Yes, Porsche inflate their residuals while padding their MF compared to other manufacturers. It really depends on your situation. If you are going to buy the car once the lease period ends, Porsche leases are horrible. Go w/ the BMW, Lexus lease deals.

But, if you are like me and have no plans on purchasing after the lease and want only a 2 year lease, then it's a much better deal. A $100K BMW lease w/ low MF for 24 months might be around $1800/month. An equivalent Porsche lease might be $1600/month. At the end of 24 months I have no plans on buying. How much I pay in interest on the Porsche vs BMW lease is not relevant. I take that $200/month and go play golf.

Again, if you plan on buying after the lease terms end, Porsche leases are absolutely horrible! Or if you are willing to go through the hassle of buying the Porsche then reselling it via private party after 2 years then buying would be also a better option. Personally, I find that too much work to buy then resell afte 2 years. So in essence, I'm paying extra for convenience.

 

Well put. If not buying at the end, all that matters is the monthly, it really doesn't matter what the combination of MF and residual are. We lease for convenience.

 

Hi Everyone,

Does anyone know if these residuals are still good and theyare nationwide? Are they also good forthe cabriolet?

I went to a dealer in NJ yesterday and was quoted$1,503/month, 2 yr lease with 5k miles per year. This included a conquest discount of $2,400,tax in the payment, all fees paid upfront at inception.

The MSRP on the car was about 108k. When I came home and did the calculations, itlooks like there was no discount at all off the MSRP, even though he claimed hewas selling the car at 105k, the MF was .0032 and the residual was 76%. I would think even the residual should behigher with 5k miles per year. I alsowanted to prepay all the lease payment upfront, but he told me that that wouldnot make a difference. Needless to say Iwill never go back there.

Can anyone recommend a dealer in the NY, NJ and CT area thatwould be more honest? Thank you

 

See Brian Kilcoyne at Princeton Porsche. I've bought two cars from him. Just leased a c4s. Money factor was .002 on a 2 yr. but residual was 74% on 12k miles. Great customer service, straight shooter, probably not the cheapest, but I care more about service than squeezing the last few dollars out of a ridiculously priced vehicle. Their service is stress-free also.

 

Thanks Oluke1, it looks like the rsiduals are lower now. I was just quoted a 74% residual on a 24m 7,500 miles per year lease and 71% on a 27m lease and the MF 0f .00205 on a PREPAID lease. Both the MF and the residual are ridicules. I guess I'll look for something else.

 

I dont doubt the deals are drying up. They're selling very well. I ran out of cpo on my turbo so I had to pick what was in stock. There isn't much to pick from nationwide.

 

do not pay all your lease payments up front! Let's say you pay $40K for the 2 year lease upfront on day 1. Then 3 months later your car gets stolen. Insurance will cover the rest of the lease. All is good, except you are out $40K minus the 3 payments.

On the other hand, you do a minimum drive off. Same situation. But you still have $35K in the bank! if you are worried about high monthly payments, just put that $40K into a savings account and use it to pay the monthly.

 

Is that really the case? So porsche would collect 80k and not refund me anything? The reason I want to prepay is becuase I can use my Home Equity Line of credit (2.75% now) and deduct the interest on my taxes as well, but if I'm not saving much off the porsche MF, it's really not worth it. With BMW, if you do the same the MF becomes under 1%, which is the way it shgould be, becuase the finance company is not financing anything, they are just agreeing to buy the car back from me at a specified resifual. I'll call my ins company and find out.

 

Def hammer it out with insurance before going that route. But fyi the residual should drop to .00165 for a pre pay. Base rate is .002 and prepay gives a .00035 drop. I was told directly from my dealer this month. 3k off is not a very strong deal either. You should be aiming for min of 5% with an upside of 8.5%. Email a few online sales managers and tell them you are looking to buy this month, if you are. Keep in mind current rates and residuals expire april 1st. They will be hesitant to give low figures over email, since the email system can be seen by management and it will look like they didn't even try to negotiate.

Here is a great lease calculator so you will now exactly what your payment should be. In case you didnt know, lease rate = MF X 2400 and of course residual is based off msrp. Sounds like you know these things, I hope I am not insulting you.

http://www.calculator.com/pantaserv/lease.calc

On a car with a sticker of 108k i would want....

Cap cost: 100,440 (7% discount...modify as you wish)
Residual:82,080

PMT (pretax) : 1025.24
tax (7%) : 71.77
Total:1097.01

This is subject to receiving 7% off obviously, but as an example it shows how bad they are screwing you on the MF and discount. This also uses the 2400 as a downpayment to be in line with your initial offer. What I did was use the 2400 as first month and fees, essentially a COD reduction.

 

Yes that is the case, you lose all the money you paid. I used to pay for leases up front. Then my friends convinced me not to, because what if you car gets stolen, etc. Finally I didn't and my M3 was stolen. They saved me a lot of money.

You're also out the payments if you car is totaled in an accident.

 

You are incorrect-unless of course you have a horrible insurance policy. Talk to your insurance company, not your friends who might not understand auto insurance.

They pay for the current market value on a one pay lease just as if you paid cash for the car or financed it. You get difference between market value and lease payoff. So you basically take the hit for the depreciation on the vehicle, not your entire up front payment.

Not that I can guarantee that this website is the be all, end all, but it does agree with what I stated above and what my insurance company told me (the insurance company reimburses for market value and you are in the same situation as if you had paid cash for the car or financed the car).

http://www.leaseguide.com/sn/prepaid-lease.htm

 

Depending on the money factor discont, prepay can be a good deal. Check with your insurance company regarding consequences of stolen car, damage etc on a prepay.

 

When my 2003 M3 was stolen (back in 2003) Market Value was more than I owed on the car. I pocketed the difference.

Typically you owe more on your remaining lease payments + residual value that the car's Market Value. That is what gap insurance is for, it insures the GAP between what you owe and what the car is worth. If you pay for the lease up front in full, you probably don't have gap insurance and you will lose the difference.

To the OP, if you want to use your Home Equity, don't lease the car because you are paying interest on the lease plus interest on your home equity. Use the home equity to buy the car in full. You will have a bigger interest deduction and you can keep the car as long as you want and put as many miles on it as you want. You will also have title to the car so you can sell it or trade it whenever you want, just make sure to pay your home equity in full when you sell the car

 

If you are expecting to pay full MSRP - 3k you are not doing your homework well enough Just out of curiosity did you even try to negotiate when the sales guy said 3k off? Just an fyi ppl are getting 5-9% off MSRP.

 

Guys, thanks for all your help. I went to a few dealers and they started competing with each other. I closed on a deal. The MSRP is 115,030. 27m lease with tax in the payment, 7500 miles per year for $1,359 per month. I built an excel calculator (very simple) and it looks like 8.25% off msrp, .0020 MF and 75% residual. Keep in mind NY tax is 8.875%. What do you guys think? This has the sports package on it. I love the tail, but now I'm a but worried that it might be a bit low to the ground for NY driving.