How To Finance A Porsche In Canada

How To Finance A Porsche In Canada

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated September 2, 2022

The Porsche is a sophisticated 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 your new Porsche.

Let’s take a closer look at your financing options if a Porsche is on your radar. 

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 Porche Dealership? 

The easiest and fastest way to finance your Porsche purchase is through Porsche Financial Services Canada directly with the dealership. This program offers loans with terms up to 84 months, depending on the model. Keep in mind that while longer financing terms mean lower monthly payments, it also means more interest paid over the life of the loan. 

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. 

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 An Alternative Lender?

If you’re looking for a car loan with less stringent lending criteria, an alternative 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. Always compare lenders and the rates they offer before applying. 

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. 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 

  • Small down payment. If you finance through your Porsche dealership, you don’t need much of a down payment to get approved. In many cases, you may not need any down payment at all. 
  • 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. 

Disadvantages Of Financing A Porsche 

  • Porsche dealership only. Porsche financing is only applicable to models purchased from a Porsche dealership.
  • Not a lot of deals. Porsche isn’t known for its deals on models, so you’d be hard-pressed to find any discounts on vehicles. 

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 following table will give you an idea of how much you can expect to pay for a Porsche:

ModelStarting 2022 MSRP

Porsche Canada Finance Rates

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 – 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.
  • Alternative Online Lenders – If your credit score is less-than-perfect, you’ll probably be charged a higher interest rate and will need to apply with an alternative lender
  • Porsche Financial Services Canada – Porsche Financial Services Canada offers it’s customers competitive rates. 

How Much Does It Cost To Finance A Porsche In Canada?

Besides the interest rate, the term length and loan fees will play a role in the total cost of your loan. 

  • 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. 
  • 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.

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 rate5.90%
Loan term84 months
Monthly payment$999.98
Total interest$15 321.54
Total loan cost$83,998.54

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. 
  • 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. 

Does Porsche Offer Any Insurance Or Protection Plans?

Given the high cost of buying 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 anti-corrosion warranty
  • 3-year paint warranty
  • 8 year or 130,000 km HV battery warranty

Porsche Financing FAQs

Should I finance a new or used Porsche? 

Even the cheapest Porsche model is more expensive than the average vehicle in Canada. Unless you have the financial means to pay for your new Porsche in cash, you’ll likely need some financial assistance to finance your Porsche, whether new or used. 

Where can I finance a Porsche in Canada?

You can get financing for your Porsche either through your financial institution, an alternative lender or directly through the Porsche dealership.

Does Porsche offer any discounts?

Porsche doesn’t usually offer any special discounts. If you’re looking for a deal, you might need to look into buying a used Porsche instead. Just make sure it’s been fully inspected and certified.

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.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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