into my current finance agreement on my Porsche Boxster so I paid a visit to my good friends at Lillian Stanley Finance to see what my financial options are. I also got a valuation on my car from Harbour Cars where I bought it.
I sit down with Matt from Lillian Stanley to talk through the different types of finance available to my and then look at some options of possible dream cars for my to move on to. How did I get on ?!
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00:00 - Introduction
01:23 - Who are Lillian Stanley Finance ?
04:42 - Car Finance options explained
08:05 - PCP or HP with Ballon
13:21 - My financial position
16:42 - What is my car worth ?
18:13 - Cayman GT4 ?!
21:29 - 911 Cabriolet ?!
24:00 - What should I do ?
#PetrolPed #Automotive #CarFinance

[@beatles4sale2007]

I think people have to get over the fact that the “era” of cheap money is over, since 2008 banks and manufacturers have used cheap money to push on the industry. And this is the same for credit cards, housing etc.

[@nickhill941]

Listening to that, by my reckoning you’ve lost £22k on the Boxster in 2 years (14k depreciation and £8k on your original deposit) which is a staggering sum on a used car !! My personal view is that I wouldn’t buy a sportscar I couldn’t afford to buy outright from the off. These cars largely just sit around unused and having a large chunk of cash flowing out of your back account every month for that would grate on me. I have a 2013 Boxster it’s a great weekend car and I own it outright. I find it’s really all I need (0-60 in 5 secs and 164mph top speed) and I can afford to have that amount tied up in a weekend car.

[@trevorcrook2565]

A scary sum to do is the cost per mile of the finance, particularly if you dont cover many miles! I'll stick to cars I can afford to buy from money I've saved I think.

[@Thegowfer65]

Good luck getting a higher return with your savings than the interest on your loan.

[@zackvandenhouten6067]

I have for years now lol.

[@jc74435]

How to keep paying interest and the steepest depreciation for the rest of your life

[@julianthompson9824]

There are a tremendous number of people who place great emphasis on pension funds, retirement pots and other such. There are others who do not, and who feel that enjoying themselves to the absolute maximum whilst they have health and mobility in middle or younger age is the answer. Then there are the people who attempt a compromise between the above. The answer is to be wholeheartedly happy with your own position on that scale, and to recognise that your choices are exactly that. It’s great to listen to the experience of others, but in the end don’t make the mistake of trying to be someone else because there will always be a whole heap of people ready to critique absolutely anything that you do.

[@k17sher]

Most people buy cars with finance only think about low/affordable monthly payment, without considering the size of deposit and final payment. I used to buy my cars with finance provided by dealers or bank loans when I was young. But I stopped doing that when I got older, as I finally realised the interests I paid. I bought my last 2 cars with cash.

[@nigel.w]

I'm not opposed to HP if the interest rate isn't too high, especially for young people to get a decent car. It's also fine to finance something if it's cheaper money than alternative sources of finance you need. For instance, there's no sense paying off your mortgage -- the cheapest money available for most people -- if you'll then need to take out a loan to buy a car and/or for business at much higher interest rates. The reason not to pay cash for a car is to free up that money to take advantage of other opportunities you may otherwise be unable to take advantage of. Still, I think it's fair to say that for the average person, paying cash is best. Also, if you've got a reasonable sum that you could put down as a deposit on a car, and the ability to pay 12 grand a year, and every few years you're back where you started or worse off, or even just slightly better off, consider the opportunity cost, especially over the long term. IMO, it's one thing to take a big hit once or twice, but to keep doing it every few years doesn't make much sense to me. I've been fortunate not to lose much money on cars over the last 45 years.

[@danielchapman412]

I think you’ll find most cars in the UK don’t have finance on them outstanding

[@nigel.w]

@@danielchapman412 What do you mean? Most cars in the UK are financed!

[@BullyBoxer]

@@nigel.w some people have the good sense not to get drip drip dripped up .

[@terryjones6504]

NOBODY in finance is your friend.

[@greggdavies5827]

Not true. Find someone you trust and use your calculator

[@PetrolPed]

I’ve know the owner for 3 years. She is a friend 🤷‍♂️

[@RobertMackenzie-yn8ig]

Too right Finance companies are not your friends, they are business that make money from finance

[@williammorris1384]

Two things . I like your channel, but you live in a house the size of Mars and are clearly, well on the way to becoming a millionaire. I don’t dispute the effort you’ve made to get you there, but do you personally, need car “ financing “?! You could buy TOMORROW, the car of your dreams , out right ! A total cash buyer . When Vauxhall Corsa’s are coming in at £30,000 brand new, for crying out loud, don’t buy new !! Get a used car! £5000 for example, gets you quite a choice! If you’re choosing to “spend “ an average years salary on a super mini , you’ve missed the point! Surely ?! Again, for the record, I do enjoy your videos and content. Thank you 👍

[@DigitalJunior2003]

This video is an advertisement

[@andyburns6496]

If you have no intention of keeping the car then you are in effect leasing it. And I found actually leasing a car far cheaper than a PCP arrangement. The only disadvantage is you can’t keep the car. (actually at the end of my lease I was offered the car)

[@AndrewBurns-gq3kn]

Hi Peter, interesting video. My advice would be stick with your Mini and just enjoy all of the great cars the Manufacturers send you each week 🙂👍🏻Keep up the good work and drive safe🙂

[@PetrolPed]

Thanks for the tips!

[@AndrewBurns-gq3kn]

@@PetrolPed Looking forward to watching more content from you on the beautiful Emira 🙂 Really enjoy all of your reviews 👍🏻

[@andydonnelly8677]

" oh this could be an expensive video, this one . . . "🤣🤣🤣 you do give an intriguing look into getting a car I never thought I could though. Damn! This could be an expensive video for ME!🤣

[@spendover]

Oh stop it, I worked my way up the car sales and finance ladder... no one person is open, honest and transparent ... just stop it

[@Justthreepedals]

No one works out the full costs…. Or will tell you them…. It’s the depreciation on the car and the total monthly payments and the deposit less amount back at sale…

[@caractacus22]

Quite.

[@brutusoftroy2810]

Are they a channel sponsor?

[@PetrolPed]

@@brutusoftroy2810 This was marked as a paid promotion !

[@wordreet]

👍👍👍👍👍👍👍👍👍👍👍👍👍

[@andrewcharlesworth2512]

The monthly is not important- it’s the total cost including deposit payments interest etc that you need to focus on

[@PetrolPed]

Yep 👍

[@hetherington35]

Yep? Why didn't you mention those figures cause that was what I was waiting to hear?

[@DaveSurreyUK]

@@hetherington35 I thought it was £10K deposit and 48 months at £1K per months i.e. £58K to own it for 4 years? The missing figure for me was the APR. Nobody can say what the car will or won't be worth in 4 years, so whenever taking out PCP you should assume there will be no equity at end of term and treat it as a bonus if there is. Advance rentals, balloon payments etc are smoke and mirrors - the only way to compare finance costs is using the APR.

[@hetherington35]

Hi Dave, I've had many PCP and PCH car finance arrangements. You are right about the deposit+£1k per month x48. But what about the interest charged. Ped did mention the Apr but I've nee idea how to work that out. Until you can you won't know the full cost of the finance.👌🏽

[@RobertMackenzie-yn8ig]

Keep with the boxster , put £1000 away a month in a high interest account that you are paying the finance compu and in 12 months go and find a car 3:55 and pay cash using your car as a deposit This is the way I do my new car purchases

[@PixelVibe42]

‘Live within your means, even if you have to borrow to do so’.

[@pmgsussex]

Easy use most decide. Are you buying for track days GT4 or weekends away then 911 cab

[@anthonymeek4248]

Halifax or Lloyds HP at 6.2% on certain £ ranges on the calculator which covers up to £60K.

[@nigelbaber355]

Just ask yourself, if you pull up at a set of traffic lights sat in a GT4 and a 992 convertible pulls up alongside, will you think to yourself ‘I should have chosen the other car’….and of course consider it the other way round as well. For me the GT4 is the better drivers car but the 992 is the car you want to grab the keys when you leave the house everyday and face the roads we have to use.

[@Roy-ud1db]

Pete, great video, thanks for being transparent. But I'd stick with the Boxster. That's a lot of dosh.

[@dangreasley7934]

Interesting video Pete. I've never used finance to buy a car but I have had to help my son to get finance with his last car purchase. Unfortunately to get a reliable fairly new car it was the only option. This video has been interesting as it's explained the options and pros and cons. However, I tend to agree with the comments made below. There's only ever one real winner and that's the brooker or lender. Don't be naive Pete.. We're all just customers, we're not their friends.

[@stevenbennett3922]

Pete. These guys sell money and not cars, well they have just started doing so. A dealer has got a lot more targets to meet etc. Like everything in life we have choices.

[@Jamesgarethmorgan]

So a 9 point something interest rate. And your savings are generating what 5%? So you're going to borrow money which will cost you an overall 4%. Why? Why throw 4% away? So you have that money in your bank account rather than in the car? I suppose that sort of makes sense.

[@mavicsteve9275]

Years ago we were advised to claim against the banks PPI now we are seeing reports regarding PCP finance deals between 2014 and 2021 are we in for more refunds???

[@garethedwards2883]

Very interesting video Pete and the yellow GT4 looks awesome 👌

[@PetrolPed]

Thanks 👍

[@ginggur17]

Greetings, now this video I’ve been awaiting. A good insight. Preference is the outright purchase, it stops people making money from you. Again, it’s Horses for Courses as to if people can afford it. Great video.

[@PhilipParkes-ep4ds]

Hi Ped Hope this is well received as excellent update on finance options. Now turning to a more serious matter, your next car. It has got to be Carrera 2 S, TG will love it, The Pups will love it, you will be able to go back to Broadway in style with ample luggage space for a weekend away. You know I am right. We loved our time with our 991 Carrera 4 S, without a doubt best car we ever owned to date.

[@PetrolPed]

It’s upset some 🤷‍♂️😂

[@boristabacsplatt6609]

Hmm, picking a new ride is always difficult. I think the 992 cabrio is a good bet, although I think it has further to fall over the rest of the year. Perhaps hold onto the Boxster for the moment.

[@kevincross9206]

Interesting video Peter. I was unaware that at the opposite end of the deal (and I had a PCP) you’re not compelled to go back to the dealer either. I sold my car to a trader in the village, he cleared the balloon payment AND gave me £4k, which clearly wasn’t on offer from the dealership.

[@willstillo72]

The only time i have used finance is to secure the dealer contribution, i then paid the finance off early. Most finance deals are now wise to this and front load the payments. I only pay cash now. The problem with that is EVs, so i will be keeping my current cars for a long time now.

[@kevinmcg6747]

Well Pete I'm guessing you might've had an inkling this topic could come with a backlash. Car finance vlogs nearly always derive a high level of toxicity in the commentary and to be fair past behaviours of unscrupulous firms merits caution. Despite I'm sure your good intent, the limitations of what you can share means that it's a lose/lose topic to cover. In terms of your personal choice on car type, I think the convertible lover in you will win through and therefore the 992 over the GT4!

[@PetrolPed]

Thanks Kevin 🙏🏻👊

[@simonwhitcombe841]

Agree with Kevin. Once you’ve had a convertible you’ll always want one.

[@andywhite15]

So how does it work, when you go into a dealership looking to buy a specific car and tell them you wish to use an independent finance company? Who pays for the car? Does the finance company deal with the communication between themselves and the dealership? Do I have to act as a “go between “? How does it work between walking into the showroom, expressing an interest, to collecting the car?

[@PetrolPed]

It’s really simple. Once you have found the car get finance illustrations from the dealer and the independent. If the independent is a better option you just inform the dealer and they should then deal directly with the finance company.

[@stevecompton7197]

Great interesting video i know its a different world these days but much prefer the old hp system or save up for what you want if you can't afford it you can't have it as my mum always said

[@MrRoyck10]

Excellent content Pete! Your such a gent

[@PetrolPed]

I appreciate that!

[@funkyfin3023]

Interesting but I don’t agree with his comment that a lower RV is better as you pay off more capital. The main benefit to me after having owned a Taycan Turismo is that the my RV is protected and not going to be hammered by a market downturn or dieselgate type event. To me the slightly higher interest saved is nothing compared to the protection against a loss on the car. I’d go for the 992, last one with the buttons as well as great relative value.

[@FA-fq6co]

Interesting you are considering a 911 convertible, we also have a 718 Boxster GTS and love the car, but are also looking for a 992 911 convertible in the near future.. good luck with your purchase!

[@P9uys]

The dealer has access to the manufacturer finance company. If you take Porsche Financial Services in this instance. As they back their own vehicles generally the final value or balloon is higher making the payments lower and the interest rate can sometimes be subvented lower depending on how close they are to achieving their sales targets. Plus you have the backing of the oem brand should anything go wrong with the vehicle or your circumstances. It’s not always about the cheaper payment but the overall package.

[@911aircooled5]

Interesting upload Pet. So many variables. The banker always wins! I'll just say that I sleep well at night as I paid cash for my 3 (surprised the saleman), whereas the market is saturated with 3's now as so many got caught out financing their 3's and now they at at a pinch point, resulting in the price dropping. For others, an old rule, or guidance, your car should not be worth more than your annual salary. If it is, you can not afford it!

[@gordonmackenzie4512]

I bought my current car cash, 10 years ago new, it cost £21,000 and is still worth about £5,000 now with only 39700 on the clock. That’s £1600 per year, zero road tax, fault free, cheap insurance. In total around £2000 per year total ownership.

[@stefanl.7586]

If you financed with a 50% down payment and put the other half into Bitcoin, you would have 35 BTC = 2.2 Million USD (+ 5.000 car worth)

[@greggdavies5827]

That's great. Your choice

[@funkyfin3023]

You’ve got a 10 year old car then.

[@ginggur17]

25:40 again, very well said. That’s what has always made me reserved after struggling when I was about 23.

[@tomashley5869]

Carrera 992 Cab Pete, more comfortable with the pups, comfier for you, and the way to go Mate! Very interesting video, as always. Cheers, Tom

[@PetrolPed]

Thanks 👍

[@BAC_Mono]

I bought second hand cars, aiming for no more than £1,000 depreciation per year and changed them every 5-7 years until I was in a position to buy more expensive cars outright. There are plenty of used cars in this price range, provided you’re not obsessed with the latest shiny new thing. Have we learned nothing from the subprime loan crisis of 2008?

[@shanewaller2864]

Hi Peter as you know i bought my Van haven transporter outright 2 years ago and i absolutely love it ,but my second choice was the porsche cayman gt4 in yellow. If it was me sat in your shoes i know id be going home in the GT4 💛

[@nickwebb9290]

That’s such a good video Pete 👍

[@PetrolPed]

Thanks 👍

[@dazsmith2]

I really enjoy your usual car reviews and discussion, not so keen on finance promotion like this though.

[@PetrolPed]

Honestly just trying to create a better understanding of finance options 🤷‍♂️ The message was be cautious. Understand all the elements. Ask the right questions. Good advice I reckon. Sorry it wasn’t for you though 😢

[@dazsmith2]

My issue with this vid is that it's a finance video sponsored by a finance company.... so unlikely to be impartial and balanced. No worries tho, got to pay the bills 👍

[@roboliver9980]

He isn’t selling anything just explaining though?

[@bepatrick7864]

​@@roboliver9980 Aye Rob, intentionally, or unintentionally, that is the art and science of selling ... to make you feel like you are NOT being sold to.🤓👍

[@brated9433]

I’d be holding on, the adjustment on values has occurred and inflation now is more under control. Interest rates predicted to fall come summer time. Doesn’t matter really what the figures are. I believe they’ll only get better the longer you can wait. I’d like to understand what balloon you were offered though, couldn’t find it in the description.

[@user-yr1cn7zg2q]

Hi. I’m thinking of buying a 1 yr old Cayman and was just wondering if you can tell what the depreciation has been like on your booster to give me a rough comparison?

[@Discovery_Dad]

Get the 911. If financially for you, it's similar to the GT4, if you don't get it, you'll still be hankering after a 911 until you scratch that itch. I think they look classier too, and it'll still be more than enough fun on UK roads and the PP hill climb.

[@paguk2000]

Pete as you state the important thing to do is work out the whole cost to you over the period of the loan.I have only used a personal bank loan always the cheaper opition

[@user-uy8fb6xv6j]

I reckon my 2018 S4 has lost about £2,500 per year in the 5 years I've had it. I paid cash because I was always going to keep it and the depreciation just goes with the territory, but I'd feel pretty sick if I was paying finance on top.....

[@ericchan9749]

GT4, think depreciation will be less of a problem, and such a great car!

[@bwdrives]

Please please please do not fall into the trap of hire purchase + balloon, it’s designed to maximize their margins. If you look at the equivalent price breakdown of a regular hire purchase vs hire purchase + balloon, the hire purchase + balloon is significantly more expensive overall. And don’t think you can get out of it easily either as there is often an interest charge of a few months that adds a couple hundred pounds on top. Save up your money and buy your cars outright, if you can’t do that then get an unsecured bank loan or just buy a new car with a low interest pcp deal

[@mrmawson2438]

Cheers I'll see you Monday

[@TheStoathoover]

Just ask Matt from Lillian Stanley how much commission he’s making from either of the deals as he’s obligated to tell you under FCA rulings. There was no flat rate interest rates, APR, or total amounts payable mentioned either. Open, honest and transparent?

[@PetrolPed]

That is because you are allowed to do that in a video due to FCA complaince. We were as open, honest and transparent as we were able to be. Show me a video online that is more so ?!

[@GordyM-ov7pt]

@@PetrolPed If you are then do. It was not transparent.

[@chrisclokey4840]

What was the interest rate being offered? The video focuses on balloon payment and monthly. Being transparent on the interest rate and how much you will actually pay in interest would be helpful. Porsche at the moment are around 11%.

[@PetrolPed]

One of the compliance restrictions we had to adhere to sadly. It's currently more than one and less than two under that number ;-)

[@911aircooled5]

Porsche at 11% at the moment? Is that in the UK? Mate just got his with Porsche in Oz at 6.5%, 4 yrs.

[@findtomdotcom]

@@PetrolPedthat makes the examples useless Pete. If you assume 75k with a 10k deposit over 4 years and a £35k ballon, £999 per month puts the Apr at about 9%. That’s still a high interest rate and I’d bet you probably need to be a high bet worth individual to get any lower.

[@andrewcharlesworth2512]

I bought a new BMW 2 years ago coz used values were c30% higher than pre-covid and new cars hadn’t gone up that much at the time. I wouldn’t normally buy new. However BMW pcp at 6.5% was c£4k more than Sainsburys loan at 3.2%. Please don’t use pcp it’s a rip off because capital element stays high and your paying more on same rate if HP.

[@chrisclokey4840]

@@911aircooled5 yes, that is the average interest rate at Porsche UK dealership at the moment.

[@jamesfoote8916]

What an expensive way to buy a car. If you can not afford cash then take a loan and pay it off then the car will be yours. Having so much dept is a stress you can live without and don’t forget if something goes wrong. I had sepsis in November 2018 and boy did that change my life. The decision to pay cash for my new Jaguar XF was the best decision ever I kept that car the 12 years and it ran amazingly if you work out how much you have paid for those 4000 miles on your car oh my God

[@alanwayte432]

Pete nobody selling finance is a great friend, the fact they have a cool office and expensive art, is paid for by Commission as they are a broker not a lender...

[@PetrolPed]

LSF is owned by a good friends I have know for several years. All companies make money from their customers. That doesn't mean you can't trust them or like them !

[@wheelsandwatches]

Up to this point I have used personal loans from my bank and my savings. This way my interest rate was always a lot less than through these companies. Now I can afford to I’ll buy out right where possible. If you do your research and buy well (low owners, proper service history, good spec, lost most its money etc) you will lose very little in depreciation.

[@dazzacar]

So the notification of this video appeared while I was watching the latest drive torque podcast…. So have stopped watching that to watch this. Can always listen to the podcast later.

[@PetrolPed]

Love this 💪

[@Strongjd770]

Great video as always, especially as I’m considering a C2 Cab too! However, there’s an elephant in the room……track days. Surely when buying a high performance car you want to take it on track. After all, that’s the only place where you can exploit the performance in relatively safety. However, I think I’m right in saying that all finance deals contain a clause prohibiting track days, including the ring. Which means you’re left with either paying cash or personal loan. Not everyone appreciates this when they go on track it tends to be hidden in the small print. Some dealers/financers also use trackers to see if you are indeed on track. Nothing wrong with finance, but make sure you read the small print!

[@PetrolPed]

Check your agreement. Same goes for modifying the car.

[@chrisfox7460]

If you're thinking from a sensible point of view (which you seem to be), the GT car will always have a higher value (in percentage terms) than the non GT 911. This would mean you're more likely to have a higher level of positive equity in the future (on a like for like basis). Was the spyder that much more if you must have a drop top?! Also, remember, other than no back seats, the GT4 or spyder has more useable boot space than the 911, and are lighter and mid engined, so an inherently better handling car. Because of the inherent lightness over the 911, they will also likely be cheaper to run. You have other cars to drive the dogs in! 😁🐶🐶

[@stevenbennett3922]

Just had a quick look and a new 911 Carrera Convertible on 10k miles and 10k down over 4 years is £1777/month to lease.

[@jimmyjt16]

Problem with this company is when you apply they want to ring you and email and assign you with an account manager. JUST GIVE MY RATE so I can decide if I’m using you or not. So frustrating! I won’t be answering their sales calls.

[@PetrolPed]

It’s called customer service

[@lillianstanleyfinance]

Hi Jimmy, I do take on board your comments. With finance we can't do that, due to so many variables, we look after cars of all ages and prices, if you are buying a car thats 2 years old for £50,000 it will be a different lender to if you are buying a classic car that is £75,000. We pride ourselves on being the cheapest in the market and delivering the very best in terms of customer service.

[@jimmyjt16]

@@lillianstanleyfinance not sure why you can’t do it that way. Similar to how Magnitude finance do there’s , but you could have two sections on your website, one for the modern stuff for example cars under 4 years old where it gives you your rates and payment amounts straight away and then a separate section for the more specialist/older stuff where you’d need to call back the customer to discuss?

[@johnball4826]

I have been buying and selling cars privately, for the last 50 years. I have have never had any problems. It is all a myth that people come to your house to rob you. Also I have only ever bought a car I can afford. Never financed a car, as it is such a waste of money. Obviously I don’t have 100k to go and buy a new Porsche, but would get 90% of the fun and experience with one that is older and costs far less. The depreciation on all new cars is ridiculous. Best age to buy a car is 2 1/2 to 3 years old when still under makers warranty.

[@joeparrinello3490]

So after the film stopped rolling which one did you go for, I hope it was the 911 C2S

[@adrianwhitehead1950]

£1000 a month and £10k deposit. Has the world gone mad?

[@supertouring22]

Its only money.

[@nigel.w]

​@@supertouring22 I reckon when a lot of today's younger people have retired, they're going to seriously regret how much money they wasted 'renting' brand new high-value cars to impress others more than themselves while actually impressing nobody worth impressing. Twelve grand a year over a 40+-year working life is not only the equivalent of half-a-million quid, but when you think what compound interest you could have earned from simple term deposits, or how else you could have invested the money, it is serious wastage. Most young people don't realize how difficult it is to maintain one's lifestyle in retirement. IMO, the sooner people stop 'buying' cars this way for instant gratification the better. Instead of seeing a finance broker and telling them you have a deposit and a grand a month spare to waste, buy a car outright with that deposit, then go see a financial advisor and tell them you have a grand a month spare to invest. I wish I had been given this advice and been wise enough to follow it. I wouldn't just be a multimillionaire, I'd probably have at least 10 mil, maybe even several times that, and not only be able to afford to buy the hypercar I want, but also be able to afford to own it, which incidentally costs at least half-a-million for the average length of retirement.

[@greggdavies5827]

Always been the case

[@funkyfin3023]

Depends if you want to spend money on a decent car or drive a 10 year old Seat.

[@nigel.w]

@@funkyfin3023 ​A 10-year old Seat? If we take the 10k deposit in this example and instead buy a car outright, you can get a much better car than a 10yo Seat. You can very nearly buy a new car. And if you save the one grand a month for just one year, you can buy a 22 grand car, and there are plenty of fine late model low-mileage cars available for that. Save for two years, three years...or the four years of this deal, after which you'd have a total of 58 grand, minus depreciation on whatever you've been driving, which would be little on an already highly depreciated car, or say five grand if you took the cheapest new car deal you could get for the added peace of mind of a new car warranty. And 58 grand buys you a very good new car or buys you Ped's Boxster outright with at least five grand left over. If Ped had followed this strategy, he'd now have 34 grand. Instead he's got about four. It may well be painful for many people to read, but IMO most people who are doing deals like this over and over again have got very poor maths skills and/or very little patience, indeed.

[@guy3point14]

Ten grand up-front, 48 x £1K...hmmm, so 58 grand...which is £14,500 per year... for a car with mileage & wear'n'tear restrictions placed on it...that you don't own at the end of the agreement. It's not overly appealing TBH mate. I did like the yellow one though 😉😉

[@Jamesgarethmorgan]

Plus what's the balloon at the end? That's 58,000 and no idea how much on top to get the car if you want to keep it. Without that there's no real way to work out how good a deal this is.

[@solentbum]

My advice, Buy a moderate priced boring estate car (for cash) that does every thing you want , carry the dogs, bikes , shopping , friends, etc, Save a fortune in repayments , and have money for the occasional track day, holiday rent for an outdated 'fun' car. Make full use of the Loan cars that you get hold of. I make it that your Boxster has cost £1.30 pence per mile in depreciation alone! What a waste! My own car has cost £0.34p per mile depreciation after a cash buy when new and 95000 miles of trouble free motoring. And a fuel cost of 1.8pence per mile. If you can't afford cash , walk away!

[@colinirvine1869]

Oh I think the 911, then the pups can get in on the fun. But it’s up to yourselves really! I’m paying my lease off for another year then looking at something nice!

[@PetrolPed]

👍

[@RobertBaird-xr5sw]

If your building a new garage just make sure you have enough room for a 992. Ridiculous length of a car! Boxster's and Caymans because of their compact and sensible proportions so easy to place on the road and park etc.

[@user-qr4se9wt4z]

Oh Ped, interesting and informative thank you 👍👍

[@PetrolPed]

Glad you enjoyed it

[@M4rky71]

Buy the car = cost of the car plus dealer margin. All other options are rent the car + interest, finance broker commission plus dealer margin = cost of car. No investment can offset the cost of finance at the moment so buy outright now. There is a reason why top end car prices are plummeting. Rolling one PCP into another is when they have you as you’re simply renting. Imagine spending money every month and never owning something.

[@funkyfin3023]

How do you fund a car like that outright for cash? Personal loans are lower interest but capped at £25k.

[@M4rky71]

@@funkyfin3023 You don’t. PCP’s are only for people living beyond their means. Buy the car you can afford and if you need a very small personal loan to help then okay, but pay it off in a couple of years, rinse and repeat. Eventually you’ll have something nice, and it’ll be paid for. It takes much longer this way, but at least you’re not funding the car finance industry and forcing car prices up unlike PCP fools.

[@funkyfin3023]

@@M4rky71 no it isn’t people living beyond their means at all. People can make choice whether they want a bland cheap Chinese car for cash or choose something they want that is more aspirational. You also get the protection against a rapid fall in prices like an EV or dieselgate. Renting or waiting for a car also means you’re subject to car price inflation. The real interest rate is the difference not the absolute one you’re mistakenly referring to. If someone wants to spend more of their disposable income on financing a car they really want over say an expensive holiday or another hobby that’s up to them.

[@M4rky71]

@@funkyfin3023 financially you should never borrow money to buy a depreciating asset. All finance does is bring purchase forward, it doesn’t create additional purchases for you. You can’t change economics I’m afraid, but you can waste thousands of pounds on interest to rent a car you can’t actually afford to buy. You can sell it to yourself as aspirational if you want, but facts are facts.

[@BAC_Mono]

If you can get a better rate of interest on your savings than the rate at which the finance company is borrowing the money they are lending you to finance the car, bearing in mind you pay for your financed car out of taxed income and also pay tax on the interest on your savings then you need to set up a bank, you’re a genius. Finance is a way to buy a car that you don’t have capital for but it’s certainly more expensive than buying outright. If you are saying you don’t want to commit your savings, should you really be buying an expensive car?

[@DarrenCollett]

Putting the finance piece to one side. 100% I would be going for the 992. I’ve gone from an M4 Comp as a daily with a cayman 981S as a weekend toy. Sold the pair and moved to a 992 C2S as a daily. It’s a great piece of kit. Goes like stink, regularly returns 35 mpg on the motorway and is a lovely place to sit on a daily basis. I would avoid the 4S as the 2S, in my opinion, is a more pure drive. I also have 4 wheel steer which is awesome when parking but feels a bit odd when pushing on. Given the choice I would avoid the 4WS….. My S is a high spec with I think c27K of options fitted!! I had a Cayman GTS for 2 weeks as a loan car and it made a lovely sound but as a daily it was simply too loud, I was happy to give it back. Interested to see what you decide.

[@PetrolPed]

Nice 👌

[@keithmyerscough9900]

Mmmmm love the yellow, well out of my league Pete. I’m a save up and buy out right guy. Scares the pants of me taking on that finance on more than my house £55k I paid. lol. 😂 Looking forward to seeing what you do. 👍👍👍👍

[@PetrolPed]

👍

[@supershaun7257]

Only issue with saving up and buying outright is that all that money will be in your account and you won’t want to part with it, and you shouldn’t, put down a decent deposit to get you to a good monthly figure, save the rest for life’s upsets if they come, and finance the balance over 5 years as the payments are very similar to a 3 yr PCP, and each year you will have paid about 20% off. Oh yeh and 911 992 Cab is the only way to go.

[@steveb2139]

I wish you had also compared a bank loan as well tbh. I'll be looking to finance a replacement car soon and it would have been nice to see how car finance compares to a basic bank loan.

[@PetrolPed]

A bank loan and HP are effectively the same. The difference will be the APR on the amount borrow and the HP agreement might require a certain size deposit.

[@bwdrives]

The difference between hire purchase and a bank loan is that you have no protection from a bank loan as it isn’t secured against the car it’s secured against you. So if anything happens to it (crash / mechanical failure) you won’t have the finance company on your side to fight your case

[@nigelk780]

Pete your a decent guy I followed you from the beginning and now your a full on youtuber. You probably dont want my life experience but I will offer it anyway, try and steer away from money especially direct like this as it's the root of all evil. Talk values etc etc but not fca stuff. Oh dont get the GT4 you will find it like the ruby roadster except you cant reverse it.

[@redcarrot1148]

Hi Ped, I am a big fan of your channel so I clicked on this one as well. This video has a lot "noise" so I skipped most of it. Therefore I don't know if the interest rate was ever brought up. I saw the part that was focused on monthly payment with a balloon valuation/payment at the end of loan's term - it immediately made me cringe . Please please please shift your focus on the actual interest rate of the loan. Do not never evaluate a non-essential purchase based on whether one can fit its monthly payment within his/her current monthly budget as that is incredibly short-sighted. It can also lead one to overpay on interest, which is what all lenders and even brokers want. The higher the interest the bigger their commission/kickback. If one has to resort to balloon gimmick to "afford" a car, then he/she should buy something cheaper or keep what they have. This is the kind of practice that will keep people on a financial hamster wheel (if not stumble off of it entirely) and also keep them from achieving financial independence in the future. Please be discipline on your purchase decision.

[@christophertyler8051]

No noise when i watched it .......

[@PetrolPed]

Due to compliance we weren't allowed to state the actual interest rate but spent plenty of time talking about how important it is and what impact it has to the total cost of the loan.

[@redcarrot1148]

@@christophertyler8051 I meant "noise" as a whole lot of stuff that's irreverent to the topic and not interesting. Hence the quotation marks... Honestly the video felt like a bloated infomercial for that broker company.

[@christophertyler8051]

@@redcarrot1148 Okay ......

[@GordyM-ov7pt]

@@redcarrot1148 Agreed. Not as transparent as was implied.

[@giofyocars8581]

Being a young car buyer myself, we do need to be more educated on the total cost of ownership. People focus on the costs for 3 years and assume they will trade in, but with residuals lower and rates higher its not as simple as it once was (if it ever was simple in the first place).

[@PetrolPed]

I agree 👍

[@13thdukeofwybourne]

Sorry I’m a bit confused on both the existing car figures and then next car figures. Can you clarify please? How much have you paid/lost on the Boxster in total over the 2 years when it’s sold? ie how much has it cost you? How much will you have paid/lost on the 992 after say 4 years of ownership? ie how much will it cost you? (£58k?) Without these sorts of figures, how can anyone compare to buying in full with cash? Thanks

[@rebelxx4318]

Unless its essential id scratch my itch till interest rates come back down 1k a month on a non essential in my opinion is way too much unless you have limitless funds ofc.

[@S2000Y]

Peter ~ a great video but in reality a bit inconclusive. For your 2 years of ownership can you tell us what it really cost you ( you dont give your monthly payments). Only then you can conclude if it was a good deal in your particular circumstances.

[@PetrolPed]

I said what my current monthlies are. Just over £600 👍

[@GRfourfun]

Late to this mate, stunned at the negativity in the comments, more so than flapgate and spongegate 😂😂😂 Found it interesting and I’m really looking forward to your next purchase, remember you can’t please everyone.

[@PetrolPed]

Yeah me too 🙄🤷‍♂️

[@GrooveTasticThang]

Pp his wife and dogs loved their time in the 911 cab last year- get the car you are actually going to use- the talk is of a balloon payment but in PCP it should be a Guaranteed future value? That way you know the risk you are exposed to. Then just ask if you are comfortable in your circumstances to enjoy it, as that is what we are trying to achieve, enjoyment - speculation on a cheap Financed super car is so very 2020!

[@oneeleven9832]

I guess it depends if you can put your car through your business which I guess you can Pete…a 911 is a safe bet though depreciation isn’t that bad even from new👍

[@PetrolPed]

My cars are personal purchases. Putting through the business makes things very complicated.

[@guylambrechts2303]

Oh God! That's not easy! Keeping PP is not an option I guess. I think the 911 convertible suits you best but that yellow cayman looks fine too. Interesting to see what you will do!

[@stuartwright9148]

Interesting video, would always suggest paying outright for a car if you can. But for you its your youtube business making content and the 1k a month should be covered by the viewing cheques. My view, go for the 992 cab.

[@Chester-UK]

Get the car you want Pete, the 911. Then you’ll have the correct number of cylinders! 😊 Just remember that’s £36K in payments for rent over 3 years. That’s a lot of Michelin star restaurant meals!

[@jcflippen1552]

Thanks for this video. Will certainly keep this in mind when I next thinking of changing my car. 👍

[@stevelaming9223]

You said it yourself. 992 a year ago you could not stretch to. Whats the value on it in another 4 years ! Also, a GT product should hold up much better in the long term. Both of the GT4's (I assume) at Harbour Cars are still over list?

[@supershaun7257]

Both boxster and cayman GTS list price from 75k plus options, so maybe 80-85k brand new, let’s not be paying these extortionate inflated prices from these dealers and speak with your local Porsche dealership and see if they have a close build slot… you can pay a bit more of your current car and have a bigger deposit

[@andrewcharlesworth2512]

Unusually l bought a new BMW 2 years ago coz used values were c30% higher than pre-covid and new cars hadn’t gone up that much at the time. I wouldn’t normally buy new. However BMW pcp at 6.5% was c£4k more than Sainsburys loan at 3.2%. Please don’t use pcp it’s a rip off because capital element stays high and your paying more even on same rate if HP.

[@DSM911]

Would be good to be open, honest and transparent and share the interest rate % and the balloon payment amount? thanks

[@PetrolPed]

Sadly I was not allowed to due to FCA restrictions 😢

[@garrickbergh]

I watched your video from start to finish and was interested to learn that your early purchases (ie the Mini) were really sensible in that you paid cash. Well done. Now all of a sudden you have 'gone stupid' and jumped on the finance carousel with your Boxster which immediately tells me that you are driving a car above your pay grade......and want to go in even deeper. The only mistake you have made to date (in my opinion) was to buy the wrong model as it is generally accepted that most 718 4 cylinder variants may not turn out to be good long term holds. So that would perhaps be the only justification for 'upgrading'. Had you rather bought a 981 you could have possibly kept it indefinitely. I have driven Porsches since 1985 and have learned that they need not be replaced (if ever!) more than once every ten years. The brand is legendary for helping you keep them running as elderly cars and a cash buy should recoup your (depreciated) outlay in many instances after that time period. Improvements are incremental and I can assure you that your d**k does not get any larger driving a car with 10kw more power than the model it replaced. Consider this for a moment - Are you really happy to spend more just for two dog seats?????? You're kidding me, right? Whenever I get the kind of itch you are experiencing regarding a really ridiculous fantasy vehicle (eg Bentley Continental, Lamborghini or Ferrari ) my lady always encourages me to hire one for a weekend, spend a stupid sum once off and then gratefully return it on the following Monday without ever having to stomach the full brunt of the running costs that these vehicles incur. The best car advice I ever got was from an exotic car dealer; who told me : Never fall in love with metal.

[@PetrolPed]

Sounds like you know me really well BUT you don’t 👎

[@tomhart-evija9201]

Help me understand your maths. Your current car is worth £47500 minus the settlement figure, gives you £2000 positive equity. What are you adding to that to get to £4500?

[@P23AWR]

That bit confused me too. Rewound and watched again and still couldn't work out where the extra 'equity' comes from.

[@tomhart-evija9201]

What’s the answer to our conundrum @petrolped ?

[@timlv6317]

I was similarly confused. It would be useful to understand. Otherwise an insightful video and whatever you choose I’m sure it will be the right decision for you. Love the GT4 in Crayon please.

[@calirun1]

£1,000 per month (from post tax income) is expensive for any car, and that doesn’t include the £10k upfront. You need to be earning a lot of money to justify it

[@jamesbuckingham77]

Surely getting a personal loan smashes any kind of car finance?

[@PetrolPed]

I agree up to a certain purchase price. Probably around £25k as you might struggle getting a personal loan bigger than that. Similar to HP.

[@peteraustin1905]

Have i heard this right, original 10k deposit, equity 4k so another 6k needed 1k pm over 3 years that’s 52k plus previous monthly payments wow that’s a lot to have the ability to move from one car to the next. Just rent one for a few months and get it out your system you’ll save a lot of money

[@funkyfin3023]

Why are you watching a car channel like this?

[@SantaDeerhound]

Is there any three figure number that hasn't been a Porsche model? All these numbers mean nowt to me! My advice - buy both!

[@PetrolPed]

😂😂😂

[@reinmansmith]

Really interesting subject and top marks to you Ped for showing viewers what can be done 👍 ….. Just a thought that could save you a fortune. For less than you’re putting down on as a deposit on your next car, I could sell you my R230 SL500 which you’d then own outright with zero monthly payment to make! A great looking V8 GT car with a glass roof folding hardtop, so the best of both worlds and money in the bank 👍 (maybe an idea for a future video, what could you buy for your deposit money?)

[@GordyM-ov7pt]

Ha! Nice try 🙂

[@owenmcdonald5922]

Gt4 would be a bit hardcore for me. I'd go 911. I like comfort. I know it's not an option here, but I'd go coupe with a sunroof. We in the UK don't get the weather for a cabriolet.

[@Only-one-life-68]

Actually more soft tops are sold in the uk 🇬🇧,than anywhere else in Europe.. Reason is its cooler 😊

[@owenmcdonald5922]

@Only-one-life-68 I know. Back in the 80s, the Saab 93 was the best-selling soft top.

[@christophertyler8051]

Targa ....

[@owenmcdonald5922]

@@christophertyler8051 indeed

[@PetrolPed]

@Only-one-life-68 - It's actually more soft tops than any other country in the world !

[@frankyork5808]

The GT4 has dropped in value already, by your own admission, yet you also say, being a GT car, it's value should be pretty static in the future. Pete, you're trying to convince yourself it's a good deal. We all do that when looking a shiny new cars. But my advice would be, walk away. Keep the Boxster.