Bought out my 981 lease-Is this a scam?
#1
Three Wheelin'
Thread Starter
Bought out my 981 lease-Is this a scam?
This is the 2nd time this has happened to me from two different dealers and now I'm wondering if it's a scam that's going unnoticed. I bought out my lease and was prepared to write a check for the residual plus sales tax and the dealer's residual amount was a few hundred dollars more than what's on the contract. When I asked why they said Porsche collects late fees at the end of the lease. Knowing there were never any late fees, they still insisted that would be the amount if I wanted to buy the car so I suggested we contact Porsche Financial. Their rep said the amount they were using was a payoff for two months after the end of the lease so either the dealer wanted to keep the money for a couple of months at my expense or they just pad the residual by small "explainable" amount to make a few bucks. If it's intentional I have a feeling they get away with it most of the time so I thought I'd pass it along.
#2
Rennlist Member
This is the 2nd time this has happened to me from two different dealers and now I'm wondering if it's a scam that's going unnoticed. I bought out my lease and was prepared to write a check for the residual plus sales tax and the dealer's residual amount was a few hundred dollars more than what's on the contract. When I asked why they said Porsche collects late fees at the end of the lease. Knowing there were never any late fees, they still insisted that would be the amount if I wanted to buy the car so I suggested we contact Porsche Financial. Their rep said the amount they were using was a payoff for two months after the end of the lease so either the dealer wanted to keep the money for a couple of months at my expense or they just pad the residual by small "explainable" amount to make a few bucks. If it's intentional I have a feeling they get away with it most of the time so I thought I'd pass it along.
#3
I wouldn't pay a dime more than what Porsche financial services said to pay.
Also, you do not have to go to a dealer to buy out the lease. The dealer doesn't own the car, and the buy out is calculated by Porsche financial services and is a closed end lease. Get pay off from Porsche, write check + sales tax, go to DMV.
The only time I would consider involving a dealer is if my residual was higher than the market value and I could buy it cheaper if dealers get a kick back from Porsche (or other manufacturer) to buy out the lease to avoid having the cars flood market. Though, not sure this happens often. It would also be a last shot if I wanted the car but didn't want to pay above market value (and thus would just buy one on the open market instead).
Also, you do not have to go to a dealer to buy out the lease. The dealer doesn't own the car, and the buy out is calculated by Porsche financial services and is a closed end lease. Get pay off from Porsche, write check + sales tax, go to DMV.
The only time I would consider involving a dealer is if my residual was higher than the market value and I could buy it cheaper if dealers get a kick back from Porsche (or other manufacturer) to buy out the lease to avoid having the cars flood market. Though, not sure this happens often. It would also be a last shot if I wanted the car but didn't want to pay above market value (and thus would just buy one on the open market instead).
#4
Rennlist Member
When my time comes, I'll get a loan from my credit union and have them send a check to Porsche Financial Services for the buyout amount, then they'll do an electronic title transfer till I pay it off.
#5
Three Wheelin'
Thread Starter
That's what I thought too but Porsche Financial said the contract needed to executed by a dealer. It's not like paying off a loan as a new purchase contract needs to be signed being that the original was a lease.
#6
Rennlist Member
But I also wouldn't be surprised if the process isn't the same across all the dealers.
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#9
Yeah, I would call and bitch at Porsche Financial Services. That is incorrect information that was given to you and I bet that call was recorded. Secondly, there's been plenty of times that a BMWFS employee gave me factually incorrect information. It happens. When something smells fishy, always push. I would have lost so much money if I would have believed everything that was told to me without further vetting.
#10
Drifting
I had a BMW dealer once try to rip me off on a lease trade-in. They tried to keep my security deposit, which was around $650 back in the 90's - that was a lot of money. I wrote an angry letter to BMW FS and explained that the dealership was trying to defraud me, which got them in a little bit of hot water but natch nothing ever really happens to punish these criminals.