I thought MF is not negotiable unless PFS lowered it from .002 for this month.

 

Well they started me by 'reducing' to .0024. Not sure re detailed negotiation as my FA stepped in to bring it home

 

Btw .0019 may be rounding as I reversed the math, also 10k per year mileage

 

I would recommend asking for the numbers, the finance guy at the dealer should be willing to be transparent. Ask for residual, lease rate, cap cost and then plug the numbers yourself into a lease calculator. You'd be surprised how the numbers get funny when they only negotiate payment and "discount."

Maybe the numbers are good but its worth your time to get the specifics cheers

 

Hey Eki, use it in good health and enjoy.

The numbers do seem strange. Your MF is below .20 is very unusual and your residual of 70.5 is also very strange. I know for a fact that the 27 month residual for a 991 cab with PDK is 71% and for the s and 4 variants it's 3% lower. Residuals are non negotiable. Using my calculator, with tax, tags and bank fees upfront, using your numbers, you should be paying $1,408

 

Yeah math may be off as mentioned earlier. As my fin adv did all of the negotiations on my behalf didn't have all details

Here is my lease sheet

2014 991s
Msrp 122k
Neg 115k
Lease acq 895
MRM 119k - based on previous quotes
Capitalized cost reduction - 1231.34
Adj capitalized cost 114.7k
Residual 84.3k - residual % was calced: 84/119 based on MRM not sure if correct
Rent charge 11.8k - MF 11.8k/27*12/adj cap cost to get apr and then / 2400 to get MF
27 mos

Again math or assumptions may be off .... Wish I had found this form earlier, but no regrets as car is a pure adrenaline rush which is the only thing I was looking for

 

Did not realize you already took possession. In that case it's all just water under the bridge. Enjoy your new 911!

 

Thanks! Taking wife out this weekend to drive the coast

 

Awesome!!!

 

I have to admit that I'm surprised that nobody brought up the *best* reason IMO for leasing. I thing somebody mentioned it, but no discussion. I always here that from the business owners out there that they love leases due to the fact that the lease cost can be treated as an expense in some ways - as long as the vehicle is engaged in business.

I'm no accountant, nor do I lease (yet), but I would imaging that this would essentially mean that you're using pre-tax dollars, assuming that you could get company to offer you this benefit.

For the right type of organization, the expense would also reduce their taxable income while putting a smile on an employee or owners face.

Personally, I used to prefer buying. Worse deal ever was a 350Z I bought impulsively. Got screwed and had to get somebody else to buy the car (still unsure how I was able to pull that off!) I have to admit that now that I see cars as rapidly depreciating "assets", I would rather simply pay for the depreciation.

I'm at a bit of a loss though, since I hate paying interest. Rather pay cash. The downside is the opportunity cost of tying up all that cash.

It's a bummer that pre-paying a lease still means that you still pay some interest. WTF!!

 

I used to see these types of debates quite often on e90post. The thing is that everyone's situation is unique, but after arriving to 6speedonline I find that the crowd has less disparity in finances/etc so it is easier to generalize.

These vehicles can definitely be treated as expenses so long as it is a reasonable percentage of your income/revenue. My accountant is classifying my lease as an equipment rental and for my GF's purchased 981, the depreciation will be amortized.

I think the general idea is that you want to offset your income tax as much as possible. If you are paying potentially $100k in income taxes prior to deductions, "equipment rental", depreciating assets, and other such potential deductions will come in handy. If you are paying the tax anyway, why not have a 991 while you are at it? You are either paying the money to the IRS/FTB or to Porsche.

And also let's remember that a 2 year 991 lease is around $25k - $45k pending your model/trim so that's 12.5k to 22.5k a year, which is then 12.5% to 22.5% of the $100k potential income tax. That's a reasonable percentage the accountant can work with. But again, obviously you need the income to support this. I don't think the majority of the e90post crowd understood that part.

The only other thing is that you should make your company/entity a co-buyer. This does affect the insurance. If your entity is mostly a pass through to protect against liability, the insurance becomes tricky as you don't actually have many "employees". The most cost efficient way is to somehow get personal insurance that also covers the company. A full-on commercial policy will likely be extremely expensive comparatively.

 

Finally somebody that gets it. Pretty actually to see so many pages of thread and nobody gets the point.

I frankly could give a crap about "owning" a rapidly depreciating brick. Granted before I had the income - I did. I wanted to own my porsche. Now, I have zero interest - especially when it's time to sell a older model.

You practically have to give it away...or keep it, as the $35k I could get for the car is peanuts compared to what the car is worth. Ah well. live and learn.

 

After 6 months of test driving and weighing options, I've got my eye on a C2S on a dealer lot that I was going to buy on Friday.

I'm thinking that march 2013 was they introduced the conquest cash program along with the higher residuals, so I'll probably wait another week to see if there's any new programs.

 

Having just turned in my 27 month lease, time has proven why I value a lease in certain situations. I always look at a car both as a purchase and a lease. When the captive finance company is overly bullish on the residuals I lease, picking up an option on the car.

In my lease (2013 C2, MSRP of ~ $99, purchase price of $91) the residual was $78K. After turning the car into a dealer in the Chicago area it is now listed by a Dallas dealer for $69K (which means no local dealer wanted to pay what PFS was demanding), and can probably be bought for $66 or $67 retail - so that means if I owned it I might fetch mid 60's in a private party sale or low 60's on a trade-in.

I think PFS stepped into a pile of financial muck! I recognize I paid PFS interest, so there loss is not as big as the difference between $78K and what they sold it to Dallas for. However, my cash stayed in the market and got me a decent return.

To each his own.

 

And this, to me, is one of the big advantages of leasing - protection against depreciation. In this case, the residual was inflated to make the lease more attractive, but imagine if you had a diesel VW. If you own it, you're screwed. If you leased it, you just keep it for a while longer, turn it in, and walk away.