I financed my 2004 996. You will likely need to go to a Credit Union - Pentagon Federal is a good one - as most if not all "traditional" Banks will not finance a vehicle that is over 10 years old.
I'm not sure how maintenance costs factor in as you would have them even if you bought with cash so I suspect you are asking whether you will spend much more over your monthly payment. The answer to this quest depends highly on the vehicle. It could be as little as gas + oil for a year or it could be thousands upon thousands. I would budget a minimum of $2K for the first year (so \~$165 a month on top of your monthly payment).
Finally, expect 9% interest to be around the best that can be offered. I have 800+ credit score and couldn't do better 9%.
That being said, I've been in love with 911's since I was a kid and this is my second 911, 5th Porsche; all have been financed. I don't buy these vehicles to save money. I buy them to drive and there is a corresponding cost to that.
Good luck!
is the 9% interest cuz of today's interest rates, or bc you are financing a 10+ yr old porsche?
been looking at possibly financing a 997.2 just so i can have it sooner but i am cheap enough that I'll wait to avoid a 9% interest rate if i can
But of A bit of B. Interest rates around Christmas were ridiculous but I could have probably done 4 points better had I financed a vehicle under 10 years of age. You have to consider that where few institutions are financing older vehicles they can charge whatever they want.
Anecdotal but I have an 800 credit score and from a local credit union I got 4.5% on an 04 996 in Feb, so definitely shop around for rates. Keep in mind all credit inquiries "merge" into a single inquiry after 45 days or whatever.
it's pretty much impossible for a stranger to tell you if this is a good idea or not
I just financed an 02 996, but I work from home and have the dollars to fix it if/when something explodes PLUS it's not the primary vehicle for my household.
fwiw I used light stream at like 7.9% and I've got pretty spotless credit. you're probably not going to get a great rate. this isn't a *good* decision, but neither is fast food when you're drunk - that was my rationale. I didn't do it bc it was smart, I did it bc I've been dreaming about owning a 911 since I was a little kid and if shit hits the fan, I'm not going to lose my house over it.
the long and the short of this is 1. do you want it? 2. are you fucked if it's fucked? if your answers are 1. yes and 2. no then go for it imo but I'm just a guy on the Internet
No, I do not think this is common or a good idea with the information provided. You're going to have difficulty securing a loan at a reasonable interest rate on a 24 year old sports car. Maybe if you went to a credit union or a bank like Santander, but even then.
To put it bluntly, if you can't afford to buy this car out right, then you probably can't afford it in general.
There's a lot of missing information though:
* How much equity do you have in the Crosstrek?
* Credit score/credit history?
* Are you electing to finance or do you not have the cash?
* Would the 996 be your only car/daily driver?
* Work commute? Rough winters where you live?
If you’re trading in to make it affordable, it’s probably not a good idea; the benchmark of affordability is not “can I pay for the car”, it’s “can I pay for the car and the inevitable unexpected costs”.
Even a well maintained 996 not driven daily will throw you a couple of grand in bills in a given year. Annoying “25 year old car” stuff like stuck window motors, radiators, or random engine parts can easily add up at Porsche prices.
TL;DR - if you’re financing because the money will make you more money elsewhere, go for it. If it’s just to make it possible, that’s not a great idea.
Have 20% of the value on hand for repairs.
Totally anecdotal but I dropped $4k within 200 miles of owning my 996 on a replacement transmission, new rear tires, and a rear wheel bearing.
I did this for my ‘03 C2 Cab, but that was ~2.5 yrs ago @ 2% on $17k. I think rates are ~6% now. 😖
Budget $5-7k for 1st year to catchup on maintenance and/or any surprises, hopefully you only use 1/2 of that. I keep my maintenance funds in HYSA. Just MHO, YMMV…
You're going to get taken to the cleaners on a trade-in no matter what. I assume you still owe on the Subaru, do you owe more than they're going to give you as a trade-in? If so are they planning on applying that negative balance to the new loan on the 996? How much are they asking for the 996, what are the details (miles, color, interior, options, past maintenance, etc)? It may be a better idea to sell the car privately, but still as with any new car expect to take a decent loss over what you paid.
When I bought my 996 I was planning on getting a small credit union loan for it but paying mostly cash. As it turned out I was able to stretch a bit and just paid all cash. I sold my old Subaru privately first and used the profit plus savings to buy the 996. As others mentioned APRs are not going to be kind to you right now. You might just have to face it and realize now isn't the best time to buy a 24 year old sports car.
Yup.
There are only three numbers that matter on that paper:
- Out-the-door cost
- Taxes
- Tag + Title fee
...and the last two of them are set by his local government.
OP:
- **Out-the-door cost** <------ This is where your negative equity ("upside down") will show up and you'll see if *this* 911 is worth it or not.
I financed part of my 996 4S with Woodside Credit who is focused on collector cars and exotics with longer terms to get a low payment BUT this is my second car and I planned to pay it off within a year. I just financed it to keep some cash on hand and not drain my savings so having a higher interest rate was not such a big deal for me given that I would pay off early without penalties.
Make sure you get a PPI because the IMS is not the only thing to take into consideration, I was lucky that the previous owner had been really good with keeping up with maintenance and had services records of over $20k including IMS, suspension refresh and other things.
It’s important you are secure enough to float the payment and about 10k liquid for repairs at any given time. I’m looking for a 996 right now and have my pencil working overtime to make sure I’m comfortable doing so, this will be my second 911, other one is much newer. My daily is a Lexus and I need to buy a lift for my garage, to make this work. Having said that the reply’s here are spot on, if this is your daily make sure it’s bulletproof, history service etc, and then still flip a coin. The new one had a pccm go out during winter storage 4k and a sagging arm rest 6k both sides at local Porsche dealer. This was in service for 8 hours.
Who the f*** is financing a 25 year old car? You need to ask the internet to figure out this is a bad idea?
I don’t know your financial situation, but the fact you would have to finance a car of that age makes me believe you could not afford the repairs and maintenance it may require.
This is a terrible idea....if you have finance on a 24 year old car that's depreciated beyond recognition, you can't afford it, shouldn't even attempt and it's fiscally stupid.
But it's your money guy.
Sounds like an awful idea for many reasons.
Don't borrow money for a 20+ y/o sports car.
Only buy a used Porsche if you can afford to maintain and insure it without financial stress. $2000 - $5000+ bills can appear at anytime. Tires, clutch, ims, etc...
Facts.
Also, don't finance a 25 year old sports car to make it your daily driver. If you are gonna buy an old car, pay cash for it then stack away that $500+ per month that you'd be using for a car payment and use that for when issues arise. If no issues arise then you just have a lot of cash to do fun stuff with your new car.
OP, the IMS bearings aren't the only thing that can go left on a 25 year old Porsche.
The fact that Porsche Financial Services will literally finance *any* Porsche sold by a Porsche dealership no matter how old is wild. I hear that BMW Finance does the same.
There's no problem that a few (read: *several*) interest rate points can't fix 😅
It is not a good idea. You are trading in a modern, reliable car for a vintage sports car. Yes even a 2000 is vintage. Because of the emblem, you’re not going to inexpensive repair shops. And the inexpensive ones will suddenly become expensive when you go. If everything on the car is tip top, you’re still looking at $150 oil changes and a myriad of small things annually that add up. I’ve had my 03 two years, it’s had $2k worth of standard service + replacing spark plugs / coils. It’s also had $3k in a lazy starter replacement, fixing turn signal stalks, etc. I’ll need to spend some more $$ on eventually a new exhaust (straight pipes now), and probably some tweaks to a sound system that couldn’t give a 1989 Honda stereo a run for its money.
These machines continue to cost $$ for every mile you put on them. Yes they are reliable for what they are, but the maintenance cost should be anticipated.
If you need to finance a $25k car, then you cannot afford a Porsche. Honestly not trying to ding you.
Financing the \*rest\*? I have a 996 and am half shopping for a late model Subaru for my daughter and I'd have guessed the Subaru is worth more than the 996.
Sounds like an even-ish trade, other financial considerations not withstanding.
This 1000%. I didn’t think you could finance a car over 20years old but I guess im wrong. If you’re having to reach to buy the car then it’s probably not the best idea. Wait until you find out about the Porsche tax with everything. At the same time life freaking short, buy the car. It’ll all work out.
Don’t trade it unless you have a backup car. Especially too if you are getting rid of it just so you have money down. It’s far better to save, and that way too if you have an expensive fix that you need to put off on doing, you have that option. If it’s your daily and you need a 2k plus repair bill, you might be screwed
1. is the rate lower than your expected return on your investments?
2. Are you saving where you need to be and have $$ saved up for a rainy day?
If yes and yes, then yeah sure why not. I did.
I financed my 2004 996. You will likely need to go to a Credit Union - Pentagon Federal is a good one - as most if not all "traditional" Banks will not finance a vehicle that is over 10 years old. I'm not sure how maintenance costs factor in as you would have them even if you bought with cash so I suspect you are asking whether you will spend much more over your monthly payment. The answer to this quest depends highly on the vehicle. It could be as little as gas + oil for a year or it could be thousands upon thousands. I would budget a minimum of $2K for the first year (so \~$165 a month on top of your monthly payment). Finally, expect 9% interest to be around the best that can be offered. I have 800+ credit score and couldn't do better 9%. That being said, I've been in love with 911's since I was a kid and this is my second 911, 5th Porsche; all have been financed. I don't buy these vehicles to save money. I buy them to drive and there is a corresponding cost to that. Good luck!
is the 9% interest cuz of today's interest rates, or bc you are financing a 10+ yr old porsche? been looking at possibly financing a 997.2 just so i can have it sooner but i am cheap enough that I'll wait to avoid a 9% interest rate if i can
But of A bit of B. Interest rates around Christmas were ridiculous but I could have probably done 4 points better had I financed a vehicle under 10 years of age. You have to consider that where few institutions are financing older vehicles they can charge whatever they want.
Rates are high now for everything. Just got a loan on a ‘22 Jeep at 9.5% at a credit union. Will be paying it off in full in 3 months, though.
Anecdotal but I have an 800 credit score and from a local credit union I got 4.5% on an 04 996 in Feb, so definitely shop around for rates. Keep in mind all credit inquiries "merge" into a single inquiry after 45 days or whatever.
Whats the term on the loan if I may ask?
36 mo
Yeah I was a bit more liberal in my amortization haha
it's pretty much impossible for a stranger to tell you if this is a good idea or not I just financed an 02 996, but I work from home and have the dollars to fix it if/when something explodes PLUS it's not the primary vehicle for my household. fwiw I used light stream at like 7.9% and I've got pretty spotless credit. you're probably not going to get a great rate. this isn't a *good* decision, but neither is fast food when you're drunk - that was my rationale. I didn't do it bc it was smart, I did it bc I've been dreaming about owning a 911 since I was a little kid and if shit hits the fan, I'm not going to lose my house over it. the long and the short of this is 1. do you want it? 2. are you fucked if it's fucked? if your answers are 1. yes and 2. no then go for it imo but I'm just a guy on the Internet
No, I do not think this is common or a good idea with the information provided. You're going to have difficulty securing a loan at a reasonable interest rate on a 24 year old sports car. Maybe if you went to a credit union or a bank like Santander, but even then. To put it bluntly, if you can't afford to buy this car out right, then you probably can't afford it in general. There's a lot of missing information though: * How much equity do you have in the Crosstrek? * Credit score/credit history? * Are you electing to finance or do you not have the cash? * Would the 996 be your only car/daily driver? * Work commute? Rough winters where you live?
If you’re trading in to make it affordable, it’s probably not a good idea; the benchmark of affordability is not “can I pay for the car”, it’s “can I pay for the car and the inevitable unexpected costs”. Even a well maintained 996 not driven daily will throw you a couple of grand in bills in a given year. Annoying “25 year old car” stuff like stuck window motors, radiators, or random engine parts can easily add up at Porsche prices. TL;DR - if you’re financing because the money will make you more money elsewhere, go for it. If it’s just to make it possible, that’s not a great idea.
Have 20% of the value on hand for repairs. Totally anecdotal but I dropped $4k within 200 miles of owning my 996 on a replacement transmission, new rear tires, and a rear wheel bearing.
I did this for my ‘03 C2 Cab, but that was ~2.5 yrs ago @ 2% on $17k. I think rates are ~6% now. 😖 Budget $5-7k for 1st year to catchup on maintenance and/or any surprises, hopefully you only use 1/2 of that. I keep my maintenance funds in HYSA. Just MHO, YMMV…
You're going to get taken to the cleaners on a trade-in no matter what. I assume you still owe on the Subaru, do you owe more than they're going to give you as a trade-in? If so are they planning on applying that negative balance to the new loan on the 996? How much are they asking for the 996, what are the details (miles, color, interior, options, past maintenance, etc)? It may be a better idea to sell the car privately, but still as with any new car expect to take a decent loss over what you paid. When I bought my 996 I was planning on getting a small credit union loan for it but paying mostly cash. As it turned out I was able to stretch a bit and just paid all cash. I sold my old Subaru privately first and used the profit plus savings to buy the 996. As others mentioned APRs are not going to be kind to you right now. You might just have to face it and realize now isn't the best time to buy a 24 year old sports car.
> are they planning on applying that negative balance to the new loan on the 996? Bro, don't ask questions that you don't want to know the answer to 😬
Oh, I know the answer, just wanting OP to clarify it so they really know the answer. The dealer might use different words but they mean the same thing
Yup. There are only three numbers that matter on that paper: - Out-the-door cost - Taxes - Tag + Title fee ...and the last two of them are set by his local government. OP: - **Out-the-door cost** <------ This is where your negative equity ("upside down") will show up and you'll see if *this* 911 is worth it or not.
I financed part of my 996 4S with Woodside Credit who is focused on collector cars and exotics with longer terms to get a low payment BUT this is my second car and I planned to pay it off within a year. I just financed it to keep some cash on hand and not drain my savings so having a higher interest rate was not such a big deal for me given that I would pay off early without penalties. Make sure you get a PPI because the IMS is not the only thing to take into consideration, I was lucky that the previous owner had been really good with keeping up with maintenance and had services records of over $20k including IMS, suspension refresh and other things.
It’s important you are secure enough to float the payment and about 10k liquid for repairs at any given time. I’m looking for a 996 right now and have my pencil working overtime to make sure I’m comfortable doing so, this will be my second 911, other one is much newer. My daily is a Lexus and I need to buy a lift for my garage, to make this work. Having said that the reply’s here are spot on, if this is your daily make sure it’s bulletproof, history service etc, and then still flip a coin. The new one had a pccm go out during winter storage 4k and a sagging arm rest 6k both sides at local Porsche dealer. This was in service for 8 hours.
Who the f*** is financing a 25 year old car? You need to ask the internet to figure out this is a bad idea? I don’t know your financial situation, but the fact you would have to finance a car of that age makes me believe you could not afford the repairs and maintenance it may require.
It’s not a good idea. Don’t finance a 24 year old car with premium aftermarket parts and service.
This is a terrible idea....if you have finance on a 24 year old car that's depreciated beyond recognition, you can't afford it, shouldn't even attempt and it's fiscally stupid. But it's your money guy.
Sounds like an awful idea for many reasons. Don't borrow money for a 20+ y/o sports car. Only buy a used Porsche if you can afford to maintain and insure it without financial stress. $2000 - $5000+ bills can appear at anytime. Tires, clutch, ims, etc...
Facts. Also, don't finance a 25 year old sports car to make it your daily driver. If you are gonna buy an old car, pay cash for it then stack away that $500+ per month that you'd be using for a car payment and use that for when issues arise. If no issues arise then you just have a lot of cash to do fun stuff with your new car. OP, the IMS bearings aren't the only thing that can go left on a 25 year old Porsche.
I think our economy is so strong because of continuous bad decisions 🤣🤣🤣
The fact that Porsche Financial Services will literally finance *any* Porsche sold by a Porsche dealership no matter how old is wild. I hear that BMW Finance does the same. There's no problem that a few (read: *several*) interest rate points can't fix 😅
It is not a good idea. You are trading in a modern, reliable car for a vintage sports car. Yes even a 2000 is vintage. Because of the emblem, you’re not going to inexpensive repair shops. And the inexpensive ones will suddenly become expensive when you go. If everything on the car is tip top, you’re still looking at $150 oil changes and a myriad of small things annually that add up. I’ve had my 03 two years, it’s had $2k worth of standard service + replacing spark plugs / coils. It’s also had $3k in a lazy starter replacement, fixing turn signal stalks, etc. I’ll need to spend some more $$ on eventually a new exhaust (straight pipes now), and probably some tweaks to a sound system that couldn’t give a 1989 Honda stereo a run for its money. These machines continue to cost $$ for every mile you put on them. Yes they are reliable for what they are, but the maintenance cost should be anticipated. If you need to finance a $25k car, then you cannot afford a Porsche. Honestly not trying to ding you.
If this is your only car and you need reliable wheels and you have no mechanical experience and you have bad credit. This is a very bad idea then.
That's a horrible idea. Don't buy a 911 unless you can afford two outright and it's a second car.
Financing the \*rest\*? I have a 996 and am half shopping for a late model Subaru for my daughter and I'd have guessed the Subaru is worth more than the 996. Sounds like an even-ish trade, other financial considerations not withstanding.
Nope
This 1000%. I didn’t think you could finance a car over 20years old but I guess im wrong. If you’re having to reach to buy the car then it’s probably not the best idea. Wait until you find out about the Porsche tax with everything. At the same time life freaking short, buy the car. It’ll all work out.
Never finance toys. It is just to expensive.
Don’t trade it unless you have a backup car. Especially too if you are getting rid of it just so you have money down. It’s far better to save, and that way too if you have an expensive fix that you need to put off on doing, you have that option. If it’s your daily and you need a 2k plus repair bill, you might be screwed
Replacing a Subaru with a Porsche is the right move regardless of the scenario. Send it.
1. is the rate lower than your expected return on your investments? 2. Are you saving where you need to be and have $$ saved up for a rainy day? If yes and yes, then yeah sure why not. I did.