jackmac

Many thanks for all the input,
I will try # 2. if it does not work out, I will pass the info to another RL member who may be interested.
Jack

Billy Wyatt

Jack,Did you ask them what the lease payment would be with no money down???That would tell you a lot.

Dr. Ferdinand

+1, or refi elsewhere with cheap rates (e.g. PenFed)

Palting

Residual value, ie the expected depreciation and the value of the car at the end of the lease period, is one of the factors that set the lease payments. It is also what you would pay at the end of the lease if you wanted to buy the car. This is set at the time of lease signing, and it is set by the dealership if they are acting as the bank/lien/lease holder.

In this particular scenario, you will RENT the car for 8 months. The amount of the RENT you pay depends on the expected usage (miles driven per month, higher rent the more mile per month), the factor or lease rate, and the expected depreciation of the car during those rented months. In the usual scenario, the car depreciates and you pay less than the original asking price, the RESIDUAL VALUE, at the end of the lease period if you want to then buy the car. If the dealership expects you to pay MSRP at the end of the lease period, in addition to the 8 months worth of lease payments, then you have paid ADM equal to the 8 months worth of payments. Not a good deal, but then we are talking about buying a GT3 in California, where ADM seems to be the norm

Anyone who buys cars at this level of cost has an accountant, so I assume you have one. Ask your accountant. The true cost of the car to you would be the total of the monthly payments, plus the agreed upon residual value that you would have to pay to buy the car at the end of the lease period. Up to you if you think it's worth it.

hf1

Just ask them directly how much more $ above MSRP they hope to make off this car with no leasing BS involved. Sum up the 8mth lease payments + residual (to buy the car after lease) + all financing/lease fees and subtract that from MSRP. That's the extra $ they are asking. Just negotiate that "ADM" down to where you'd be comfortable paying then pay it to them without a lease.

ajag

Agree with this. I wouldn't mess with any short term lease and then buyout BS, if they want to structure the ADM as a 5-10k upcharge on a PPF or some other addon, just do that and buy/finance the car straight out the gate.

Archimedes

Geez, just sell you the car for chrissakes. When did all this become so f%cking difficult? Seems like every company is squeezing every last dime out of everything and making things so ridiculously difficult. I've been with GEICO for 25+ years but every time I try to make a change to my policy these days, they do this shady deal and try to slip in some extra crap I don't want. When did 'here's my money, give me that thing' go out of style?

Palting

Best idea so far.

ExMB

Sounds to me like they didn't have any takers at MSRP + ADM so they are now trying to hide that ADM. I guess they think that nobody will catch on. This might just be a new way to extract extra $$$ with the ADM ****e hitting the wall all over forums.

But then again there are enough forums posts where somebody spends someone elses money by advocating to pay that overcharge; afterall its not their money.

evilfij

Facinating.

As as I explained to my dealer, money is fungible to me (the machinations I went through with them were were legendary). Do whatever you want, all I care about is the bottom line. I hate making payments so I would just cut the check for the lease and be done with it. I have a suspicion that Porsche or PCNA is checking up on the dealer and gives some sort of consideration for sales at MSRP so the trade ADM, mandatory PPF/insurance/financing etc. is the work around. Also, I know Porsche gives some credit for in area sales (what I don’t know but this was a big reason I got an allocation — in addition to bringing sandwiches whenever I stopped by).

jackmac

Many thanks again for all the helpful comments,
I do want to apologize for the run-around, but after some debate, I decided to pass on the car. Too many unknowns and I felt that dealer/salesperson was not being honest up front. Hopefully some other opportunity will come by soon.
Cheers,
Jack

evilfij

Good luck Jack. My dealer was very honest and up front, I wish they would all be that way.

johnny2five

Sounds like they are fishing for an uninformed/educated buyer who would walk away feeling good getting the car at "msrp" while not fully understanding the true cost (i.e. hidden costs) of the funky lease deal. Stupid games and tactics are why car salesman as a whole get such a bad rep.

Jimmy-D

So true

And I was just having the same freakin discussion about my insurance the other day now that the police found my stolen Lexus. That is why I use a Broker and let them do all the negotiating and work. Every year Insurance Companies try to screw you

jackmac

Glad that I didn't have my hopes up too high, I knew it was too good to be true, especially with the current market....but still fell for it. Passed info to another RL member hopefully he/she will benefit.
Thanks again everyone for the priceless comments.
Jack