How to buy a luxury imported car like a Porsche. Should you buy with a loan or cash lump sum?

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My Family's Car Life

Cash lump sum, or loan?

My husband bought his first Porsche about 3 years ago.(in Japanese history)981 Boxster GTS)When we bought the My husband had been saving for a while to buy a Boxster, so we paid about 70% in cash and the remaining 30% in a loan. Why did we pay 70% in cash instead of a full loan?Everyone who buys a luxury car like a Porsche does so with a lump sum cash payment."So he decided to pay as much as possible in cash.

Delivery of Porsche Panamera

However, when my husband told the dealership manager at the time, Mr. H.

No, that's not true. Everyone buys quite a lot with a loan.

And then I was told...What? Really!"He was very surprised.

So, after thatBuy PanameraWhen the company did, it took out a loan for the remainder of the order, except for the reservation deposit for the order.

From a cash flow perspective?

But if it's a loan, don't you have to pay the interest on top of that, so you end up losing money?"I asked my husband.

No, they don't.
I thought so too when I was a businessman. Besides.It's cooler to buy a luxury car with cash."I thought.
But.For cash flow and liquidity on hand, it is better to keep cash on hand, even at the cost of interestI realized that I had to do something about it.
besidesPorsche is less priced than other manufacturers.It's better to take out as long a loan as possible and reduce your monthly cash outlay from the When you sell, you'll get a good price there, and you may get some of what you paid back or even get a break.

He said. I'll try to elaborate a little more.

(1) Consider cash flow and keep cash.
It would be the same as running a business, for example, if 10 million yen of cash were to disappear from the account all at once, you would have to come up with new money to pay for annual maintenance, repairs, and inspections. On the other hand, if you make monthly payments with a loan, you can use the money for maintenance and inspections, and you can even invest it in other things. In addition, theIt is safer from a cash flow perspective to have cash on hand in case of emergency.

If you are a millionaire who has so much of his assets in cash that "buying a 10 million yen car in cash would not hinder you in any way," you could buy it in a lump sum cash payment with no interest.'Generally speaking, I wouldn't dare to buy a lump sum in cash.'This was the case.

(2) Porsche has a good resale.
Porsche has a lower price drop rate than other cars.In addition, if the car is a GT type or a rare and valuable model, it may fetch a higher price when sold than when a new car is purchased.If so, it is better to take out a long-term loan with a residual value and pay a little each month.
On the other hand, if a car with a high rate of price decline is paid for with a long-term loan, the remaining loan balance cannot be offset against the sale price, and additional payments may have to be made at the time of sale.

New Porsche Panamera Turbo Delivered

Porsche Loan Services

Also, when purchasing a PorschePorsche Auto Loanand ... andPorsche Power Loan."You can also apply for loan services such as

Porsche Loan - Porsche Japan

Porsche Auto Loan, down payment, number of payments(6 to 60 times)Bonus combination, etc.Loan programs that allow you to choose the best payment plan.Porsche Power Loan, on the other hand, is approximately 40% of the vehicle value at the time of loan application.(in the case of 36 payments)is paid in the final installment after three years as a deferral amount.Significantly lower monthly payments compared to regular auto loansThe following is a summary of the results of the study.

Therefore, he said, there is no particular shame in buying a luxury foreign car like a Porsche with a loan, and in fact, it is a smart way to buy a car, so it is better to use a loan with peace of mind.

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  1. SN

    Always a pleasure to read you!
    Financial Planning. Another way of thinking about it has changed since someone I know told me that it is more profitable to put that amount of money into an Investment account while interest rates are low, even if you have to borrow money. The idea seems to be that rather than paying a large amount of cash all at once, the profit you get from putting that money in an investment account will outweigh the interest on the loan. They told me that the interest rate on the investment would be better than the interest on the car loan, which pays 2-3% per year, minus the 6-8% annual profit on the investment account. I was told that the interest rate on the investment is better than the interest rate on the loan. Of course, investing is risky, right? I'm nervous about the low stock market this week.
    Sorry, this has nothing to do with Porsche at all!

    • Mina.Mina.

      Mr. SN.
      Thank you for visiting my blog!

      >Financial planning. Another way of thinking about it has changed since someone I know told me that it is more profitable to put that amount of money into INVESTMENT even if you have to borrow money while interest rates are low.

      I see...! I asked around and my husband said, "I really think you are right! My husband also said, "I really think you are right! My husband also said, "As long as I have the money, I can increase it in various ways, so I try to think about how to make the money work for me.
      I heard that the stock market has been falling this week...even THEO has been falling in price (is that the right word?) this week.

      I hope you will be taking delivery of your Panamera soon! I'm looking forward to it! ^^^^^^^^^^.

  2. rickshaw man

    Hello.
    I really agree, and I would rather buy a luxury car with a loan or else I feel like I'm missing out. After all, many of those who can be approved for a loan of nearly 20 million dollars can purchase the car in one lump sum.

     In recent years, Ferraris have been selling ridiculously well due to this loan purchase. While Porsches don't go down as much as regular cars, they do go down.
    However, Ferrari really has a lot of downside resistance. I think Ferrari is the only one that loan companies recognize that.
     Hence, Porsche can only set a residual value of 40-50% in 3 years (still high though. Usually a little over 30)
    Lamborghini can be set up to 601 TP2T. And Ferrari is an astounding 75 par.
    So, a 30 million dollar Ferrari can be had for as little as 5 million yen with a down payment. However, Porsche is expensive, but only 40% of the price can be set up. However, even though Porsche is expensive, it costs several hundred thousand dollars a month because you can set only about 40% of the price.
    So.
    I've been thinking lately that people who can afford a Porsche are, well, rich. I also used to think that I could afford a Ferrari, but I couldn't afford a Carrera.

    • Mina.Mina.

      kurumani arabis (ryokanai)

      >That's really true, and I'd rather buy a luxury car with a loan or else I feel like I'm missing out.
      I see! I was totally unfamiliar with this world, so I was surprised when I heard this story.

      >Hence, Porsche can only set a residual value of 40-501 TP2T over 3 years (still high though. Usually a little over 30)
      >Lamborghini can be set up to 601 TP2T. And Ferrari is an amazing 75 par.

      Yeah, Ferrari, I'm afraid...! That's amazing...
      Ferrari's sales strategy is crazy well done...

      When you think about it, you can certainly get a cheaper ride than a domestic car with a huge price drop...
      It's amazing...

      There is a lot of information that you can only find out and know when you actually buy a Porsche.
      I think it is more and more profound.

  3. reluctantly

    It's obvious, but the only people who should leave money on hand are those who have investments or businesses that pay more than the interest rate.
    It's a rat race, no matter how you look at it, to get ahead of consumption, to get ahead of consumption.

    By the way, the interest rate for the preferential campaign is borne by the dealer, so it's collected somewhere.

    2