At least, that is what I was told by my salesman and FI Manager at my Dealership today.

My '07 997TT should arrive in Georgia in a few days, and at my dealers lot by next week. Today, I stopped by to make arrangements for the lease. While I don't plan on walking away from my lease early, I found the 'sales pitch' interesting and was curious about the validity of what I was told.

I was told that Porsche Financial is the only lender that allows you to walk away from your lease at any time ... 'only' being responsible for paying the difference between the total Cap Cost and the Value of the car at the time you actually walk away from the lease (in other words, the remaining depreciation?). I think I remember that with other typical Lenders/Manufactuers leases, if you wanted out early, you would be responsible for the entire remaining balance of your lease PLUS an Early Termination Fee (which together would likely be much more expensive than Porsche's option of just paying for the remaining depreciation).

Also was told that Porsche Finance is the only finance company that applies 60% of every lease payment to depreciation - and my salesman reasoned that if I wanted to get out of the car for any reason, say in 18-months from now, I would come out better than with any other lender under any other lease. I'm fairly knowledgeable regarding leases ... just never heard of these 'lease options' before.

I was also quoted an extremely high Money Factor rate (.0038). I have a Mid-700 credit score with no blemishes in my credit file.

I will be advising the FI manager tomorrow that since I'm being charged retail for the car; paying all the bank/doc/misc. fees (bank fee alone is $1900) ... I will only take the buy rate of .0032 or I will walk on the car.

Thoughts?

 

Good job on demanding the .0032.

As for their pitch, make sure you get guidelines for the value through the lease. Don't want to walk away at 1 year and having them claim it's worth 70% already. Otherwise, sounds like a legit deal! Congrats on your order.

 

Thanks Wyatt - but I haven't gotten the .0032 yet, but will demand it first thing in the morning.

I tried to get the 'method of valuation' upon lease surrender in writing - no such luck. I did, however nail my salesperson down to 'market value' - and with a little more digging, I got him to admit that the 'market' was the wholesale dealer market - not street value.

 

Which dealership? Henessey or Jim Ellis? What color is your car? I would demand the base rate, currently .0032.

 

Bank fee of $1900? Is that normal? That is PURE profit for them.

Are you a member of a credit union? If not, become one. They typically offer great lease rate factors and no junk fees. Mine even has a car buying service that gets a MUCH better price than you can get on most vehicles. I dont think they could do much on the price on a 997TT though. Even a bank that offers leases will not have those kind of fees. Since you are paying retail, I dont see any reason why you need to finance through them too. Look into other financing options.

 

Braman, West Palm Beach, FL; White/tip (on the boat today, arrives in Georgia tomorrow, at my dealer Monday or Tuesday of next week.

I will demand the rate now - thanks for your help.

Is there any official posting of the rate I can reference, print out, and take to my dealer tomorrow?

 

I know the bank fee is ridiculous - was told it was up to PFS, not the dealer what that number is.

Have looked into credit unions - all the CU's I have looked at were recommended in posts here and on other forums, but they either require me to be a member of a company or group that I am not a member of, or can't join or affiliate with in 5-days (which is when I take delivery) ... OR don't do loans/leases for more than $100K, ... OR just plain don't do leases.

ANY help you could be to a fellow 'Jersey boy' (grew up in Monmouth County) finding a Credit Union that has the decent money factors AND would be easy to open up an account with ... would be greatly appreciated!!!

I will be calling the FI manager tomorrow and inform her that I will not be buying/leasing the car UNLESS the money factor is changed to the buy-rate.

I ordered this car months ago, and really want to take delivery, but there are many other TT's on the ground without owners around the country ... and I'm sure I'll find one that offers a decent rate.

Regards.

 

you are right-pentagon federal credit union limits you to 100k. there are various posts online regarding the correct money factor. if you look at this board's listing under the finance and leasing section, you will find a posting of the current money factor-.0032. i have been in braman many times-they will push the market value of a car or financing package to it's max. i am not saying anything bad about them, but if they can get over market for a car, they will. until jan or so, anytime that i got a quote on a turbo from them, it was always 13k above list. that is why you are probably getting the high money factor quotes from them. you are right-there are cars on the ground now. you can get a few thousand off the msrp now, and there is absolutely no reason to pay them a premium on the lease/finance rate.

 

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Don't forget to read the contract you sign - have the salesman or finance manager point out the specific language that contains the "walk away" provision. You'll love the car!!

 

Another thing, is ask if your dealer has any unused tax credits he can give you. That's a big chunk of change on a $130K car.

 

<TABLE class=tborder cellSpacing=0 cellPadding=4 width="100%" align=center border=0><TBODY><TR vAlign=top><TD class=alt1>you are learning-when you initially ordered the car, you should have put on the contract that you were going to lease it at the prevailing rates for porsche financial. if it was me, i would buy it at the lowest interest rate that you can get, and take the $1500 off. if you must lease, then figure out how much extra that you are paying per month for the increased money factor, multiply it by the months or term of your lease, and make a value decision as to whether the $1500 off the msrp makes it up enough for you. i can tell you that a standard deal on a turbo now would be a few grand off and financing at prevailing rates. are they screwing you a bit-yeah, a bit, but they are a south florida porsche dealer and they are used to pushing the market and making their customers pay dearly. if you were buying it in nj, you would do alot better. you have to work with what you got. i would ask him why they cannot give you the porsche financial rates, why do they have to put it to you. if it were me, i would take the $1500 off and finance it over 60 months at the best interest rate i could find and tell them that they are not going to make a bonus on a lease with me.
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Bank fee!?!?! I may be wrong but my understanding is that the dealership has to pay the bank fee if there is one and the customer legally cannot pay it. The only time there is a bank fee that high is usually with a credit situation. Still I dont belive they can legally charge you a bank fee!!! I work at Porsche of Orlando in case you were wondering who the heck I was.

 

Ok, just talked to my F&I manager. FACT - PFS charges an aquisiotion fee of $745. If there is an additional dealer fee thats different. But no matter what your leasing through Porsche theres only a $745 aquisition fee. Our dealer fee in Orlando is $599. It dosent make any sense to me?!?!