What's the discount for doing a single-pay lease?
10-05-2012, 02:34 PM
#2
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what is that?
10-05-2012, 04:24 PM
#3
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Before thinking about doing a one pay lease, you should consult your insurance agent. In the event that your car is stolen or totalled, the lump sum of money that you fork out at once will not be refunded by PFS. Now you got to take it up with your insurance company. And it can vary, your insurance might only take care of your lease buyout and not anything else. So it is best to make sure.
If your state allows multiple security deposit, that might be the better way to go.
If your state allows multiple security deposit, that might be the better way to go.
10-05-2012, 08:03 PM
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Before thinking about doing a one pay lease, you should consult your insurance agent. In the event that your car is stolen or totalled, the lump sum of money that you fork out at once will not be refunded by PFS. Now you got to take it up with your insurance company. And it can vary, your insurance might only take care of your lease buyout and not anything else. So it is best to make sure.
If your state allows multiple security deposit, that might be the better way to go.
If your state allows multiple security deposit, that might be the better way to go.
10-05-2012, 11:05 PM
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The single pay lease is not simply paying the full balance of your lease in the first month's payment, it's an actual different type of leasing contract WHICH includes a clause which states that if the car is totaled or stolen you will receive the balance of the lease which you have already paid. At least, this is the way in which it works with BMW FS and I can't imagine that Porsche FS would not have that protection clause.
I have not encountered first hand, but have heard consumers losing out on their one pay lease. I don't know the details, could be oddball leases. Never the less, I've heard stories before. Best get a Porsche contract, check the insurance requirements for your state, that's all I am saying. With BMW, one pay or monthly pay are the same contracts, at least for the states I've contracted, guidelines are generally the same, except for a couple exceptions.
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10-05-2012, 11:31 PM
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I work for BMW.
I have not encountered first hand, but have heard consumers losing out on their one pay lease. I don't know the details, could be oddball leases. Never the less, I've heard stories before. Best get a Porsche contract, check the insurance requirements for your state, that's all I am saying. With BMW, one pay or monthly pay are the same contracts, at least for the states I've contracted, guidelines are generally the same, except for a couple exceptions.
I have not encountered first hand, but have heard consumers losing out on their one pay lease. I don't know the details, could be oddball leases. Never the less, I've heard stories before. Best get a Porsche contract, check the insurance requirements for your state, that's all I am saying. With BMW, one pay or monthly pay are the same contracts, at least for the states I've contracted, guidelines are generally the same, except for a couple exceptions.
10-05-2012, 11:32 PM
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For anyone interested, I just heard from a Porsche dealership that the advantage of doing a single-pay lease is a 0.00025 break on the MF. So instead of 0.00200 it would drop it to 0.00175. Which is only about half as good as BMW's offer. To be expected I guess, lol. If you do a single-pay lease with BMW, you get a 0.0004 break on the MF. And if you do 7 multiple security deposits, you'll get an even better break at 0.00049 discount on MF. A shame that Porsche FS doesn't offer better ways to run down the MF as the 0.00200 MF for top tier credit on the Boxster right now is pretty ridiculous. I can't even imagine what the MF must be for less than perfect credit... like 0.00400 or something. LOL
10-06-2012, 12:03 PM
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seems consistent with the marketplace right now.
10-06-2012, 12:46 PM
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I wasn't trying to prove you wrong or anything. I have been doing this for a while and I'd like to think I am pretty good at it. Your contacts at BMW and I have probably crossed paths (PM me their info if you wish). Like I said, I have distinctly remember hearing consumers losing their shirts on one pay lease. Though leasing laws and guidelines have been changing for the past 15-10 years. And one pay is only about 2% of all contracts.
So I pulled a contract and leasing manual out of curiosity. I also had a Porsche contract on hand. You are right, there are disclosures in the back now. However, the verbiage is vague and not in plain words that you definitely are entitled to the refund. I am still willing to bet that there are circumstances that you don't.
10-06-2012, 01:01 PM
#12
Three Wheelin'
I was quoted .0200 money factor for standard lease and .0160 for one pay. Seems like a deal right? It isn't and here's why.
Dealers use one of two ways to calculate a one pay lease.
The first multiplies the reduced cap amount plus the residual times the money factor times the months of the lease and that determines your finance costs. This method is best for the customer as it costs less because you don't pay interest on your down payment.
The 2nd method (no cap reduction method) does not use a cap reduction but multiplies the price of the car plus the residual times the money factor times the months of the lease term. Using this method (which Porsche uses per my dealer) can actually cost more to do a one pay lease. And if you give them a check for $35k as an example, you're actually paying interest on the upfront money for the term of the lease. Steer clear.
Dealers use one of two ways to calculate a one pay lease.
The first multiplies the reduced cap amount plus the residual times the money factor times the months of the lease and that determines your finance costs. This method is best for the customer as it costs less because you don't pay interest on your down payment.
The 2nd method (no cap reduction method) does not use a cap reduction but multiplies the price of the car plus the residual times the money factor times the months of the lease term. Using this method (which Porsche uses per my dealer) can actually cost more to do a one pay lease. And if you give them a check for $35k as an example, you're actually paying interest on the upfront money for the term of the lease. Steer clear.
Last edited by clutchplate; 10-06-2012 at 11:26 PM.
10-08-2012, 04:55 PM
#13
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The lease benefit for me is as a business write-off, and sales tax (nearly 10%) savings.
Seems to me you lose the sales tax benefit with one pay if the cars is sold, traded, or written off before the end of the lease period. Is that worth the small reduction in money factor?
Seems to me you lose the sales tax benefit with one pay if the cars is sold, traded, or written off before the end of the lease period. Is that worth the small reduction in money factor?
