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Even if you have the cash it's cost effective.
Just to end you will certainly find a better PCP deal than the car manufacturer as others have recommended. So effectively it is priced that you cover depreciation plus interest on the whole amount. Once the high initial depreciation drops off, they can effectively make more money by switching you to a new car for the same sort of price, potentially make a larger margin re-selling your car because you have covered the high depreciation period and then let you do the same again on a new car.
Macan GTS: And over 36 months - the warranty period. VG Petrol S http: Not crash-tested!
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If you come out of the car sooner then as others have said you are being hit for the depreciation and interest. Also look at lower miles if you think you can as it will reduce the monthly figure but not change the balloon figure. You will pay 15p per mile over this, but I looked at 10k miles and 7k miles and the difference in monthly payment was worth the difference unless the wife did over 9, miles I think. Paying over 48 month decreases the payment slightly but you pay a massive amount more overall.
They are quoting you a higher APR than the Porsche default?! On 48 months it would if interest was close to zero but you are paying interest on the whole 54K remember. You pay more interest, for a given rate, with PCP because you pay interest for the whole of the final payment for the duration of the deal. With a loan you pay interest on the reducing balance, and that balance becomes smaller until the loan is paid off. A PCP will often have higher interest rates than a loan as the finance company is exposed to risk on the final value.
If they get it wrong they can be handed a car at the end of the deal which is worth less than they anticipated. Always do a Total Cost of Ownership calculation to find out what the car is going to cost you.
Total the deposit, monthly payments, admin fees final payment etc. Sold Macan Turbo: Some talk as if depreciation is worse with PCP but it isn't.
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