Just be prepared to show how it's a business expense if you get into an audit.

 

Also, one thing you said is incongruent: if residuals are lower on Targas, then that makes the depreciation greater, and ends up increasing the lease payment. I experienced the exact opposite.

It does look like the base Carrera has a higher residual than the Targa:

2009 911 Carrera Coupe – 12/08
24 Month – Residual 68% of MSRP – .00280 Base Rate
36 Month – Residual 59% of MSRP – .00280 Base Rate
48 Month – Residual 53% of MSRP – .00280 Base Rate
60 Month – Residual 46% of MSRP – .00280 Base Rate


The official Targa residual at 36 months is 51% - wow.

 

I beg to differ with anyone who judges or calculates lease rates based on residual alone is missing a key component. Money factor is the most important component and I will bet you one months car payment no dealer would offer you that MF on a Turbo
Now if it was pink maybe
All kidding aside your payment was a direct result of trunk money, a cheap money factor and a willing and able dealer. The truth is there is no such thing as a residual value anymore and day one depreciation is 30%, so your deal is very good. I would take it to be able to walk away.

 

Its not a huge savings and the Audit risks aren't worth the headaches.
2 big red flags for the IRS, 1) home office 2) car's
If you make the money you need to in order to drive one of these cars, I would need someone to demonstrate the incredible tax savings. If RSM can't show me, then I need to use who ever you guys are.

 

Hey Canon, for what it's worth, here's my (long-winded) philosophy, which may sound somewhat counterintuitive -- all in the context that Porsche now provides some great lease and financing rates (3.5% I think):

1. If buying it with cash would NEVER pose a financial problem in your life AND you are NOT sure if you want to keep the car for at least 3 years, then FINANCE it at a low rate. You should never tie up money in a depreciating asset. I don’t care how rich you are, you should only buy it in cash if very low financing is not offered, because you should reasonably be able to do better than 3.5% by investing it (whether in your business, markets, etc. – and I don’t mean hand it over to an incompetent “money manager” who barely went to college and learned some stupid asset allocation formula).
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2. If you CANNOT afford to buy it with cash yet but you can EASILY afford the payments AND you are absolutely sure you would keep the car for at least 3 years, then LEASE it. The only difference between leasing and buying in this case is that buying will put more debt on your personal balance sheet. Today, you can lease these cars and then buy it out at the end of the lease (if you still want it) for less than the MSRP since they are discounting the cars so much. By leasing, you can also beat the crap out of the car with no sentimental worries. You will lose at least as much as the lease if you were to buy it (whether cash or financed) given the state of the world economy and the number of 997s on eBay.
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3. If the payments worry you at all, then just don’t get the car. This world is not a good place right now and you don’t really need the car.
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4. Even if you CAN afford to buy it in cash, if you would be happy keeping it as a daily driver for at least 3 years, I would recommend a LEASE given the current low lease rates – it provides the peace of mind and an emotional detachment that allows you to get more carefree use out of it. There is nothing wrong with leasing it – if you knew that your house would never appreciate in value, would you buy or rent? I would gladly rent (pay for the usage I require) and let someone else worry about the value of the asset. Most of us bought homes 1) because we thought they would appreciate, 2) because the house you wanted was not available as a rental, or 3) because we need to live somewhere long-term.
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5. If 1) you can afford it, 2) you are philosophically against debt, and 3) you like buying things for long-term sentimental value and passing it on to your kids, then just pay cash and be done with it. But this is not a financial decision but a deliberate decision to pay for something based on your personal values. How cool would it be for your kid to inherit a totally babied 997TT 20 years from now? That’s PRICELESS.
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In my specific case, #5 applied to my 09 997TT (plus super-low financing was not being offered at the time), and #4 applied to my 09 CTTS because I got 20% off MSRP and I didn’t need to own something my 1-year old would crap and throw up all over (and I could always buy it out at the end of the lease if it doesn’t stink of baby crap-puke). Also, if you are married, always LEASE your spouse’s vehicle because she WILL damage it.
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Good luck and congrats in advance.

 

lol, very good and I agree.
In my case: 1st Porsche, will keep for maybe 3 years, wife will drive it, lease rate was low, we are going to put some miles on it, I have no knowledge or experience with resale on these cars. This add up to a lease.

and...and...their is a fleet of 997's available on ebay right this moment.

The only place I differ from your philosophical assumptions is that instead of baby poop, I am at risk for my kids' 17 year old prom date throwing up in the car.

 

I agree - to me if it's not legit I'm not going try .. but that's just me.

 

There is a silver lining in this market, the residual values are going to go up due to the lack of production. If the production is caught off guard with an economy on the up tick, we will all be sitting a little better then the current values. FWIW, the PCars are still holding fairly well compared to the competition.
You'll notice guys drive these cars forever, and there are always old Pcars on the road ( not the case with other OEM's, they get sent to the crusher).
Drive it till the wheels fall off, and it makes no difference what its worth.
In 3 years when you are a bit tired of your Targa, just super charge it and you'll add at least 18 months of joy back to your life.

Question?
Where are you guys finding 3.5% from Porsche? I checked again and 6% is the best they can do.

 

Denver

My dealer informed me there was an incentivised lease rate around 3.5%, that, until Weds, was limited to the base Carrera. Apparently, on Weds the rate was approved for Targa and Turbo. Regardless of "what is available", in my experience every component of a lease is negotiable including sale price, MSRP, residual value, miles, mileage charge, and money factor.

 

 

I can ask my sales guy again on Monday when the low rate ends - my lease rate was .00146 - I think it was a short term thing they extended to the turbo models, which usually don't have incentives but now do given the economy.

I'm 100% certain the rate was 3.x% because a few days before I got my CTTS (2 days ago), another customer who had financed his CTTS a few days prior stopped by because my sales guy CALLED HIM BACK to redo the contract for him at the lower rate to save $200 per month! The problem with this for me personally was that I probably would have been happy getting the GTS or standard Turbo before this customer gave me a tour of his black CTTS that day.

That's why I would never go to a different dealership or salesperson. PM me if you want an intro.

 

All I will say is that if this is true there would be 0 Turbo's sitting in inventory being floorplanned across this country. Obviously, something isn't right. Either, Porsche pulled this within the last week to help move some iron, and our cars are worth about 45K. Or its just not true and there is a bunch of stuff that is being withheld just for the sake of argument. I am going to lean on the later, since there are tons of 09's still sitting at dealers

 

My rate was either .0016 or .0019, not .00146.

 

Throw up may be the least of your worries...

 

JZRS4, I'm really not kidding and have no reason to lie - just trying to be helpful here. If you're interested, call Marc at Town Porsche (Englewood, NJ) - 201-227-6545. He said they could do this thru tomorrow when I told him a friend was asking. It may also have to do with whether the dealership is a Porsche "Premier Dealer" - he'll take care of you - tell him Parkmonster sent you.