dutycalls1234 Posted March 8, 2005 Report Share Posted March 8, 2005 Sorry if this is a dumb question, but what exactly is the difference between a balanced payments scheme and a lease purchase scheme. Both have fixed payments and both have a balloon figure at the end of term. So what's the difference?I am currently being offered 4% above FHBR on a balanced payments scheme. This is obviously too high, so how low have people managed to get Porsche Finance?I have looked through the archives and I do apologise if this has been covered before.Recent information is much appreciated. Link to comment Share on other sites More sharing options...
Wish Posted March 8, 2005 Report Share Posted March 8, 2005 Moving ....... Link to comment Share on other sites More sharing options...
Simon Posted March 8, 2005 Report Share Posted March 8, 2005 I don't know I am afraid, but I recently got a VW dealer down to 3.15% Flat.You will need a competing offer to make them move. Dealers make a lot of money on finance........ Link to comment Share on other sites More sharing options...
Wish Posted March 8, 2005 Report Share Posted March 8, 2005 Lease Purchase : Is the same as a HP Agreement but the balloon at the end is NOT Guaranteed. Balance Payments : The Interest is calculated on a daily variable rate, Normally is only give on balances over £25k as this then falls outside the Higher Purchase act.If you are planning on changing you car often this is a good way of keeping the interest down as it is calculated daily rather than over the full term of the agreement.On my way out so this is just a quick reference. Can i ask what dealer you are buying your car from, as i have a guy within Porsche that could talk you through it. Link to comment Share on other sites More sharing options...
dutycalls1234 Posted March 8, 2005 Author Report Share Posted March 8, 2005 Lease Purchase : Is the same as a HP Agreement but the balloon at the end is NOT Guaranteed. Balance Payments : The Interest is calculated on a daily variable rate, Normally is only give on balances over £25k as this then falls outside the Higher Purchase act.If you are planning on changing you car often this is a good way of keeping the interest down as it is calculated daily rather than over the full term of the agreement.On my way out so this is just a quick reference. Can i ask what dealer you are buying your car from, as i have a guy within Porsche that could talk you through it.←Thanks for the info. I guess this means that if you see the agreement out to term, then you could be liable for more interest or possibly a rebate depending on the movement of the FHBR?I am dealing Porsche Colchester. Pick up due for this weekend (depending on satisfactory offer of finance) Link to comment Share on other sites More sharing options...
croyde Posted March 14, 2005 Report Share Posted March 14, 2005 After some haggling Porsche Finance has offered me 2% above FHBR.This on a 50% deposit and pay the rest 3 years later whilst just paying the interest monthly.Started at £135 a month, the Lombard got it down to £115 so Porsche have now got it down to £107.Will go back to Lombard to see what they will say, although originally they did say that they could go no lower??Both deals have no penalty for early repayment and Porsche want £75 set up fee and Lombard is £125. Link to comment Share on other sites More sharing options...
Catweezle Posted March 15, 2005 Report Share Posted March 15, 2005 After some haggling Porsche Finance has offered me 2% above FHBR.←so what is the current FHBR they quoted Link to comment Share on other sites More sharing options...
croyde Posted March 15, 2005 Report Share Posted March 15, 2005 Good point!The Lombard deal is 7.5% APR to pay back £18000 in 3 years time with interest payments amounting to £115 a month for 36 months.Porsche is now offering me the same set up but paying £107, a month so if any one knows a mathmatical formula to work out what the new APR is, then we can work out the FHBR.Sorry, did my O levels about 26 years ago. Link to comment Share on other sites More sharing options...
T2DAV Posted March 15, 2005 Report Share Posted March 15, 2005 that lombard deal works out closer to - 7.67% APR (not including any set up payments - which would make the APR higher)the OPC one is approx 7.13% APRare you not better off just getting a straight forward bank loan for the amount needed? as you should get a loan for less than these quotes. Link to comment Share on other sites More sharing options...
croyde Posted March 15, 2005 Report Share Posted March 15, 2005 I could, but I have the 50% deposit then I want a really low monthly payment while I think about getting hold of the next 50%.Had I bad accident a couple of years ago so I'm also gambling that the payout might pay off the loan but it might happen this year or in a couple of years. Link to comment Share on other sites More sharing options...
leonb Posted March 15, 2005 Report Share Posted March 15, 2005 I could, but I have the 50% deposit then I want a really low monthly payment while I think about getting hold of the next 50%.Had I bad accident a couple of years ago so I'm also gambling that the payout might pay off the loan but it might happen this year or in a couple of years.←Croyde i'm no finance expert, but haven't heard of that kind of finance deal before. Where you just pay the interest. What's it called? And presumably it's only available when paying a large % deposit??Cheers, Leon Link to comment Share on other sites More sharing options...
croyde Posted March 15, 2005 Report Share Posted March 15, 2005 Thats right, also it has to be a car with good residuals. IE worth more in 3 years time than the amount owed and it has to be 50% min. Link to comment Share on other sites More sharing options...
croyde Posted March 31, 2005 Report Share Posted March 31, 2005 Had a word with my bank/mortgage supplier and they have offered me 18000 top up on the mortgage, interest only, at 5.75% variable, which works out at about £85 per month for up to 23 years but of course I do intend to pay that portion off within 3 years. Nice to know that I would not have to panic after 3 years tho'. Link to comment Share on other sites More sharing options...
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