Can you get a Porsche on finance?

As with any mid-range or premium car, it is absolutely possible to get a Porsche on finance. In fact, there are many lenders that specialise in providing finance exclusively for high performance vehicles and sports cars. 

If you want to be the proud owner of a Porsche and would like to understand more about your finance options, then we are able to help. Here at Octane Finance, we work with a range of lenders who specialise in providing supercar finance. To get you started, we’ve answered your most-asked Porsche-related finance questions… 

Within this article, we’ll explain how to finance a Porsche. We’ve taken the opportunity to highlight what credit score you need for Porsche finance, explored the pros and cons of financing versus buying a Porsche outright, and we’ll give you a realistic insight into your chances of getting approved for Porsche finance. Read on to find out more. 

What credit score do you need to finance a Porsche?

In short, the better your credit score, the more likely your chances are of being approved for Porsche finance. However, it’s important to understand that a credit score range can vary between reference agencies. As a general rule of thumb, a credit score of 700 or over is usually classed as ‘good’ which means your chances of getting approved are increased.

The credit score scale goes up to 850, so you ideally want to aim for the ‘very good’ and ‘excellent’ bands when applying for Porsche finance to help speed up the application process. Before applying for finance on a new or used Porsche, we’d always recommend you check your current credit score using one of the three main reference agencies in the UK.

More information about credit scores and how to check yours, can be found within our dedicated blog What credit score is required for car finance?

How hard is it to finance a Porsche?

Getting approved for a loan on a Porsche is the same process as applying for finance on any other model of car. The key difference is that you are applying for a larger loan against a more expensive car. For this reason, the lender will need to know that you are able to meet the monthly payments, so you are not at risk of failing to meet the agreed repayment terms.

Lenders will look to approve your supercar finance application based on your credit rating, monthly and annual income, monthly outgoings, any outstanding credit owed, and your current financial circumstances. Should you tick all the boxes a lender needs to offer you the loan for a Porsche, then the repayment terms and interest rate at which they can offer the loan is likely to be more preferential. 

Is it better to finance or buy a Porsche outright?

This question is dependable on the circumstances in which you want to drive the Porsche. For example, will the Porsche be your only vehicle and a means of getting to and from work, or will it be an additional second car and mainly used for trips at the weekend? Your car’s use is an important factor when it comes to deciding if it’s better to finance or buy a Porsche outright. We’ve listed the benefits for both options, below:

Benefits of financing a Porsche

• Flexible monthly payment terms
• You only pay for the use of the Porsche, rather than the entire cost
• An attractive option if you drive less than 10,000 miles per year
• Short term contracts mean you can change model every few years
• You can often afford a nicer model or better spec
• Your finance term is usually covered by the manufacturer warranty

Benefits of buying a Porsche outright

• Unrestricted mileage perks
• You have full ownership
• You can sell the car
• You build equity
• You can modify the Porsche as you wish
• Insurance rates may be better under ownership

Top tips for financing a Porsche

Owning a Porsche is a dream come true for many drivers, but it comes at a price. To make your dream car more affordable, financing a Porsche could be the best option for you. Here’s our top tips to ensure you navigate your way through the process without any problems… 

Identify a suitable finance option

When it comes to securing vehicle finance for a Porsche, you’ll want to opt for a finance plan that is suited to your needs. Whether you choose a Hire Purchase, Personal Contract Purchase or Lease Purchase option, you need to do your research to ensure it is the right finance product for you. 

Determine its purpose

Determining exactly what you’ll use your new or used Porsche for, will help you identify the best finance deals available. If you’re planning on using the vehicle for short drives at weekends, it may be that you can get away with fewer miles which will help make your finance plan more attractive.

Make sure it's affordable

Be realistic about your budget and what you can afford to make in monthly repayments to the lender. It’s all too easy to get carried away by the glamour of a supercar and before you know it, be tempted to overspend from the original budget you set. 

Ways to finance a Porsche

Hopefully by now you’ve got a better idea of Porsche finance and what to expect. All that’s left to do now is decide on the best form of supercar finance for you and your needs. There are three main ways in which you can choose to finance a Porsche, they are:

Porsche Personal Contract Purchase

A popular form of car finance, Personal Contract Purchase (PCP) is a great option for drivers who know they want to own the Porsche at the end of an agreement. With a PCP Porsche finance deal, your monthly costs are minimised by deferring a lump sum payment to the end of the finance term - this is also known as a balloon payment. Think of this option as an initial ‘loan’ to help you afford the vehicle. You’ll pay an upfront deposit (a minimum of 10%) and your final payment will be decided before the term starts.

Porsche Hire Purchase

Without doubt the simplest form of car finance, Hire Purchase (HP) is an ideal option for drivers who want to make a Porsche affordable before they eventually own the vehicle. With a HP Porsche finance deal, you will put down an initial deposit (usually a minimum of 10%) and pay off the balance owed over a fixed term between 24 to 60 months. There is no balloon payment to make at the end of the HP agreement if you wish to keep the vehicle, but because of this, your monthly payments will be higher than a Personal Contract Purchase or Lease Purchase option. 

Porsche Lease Purchase

Offering similarities to both Personal Contract Purchase and  Hire Purchase agreements, Lease Purchase (LP) is a good option for drivers with a ‘view to buy’ their Porsche. The main difference is that the final payment (balloon payment) isn’t guaranteed, like it is with a PCP deal. This can help make the monthly payments lower, but you could lose out if the Porsche ends up being worth less than the final payment you’re contractually obligated to make.

To understand more about the pros and cons of a Personal Contract Purchase, Hire Purchase, and Lease Purchase agreement, read our dedicated blog on the subject; The best ways to finance a car.

Porsche finance deals at Octane Finance

Speak to us about targeting lenders to secure your Porsche finance. Our expert team is best-placed to help you achieve the preferable quote for a loan to put you in the Porsche driving seat. We specialise in providing prestige and supercar finance and over the years, have established relationships with niche high-end lenders for those who won’t settle for anything less than a supercar. Allow us to help you secure your dream drive by contacting us today.