The Porsche is a luxury vehicle with a sharp design and powerful engine. That’s precisely why it’s got a steep price tag, no matter what model you’re looking to buy. And if your bank account isn’t enough to cover the full cost of a Porsche, you’ll need to look into financing it.
Let’s take a closer look at your financing options if a Porsche is on your radar.
Key Points
- Porsche vehicle models are very expensive, especially when compared to most other car brands in Canada.
- Several Porsche financing options are available, including through Porsche Financial Services, car dealerships, banks, credit unions, and private lenders.
- Alternatively, you may consider leasing a Porsche, which allows you to drive a new vehicle every couple of years and enjoy lower monthly payments compared to a traditional car loan.
How To Finance A Porsche In Canada
You have a few options when it comes to financing the purchase of a Porsche:
Can You Finance A Porsche At A Dealership?
The easiest and fastest way to finance your Porsche purchase is through Porsche Financial Services Canada directly with the dealership. This program offers competitive rates and terms to customers, particularly those with a strong financial and credit profile.
In some cases, you may also be able to qualify for a car loan with no down payment if your financial and credit profile is strong. Moreover, Porsche Financial Services Canada strives to provide its customers with competitive rates.
Learn more: 0 Down Car Financing In Canada
Can You Finance A Porsche With A Bank Loan?
If you prefer to shop around for a car loan to see if you can get a lower interest rate, you can see what your bank has to offer. These traditional financial institutions often offer competitive interest rates to clients with good credit and healthy finances. However, their loans may be more difficult to get approved for if your credit and finances aren’t strong.
Can You Finance A Porsche Through A Private Lender?
If you’re looking for a car loan with less stringent lending criteria, a private lender may be best. Online lenders often work with bad credit borrowers, and typically approve and fund loans much more quickly than banks and credit unions.
Just make sure that the lender you work with is able to provide you with a sizable loan amount that’s typically required to purchase a Porsche. Also, keep in mind that alternative lenders typically charge higher interest to those with lower credit scores.
Alternative Financing Options When Buying A Porsche In Canada
Besides traditional auto financing, you may consider other ways to cover the cost of a Porsche:
Can You Use A Personal Loan To Finance A Porsche In Canada?
Another way to finance a Porsche without a traditional car loan is with a personal loan. An auto loan is used specifically to cover the cost of a vehicle, while the funds from a personal loan can be used for just about anything, including buying a car.
To use a personal loan to finance a Porsche, you would apply with a lender, including a bank, credit union, or alternative lender. The funds would then be used to buy from a dealership or private seller. Then, you would repay the lender via installment payments over a set term.
The great thing about a personal loan is that you can essentially shop like a cash buyer. This may be especially useful when buying a used Porsche from a private seller. This way, you can settle the deal with the seller, then only have to deal with your lender for loan repayment.
Can You Lease A Porsche In Canada?
Instead of buying a Porsche, you might want to consider leasing it instead so you can take advantage of a new vehicle every few years. Lease payments are generally lower than financing because you only pay for the vehicle’s depreciation over the term of the lease, instead of the full purchase price.
Porsche Financial Services Canada offers several lease options and term lengths with no security deposit required if you qualify. There’s also a single-pay option available that lets you pay off the entire lease cost upfront, which is typically less than the total of the monthly lease payments. At the end of the lease, you’ll be able to choose to return, re-lease- retain or start a new lease.
- New Lease: You can choose to return your current Porsche and take out a new lease for a different model.
- Re-Lease: If you want to keep your current Porsche for a little longer, you can extend the lease if you want to retain your current vehicle.
- Retain: If you want to buy the Porsche you leased, you can buy the vehicle for a predetermined price outlined in the lease agreement.
- Return: If you don’t want to keep your Porsche or lease a new one, you can simply return it.
Advantages And Disadvantages Of Porsche Financing
There are a few perks to taking out a car loan directly through your Porsche dealership. But there are a couple of drawbacks to consider, too.
Advantages Of Financing A Porsche
The following are key advantages of financing a Porsche in Canada:
- Small Down Payment. If you finance through your Porsche dealership, you may be able to qualify with little to no down payment. This depends on your financial and credit profile.
- Various Term Lengths. You can choose from a variety of term lengths depending on your needs. Term lengths can be as long as 84 months to help keep your monthly payments low.
- Convenience. Rather than shopping around for a car loan, you can have your financing taken care of at the same time that you finalize a deal on a vehicle with the dealer.
- Competitive Interest Rates: Financing through Porsche may provide you with a lower interest rate compared to what third-party lenders may offer.
Learn more: 0% Car Financing Offers By Car Brand In Canada
Disadvantages Of Financing A Porsche
Before financing, be sure to consider the following potential drawbacks:
- Depreciation Risk: Financing a new Porsche means you’ll be subject to a high rate of depreciation over the first couple of years, which can affect the car’s resale potential.
- Credit Requirements: Loan approval depends on your credit score and financial history. If you finance with Porsche Financial Services or with a bank, you’ll need good credit to qualify.
- High Loan Amount Required: Given the high cost of a Porsche, you may need a big loan, even with a sizable down payment.
How Much Does A Porsche Cost In Canada?
Different Porsche models come with varying price tags, but the cost will also depend on your location, any special promotions the dealer is currently offering, and your negotiating skills.
The cheapest starting price for a new 2025 Porsche model is $67,000 (Macan), and the highest starting price is $143,600 for a 911 Porsche.
How Much Does It Cost To Finance A Porsche In Canada?
Several key factors directly affect the cost of Porsche financing in Canada:
Interest Rate
The interest rate you pay on your loan will have a significant impact on exactly how much you’ll owe over the life of the loan. The rate you pay depends on several factors, including the following:
- Your Financial And Credit Profile: A strong financial profile and good credit score will afford you a lower interest rate, which means your loan will cost you less.
- Your Lender: Banks and credit unions tend to charge lower interest rates compared to online lenders, but you’ll need a healthy financial and credit profile to get approved. Porsche Financial Services Canada also offers its customers competitive rates. Alternative online lenders, on the other hand, may charge a higher interest rate, especially if you have bad credit.
Loan Term
Longer-term lengths are popular among borrowers because the monthly payments are lower, but a longer term also means you’ll be paying more in interest overall. Shorter loan terms, on the other hand, will mean higher monthly payments, though you’ll pay less total interest over the loan term.
Fees
The lender may also charge certain fees for the loan, such as administrative fees, early repayment fees, and loan origination fees. You’ll need to factor in these fees to determine the overall cost of the loan.
Sales Tax
With a vehicle purchase in Canada, a sales tax almost always applies. The rate of the sales tax you pay depends on the province where you buy the car, whether the vehicle is new or used, and whether you buy from a dealership or a private seller. You can either pay the tax upfront or roll it into your loan, which increases both the loan amount and monthly payments.
Calculate Your Car Loan Cost
Given all the information provided above, how much will a Porsche cost you? Let’s illustrate using an example.
Let’s say you want to buy the Porsche Cayenne at a price of $82,900, which is taxed at a rate of 13% in Ontario. After making a $25,000 down payment, the cost of financing your new Porsche is as follows:
| Vehicle purchase price | $82,900 |
| Tax cost | $10,777 (13% HST of car purchase price) |
| Down payment | $25,000 |
| Total Amount Borrowed | $68,677 ($82,900+10,777- $25,000) |
| Interest rate | 5.90% |
| Loan term | 84 months |
| Monthly payment | $999.98 |
| Total interest | $15 321.54 |
| Total loan cost | $83,998.54 |
| Warning: Luxury Tax On Porsche Purchases In Canada, vehicles priced over $100,000 may be subject to a federal luxury tax. The tax rate is 10% of the vehicle price or 20% of the amount exceeding $100,000, whichever is lower. This tax is applied at the point of sale before sales tax is applied, which increases the final cost. Considering certain Porsche models exceed this price threshold, the luxury tax is often applicable. Further, in BC, vehicles priced over $55,000 are subject to higher sales tax rates. While the GST portion remains the same at 5% for all vehicle prices, the PST rate increases incrementally. |
How To Qualify For Porsche Financing In Canada
The qualifications for Porsche financing are similar to a regular car loan. Of course, Porsche models are more expensive than the average vehicle, so you’ll need the income to support higher monthly payments. That said, you’ll generally need to provide the following information when applying for Porsche financing:
- Income: Your lender will want to know how much you earn, who your employer is, and how long you’ve worked there. Given the high cost of a Porsche, your income will need to be high enough to support loan payments.
- Credit Score: Your credit score plays a key role in your ability to secure auto financing. It will also determine the rate you’re charged, which will directly influence the overall cost of your car loan.
- Residence: You’ll need to provide your full address, as well as information about your residence, including whether you rent or own, what your rent/mortgage payments are, and how long you’ve lived there.
- Personal Information: Your full name, date of birth, Social Insurance Number (SIN), and contact information will be required to verify your identity.
Does Porsche Offer Any Insurance Or Protection Plans?
Considering the value of a Porsche, you may want some sort of protection plan in place to provide you with coverage in case the vehicle is damaged. Fortunately, Porsche offers many plans to keep you covered.
Porsche Protection Plans
The following protection plans can either be bought individually or as part of a package:
- Porsche Tire And Rim Protection
- Porsche Windshield Protection
- Porsche Dent Protection
- Porsche Key Protection
- Porsche Guaranteed Auto Protection (GAP)
- Porsche Lease-End Coverage
Porsche Warranty
All new Porsche models come with certain warranties, including the following:
- 4-year or 80,000 km warranty
- 2-year warranty on authentic Porsche parts used on work done outside of the warranty
- 12-year perforation warranty
- 3-year paint warranty
- 8 year or 130,000 km HV battery warranty
Learn more: Should You Buy An Extended Warranty For A New Or Used Vehicle?
Final Thoughts
You’ve got a few options when it comes to financing a Porsche purchase, depending on your needs and your financial and credit strength. Regardless of which financing option you choose, make sure the monthly payments won’t stretch your finances too thin. Working with the right lender will help ensure your auto loan fits comfortably within your budget.
