Lease buyout vs return question
03-08-2018, 03:57 AM
#16
Rennlist Member
One other angle to consider, although I am not sure if this is something that you folks do in the US. At lease-end, I usually find that I can buy out the car and then immediately trade it in as there will typically be a small amount of equity there.
The dealer is basically making a bit extra on the buy out and they're guaranteed to have that car in their inventory...not to mention the profit on the new sale, too.
Of course, that approach only works if you really want a new car.
The dealer is basically making a bit extra on the buy out and they're guaranteed to have that car in their inventory...not to mention the profit on the new sale, too.
Of course, that approach only works if you really want a new car.
03-08-2018, 04:02 AM
#17
AutoX
Thread Starter
Thank you everyone for your insight and excellent responses. Need4S, yes I am thinking the same thing, my residual buyout is indeed at or somewhat below the price of buying a comparable car, which makes me all the more considering buying out my present car. Porsche911GTS'16, my situation is very similar to yours (I even did the 12 mth early turn in on a prior base 911 lease to my current 911S). My residual is quite similar to yours, although mine's the 911S and I had a shorter lease than yours. I guess I'm kinda kicking myself for not financing the car in the beginning, but that's water well under the bridge at this point. I'm also thinking at this point I won't find a comparable build for $80k on the open market. If I buy out my lease, I am definitely focused on at least trying to get CPO "thrown in" so to speak, since I'm a somewhat loyal customer and referred a friend to their dealer, etc.
03-08-2018, 04:05 AM
#18
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Thread Starter
For those of you who did buy out your lease, I'm also curious as to what kind of interest rate PFS gave you, or if you found a better rate somewhere else.
03-08-2018, 10:52 AM
#19
I bought out the lease on my '12 Cayman S, had financing pre-approved through a CU the local medical society set me up with for around 2% and let the dealer match it.
03-08-2018, 11:03 PM
#20
I had lease on a 2015 Macan. About 6 months before the end of the lease I traded it for an Audi Allroad at the same dealer. I walked away with a $3500 check after a deduction for new tires. I also got a nice discount on the Audi. It was a pretty straightforward transaction.
03-09-2018, 08:30 AM
#21
Addict
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Rennlist Member
This may not work depending on what state you are in; if the state is charging you sales tax only on the lease payments instead of the original purchase price, when you buy out the lease you will likely have to pay the sales tax on the residual value.
03-09-2018, 01:55 PM
#22
Rennlist Member
Correct, in CA that is the case. I ran the number on traditional financing (60months) vs leasing 36 months with a loan on backend for 24, this route is of course a little more expensive, but less than $1000 overall based on my deal, and it was worth it to me to have the options and honeymoon period on the front end with the lease. I guess I could argue its really a wash as the money I would have used for the down payment will be earning interest for (3) years before I use it on the last two years in a traditional loan, or perhaps just purchase it outright. Need to run ALL the numbers and scenarios before going either way as well as evaluate options and flexibility you want. YMMV.
Last edited by titan7; 03-09-2018 at 10:02 PM.
03-09-2018, 03:08 PM
#23
Rennlist Member
Correct, in CA that is the case. I ran the number on traditional financing (60months) vs leasing 36 loan on backend for 24, this route is of course a little more expensive, but less than $1000 overall based on my deal, but it was worth it to me to have the options and honeymoon period on the front end with the lease. I guess I could argue its a wash as the money I would have used for the down payment will be earning interest for (3) years before I use it on the last two years in a traditional loan, or perhaps just purchase it outright. Need to run ALL the numbers and scenarios before going either way as well as evaluate options and flexibility you want. YMMV.
03-09-2018, 09:00 PM
#25
Drifting
Another advantage to a lease is if you are in a car accident, at the end of your lease, you turn in the keys and the previously damaged car is Porsche's "problem." If you buy the car from the start, you own a damaged car that may be harder to sell. In So Cal, where accidents are all too common, leasing makes a lot of sense for this reason alone.
03-09-2018, 09:05 PM
#26
Rennlist Member
Another advantage to a lease is if you are in a car accident, at the end of your lease, you turn in the keys and the previously damaged car is Porsche's "problem." If you buy the car from the start, you own a damaged car that may be harder to sell. In So Cal, where accidents are all too common, leasing makes a lot of sense for this reason alone.
03-09-2018, 09:19 PM
#27
Drifting
Gellie - Not sure about that. Someone turned left in front of me in LA in my prior 911. Even if it had been my fault, I had the car serviced at Caliber Collision which was contracted with my insurance (Amica). When I turned the car in at lease end, they did not even ask me about accident history. They just looked at the car and I happed to have purchased the insurance to cover the first $1,000 of damage to the car. It turns out I should not have purchased it as I only had a couple hundred bucks in "damage." Never heard a peep about the damage to the car (Caliber did a beautiful job fixing the car - $26,000 in damage to the front right of the car). Further, when I asked the head of sales at Porsche DTLA about benefits of leasing versus buying, he offered this as one of the benefits of leasing. Damaged (but appropriately repaired) car is off your hands at lease end.
03-09-2018, 09:38 PM
#28
Burning Brakes
I leased as it was my first 911 and first expensive vehicle, so I wanted an easy out if things did not work out. So far so good though, and with a little over a year to go my wife and I are planning on buying the car at lease end. But if the car got damaged in an accident we would have a serious rethink.
03-10-2018, 03:34 AM
#29
8th Gear
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I paid 94k (including tax) for the balance of my 134 msrp 2015 GTS that was on a 27 month lease at around 1850 per month. My total mileage was 17k and i was on a 10k per yr lease. Residual value at the time seemed decent and i figured that with a lease i could make the decision to buy it with very good knowledge of its residual value or just give it back to them.
Hope you don't mind my bringing this up but i am sincerely curious.
03-10-2018, 10:43 AM
#30
Drifting
Coupedncal - Although your question was directed to someone else, I can say that another reason I leased instead of purchased is the fact that I can write off a portion of the monthly lease as a business expense. If I bought the car from the get-go, I could only write off the yearly depreciation. My daily driver GTS is my "company car" for IRS purposes.