GreenLantern

Residual is set by the finance company. Can't tweak, unfortunately.

Dalema

I would threaten to walk away. That discount off MSRP is way too low, and now with the GTS just being announced - you may find much better value - try building one with your spec - you may get find you get a much better car for the money.

You may be surprised - mention GTS and they will probably want to negotiate.

AND - they are ripping you off on the MF still!

Additionally - do the math on extra miles (at 0.30 cent per mile) and you would go with 5K miles all day long. In your example the lease pmt differential over the 24 month lease is $1,750 vs the $750 you would pay for the extra miles above 5,000.

Oh - and you should never put money down on a lease car.

MJBird993

The OP did not bother to fill out his or her profile, so we don't know what market they are in. Maybe 2.5% is the best that they can do. My dealer will try for a 0% discount, and often gets it. If the deal is done, there's nothing that they can do (except walk away). Rather than make them feel bad (badly?) about the deal, maybe you could have phrased that better?

Otherwise, your advice is spot-on.
Again, we don't know the circumstances - maybe they have bad credit?
I concur.

Dalema

Agree - no intention to make anyone feel bad - main point was with the GTS out the dealer may be more willing to deal (and 2.5% does seem very low). I do think that when buying a new car people should really consider going outside of their local area if the local dealer will not budge.

In this case it seems like the buyer is still negotiating - so consider it timely encouragement

There really is no reason why the dealer couldn't do the buy rate if they wanted to.

disden

Why would anyone put 25k down for a lease? Isn't the point of leasing to let the manufacturer take the hit on depreciation and the leasee save cash?

Personally I have never put cash down on a lease; would you pay a landlord that much in rent early?

$1800/month with $25k down is insane! Look elsewhere.

My current leases with Porsche are $1200/month on a C2cab with $118k sticker and a Panamera S with $105k sticker; no cash down.

Alex 911

The manufacturer does not take the hit on depreciation, the person leasing always does. What you will pay is the difference between the current value and the projected value (after you used it for a few years and put a few miles on it) plus interest on the projected value amount, which the manufacturer is "lending" to you.

Your comparison with rent would apply if your landlord allowed you to pay 33K for a year of rent in advance, as opposed to 12 monthly $3K payments.

Alex 911

Think of it this way: $1,823 a month adds up to $43,752 which added to the $25K down payment brings your cost of driving the car 10K miles for the next 2 years to $68,752. That's plain wrong.

mtbscott

ANY leasing advice forum would tell you that putting money down on a lease is a no no, $25K down is nuts. If you've got that much to put down and are willing to, I don't know why you wouldn't go with a finance deal. Pretty sure you can still get 1.99-2.49% 60 month financing these days, that would make much more sense to me even if you only plan on keeping it two years.
And I guess it's just me but I find it amazing that people consider paying over $1800 a month for a car they can only drive 400 miles each month.

WernerE

Negotiate as hard as you would with cash. The dealer makes even more money from leasing because he knows you'll be back in 24 - 36 months (and the F&I department will get paid on a lease as well, though they'll be more successful selling you Xpel or 3M film than a service contract).

Don't "buy" more miles per years than you have to: If you drive 10k miles a year, don't lease with a 15k miles per year residual.

You should buy the car you want, but manufacturers move the residual % based on the car and how it's equipped. Note: You are shopping for the highest residual possible!

The money factor times 2400 = interest rate, which should be competitive with a financed deal..

You can reduce your monthly payment with a larger down payment, but I'm not sure why you would put more money in a depreciating asset than you have to unless you're minding the monthly budget and cash flow.

ne1066

Thanks for the feedback everyone.

To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA

I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.

Thx.

Larry Cable

https://www.penfed.org/Payment-Saver-Auto-Loan/

Alex 911

This is a mistake from the dealer. The numbers simply don't add up. You can even try the payment calculator on Porsche NA's site and see that a 24 month lease for that car with 25K down, 5K miles/year should come up closer to 1.3K

Sonnen Porsche

Which is why the payment calculator should be removed from the web site as the numbers it creates can be very misleading.

2015 C4S Coupe PDK
$139,600 MSRP

Residual value is set by Porsche Financial but so is the MRM amount which in this car is $130,610. So in this lease deal you have $8990 which is not residualized one penny...meaning that $8990 comes out of your pocket dollar for dollar which over a 24 month lease adds $374 a month to your payment! There is nothing the dealer can do about that number. The money factor is determined by your credit as well...with PFS you need a 740 + score to qualify for Tier 1 credit...not always the case in my experience.....

$25,000 down is never a great idea on a lease as you are defeating the purpose of the lease which is getting more car for less money....my 2 cents....

Kk939

Hi guys, new to the forum and I'm looking to lease a 2014 911 base. Mary of $98k and I'm willing to put $6k down for a 27month lease and 7,500miles per year. I'm wondering if I could get a payment around $750. The dealer advertised $950 per month

MJBird993

Welcome to the forum.

Who is Mary?

I doubt it. Why would you think that you can get $200 off of their advertised low-ball price?

Note to everyone: Auto-correct is not your friend. Proof read!