Custom Build 991.2 GTS Buy vs Lease Help
01-05-2018, 03:14 PM
#16
Rennlist Member
Hi Everyone,
I am in the process of placing a custom order for a 991.2 GTS Coupe and need your help/advice as to when it makes sense to lease vs buy. I've never leased a car before in my life. I have all the numbers I just don't know if my analysis is accurate. Many folks out there swear leasing is better...others (myself included) steer clear of leases like the plague. Here's the details...I very much appreciate your advice:
Car details:
-2018 GTS Coupe RWD
-MSRP $154,750 (custom build - April delivery)
-Dealer offering 6% off MSRP
Purchase Option:
-72 month loan @ 2.69% APR through my credit union
-Undecided about down payment, but probably something like $25K
-Monthly payment (assuming 0 down to compare apples to apples is $2210
-Loan balance at the end of 39 months (assuming 0 down) is $71k
-Total monthly payments = $2210 * 39 = $86,190
-Assume car market value at end of 39 months is $100,000. (based off current MV of 3 year old 991.1 GTS for sale today)
-If I sell the car at 39 months of ownership I net back $29k ($100k sale - $71k loan payoff)
-Total cost of ownership = $86k - $29k = $57k
Lease Option:
-39 month lease @ 10k miles/year
-down payment = $2,558
-monthly payment = $2,558
-money factor = .00250 (dealer said this MFis left at "retention" set by Porsche and not marked up by the dealership)
-residual = 52% or $76,336
-total payments = $2,558 *39 = $99,762
-Assume car market value at end of 39 months is $100,000.
-buy car at residual value and sell on open market = -$76,336 (purchase) + $100,000 (sale) = $23,664 net gain
-total cost of ownership = $99,762 - $23,664 = $76,098
So here is all the data...my analysis shows cost of ownership is much less by buying verse leasing...even for 39 months. Then again, I have no idea if my analysis is right...asmost many folks out there say it makes sense to lease these cars unless you plan to keep for 8+ years. In this case, the buy option looks better even at 39 months.
The idea of a lease is somewhat intriguing as I'd like the option to buy a custom 992 GTS when they become available. Then again, even assuming I buy a 992 in 3 years, if the cost of ownership is cheaper buying now...why not go that route?
What am I missing???
Thanks in advance for your help!
I am in the process of placing a custom order for a 991.2 GTS Coupe and need your help/advice as to when it makes sense to lease vs buy. I've never leased a car before in my life. I have all the numbers I just don't know if my analysis is accurate. Many folks out there swear leasing is better...others (myself included) steer clear of leases like the plague. Here's the details...I very much appreciate your advice:
Car details:
-2018 GTS Coupe RWD
-MSRP $154,750 (custom build - April delivery)
-Dealer offering 6% off MSRP
Purchase Option:
-72 month loan @ 2.69% APR through my credit union
-Undecided about down payment, but probably something like $25K
-Monthly payment (assuming 0 down to compare apples to apples is $2210
-Loan balance at the end of 39 months (assuming 0 down) is $71k
-Total monthly payments = $2210 * 39 = $86,190
-Assume car market value at end of 39 months is $100,000. (based off current MV of 3 year old 991.1 GTS for sale today)
-If I sell the car at 39 months of ownership I net back $29k ($100k sale - $71k loan payoff)
-Total cost of ownership = $86k - $29k = $57k
Lease Option:
-39 month lease @ 10k miles/year
-down payment = $2,558
-monthly payment = $2,558
-money factor = .00250 (dealer said this MFis left at "retention" set by Porsche and not marked up by the dealership)
-residual = 52% or $76,336
-total payments = $2,558 *39 = $99,762
-Assume car market value at end of 39 months is $100,000.
-buy car at residual value and sell on open market = -$76,336 (purchase) + $100,000 (sale) = $23,664 net gain
-total cost of ownership = $99,762 - $23,664 = $76,098
So here is all the data...my analysis shows cost of ownership is much less by buying verse leasing...even for 39 months. Then again, I have no idea if my analysis is right...as
The idea of a lease is somewhat intriguing as I'd like the option to buy a custom 992 GTS when they become available. Then again, even assuming I buy a 992 in 3 years, if the cost of ownership is cheaper buying now...why not go that route?
What am I missing???
Thanks in advance for your help!
The downside is turn-in fees, tire wear, mileage, etc. Also, I have felt that I had a weak had in negotiating the next car.
01-05-2018, 03:43 PM
#17
Thanks man. I am on the Penfed website now. Looks interesting although there is no Payment Saver Loan calculator to compare the monthly payment of a standard 60 month loan vs this Payment Saver option. I did notice the $100k loan limit, so that's something I'd have to factor in as well. Assuming interest rates are identical between the products, I'd be interested to see if there's any difference in total interest paid between the two options over the 60 month period...which option pays less interest?
https://www.penfed.org/calculators/p...ver-calculator
if you go into apply for the loan, you can get more exact numbers. it's the first step before putting in any info.
01-05-2018, 04:07 PM
#18
Advanced
Thread Starter
Great insights fellas....thanks! I recognize everyone's financial situations differ, however the variables to analyze the information should be similar. You all bring to light things that would have otherwise been missed or unknown.
Headed to the dealer now to sign the paperwork and drop my $2,500 non-refundable deposit. I was originally going to purchase, then was leaning toward leasing, now after all your help (plus the results of my above analysis) I'm back to purchasing.
Freeze date on the build is 19 Jan, however I'm 99.9% sure I know what I want. I may reevaluate the MSRP as mentioned earlier just so I don't have to eat 100% depreciation on options. That's pretty damn smart. That said, the little kid inside is saying: but I really want the front axle lift, sport design tail...and holy smokes, deviated leather stitching looks amazing. And gotta have the 18-way power seats and PDLS+ LED headlights...so what the heck do I take out? This is a rhetorical question...this is mine to agonize over. I did leave out PDCC and adaptive cruise control. lol!
The final decision is whether to take European Delivery. Would love to do the Leipzig option to get the track time. Plus the idea of hitting max speed legally on the autobahn in my own car sounds like a dream come true. Argggg.....I think I may jump on it. Hey wifey...want to take a vacation to Germany?
Will keep you all posted. And thanks again fellas. I owe you all a beer!
Headed to the dealer now to sign the paperwork and drop my $2,500 non-refundable deposit. I was originally going to purchase, then was leaning toward leasing, now after all your help (plus the results of my above analysis) I'm back to purchasing.
Freeze date on the build is 19 Jan, however I'm 99.9% sure I know what I want. I may reevaluate the MSRP as mentioned earlier just so I don't have to eat 100% depreciation on options. That's pretty damn smart. That said, the little kid inside is saying: but I really want the front axle lift, sport design tail...and holy smokes, deviated leather stitching looks amazing. And gotta have the 18-way power seats and PDLS+ LED headlights...so what the heck do I take out? This is a rhetorical question...this is mine to agonize over. I did leave out PDCC and adaptive cruise control. lol!
The final decision is whether to take European Delivery. Would love to do the Leipzig option to get the track time. Plus the idea of hitting max speed legally on the autobahn in my own car sounds like a dream come true. Argggg.....I think I may jump on it. Hey wifey...want to take a vacation to Germany?
Will keep you all posted. And thanks again fellas. I owe you all a beer!
01-05-2018, 04:31 PM
#20
Race Car
Great insights fellas....thanks! I recognize everyone's financial situations differ, however the variables to analyze the information should be similar. You all bring to light things that would have otherwise been missed or unknown.
Headed to the dealer now to sign the paperwork and drop my $2,500 non-refundable deposit. I was originally going to purchase, then was leaning toward leasing, now after all your help (plus the results of my above analysis) I'm back to purchasing.
Freeze date on the build is 19 Jan, however I'm 99.9% sure I know what I want. I may reevaluate the MSRP as mentioned earlier just so I don't have to eat 100% depreciation on options. That's pretty damn smart. That said, the little kid inside is saying: but I really want the front axle lift, sport design tail...and holy smokes, deviated leather stitching looks amazing. And gotta have the 18-way power seats and PDLS+ LED headlights...so what the heck do I take out? This is a rhetorical question...this is mine to agonize over. I did leave out PDCC and adaptive cruise control. lol!
The final decision is whether to take European Delivery. Would love to do the Leipzig option to get the track time. Plus the idea of hitting max speed legally on the autobahn in my own car sounds like a dream come true. Argggg.....I think I may jump on it. Hey wifey...want to take a vacation to Germany?
Will keep you all posted. And thanks again fellas. I owe you all a beer!
Headed to the dealer now to sign the paperwork and drop my $2,500 non-refundable deposit. I was originally going to purchase, then was leaning toward leasing, now after all your help (plus the results of my above analysis) I'm back to purchasing.
Freeze date on the build is 19 Jan, however I'm 99.9% sure I know what I want. I may reevaluate the MSRP as mentioned earlier just so I don't have to eat 100% depreciation on options. That's pretty damn smart. That said, the little kid inside is saying: but I really want the front axle lift, sport design tail...and holy smokes, deviated leather stitching looks amazing. And gotta have the 18-way power seats and PDLS+ LED headlights...so what the heck do I take out? This is a rhetorical question...this is mine to agonize over. I did leave out PDCC and adaptive cruise control. lol!
The final decision is whether to take European Delivery. Would love to do the Leipzig option to get the track time. Plus the idea of hitting max speed legally on the autobahn in my own car sounds like a dream come true. Argggg.....I think I may jump on it. Hey wifey...want to take a vacation to Germany?
Will keep you all posted. And thanks again fellas. I owe you all a beer!
I don't think you need FAL (IMHO). The sport design tail is just too subtle for me (I previously had the aerokit cup which was the complete opposite of subtle hahaha!). I haven't had deviated stitching before but it really makes the interior feel a lot richer so I went with that this time. I passed on LEDs as the bixenon are plenty bright for me (but did get PDLS - love how the headlights swivel in the corners. I had PDCC on both my previous 991S's and ordered it on the new GTS. It's probably an option that if you never had it, you wouldn't know you were missing it. I like the ride and how flat it keeps the car in corners (I autocross) so I ordered it on the new one. I definitely ordered ACC (had it on my last one) - driving on the highway in our traffic, it's just a nice thing to have. But again if you have never had it before you probably wouldn't miss it.
As for European delivery, I would have loved to have done that but two factors persuaded me not to. I have three young children and could not imagine leaving them for a week or two to go to Europe. And I spent six years in Europe (German and Belgium) so while it would be a blast, it isn't like I haven't driven on the autobahn many times before. When my kids are grown, maybe someday I will pull the trigger and do European delivery. That's a bucket list-type item for me.
But in the end, you have to get what is right for you! Good luck!
01-05-2018, 05:47 PM
#22
01-05-2018, 09:37 PM
#23
I just got my check to give to the dealer from PenFed... I work on commission, so the payment saver works for me with the low payment (I'm putting almost 40% down which is a 550/month payment) on my 991.2 GTS. And I can pay off chunks when I do get commissions. Super easy process and hard to beat the 1.49% interest rate
01-06-2018, 08:37 AM
#25
What options do you have? I've noticed much bigger discounts on the 4S than the GTS for some reason. When optioning both the same, the MSRP delta for me is less than $10k, however, the discount is much lower on the GTS.
01-06-2018, 09:28 AM
#26
Banned
Originally Posted by USMC10
Assume car market value at end of 39 months is $100,000. (based off current MV of 3 year old 991.1 GTS for sale today)
Just wanted to make sure this point was factored in your calculations. I think your 100k number is high. Lots of variables go into the value of a car after a few years. Economy, mileage, demand etc so there really is no way to be exact on real value. Right now the DOW is at an all time high. In addition, the 991.1 GTS was the last, most powerful (non - GT) Car porsche made in a naturally aspirated engine. Fairly high demand for a used car. The 991.2's are not holding the same vale as we can see today.
BUT here's the thing - You won't give a Sh*t what the residual value is after getting behind the wheel and press the fun pedal to the floor on the autobahn. They are that good and that much fun. Enjoy it!
01-06-2018, 10:34 AM
#27
Rennlist Member
Great thread. My Targa just locked so I have a few months to go through the same lease/buy analysis.
But, do not listen to ANY of us, including me, regarding which options to get or delete. This is the Internet after all and opinions are exactly that. Custom ordering a Porsche is a big deal. Get what you want.
DaveGee
But, do not listen to ANY of us, including me, regarding which options to get or delete. This is the Internet after all and opinions are exactly that. Custom ordering a Porsche is a big deal. Get what you want.
DaveGee
01-06-2018, 03:23 PM
#30
Rennlist Member
I’d add the $280/month of a zero down lease and compare the numbers. A down payment on a lease doesn’t build equity unless you buy the lease out so if hesitate to compare the two down payments on an equal footing.
To me it looks like financing is clearly cheaper for you. If you want to lease for insurance or tax or other reasons that’s fine but with just a “compare the numbers” criteria the lease looks very expensive and a purchase seems like an obvious choice.
To me it looks like financing is clearly cheaper for you. If you want to lease for insurance or tax or other reasons that’s fine but with just a “compare the numbers” criteria the lease looks very expensive and a purchase seems like an obvious choice.