Curious to know if anybody has used Porsche Options to finance their car. Based on my understanding, it's kind of a hybrid between a lease and an outright loan. Like a lease, you are only charged interest on amount between the purchase price and the residual value. However, (unfortunately) it mimics a loan in the sense that you have to pay the sales tax up front on the full purchase price of th vehicle, AND you are given full title of the vehicle. At the end of the term, you return the car for a pre-agreed value, like a closed-end lease.

The reason I'm bringing this up is because I live in NY state, and therefore am severly restricted in my leasing options due to the "vicarious liability" issue. The few companies that do offer leasing - Putnam, for one - offers open-ended leases, which I am not comfortable with.

Financing is the other route to go, but if I can minimize the monthly payment, whilst have the option of a full-buyout at the end of the term, maybe this a sensible alternative to consider.

Would love to hear any pro/con experiences.

I attach a link to the Porsche Options website:

http://www2.us.porsche.com/english/u...al/options.htm

Thx in advance.

 

What protects Porsche if you have full title to the car after only paying sales tax and inception? Just curious....This NY law is a real pain in the ***...

 

Good question, and one that I don't know the answer to as yet. I assume that while you hold they title, they can still have a lien against you, and reposses if necessary.

As for NY law, don't even get me started!!

 

didn't even know it existed.
good to know for future purchase.

Raja

 

This us your basic automobile ( balloon loan ) all the term end options of a lease- yes you pay the tax up front. Its porsche's
program of getting out of vicarious liability.
Lease = money factor
Balloon = interest rate
any questions PM me

 

can u do that on a CPO car from the dealer?

Raja

 

yes

 

Thanks porschegm. You obviously seem knowledgeable. Can you highlight:

- Prepayment fees?
- Downpayment required? If so, minimum %?
- Confirmation that this is structured as a closed-end option, so residual is known?
- What residual %'s are for a 36 mth, 48 mth, and 60 mth trade?
- APPROXIMATE money factors for the same periods?

What is a CPO car guys??

 

Oh, also, what about Marc's question:

 

sounds like any other balloon finance.

 

Think you're probably right Moogle - just never having financed before, am curious as to the terms and conditions of this program.

 

What protects Porsche if you have full title to the car after only paying sales tax and inception? Just curious....This NY law is a real pain in the ***...


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Porsche is the lein holder just like any conventional loan

 

sounds like any other balloon finance.


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Yes it is

 

- Prepayment fees?
- Downpayment required? If so, minimum %?
- Confirmation that this is structured as a closed-end option, so residual is known?
- What residual %'s are for a 36 mth, 48 mth, and 60 mth trade?
- APPROXIMATE money factors for the same periods?

What is a CPO car guys??
Pre payment fees: None needed - you can roll tax-title-license etc into the balloon if you wish ) there is an aquisition fee.

Money down requirement: depends on your credit

Residual is known: if it is a CPO then a dollar figure is used
if it is new than a % of MSRP is used

As far as %'s and rates I dont know any more - Left the retail industry back in june: ( Let me know if you need these, I will be happy to make some calls for you)

CPO = Cetified Pre Owned

-Jamie

 

Thanks very much Jamie. Sent you a PM with my nums - give me a call when you get a chance.