I'll run it by my sales guy, but the PFS rep told me they don't refinance cars. I made it clear I was contemplating a buyout off my lease. She said that constitutes refinancing and PFS doesn't do that?

Can anyone confirm or refute this? Seems odd they wouldn't finance you off lease?

Regards,
DRP

 

Have you inquired to Porsche Financial Services directly?

 

I did a quick search and I'm guessing they really want to treat that as two transactions.

Before you do anything else, I'd take a hard look at the residual number on the lease. The impression I got from research is that it's often well above market value for the car. You may be better off financially letting the lease run out, turning it in, and then immediately repurchasing the car from the dealership for less than the residual buyout cost.

You can also talk to other finance companies about getting a loan to purchase the car. Depending on who you talk to and your credit score, you might get a better deal that way anyway.

 

Absolutely not true. I bought my CPO 2012 C2S Cabriolet and PFS financed it. They had the loan services through JP Morgan Chase though. Find the best rate online (I got 2.99 from PENFED) and brought it to Porsche of Wallingford and they matched the rate.
If the dealer wants the sale they will do it.

 

^^^ by doing so you can buy your car back as cpo (obviously with the additional cost of cpo), if qualified.

 

How exactly would this work? Would you tell your dealer/rep about your intentions, or do you go through the lease return process and then turn around and state your interest in buying the car? Just wondering if anything may go wrong in the latter.

 

if you do that you will paying the sales tax of the car. if you buy off your lease there may not be a sales tax.

 

There will be sales tax if you buy out of your lease. It's still a car sale as far as the state is concerned. Otherwise it would be a loophole - sign a lease, buy it out on day 1, avoid sales tax.

 

"Originally Posted by Christophosphorus

How exactly would this work? Would you tell your dealer/rep about your intentions, or do you go through the lease return process and then turn around and state your interest in buying the car? Just wondering if anything may go wrong in the latter."


I was at the dealership recently checking out the 991.2. My SA told me to spec the car and lease it. Once the lease is up they can CPO the car (as long as it is qualified) and then buy it outright.

I prefer to buy it as CPO and the first owner absorbs the depreciation.

Just what GUS said, tax is still involved.

 

It's cheaper to buy new than to do that lease-and-buy thing. Cheaper to buy used of course, but I'm comparing to different approaches to getting a new car optioned as you want it.

Advertised cost for a lease on a 2016 911 is $7000 down for 27 months plus $1000 / month on a $96k car, for $34k over a bit over 2 years. That's 36% of the purchase price thrown away, and depreciation is probably going to be less than that, more in the ~30% range.

Also you have to consider that those are advertised special terms on 2016's, 2017 leases are going to be less favorable, and that you can certainly negotiate 6%-10% off a 2016 at this point.

I'd have to have all the figures in hand to say for sure, actual lease terms, negotiated price for purchase, sales tax (since you pay sales tax on the depreciated value when you buy it out), comparable used cars to estimate depreciation, etc., but my back of the envelope calculation says it's not something you should do if buying outright is an feasible.

 

So the dealer buys the car at the residual price, then runs it through the shop for a few grand - or more - (tires, clutch, servicing, brakes etc..) then you add some profit +/- $1k and the cost of the CPO warranty @$3,500.00. You can't get PFS financing without buying the CPO. I wouldn't buy without it anyway.

Long story short. With tax, it adds $10k+ to the buyout.

So now I'm considering leasing the 991.2. shocker right?

DRP

 

Forget PFS. They are NEVER competitive, except maybe for folks with bad credit. To do it yourself, go to PenFed CU or Lightstream. Or have the dealer financing specialists get u a competitive rate. I closed on a 2015 CPO 991 Saturday, and the finance specialist got me a 1.99% 60 month loan in 5 minutes, with my major bank. There was no need for PFS' high rates. I would never use them in today's world.

 

One more thing - it costs the dealer only about $3k to inspect and to purchase the CPO warranty from PCNA. Anything beyond that is because the car needed something extra, to be able to qualify for CPO.