Porsche lease on a .2GT3
10-15-2017, 12:29 PM
#1
Rennlist Member
Thread Starter
Porsche lease on a .2GT3
Now that the cars are being delivered, has anyone opted to lease and if so what terms is Porsche Financial offering. I plan to keep the car for about one year and move on.
10-15-2017, 02:10 PM
#2
Rennlist Member
Thread Starter
Porsche offered me three years, $5000 down with a residual of $92,848. The money factor was .00270 which amounts to a 6.5% interest rate. To finance the car they are offering 3.42% for 60 months with $5000 down.
10-15-2017, 02:20 PM
#3
Not sure how a lease makes any sense with those residuals and costs of money vs. even a buy and then sell after 1 year.
10-15-2017, 02:29 PM
#4
10-15-2017, 02:32 PM
#5
10-15-2017, 02:42 PM
#6
I was quoted a more favorable money factor than mentioned above. For comparison purposes, if you're indicating residuals, it's best to use a % as residuals are based on varying MSRPs. BTW, there is a cap of the GT3 MSRP for leasing -- if you're building a $190k GT3, you'll have to pay the difference up front.
If one is going to sell it after 2-3 years, you'll likely save signficant sales tax w/leasing compared to a cash or finance deal. Plus, you are given a put against the vehicle's resale value.
If people understood leasing better, more people would do it, and dealerships generally do a woeful job at presenting it. Luxury brands should do at least 50% leasing -- in some cases I've seen it as high as 65%. And it's no accident these dealerships are very profitable, because their customer base returns every 2-3 years. Dealers who aren't good at leasing spend enormous sums in advertising to strangers.
Someone in another thread did some arithmetic between leasing vs. owning in a business. It's true leasing deductions are greater due to depreciation limitations under ownership. The lease inclusion amount was an attempt to equalize things, making leasing less attractive. However, no one has to worry about lease inclusion amounts: they're immaterial.
If one is going to sell it after 2-3 years, you'll likely save signficant sales tax w/leasing compared to a cash or finance deal. Plus, you are given a put against the vehicle's resale value.
If people understood leasing better, more people would do it, and dealerships generally do a woeful job at presenting it. Luxury brands should do at least 50% leasing -- in some cases I've seen it as high as 65%. And it's no accident these dealerships are very profitable, because their customer base returns every 2-3 years. Dealers who aren't good at leasing spend enormous sums in advertising to strangers.
Someone in another thread did some arithmetic between leasing vs. owning in a business. It's true leasing deductions are greater due to depreciation limitations under ownership. The lease inclusion amount was an attempt to equalize things, making leasing less attractive. However, no one has to worry about lease inclusion amounts: they're immaterial.
10-15-2017, 02:57 PM
#7
Leasing is great as long as you're willing to buy-then-sell the car at the end of the term when needed, and when the money factors are low.
If the money factors are high, you quickly negate any sales tax benefit. E.g., at a 6.5% cost of money vs. 2% cost of money, you've paid the equivalent of a 2% loan and 8.5% sales tax after ~2 years anyway (all very roughly speaking here, I've shared the detailed math in other threads).
If anyone would like to play with a "trust cost of leasing vs. buying" spreadsheet I made a while ago that includes a variety of scenarios to compare, try it out here: https://dl.dropbox.com/s/ps6jo0trgn2...ying%20v2.xls?
If the money factors are high, you quickly negate any sales tax benefit. E.g., at a 6.5% cost of money vs. 2% cost of money, you've paid the equivalent of a 2% loan and 8.5% sales tax after ~2 years anyway (all very roughly speaking here, I've shared the detailed math in other threads).
If anyone would like to play with a "trust cost of leasing vs. buying" spreadsheet I made a while ago that includes a variety of scenarios to compare, try it out here: https://dl.dropbox.com/s/ps6jo0trgn2...ying%20v2.xls?
Last edited by Mech33; 10-15-2017 at 06:36 PM.
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10-15-2017, 03:21 PM
#8
To the above replies, same scenario. What credit unions offer 2% interest with 5k down? Many I see are capped at 100k financing. 3.42% at 5k down is getting bent over. I'm looking to finance 90k if the deal is right or pay all cash
10-15-2017, 03:44 PM
#9
10-15-2017, 04:56 PM
#10
Rennlist Member
Thread Starter
https://www.unifyfcu.com 0.74% for 2-year.
If I accept Porsche lease terms after one year I would have a payoff of around $145,000.
The monthly payments are the same between the lease and financing.
10-15-2017, 05:15 PM
#12
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10-15-2017, 05:33 PM
#13
Rennlist Member
Thread Starter
10-15-2017, 05:54 PM
#14
Leasing is great as long as you're willing to buy-then-sell the car at the end of the term when needed, and when the money factors are low.
If the money factors are high, you quickly negate any sales tax benefit. E.g., at a 6.5% cost of money vs. 2% cost of money, you've paid the equivalent of a 2% loan and 8.5% sales tax after ~2 years anyway (all very roughly speaking here, I've shared the detailed math in other threads).
If anyone would like to play with a "trust cost of leasing vs. buying" spreadsheet I made a while ago that includes a variety of scenarios to compare, try it out here: https://dl.dropbox.com/s/s4ybis9kwuq...ying%20v1.xls?
If the money factors are high, you quickly negate any sales tax benefit. E.g., at a 6.5% cost of money vs. 2% cost of money, you've paid the equivalent of a 2% loan and 8.5% sales tax after ~2 years anyway (all very roughly speaking here, I've shared the detailed math in other threads).
If anyone would like to play with a "trust cost of leasing vs. buying" spreadsheet I made a while ago that includes a variety of scenarios to compare, try it out here: https://dl.dropbox.com/s/s4ybis9kwuq...ying%20v1.xls?
Also, the lower monthly payment w/leasing permits one to reinvest the difference, helping to negate any lease "premium" with the money factor.
Finally, only leasing protects your downside risk w/depreciation. If the residual is $10k higher than FMV at end of lease, you wouldn't exercise the option and you saved sales tax on approx. half the car.
10-15-2017, 05:57 PM
#15
I can get 1.75% for four years with $30,000 down on a $150,000.The cost of the car is $181,000 with CA tax. I could have put down less but I wanted to keep the monthly payments reasonable. After one year, that would leave a balance of $114,000. If I put down $40,000 the ball;once will be $106,000.
If I accept Porsche lease terms after one year I would have a payoff of around $145,000.
The monthly payments are the same between the lease and financing.
If I accept Porsche lease terms after one year I would have a payoff of around $145,000.
The monthly payments are the same between the lease and financing.