Lee Sibley By Lee Sibley 2 years ago

5 top tips for financing your Porsche in 2022

Want to finance your dream Porsche but aren’t sure how? Gerard from Rare Car Finance guides you through the minefield…

If the ongoing COVID-19 pandemic has taught us anything, it’s that life is short, and should be enjoyed to the full. This ‘Carpe Diem’ mantra has been applied to sports cars and Porsche in particular: enthusiasts have been more inclined to spend out and acquire that Porsche of their dreams, which has lead to an exceedingly buoyant market for two years now, and one which has been taken back by enthusiasts wanting to drive the cars, rather than investors hoping to make a quick buck. This, in particular, pleases us greatly here at 9WERKS.

Finance is a mechanism used by many enthusiasts to facilitate this, wether that’s the purchase of a first Porsche, next Porsche or, indeed, that dream Porsche you’ve always wanted. But what if you’ve never financed a Porsche before? Which practises should you follow, and which should you avoid?

Here’s a list of five crucial dos and don’ts when it comes to financing your Porsche, with our expert advice supplied by Gerard Liddon of Rare Car Finance, specialists in bespoke classic, luxury, supercar and prestige finance for individuals all over the world. Gerard himself has over 25 years experience in the industry, so is well placed to offer us some stellar tips to consider.

1) Different finance setups suit different circumstances
Refreshingly, there’s no correct or incorrect method of borrowing per se. Rather, different setups will suit different individuals and their requirements. “For example, for some people there are pros to high street lending, particularly if the sum is comparatively small,” Gerard says. If you’re going further up the ladder, particularly into the realms of investment-grade cars, a specialist lender may be better suited, as they will understand the market and can therefore offer more targeted advice and specially-tailored products. 
Remember, the more information the broker is aware of, the better placed they are to advise on the best products available to the client, from a lender of choice. Organisations such as Rare Car Finance are well placed to do this as they use a panel of lenders rather than relying on just one outlet. “This works particularly well when dealing with the larger lends and quantums aligned to specific car choice,” Gerard says. 

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2) Porsche is a great product to acquire finance on
Wether it’s a new or used model, Porsches have long enjoyed strong, established residuals in comparison to other sports car brands, and so they make for an attractive proposition when it comes to finance. This is great news for the enthusiast, but there are other factors to bear in mind too. Gerard explains: “Rates can vary not just from model to model, but mileage, and even route to market. This last point is often overlooked, but it’s key. Lenders like to know a prestige car such as a Porsche is coming from a reputable source, where it’s likely to be presented in great condition and with history and provenance to back its value both now and in the long-term.”

3) It’s important to establish the purpose of the car
Away from factors pertaining specifically to the car, such as model, mileage and route to market, you’ll also need to consider your lifestyle and how a potential purchase will fit into it. Gerard continues: “There are many factors lenders will need to consider when offering you the very best finance product available. So, you’ll need to consider the purpose of the car – is it a daily driver, a weekend toy or an investment piece? How long will you own it? What mileage do you expect to cover? Are you happy with a balloon payment at the end or not?”
Deciphering this will help the lender ascertain the best possible product for your requirements, which should – in theory – protect you from potential pitfalls such as a scenario where the car is likely to depreciate quicker than the finance agreement put in place for it, for example. The more information a lender has, the better placed they will be to offer a product which works for you and your lifestyle.

4) Affordability is key
This may sound like an obvious one, but responsible lending really does boil down to affordability. 
“You may already have a part-exchange valued at £100k but wish to jump to a vehicle at £200k, so you’ll need to prove you can afford it. Is it extra deposit? If so, can it be proven? By this, we mean it needs to be on paper. A responsible lender will also require three months of bank statements, and a P60 if you’re an employee. This helps a lender build a picture as to what is possible,” Gerard says. 
This measure of affordability may sound scary, but acquiring finance for a vehicle is often more affordable than you think: here, Gerard’s says you should speak to a broker who understands the cars and can give transparent advice on the market.
Gerard is also quick to remind that you’re in control of this process, so your own due diligence is required. “Ask yourself ‘is this for me, am I comfortable, how much am I happy to borrow?’” he advises. 

5) Get your finance agreed BEFORE you go car shopping
Similar to having a mortgage deal agreed in principle before viewing property, in the car world having your finance agreed first means you can start car shopping with confidence. “Once you step on a forecourt the car will sell itself, and sometimes that can stop you from thinking clearly and rationally when it comes to the numbers,” Gerard says. “If you get your finance agreed first before you buy the product, you can then get on with viewing the car and conducting test drives with the assurance of knowing you already have your finance ready.” To do this you’ll simply need to use a donor car to get your finance in place. 

Want to chat more to Gerard? Call +44 (0)7765 253413 or visit rarecarfinance.com