+ in the lease there is $895 acquisition & $350 disposal fees. AKA "Porsche Tax"

(maybe you have those in there somewhere?)

 

I do, Tags and Fees includes those. $1549 in extra costs.

 

Finance rarely has any inception fees if a dealer deal & of course no disposal costs.

2-2.5% (or less) is the norm in todays market.

Good job in doing the comparo.

 

Thanks. This is great analysis.

A few things I would note:
1) As HotHonda says take out the lease inception and termination fees from the finance option - should be no fees except maybe $150 autotrader listing fee.
2) If buying, you have the option of buying a low mileage used 2013. So I would buy a 2013 low miles C4S instead of a 2014 C4 for $100k. This may then have a higher resale 2 years later because it has year 2 and 3 depr rates vs year 1 and 2 rates. Would be interesting to plug that in the model.

In other words, you are showing Porsche's leases on new cars are very competitive but the question is how competitive are they vs. buying a nearly new 2013 on PFS loan?

 

Stelth, also, according to PFS, both the 4s and the S have lower residuals than the C2 models. While picking up my car yesterday, I inquired about the S and 4S models they had and they were both 4% lower in residual for 24 months. Again, I'm assuming the residuals that are provided. We can make all kinds of assumptions that in reality the S and 4 residuals are higher, but that just adds to my argument that leasing gives you the option to buy if the residuals are higher and to dispose of it if otherwise. It's a free put option in stock options terms

 

Agreed with the theory of your analysis. Obviously each person's situation is differing, and each state handles sales tax & annual registration differently. This can cause much different outcomes.

So in addition to the free option (really a call vs. put), there can be other benefits, for instance "pull ahead". If you a lease a 991 and don't like it, or crave for different option pack or different roof (cab vs coupe) you may be able walk away from 12 months payments if you move into another 911, or Pcar. If you buy w/ financing and want to bail after 12 months, PFS won't help, and dealers help will be limited to paying wholesale. Clearly you can "try" to sell private, which may or may not work.

If the residual is too high, walk and let PFS eat the loss. If the residual is too low, buy the car. Nice to have options (and hang on to my 100k in cash...).

 

The challenge for me is optimizing the time you spend on the depreciation curve. I don't want to own any car for too long because it gets outdated.

My last m5 for instance I bought it and sold it within 16 months for 12k less, and then this is on a car with a $112,700k sticker. The reason that was so good was because of the ED Invoice pricing which I got due to my dealer relationship. Given the MSRP a 36 month lease would have been around $1700-1800 a month, vs. $900 a month for the time I was on the depreciation curve.

My sense with the 911 is that from your numbers a lease is best on a new one for 24 months.

However I wonder if there may be some other plays:
1) Can I get a 2013 for 25% off as a used car? Maybe not as CPO but maybe if I buy at auction? 12-24 months later that might be a great deal - especially since I want a C4S not a C2.
2) If the 12 month old cars are really going for 17% of msrp, would I be better off getting a new one for 7% off and selling it privately after twelve months for 17% off and incurring a 10% loss ($12-13k vs. >$36k for a 24 month lease)?

Oh also I have no sales tax.

 

So are you saying "gap" insurance is not worth it due to the likelihood of an accident requiring significant repairs is not as likely? I see your point but $150 is enough for the piece of mind especially for minor track or street hiccups. What do you think? As a rule I always get it on my deals.

 

Greg,

Can't send PM's yet but can you send the file over to my email. AceofSpades25@gmail.com I'm working on a deal right now on a C2S. Thank you!

 

Keep in mind guys, gap insurance is already included with a PFS lease. For those of you who don't think you can build equity with a lease are mistaken. It depends on the vehicle and the market in which you sell. I sold my 2011 M3 for $49K when the buyout was $40k at the end of the lease. If my replacement 2013 M3 didn't arrive early I could have sold it for $51-52K but I needed a quick sale. Of course BMW wanted me to walk away from the lease, hell the dealer offered me $45.5k for a trade in. This is a car in which my drive off cash was only $1500 and this included the first month payment.

My 2007 C2S was not as good, in fact its the only lease I didn't make any money back on the sale of the car, barely broke even. This had more to do with the timing on when I sold the car near the lease end then the lease itself as the market was soft. Wouldn't you know it 6 mos. later the market firmed up and I would have walked away with some cash.

Dave

 

How did you handle the tax and tags? You paid them to purchase the M3 at the end of your lease or somehow the new buyer (@$49K) paid them? I'm not sure how you can 'flip' a lease if you have equity at the end of the term in CA and not pay the tax in order to take possession of the car from the leasing company. Can you explain?

Thanks in advance.

 

I sold the car by having the buyer cut 2 cashier checks, one to BMWFS with the payoff, and me for the overage. He receives title and registers the car and pays the sales tax at DMV. I have done this now on 3 BMW M3s as well as my 997S. Its basically the same as if you traded in the car. The dealer takes possession before he ever gets title from the financial company. The dealer is exempt obviously for the sales tax. In case of a private buyer he pays the sales tax upon registering the car.

Dave

 

Brilliant!!!!!!!!!!!!!

 

Thanks for the explanation. I always wondered how to manager the tax situation.

 

Brand new to 6 speed online.... Jumping in on lease v buy

I was ready to pay cash but my fin advisor recommended lease And he negotiated it for me. Reasons were tax savings, ability to get 7% fairly easily on money, slight risk that a 997.1 problem may appear(accelerating depreciation) and physical limitation that in next few yrs may not allow me to drive, at least not a low to ground vehicle like the 991

Details
Msrp 122k
MRM 119k
Discount 6%
27 mos
MF .0019
Residual 70.5%
Monthly 1550 not inc ca tax

Seems like a good deal - have never leased before - sales guy comment after running my credit was 'you must not like debt'

For those that advocated waiting 2 yrs and buy a depreciated 991 - my FA advised same but felt above was good enough to get me into a 14 now