How do people buy high priced Porsches?

Question

Do they pay all cash? Or have perfect credit and put a certain percentage down and then pay like $1500 a month?

Answer 1

There are probably a few options taken when buying a high priced car... though some of this will also depend on just what you mean by "high priced Porsche."

The most expensive Porsches will be older cars with some historical significance. Purchases of such cars by collectors would be done as a cash purchase (though the actual purchase may be by the individual, a personal corporation, or some kind of holding company.

For new cars, the same options as above would work for new cars, but you would have more finance options. Many that can afford cash purchases may decide for a lease or finance option depending on tax implications.

Answer 2

Kind of an odd question.... If you have the cash to pay, you can do that. However, with low finance rates (my credit union, for example, offers 3.25% on brand new cars), it often makes more sense to finance as much of it as possible, and keep your cash in the bank or invested earning more than the 3.25% you'd be paying on the car loan.

Here's how I would do it: get the cash together to buy the car you want, and instead of buying the car, buy a middle-income house, using the cash as a large down payment in order to reduce your mortgage payment and maximize your cash flow. Rent the house to a tenant, borrow the money to buy the car and use the cash flow from the investment house to pay the car note. Once the car note is paid off several years down the road, you still have the cash flow coming in from the rental house, plus the equity that your mortgage payments have bought you (and hopefully some nice appreciation on the house, if the market has indeed bottomed out now).

All that said, a lot of people like to lease Porsches because a) it reduces the out-of-pocket costs, and b) they plan to get the newest model in two or three years anyway.

Hope any of that helps.

Answer 3

Actually, a large percentage of people who own luxury cars pay cash -- because they have it and can afford it.

Another large percentage lease. In fact, about 70% of all luxury brands are leased. Some of these are leased by people who simply can't afford to drive a luxury car any other way but most are leased because the people are wealthly and prefer to invest their cash in something better than fast-depreciating assets such as cars.

Most of those who buy with a loan are also relatively wealthy and prefer to use OPM (other people's money), a common concept in the big business world from which many of these people come.

Of course, there's everybody else, who buy luxury cars with a loan, even though they can barely make the payments. They live life like the happy guy in the TV commercial, "How did I get all this? I'm up to eyeballs in debt." Many of these cars show back up on dealers' used-car lots after default repossessions.

Answer 4

Keep in mind that just because you see a Porsche on the road it doesn't necessarily mean that someone owns it. It may be that it's just being leased, especially if it's a new one.

A lot of people lease higher-end vehicles. In reality, they probably couldn't afford to buy the vehicle outright but they can afford to lease it. The same would apply to Mercedes, Lexus, BMW, etc vehicles out there.

I'm not saying that they're all leased because some people do own them of course. Just don't assume that everyone owns their luxury vehicle!

Answer 5

it depends on how much money you have-people do both-my uncle for example bought a 2006 Porsche Cayenne S and paid in full cash-but then again, he makes $350,000 a year so that's part of the reason he could do that

Answer 6

Well, one possibility is borrowing money from their equity, making a hefty down payment to lower the monthly or paying full amount...this technique is for someone like me who doesn't make a lot of money but has tons of equity on the house.

Answer 7

government auctions arent the superb places to get vehicles.... Years in the past I used to purchase vehicles at those and occasionaly nonetheless do yet everybodys directly to those now... Going to a central authority vehicle public sale is like leaping interior the shark tank --- the undertaking is each and every used vehicle broking and the wide-unfold public shows up alongside with each and every of the wannabe vehicle sellers.... Theycontinual the fee on those vehicles up close to, to or above complete retail..... Theres no deal on hand. yet another element to evaluate is they're bought as is --- we could say you purchase one and discover out its have been given issues then your caught -- theres no guarantee....... Do your self a choose - pass to a central authority public sale and dont purchase something.... get the sheet they hand out with the lot#s of the vehicles.... shop on with the auctioneer through fact the vehicles are bought and be conscious on the sheet what the fees have been and the subject... Then once you get abode verify on the fees on line and newspapers and notice in the event that they have been bought at a stable value.... And despite you do dont use Kelly Blue e book as your value handbook -- they're inflated -- in case you do use KBB take 25% off the indoors maximum occasion value and thats generaly been a stable indicator for me.....

Answer 8

if they r planning to use it for a long time they buy it because if they lease it for a long time, at the end they would have payed more than the car, so it is a better deal to bye it if u will keep it 4 a long time

at least thats what i would do

lol

Answer 9

If u have to ask that question u cant afford one we save and build our empires as we go tax write offs and buy what we work for the best in toys

Answer 10

Depends on how much cash they have in the bank.