denniscasey

Have never leased car, but considering leasing Cayman S. Have read a bit about general leasing terms and pros/cons of leasing and what items you can negotiate (i.e. still important to get best deal on purchase price). Big concern I have is what happens when I turn car back in--what sort of "surprises" could I face with extra costs and what bad experiences have you had with dealers when you turn car back in?

I did ask a dealer I am talking to for definition of "normal wear and tear" (i.e.50% tread life, 50% brake pad life, etc) but he was evasive. I can envision excessive charges for things like windshield wipers, small parking lot scratches, etc particularly if I am not getting another Porsche from the dealer. Lexus actually has booklet describing things like that (i.e. what is considered "normal wear and tear") they gave us when we once thought about leasing but the Porsche dealer said they did not have anything like that.

Spokayman

I have never leased a car, so I have not faced the issues you are wondering about.
It seems like there has to me some document that describes what you are asking about though. It cant be left up to someone's discretion.

As far as cons, leasing a car has never made any sense to me. Some of the money websites and talk shows call it "fleecing".
It's like renting a car where you make payments for years and you end up owning nothing.
If I could not afford payments on a new Cayman, I would instead buy an older one that would equate to payments I could afford.
That's just me and it's not for everyone, I know.

denniscasey

Thank you for comments Spokayman. As you say and as I have read many pros and cons for leasing depending on individual situation. In my case I was considering leasing as providing a predictable exit strategy in the event I do not want to keep Porsche (as unlikely as that probably is). Porsche has smaller customer base vs high volume cars so maybe not so easy to sell or trade used Porsche to someone other than Porsche dealer.

With lease I know what I pay for car during term of lease and I know what I can buy car for at end of lease (residual value) if I want to keep the car. That is I "know" what I pay for lease if I can work through all the confusing terminology and so forth. I believe a lease will cost me more, but dealer financial people are very adept at hiding the pea under walnut shells so I am going back again for second attempt at pinning down all the "lease costs." For instance, I think the lease payments include interest charges quite a bit above market for car loans, but on the other side in my state I only pay sales tax on lease payments and not entire cost of car which is a saving vs buying car.

JennB

I leased mine for the first few months specifically because of this item. I knew I was moving to a state that doesn't have sales tax shortly after my purchase, so I leased it and then refinanced and bought it outright right after I moved. That was worth the $6,400 I saved.

For some people, leasing is a very good idea.. and this is coming from an accountant. If you are a person who tends to trade in cars every few years and doesn't rack up a ton of miles, it could be a good idea. I worked in auto finance for a few years and you wouldn't believe how many people trade in cars with negative equity and just roll that onto the cost of their next car. I've also known people who got a new car every year, buying it traditionally had no real benefit for them.

Also, most people don't realize that you are in no way obligated to turn the car in on the exact end date and only that date of the lease unless the paperwork states this or there are prepayment penalties. If you have the car on a lease for a year and you are in love with it, just refinance into a purchase. There is always a payoff amount (unless specifically stated in the paperwork) just like a regular loan and you can pay it off just the same. People think of a lease as renting a car and the only thing you can do is take it back to where it came from, but that is not true. If it's worth more then the payoff, you can also sell it yourself and payoff the lease.

I think the important things to ask yourself are what type of car buyer are you... do you keep cars or change often? Do you drive a lot of miles? If so, then if you did end up turning in the car in a traditional lease manner, it could cost you. Is payment a factor? Can you afford the car through traditional financing? If so, then you could refinance it if you decide it's a keeper. If you tend to keep cars for years and pay them off, just buy it.

IMO, anyone who gets fleeced by a lease isn't making the right moves or is looking at it the wrong way. Most people never turn their cars into an asset until they are paid off. They trade them in almost break-even or with negative equity (and if everyone is thinking how they got more for their last trade than they owed, I'd like to see the math on the whole deal as you probably paid for it elsewhere), so it's not like they would have had more money in their pocket if they had bought instead of leased. Or, if you are at the end of a lease and facing hefty charges for mileage, etc... just sell it and pay off the lease. This is why financial advice is not one-size-fits-all, your habits and personal circumstances can make a world of difference in the value you get from a deal.

denniscasey

Thank you JennB for insightful info. As you note, leasing/buying is individual specific and I may be the only person considering a Porsche that is concerned about exit strategy (being able to sell car if I don't like it). Leasing seems to give me a somewhat predictable cost of ownership and your comments about selling car and paying off lease alerted me to fact that I would not be locked into keeping car for entire term of lease.

I always looked at leasing as paying depreciation on car in monthly increments plus paying lots of "hidden" fees including what dealer wants to hit you with when you turn car in. As you note, it will be best for me to carefully review costs and terms of lease.

I appreciate your comments on things not always considered which is why I posted on this forum as I know lots of people have more experience with leasing than I do and so can mention things I might not think about.

JennB

Yes, people with Porsche tend to only think of exiting theirs in order to get into another

denniscasey

JennB, From everyone I talk to that has a Porsche you are right to remind me of that point.