[XK4]

I'm picking up my 718 this Friday. Yesterday I got an email from my SA telling me they wanted a cashier's check for the balance due on the car. This isn't a problem, but it did catch me by surprise. I've been paying cash for cars for a long time (I was doing the Dave Ramsey thing before Dave Ramsey) and have never had this request before. My personal checks have always been acceptable, even at Jaguar, Lexus and Infiniti dealers.

Is this common to Porsche, or is it just my dealer?

 

[TEST DRyVer]

I'm picking up my 718 this Friday. Yesterday I got an email from my SA telling me they wanted a cashier's check for the balance due on the car. This isn't a problem, but it did catch me by surprise. I've been paying cash for cars for a long time (I was doing the Dave Ramsey thing before Dave Ramsey) and have never had this request before. My personal checks have always been acceptable, even at Jaguar, Lexus and Infiniti dealers.

Is this common to Porsche, or is it just my dealer?

This is very common. The only way we (the Porsxhe dealership I work for) would accept a personal check is if we had a complete credit application filled out, pulled credit (they would have to have stellar credit), and had the client sign a backup contract before delivery. The backup contract is essentially a contract that allows the dealership to to have your deal completely financed through a bank if the personal check doesn't clear. We do this quiet a bit, actually... They give you a lot of leeway. If the check doesn't clear, they don't just get you financed right away. They'll call you and ask you to bring a certified check at that point. I've never seen them have to actually put the backup contract in effect. It has yet to happen. It just gives the dealership a bit more security before you drive off with a $70-$200k car. The only time I've seen them accept a personal check without a backup contract, is if they know the client very well and he or she has already made several purchases at our dealership.

 

[XK4]

This is very common. The only way we (the Porsxhe dealership I work for) would accept a personal check is if we had a complete credit application filled out, pulled credit (they would have to have stellar credit), and had the client sign a backup contract before delivery. The backup contract is essentially a contract that allows the dealership to to have your deal completely financed through a bank if the personal check doesn't clear. We do this quiet a bit, actually... They give you a lot of leeway. If the check doesn't clear, they don't just get you financed right away. They'll call you and ask you to bring a certified check at that point. I've never seen them have to actually put the backup contract in effect. It has yet to happen. It just gives the dealership a bit more security before you drive off with a $70-$200k car. The only time I've seen them accept a personal check without a backup contract, is if they know the client very well and he or she has already made several purchases at our dealership.

I understand the reasons and I'm not irritated with my dealer. It's just I've never had it come up before with other dealers, even when I was a first-time customer. It's not just the dollar amount of the transaction either; the XK8 I bought new back in '97 cost more than my 718 in today's dollars. I suspect that my dealer was "burned" in the past and is now extra cautious. Will be interesting to see if their policy changes when I buy my next Porsche.

 

[ldamelio]

Paid cash with a personal check for my CS; they did require a credit check. First time Porsche owner; relatively new (long history but recently changed hands) dealership.

 

[Porsche2018]

Also paid cash with a personal check but without credit check.

 

[Lamb]

I purchased my 18 CS in December of 2017...since it was December in Ohio and I live 1 hour from the dealership, I asked for them to deliver it to my home...they waited for my check to clear before they had the clear bra installed and made the delivery.

 

[JakiChan]

They were like "We'll take a check", I was like "Uh, can't I PayPal or something? This 'check' thing is for old people..."

I'm putting as much on the card as I can. I want the points.

 

[aeronca65tl]

I paid by personal check. They really didn't know me but the circumstance was not typical.

I paid at my local New Jersey dealer on 11/21 but I flew down on 11/28 to the Atlanta PEC to pick up the car. I guess this gave the dealer 7 days to make sure the check cleared.

They did hand me the title for the car when I paid for it so I guess there was some level of trust.....

 

[VIdjc9]

Paid by check, actually cheque ... no questions asked.

 

[Porsche2018]

Paid by check, actually cheque ... no questions asked.

Is that a touch of the 718 forums international flavor.......:laugh:

 

[85Gold]

I remember when I got my wife's 14 WRX hatch and pulled out my checkbook to pay. They didn't know what to do with it. Had to call higher ups and it took 1/2 hour to get approval.

Peter

 

[Porsche2018]

I remember when I got my wife's 14 WRX hatch and pulled out my checkbook to pay. They didn't know what to do with it. Had to call higher ups and it took 1/2 hour to get approval.

Peter

Not sure they like us cash buyers......Porsche dealerships prefer to make interest on the loan. Next Porsche same deal, cash and carry.

 

[lajoiedp]

Not sure they like us cash buyers......Porsche dealerships prefer to make interest on the loan. Next Porsche same deal, cash and carry.

At 2.24% over 5 years I would rather keep my money in the market and roll the dice.

 

[Porsche2018]

At 2.24% over 5 years I would rather keep my money in the market and roll the dice.

Been debt free for many years.....have to actively find stuff to spend the money on.

 

[Robh]

If you run out of ideas to spend money on I can send you my list?

 

[85Gold]

Not sure they like us cash buyers......Porsche dealerships prefer to make interest on the loan. Next Porsche same deal, cash and carry.

I was raised to use debt for capital expenditures. Toys are cash only, if I can't pay cash I don't get it. I don't care if the dealer makes $$ on financing that's not my business model And at 68 years young I like being debt free.

Peter

 

[VIdjc9]

@Porsche2018

International? Oui, c'est ca!

 

[lajoiedp]

I was raised to use debt for capital expenditures. Toys are cash only, if I can't pay cash I don't get it. I don't care if the dealer makes $$ on financing that's not my business model And at 68 years young I like being debt free.

Peter

For me, it's what is the wisest use of my money. Would I rather finance at 2.24% and keep my money in the market (and hopefully earn more than 2.24% over 5 years on that money) or pay cash and not have that money to earn more in the market? Based on history, I would rather have the money in the market. Now, if the finance rate was over 5-6% I might feel otherwise.


For example, the amount of interest on a $50k, 5 year loan at 2.24% is $2,899. If you put that same money into the market would it earn more than $2,899? I sure hope so.

 

[ejdd]

I just asked for their bank details and wired the money over.

 

[JakiChan]

For me, it's what is the wisest use of my money. Would I rather finance at 2.24% and keep my money in the market (and hopefully earn more than 2.24% over 5 years on that money) or pay cash and not have that money to earn more in the market? Based on history, I would rather have the money in the market. Now, if the finance rate was over 5-6% I might feel otherwise.

I'm financing some of the purchase. This represents a compromise between my financial advisor and myself. I don't want to finance a $90k car, he doesn't want me to spend $90k of cash. So I'm financing an amount I'm comfortable with, and it helps out the dealer a bit too since I'm getting a great deal.