Wow...money is hard earned and I am sure it is the same for you. Please justify paying $1700 month and NOT owning the car.

The only excuse I can find in this equation is convenience and it is beyond me why anyone would burn their hard earned dollars like this for convenience.

Whether you make 50k or 5million on an annual basis, financial literacy means knowing how to execute decisions that make the most financial sense. This lease payment makes no sense.

 

so this is a lease versus finance question. not whether this porsche lease is a good lease.

 

Leasing is a write off if he has a business. Other than that, unless he likes to change cars every 2 years, there's no reason for it from a financial point of view.

 

sort of... but not entirely.

many people like to cap their financial exposure. a lease allows this. if your bussy leases the car, hes out the payment for a fixed amount of time after which he walks away. no strings. there is value that can be attached to that. heres a thought... you buy a 991 and pay cash, you pull out of the dealer and someone t-bones you. your car is not totalled and you are stuck with it. noone will ever buy that car. same scenario but you have a two year lease... car gets turned in at end of lease and you skip down the street.

also, many could say that paying cash for a depreciating asset is dumb. why not put the 100k into something that makes money especially when you can borrow money at 1-2%.

 

No the former stood and was answered. Apparently this IS a good lease deal but after the Kia and Honda comment I couldn't idly pass by.

In my view a leased car makes sense when the financed value is lower than the loss after the term period. If not....Again...it makes no sense.

I own a business as well and write off nearly the entire value of my daily E350 4matic. I found a dealer exec car with 6k miles and leased for 10k year with only first month payment for 27months and pay 468/ month.....THAT makes sense.

It's not the value of 1700month that gets me. It's the fact for the same or less per month. He can acquire equity in the vehicle and can get that value back after trade or sale.

I don't get the backlash here...im at a complete loss to why people would think this makes even an iota of sense.

 

i dont understand how you are getting the "same or less" payment for financing...
125,000 for even 60 months at zero interest is almost 2100 a month.

are you talking about leasing new versus buying used?

 

That assessment makes sense. The prospect of totaling the car could provide some sense of peace of mind for a lease compared to owning the vehicle.

As far as paying outright for my toy...I have done that for years. Wife has always allowed me to have a sports car and a bike and for both I never finance. That was our deal. So I look for deals that make the most sense and close. I'm glad we have come to those agreements. Besides our mortgage we have been debt free for most our lives.

 

i finance or least expensive toy cars and thats about it. i live in an area where hail happens all the time. sime kind of deal as an accident...

i think the deal has to make sense from the person facing it and noone else. for example, im certain that many people would think my wife was nuts for marrying me, but she sure seems to like me.

 

If you think that's a lot look at leasing a $92K Macan Turbo (MRM = $81K). Monthly lease is $1650!

My $120K 991 C2 Cab leased for $1140 (with tax) as PFS had some great deals about 18 months ago.

 

Yes...why would anyone buy it at msrp when there are so many with less than 5000 to 7500 miles .

I don't know maybe I'm crazy to think they are essentially new cars.

 

Again...makes sense and I am tracking.

We live in the DMV area hail is not much of an issue ( although bad drivers and traffic are).

I like the wife bit by the way...

 

I can't imagine paying that kind of money to rent a car for a couple years.

 

It's not that simple. Here in CA we pay 9% sales tax which you will never see again so buying a $120K car you are immediately out over $10K. Subtract depreciation over the first 2-3 years and leasing makes more sense if you want o get rid of the car in that time frame. If you keep your cars for longer than 4 years I think buying makes more sense.

 

Bingo. I like to lease because the finance company assumes liability on future value. If I like the car enough after the lease term and the value has held up, I buy the car. If not, I give it back. Plus, the sales tax issue stated above is huge in CA. Plus, and another post indicated, if something happens to the car then you also have the option to give it back. Bottom line - negotiate the heck out of the price and the money factor - not the payment, and leasing is a good option.

 

Imagine here in Quebec, stupid sales tax is 15% ouchhhh!