Porsche is offering me a .0036 cost of money rate, what would the difference be, expressed as an interest rate between this and .0032?

I have a 800+ credit rating and liquid assets for a fleet of their cars, so risk is not at issue here.

 

just multiple the money factor by 24 to get the interest rate implicit in the lease. the "money factor" is a bs term the auto dealers made up to conceal the interest rate in the lease. A .0036 money factor would equate to 8.64% versus 7.68% (money factor of .0032).

 

Thanks, that was easy. I think I'll look for an alternative to the dealer, that is if my car ever arrives...it's 45+ days late at this point.

 

you're welcome. my experience has been that you can find cheaper money (money factor) but Porsche Financial's residuals are usually better for whatever reason. good luck and I hope it arrives soon.

 

This is negotiable. My dealer originally offered me .0037 and I was able to get the .0032. They are making money on the difference. My advise is to insist on the money factor before you order the car(which I did not), and if they are not willing, look for another dealer.

 

I cannot say enough good about leasecompare.com. Check them out as Porsche quoted me a similar rate but i locked in at .0017 through an independent financial firm. The residual was not as high but the interest rate being cut in half offset that. Worse case scenario at least demand your money factor at the buy rate. At least then you will not be getting so rapped. PM me if you have any other ?'s. Good luck.

 

Remember that the finance guy is usually paid 25-50% of the overage (difference between market rates and what you pay). They are negotiating this just like the price of the car.

 

Exacty, this is a big reason why I have not leased to date, I really dislike the whole leasing process.

 

Have you run this lately? I just did and got a high, .0037 rate and a vey low residual on 36/12000, in contrast the delarship blows this away.

 

The website is area specific. Maybe there were better deals in Ohio at the time. I guess the right place the right time though it was only a month ago. Like i said before worse you can do is go in the finance forum and find out Porsche's buy rate and demand that. Tell them otherwise you do not want the car. Or rationalize it with the finance guy and ask him if he would sell the car for cash. Guarantee he will say yes, so at least he is making something by you leasing at the buy rate.

 

Yes, this is my intent, if I don't get the .0032 I'll go elsewhere or just pay cash like always.