Ok first tell salesman you want to sign but want a better price (adj cap cost). Your goal is 8% off msrp, but I would initially ask for 10% off msrp. When he disagrees you can back off to 8% bringing your adj cap cost to 97,000. But don't offer 97k right away.

Second tell him you know he's inflating the MF and you want base MF of .0020.

Third tell him you don't want to put money down just want to pay first month, taxes, license, and doc fees.

That should put your monthly around $1415 with $3600 due at signing.

If he disagrees walk out and email the next three closest dealer with this same offer and see who bites. Have lunch and be ready for first guy to call you back. Hopefully you have the car by dinner time.

Good luck.

 

You rock man, thanks !!! If it works, I owe you a beer

 

I agree totally. I doubt you're getting 10% and even 8% will be an accomplishment, but you have to try. Good call out on the interest rate. In Canada, a 1 - 3 year rate is 4.9%, you dealer is asking 5.8% and things are usually less expensive (car, lease rate, etc. in the US). Be patient and a better deal will come your way. Let us know how it works out.

 

Thanks for the feedback everyone !

I was able to get 7% off msrp and a killer deal on terms which were MUCH better than I originally had when I posted here.

I officially owe a beer to anyone who cares to claim it

 

Congrats that's great!! I would take the beer except I'm all the way down here in orange county haha. But I would love to see pics of your new car.

 

+1 re: pictures

 

For sure guys ! I pick her up next week and pics soon to follow :-)

 

Beer claimed. I enjoy something crisp and refreshing this time of year.

 

Seems like an awfully high payment for a base model. $45k to drive a base for two years? Yikes

 

He said he ended up with a better deal in the end, probably somewhere in the upper $30Ks to drive a 911 for two years total cost. That is just what it costs to run these cars, period. How is this any different if you buy the car outright, run it for two years and then the car is only worth $68-70K real money on a trade or private sale? Granted, you can avoid some interest charges this way but these cars are expensive and they lose value hard in the first 36 months whether you lease or buy. A lot of you buyers get down on the leasers when the deals is put down in black and white but you are all in the same boat. First year depreciation on the 911 range is around 20%, the second year is around 15% more, third year about the same and then it goes down about 10% for year 4.

the997dude, don't get down. You made the decision to lease for your own set of reasons and got a good deal. Enjoy your car in good health. I enjoy the hell out of my leased Carrera and will drive it 15,000 miles each year. The "pay cash" crowd can fret about resale value and keep the car hidden in the garage and worry about every mile they put on it. That's not for me.

 

When I order in September, I'll wait to see what the interest rates and residuals are before deciding whether to lease or purchase on delivery. It also depends on how long you intend to hold the car. If it is beyond 3 years, probably best to buy. The advantage to leasing is that you know up front what the car will cost you over the term and you don't have the hassle of selling it. Plus in some states, I understand that you pay the state tax on the whole value of the car either way, so that is a consideration. In my jurisdiction we pay that tax based on the monthly lease payment amount. Finally there is the issue of tying up money. If you can make better than 5% on your money, why tie it up on a car when you can lease at 4.9%?

As posted above, these cars are expensive to own (from a depreciation point of view). In Canada in this quarter, a 991.2 C2 will depreciate 40% over a 3 year term (60 - 61% residual). So on a $125,000 build, it will cost around $48,000 over 36 months. The dealer says I'll likely be in a an equity position at that point which they will either roll into a new lease or write me a cheque back for the difference when I lease/buy the next car. I guess we'll see.

Currently, used cars in my market that are 3 years old are selling on the lots for about 30% off their original MSRP, so, "beating the residual" in most cases. They sell out of province to larger cities where a 3 year old car would have 40,000 miles on them and in our market, more like 18,000 miles. That helps reduce the $48,000 cost to around $40,000.

 

Thanks combatninja ! You are spot on and that was my logic as well :-)

 

I agree with your post on most counts except for that part about a 3 year-old 911 "beating the residual" because it is selling for 30% off its original MSRP. That is dealer retail (most likely Certified Pre Owned). That car is going to run through the dealer's shop and probably come out with a $1000 tab for tires or brakes or cosmetic work, it has to be reconditioned in their cleanup shop, the CPO warranty has to factored into the price and then of course there is the fact that the dealer is a business and has to turn a profit. For example, when they buy your $70,000 911 on trade, they are not using their money, a bank loans it to them and they have to pay interest. So if they trade it and it takes 90 days to get resold, that car cost them close to $1000 in interest alone. The guy trying to trade his car to the dealer is not going to get anywhere near that. In fact, he is going to get a price that is more like 40% off, which is in line with the residuals that PFS puts on a 3-year/36K lease.

 

And, if they have an accident, they have to get into the diminished value argument with their insurance company. The Leasee just returns the repaired car to the dealer with no financial impact. Takes a bit of the worry out of it, don't you think?

 

My dealer has had 2 cars on his lot in the past month. The first was a white 2012 C2S coupe with an original MSRP of $135,000+ and it had 20,000 kms (12,000 miles) on it and it sold to a Toronto customer - asking price was $100,000.00. The second was a 2015 C2 base coupe with 8,000 (4,800 miles) kms on it, an original MSRP of $116,900, asking $106,900. That car sold in less than a week to a Vancouver Canada buyer. I don't know what the final selling prices were, but this dealer is very tight (max 2% discount on a new car) so I'm betting he came close to his asking.

Of course, that is the story today with sold out allocations for the year in Canada, combined with the introduction of a 991.2 model and an exchange rate of $1USD = $1.32 CAD, stemming the flow of used Porsches coming into Canada. Who knows what the story will be 2 years down the road.

So I asked the dealer how he can ask such high prices when the 4 year old C2S would have a off lease residual of around 53% (after 4 years). Does he buy the car from PCNA for that residual ($71,000) and then make $30,000 on the car, minus reconditioning costs? It seemed to me that if they can get those numbers on used cars, PCNA has the Canadian residuals too low on the cars.

The dealer says that the cars have been holding their value, especially in our local market because with our winter weather cars are mostly driven in the summer and have low miles at the end of 3 years - people from large markets will pay a premium for a low mileage car.

The dealer says he will given me a trade value based on what he thinks he can sell the car for, less his reconditioning (CPO) costs and a reasonable profit. The balance (he terms it my "equity") would be applied to reduce the payment on the next car I lease from them or to reduce the purchase price if I am buying. Of course, if I have a buyer, I can purchase the car out at lease end (CPO) and sell it to my buyer, take the cash and walk back into the dealer and buy/lease a new one.