I understand that Porsche leasing is not usually a good idea. You're paying to rent a car and have no equity at the end of the term. However, what's so bad about leasing a new 997 now for two years, pre-paying the lease to reduce finance costs, and then, two years on, choosing to give the car back or buy it outright?

Given the impending 991, wouldn't this give you something of an insurance policy (given it's unknown how the 991 will affect 997 resale values)?

If resale values hold up you could buy the car outright at the end of the lease, if they don't, you walk away not having taken the same hit had you bought the car two years earlier.

 

I usually prefer to buy, but in the case of my GTS I leased as I'm unsure how the value will hold up once the 991 is launched. My lease is expected to end about 12-16 months after the launch, so by then the impact to 997 values should have stablized. Only time will tell!

 

leasing? it depends on individual situation too. Companies do lease for their employees. I am also looking for a lease just because I may have to leave USA after two/3 years so it is good option for me to avoid selling hassles...
Re: 991... i have also same concern, but I should not care much as I will be leasing, not buying. But I wonder whether the price for 997.2 will be dropped sooner in next 4 months?

 

Leasing makes most sense if you have reason to believe that:
- the value of a car will drop more than ususal
- there may be something about the car that would make it unusually hard to sell.

...could be a change in models, this year/model may have a bad reputation for reliability (could be the first year of a new design), build quality is spotty (e.g., Range Rover)....so you are willing to pay for a long term test of an individual car before purchase..., etc.

For the most part, leasing always costs more, places greater limitations on how you use the car and no longer has any of the tax advantages which originally made it popular.

Yet, if you don't have much money, it can put you on the road with a dependable car when you couldn't otherwise afford one (e.g., young person with a new job that demands a nice car, but you don't have the cash to pony up for one).

 

Leasing greatly depends on personal circumstance (helps if you can write it off for business purposes, etc.) as well as tax implications. Some states (like TX) charge sales tax on the entire capitalized cost of the vehicle, not just the "use" portion. Others, like PA, only charge sales tax on the "use" portion but at a higher rate - std sales tax rate plus and addl 3% (so it could be either 6 or 7% depending on county - a 50% sales tax premium). So, make sure you understand all the lease jargon and #s before you sign on.

Good luck

 

First of all, pre-paying a lease is a bad idea. If you total the car on your way home from the dealership, your insurance pays off the leasing company and you're out all the money you just paid. Never put any money down on a lease.
I've gone back and forth on leasing vs buying many times. If you want to drive a new car every 2-3 years, leasing can be a good way to go. You don't have to worry about resale value, won't take a financial hit if you are in an accident and don't have to worry about trying to sell an expensive used car yourself. You always have a car under warranty, maintainence costs are minimal.
Leasing is more expensive than buying (new or used) and holding cars for long periods of time. I look at it as paying extra for the option to just walk away after 3 years without having to deal with selling or trading a used car.
The key to good deals on leases is to know your numbers. Negotiating a discount from MSRP is key, know the buy rates and residuals ahead of time and the MRM. MRM is the max MSRP you can use to calculate residual. With so many options available for Porsches, it's not hard to reach.
Often times leases are subsidized by the manufacturer and you can get some good deals. The residuals aren't great for Porsches (compared to BMW for example), but there are good MF's out there now.

 

Let's ask the question a bit differently. Would it be a good idea to walk into Hertz (or Avis, National, etc.) and say 'I really like that car, can I rent it for a couple years?'

Now, replace Hertz with Porsche and rent with lease. Good idea or not?

Here's a better idea - join one of those car clubs that have a big garage full of exotics. You can get a different car every week if desired. And still have nothing to show for it at the end of two years but a huge smile!

 

x2. This poster is spot on.

 

If Hertz (or Avis, National, etc.) rented Porsches in a cost effective manner then yes, why not? I don't keep cars longer than 3 years so whether I buy, lease, rent I'm still effectively renting the car as I'll be selling it for less than I paid for it 2-3 years earlier.

If you're not going to mod the car, and you don't keep it past 3 years, what's the difference (assuming like for like financials)? Whenever you sell a car, you usually realize a loss - that's the cost of ownership regardless of leasing or buying.

I too would rather buy, but given the uncertainty I was simply asking in *this* circumstance, does it make some sense to lease.

 

Everyone against leasing always says, "why would you pay $x for 3 years and then have nothing to show for it?". Well, unless you are buying a collectible car that you think will hold value (and not put many miles on it), you are always paying for depreciation. If you pay cash, yes, there are no financing charges, but you could have done something else with that money. You could invest it, or buy an appreciating asset (like a house, at least before the housing crisis). Any way you look at it, it costs money to drive a car.
I don't have the time or patience to deal with selling an expensive used car and I know if I trade it in to a dealer, they will beat you up on trade value and probably make more money than on a new car. My current car was hit by someone, between that and the now known reliability issues (BMW 335i), the trade in values are in the tank. Luckily I purchased with a balloon financing deal with guaranteed buy back, so I can just walk away in July when my Porsche arrives. My residual is $26k and I'd be lucky to get $20k in trade.

 

saeyedoc -

I think you get my point - I feel the same way. We generally will pay for convenience, and while leasing can be less cost effective, it can also be more convenient.

 

I had a friend choose to lease a car recently. He decided to do so because the deals were so smoking to lease. He picked up a G37 for about $327 a month with only about 500 out of pocket at the signing (other than first payment). This was for 12k miles a year for 35mo. The same car in a buying sitaution was going to be about 617 a mo. on a 60 mo loan. Which one would you choose? I was a buy only type of person until I saw this. Leasing is a situation driven choice, but it may make sense. Just be careful because the dealers salivate at uneducated leasees- there is a tremendous amount of money to be taken from a fool.

 

Depends which is more important to you, total cost of ownership or monthly payments.

 

Either way, that lease deal is a no brainer.

 

Not enough detail to say either way and definitely not if you want to keep the car at the end of the lease.

LEASE - If you enjoy driving a new car every two or three years, want lower monthly payments, like having a car that has the latest safety features and is always under warranty, don't like trading and selling used cars, don't care about building ownership equity, have a stable predictable lifestyle, drive an average number of miles, properly maintain your cars, are willing to pay more over the long haul to get these benefits, and understand how leasing works, then you should lease.

BUY - If you don't mind higher monthly payments at first, like holding on to your cars, prefer to build up some trade-in or resale value (equity), enjoy the idea of having ownership of your car, like paying off your loan and being payment-free for a while, don't mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars, might have lifestyle or job changes in the near future, and don't like the risk of possible lease-end charges — then you should buy.