mrsullivan

I know that sometimes it's complicated. But in this case I just don't see how it is. 50% residual and high money factor vs 1.9-2.9 rates on 60 to 72 months financing. Or 1.29-1.59 ish on 36 month. I understand the tax and write off opportunities for business, but for this car I'm just not sure how the math gets you there...

Mech33

Have you checked with your insurance company on this? When I was considering a prepay, I checked with mine and they told me specifically that prepaying lease rental fees leaves me exposed financially if the car were to be a total loss as they would only cover any out of pocket expenses to walk away from the lease (not repayment of any future lease payments).

Different insurers may vary.

vic55

Most insurance companies pay ACV (actual cash value) on the car whether you owe a dollar or 100k... the monies owed or paid back are based on what the balance is versus the ACV number.

What insurance company do you have?

Mech33

That would make sense. I don't recall exactly what insurance company I had at the time I checked, but it was probably AAA. I may just have to check with the again now that I'm curious!

Ducati1199

Hey guys allow a dumb Brit to ask a U.S. financial question. Can you get other financial establishments to lease the car to you? In the same way you can shop around for a loan can you look to other companies other than Porsche financial to work a lease for you?
The beauty of a lease is that it allows you to drive a vehicle that you ordinarily wouldn't be able to afford but not sure if you have the option when leasing to shop around? Txs.

vic55

There are a few banks who lease daily commuter cars like Toyotas, Hondas, Nissans, etc... US Bank, Chase (Jag's and Mazda captives as well) and few others but for the most part only the OEM's lease their own cars. Toyota Financial, American Honda, Nissan Motor Acceptance, MBFS, BMFS, PFS... and they dont cross pollinate via brands. Its almost impossible to get a non captive high line lessor but there are a few like Putnam, Premier, and Woodside but these are open ended lease banks so in effect the loans are really balloons because you are responsible for the buyout.

vic55

I would think AAA would be under the ACV assessment--- shocking if not. How can they penalize you for prepay or even cash buys?

Ducati1199

Thanks for the feedback.

991RDC

Yes, I actually called my insurance broker yesterday to confirm that the car will be covered with a one pay lease for the complete appraised value or ACV if there were a total loss, and the answer was yes. If you are considering doing a one pay lease, I do think it's a good idea to check with your insurance company and make sure that you are covered. We have insurance that covers a fleet of trucks and cars, so maybe that's the difference, or some car insurance carriers like health insurance company's have limited exposure to what they'll cover.