clutchplate

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.

SpyderSenseOC

How is a lease buyout typically calculated? Is it the total of payments due minus the interest on those payments plus residual?

guab

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).

kiznarsh

This.

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.

clutchplate

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.

kiznarsh

Hmmm...when I asked the sales manager at my local dealership, he said I didn't need to come in at all. Just said to have my bank talk to Porsche Financial. The way I see it, once a lease ends, it's returned which does accompany a fee that's typically waived if you lease another, or if not, then it's sold as a used car with a predetermined value (i.e. the residual). So it should be like getting a new loan for a used car. So yes, it's not like paying off a loan, rather getting a new one.

But I also wouldn't be surprised if the process isn't the same across all the dealers.

fast1

This is why I hate leases. There are just too many ways for dealers to screw their customers.

terbiumactivated

The best sign I ever saw was at my father's buddy's indy shop : "we cheat the other guy and pass the savings on to you"

guab

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.

MJBird993

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.