Sorry, I didn't mean to sound the the guys who buy the TT and call the TTS guys stuck up. I do enjoy the car every time I'm in it. @TurboMD I never said my brain functions properly... ;-)

 

If you daily drive your car and typically trade it every 3 years or so for a new one, consider leasing. Despite the prices on used cars, for some reason Porsche 911 turbos have relatively high residual values, making them good lease candidates. While it may be hard to get over the fact that you don't own the car after paying all that money, you get to use it for 3 years (or whatever your lease term) and are basically paying for the (theoretical) depreciation, which you'd eat in the form of lower resale or trade-in anyway. Turn the car in and start over with the latest and greatest.

 

I don't think he will be getting anywhere near $130,000 in trade in 4 years. Probably $90k.

 

Part of the reason for flooding the US market is that it is currently the only big market that is relatively healthy. The Middle East and Russia are really hurting due to the oil price, Europe is hurting for multiple reasons (including Greece) and China has been slowing down as well. And with the Euro tanking during the last few months, selling European cars in the US provides a higher margin than it used to, hence, it appears Porsche is diverting a lot of its production to the US.

BTW, I am being offered a May 2014 build 194k TTS with 2,800 miles for 153k. OP, the advice you got earlier for selling the TTS and getting the RS is a sound one, as the TTS will keep on depreciating. I am still negotiating with the dealer and I think I will get that 2014 for 149k.

 

Sure to save money buy a tts a few years old: I do that for my other cars.

But the pure pleasure of building my own Porsche my way with my options is a once in a lifetime opportunity. I am so grateful I did it. I still saved 9% and am loving it!

Enjoy!

 

Obviously, the better way to do it is how you did it. However, if you are leasing, the forty grand you get off from MSRP reduces your payment one for one and give you close to a 30% discount on the monthly payment relative to a 9% discount. I will be leasing as I prefer to let PCNA take the residual risk.

 

Leasing sucks with most high end cars IMO. First the interest rates tend to high (6-8%) and it locks you in to a single car for 2-3 years. I mean what if you want to trade up to a 488GTB next year.....

 

Well, that depends on where the captive finance company's residual is at and where the money factor (interest rate) is at when you lease. For me, having a put at the end of the lease has significant value. Plus, for some there might be value in only paying sales tax on the depreciation. Regarding being locked in, I have previously been able to have people take over my leases via swap-a-lease with relative ease and without any cost to me.

 

I ran into the same dilemma on my TTS. I probably should have traded it in and capitalized on the depreciation 3 months ago, I'm sure I'm down another $10k at least.

It is an emotional decision, but the number never gets better so the smart thing to do is take your chips off the table as soon as possible. But I didn't do it either. Now I have two 911s which is financially stupid. I won't put more than 3k miles a year on either.

If you keep it, drive it and enjoy it. I wouldn't worry about the mileage impacting value, it's minimal relative to the enjoyment factor.

Jeff

 

fq makes some good points and has had favorable lease experience. I do not have a put on my car in two or three years, but since I want to drive it a lot and plan to keep it at least five years I am very comfortable owning. As mentioned, the opportunity to order my own configuration was worth it, especially since I bought at a discount on a '15 that I took delivery on in July '14. The reality is that these cars, whether bought at a 30% discount or less make no financial sense whatsoever. They are about emotion and pure driving enjoyment to me.

 

The best way to buy a car period is to pay cash. Otherwise you are paying more for the car that the actual cost due to interest (or money factor) rates. Sure you only pay sales tax on the depreciation but sales tax is deductible on your federal taxes and some states make you pay the tax on the entire price of the car regardless (Texas I think is one).

People will also argue that they can write off lease payments. However, a several thousand dollar lease on a 200k car is highly likely to trigger a visit from the tax man, so beware. Generally, if you can't afford to pay cash or you are overly worried about losing a few bucks because of depreciation you probably shouldn't be buying such an expensive car. Of course the American way is to spend more than you can afford. And yes, I pracitice what I preach. As my previous comments note, while I certainly could find a way to get a La Ferrari, I cannot afford to spend 1-2m for a car ouright so it will have to wait........

 

I take the opposite approach to car buying. I don't lease, but with loan rates so low, I'd finance the maximum allowable amount of the car, whether you have the cash to buy it or not. You can then move that cash you would have otherwise used to buy a depreciating asset into an investment that has a good likelihood of beating that low rate.

 

Hate to think how much I lose on Porsches. And the Turbo will take the biggest hit. I knew that going in and even got a heavily optioned base turbo. The only way to make out financially with a Porsche is to keep it, long-term. I've never done that but hope to someday. This is the first Porsche that i've owned close to what I could keep for a long time. Right (my wife says

 

Buying a car, in my opinion should be like everything else that one buys: it should check the emotional box, the fun and pleasure according to one's needs box, the feel-good factor box, the overall satisfaction box, the financial condition box, etc. Different people will assign different weights to each of these boxes according to their needs and requirements.

A lot of people think that leasing is for people who cannot afford a particular purchase. Anyone who leases for those reasons does not understand finance 101 and can often end up in trouble. There are times when a certain car should only be leased and when a certain car should only be bought. A couple of examples of both: a loaded $105k BMW 750Li in 2013 could be leased for $680/month for 24 months all in. Total lease cost: $16,320. The market price of the car after 24 months: $52k. Getting the 20k discount on the car (figured in teh lease cost) at purchase time would end up making the car cost 85k. Total cost at time of sale in 2 years: $33k (excluding taxes). Well, for some people spending an additional 17k on an 85k purchase is not a big deal, and maybe they should not even look for that original 20k discount and pay full MSRP. But having been in business for as long as I have been, I would rather give that additional money to my favorite charity than to car dealers and car companies. But that is just me, everyone has their own opinions.

An example of a car NOT to lease is the current Range Rover. I can sell my 1-year old RR SC for exactly the same amount I bought it for. The lease cost for the year would have been close to $20k. Can many people who buy these as opposed to leasing them afford to take the 20k hit out of the goodness of their hearts and lease so that JLR can make more money? Absolutely. In my case I chose not to.

So, I don't think buying a car for cash fits everyone's situation. Cash, financing or leasing depends on each specific individual's situation and their understanding of finance and their view of the future. With interest rates still historically low, financing a car or leverage is like shorting bonds. If your view of the future says that interest rates will rise, you are better of financing and using your cash to earn higher returns elsewhere (if you have that ability). But everyone's situation is different and they have to make their own decisions.

 

Correct. Porsche Financial Services gave me a 2.49 interest rate on purchasing my 2014 991 TTS. That is almost like free money. Much better to finance a lot than pay 100 percent cash at that rate.