Porsche Lease makes no sense
#34
Most new 911s lose at least 20% simply by driving them off the lot. The 27 month residual for my last 991 lease was 74% of msrp. Take into account a 10% discount off sticker, so you are paying only 16% depreciation hit over that time. That's a no brainer for a lease. If the residual was 50% like other brands then a lease wouldn't make sense. Plus, the cars aren't even worth 74% at lease end bc Porsche is aggressively pricing them to move.
Last edited by disden; 02-24-2015 at 04:49 PM.
#35
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.
Frank C.
#37
Most new 911s lose at least 20% simply by driving them off the lot. The 27 month residual for my last 991 lease was 74% of msrp. Take into account a 10% discount off sticker, so you are paying only 16% depreciation hit over that time. That's a no brainer for a lease. If the residual was 50% like other brands then a lease wouldn't make sense. Plus, the cars aren't even worth 74% at lease end bc Porsche is aggressively pricing them to move.
#38
In California with sales tax close to ten percent it you plan to turn your car over every couple of years leasing makes a little more sense because you only pay tax on the amount you pay into the depreciation schedule.
#39
With all due respect, and I mean all due respect I don't think you understand the economics. These cars will depreciate whether you own or lease. If you buy, you will experience the same depreciation. The only difference is the finance charge or money factor imposed. That becomes a cost of capital decision. Owning may make you feel better, but it makes no difference in the end. In fact, you have more downside protection leasing rather than owning ie, accident, hail damage with diminishing value, lower market value than the residual & driving habits such as tracking. I think that you are letting emotion cloud the economic reality of driving a high end sports car.
Frank C.
Frank C.
I have three daughters, and their first (and second) cars were all leased. I wanted them in safe, reliable transportation. Each of them had accidents as many teenagers do (luckily no injuries) within the first year of driving. Cars were repaired, but a blemish on the CarFax that meant diminished value not for me but to the finance company. At lease end, just turn it in and lease another. Had I owned the cars, the whole debate over trade in value would have ensued. I just did this last week with a Mazda 3 on lease for one of my daughters, and she moved up to a Mazda 6 in which Mazda Finance was offering several pull ahead rebates and a money factor of 0.00. Free money, plus all of the aforementioned downside protection.
So long as you negotiate the right deal based on maximum discount from MSRP going into the lease combined with lowest possible money factor, you really can't lose by leasing.
Last edited by blschaefer1; 02-26-2015 at 09:33 AM.
#40
The term money factor is the same as interest rate? I have not leased but I assume that it would be based on ones credit rating. How much wiggle room exists regarding money factor. The lease specials Porsche is always pushing allow 5k a year but maybe just paying the overage mileage is OK. I only ask these questions because I am in a period of my life where drivers are hitting my cars while stopped.
Last edited by wanderfalke; 02-26-2015 at 09:26 AM.
#41
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%.
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%.
#42
In my area, lightly used 991 that are a year or two old are on dealer's lots for 15% off the original MSRP. I can get 6% off a new one so I don't see the point in buying/leasing a 2 year old car with CPO for only an additional 7% off. But that's just me.
#43
The term money factor is the same as interest rate? I have not leased but I assume that it's would be based on ones credit rating. How much wiggle room exists regarding money factor. The lease specials Porsche is always pushing allow 5k a year but maybe just paying the overage mileage is OK. I only ask these questions because I am in a period of my life where drivers are hitting my cars while stopped.
Take the money factor and multiply by 4800 and you have your interest rate. Example on my 991 lease, money factor is 0.00068, or 3.2% interest.
This is generally negotiable to a point if you have top tier credit. Dealers earn part of the profit if they sell a lease with a money factor above the 'base rate'.
#44
Can you lease a "used" car?? I was told that you could only lease new vehicles
#45
to be honest, I've never leased a vehicle before so I don't know anything about it.....here is a question..... I have my own business and have been playing with the idea of leasing a vehicle through the business, once it comes due then personally purchase the vehicle......can that be done??