hlee1169

Has anyone been quoted the lease rate and residual for a coupe and a cab, from Porsche leasing? Thanks.

19_hole

No, but you can do it yourself on the Porsche USA website.

gerenb

I believe the Porsche USA website is high and includes dealer "bonus" points. From what I've read from other postings, the lease rate is as follows:

According to the latest information that I have seen, Porsche Financial Services' current buy rate lease money factor and residual value for a 36-month lease of a new 2012 911 991 S with 10,000 miles per year are .00200 and 59%, respectively for consumers who qualify for its top credit tier.

Can someone confirm this?

mehoff

Just went through this on a "wish list" 991.

The lease money factor is actually closer to .0024 which is absurd, but as it was so eloquently explained to me, "there are no third party banks Porsche works with, and for the 991 the cars will not be made available to lease brokers until well past the first round of deliveries". Basically their way or saying take it or leave it.

I did have success on the residual however: 62% on a 36 month lease or 48.5% on a 48 month, each assuming 10k miles per year.

Opted for the 48 because I can buyout the car (and the remaining uncompounded interest) for $53k at the end of the third year. If this thing isn't worth more than $53k in 3 years with probably 16k miles on it Porsche $hit the bed with this car.

sapman

How does this work?

mehoff

The residual value of the car @ 48.5% is around $42.5k ($89k MSRP). If I want to buyout the car at month 37, I only have to fund the principal portion of the remaining 11 payments, which equates to around $1,030 per month.

This is not a zero drive off lease as I'm sure you can guess.

rodsky

so why wouldnt you just do a purchase. If you're putting money down on a lease? The interest rate is 5.76%. I'm sure you can do better on a purchase - no? not trying to be a smart ***, just trying to find out.

mehoff

Here it is:

First and foremost, I will never own a DD again after the experience I have had with my 997. Second, I only like to have DD's for a max of 3 years, so that has a profound affect on my thinking. How the math works, assuming a SALE (not residual) value of $57,500 after yr 3:


BUY: Assuming I want a managed payment of around $1,100, a buy would look like the following:

$37k down ($60k loan)
60 month loan
4.5% interest rate

After yr 3, the outstanding principal on the loan would be $27k, which would be net equity proceeds of $32k, or a net loss of $4k over the term.

LEASE: Assuming I want a managed payment of around $1,100, a lease would look like the following:

$4.5k down
48 month loan
Buyout after yr 3 of $54k

After yr 3, the net gain on sale would be $3.5k, or a net equity loss of only $1k (assuming I never take title).

That is only how the MATH works; this was not the primary consideration. The two main points were:

1) I didn't want to take equity risk (so $4.5k vs. $37k)
2) I have a high cost of capital, around 12% (CRE investment company), so opportunity cost on the dollars I would make utilizing the delta between owning and leasing is HUUUUUUUGE.

hlee1169

mehoff, thanks a lot for the info and explanation. 62% residual after 3 years w/10K miles on the coupe is pretty good. I guess cab will have a slightly lower residual, probably 61 or 60%.

As for buying vs leasing, I always lease with the intent of buying after 3 years, but so far it has not worked out for me because:
1. I was unhappy with the PSAM on the 07 Carrera S, so I got the 09 Carrera S instead.
2. The 09 has the fuel pump replaced 3 times, so I don't think I could afford to buy it out and worry about the potential fuel pump issue.

I hope I will have better luck with the new 991.

dntlvet

Meoff ... curious what happened with your DD 997?

Sorry, i do not understand leases well.
Looks like a better deal with those interest rates.

MICHAELWWW

The kicker is he can earn 12% on the money that isnt tied up in the car. Not all of us have that variable.

WCE

I think when you have a business situation where a Porsche (or any highend car for that matter) is a "legit" business expense, the rule of thumb is you're always better off leasing. For personal use, buying for cash or private financing seems to lessen the pain of making very large lease payments and having no ownership or equity.
Now how do I get some of that 12 point action...

mehoff

Simple matter of fact, the decision to lease or buy seems to be a highly personal and hotly contested argument (should possibly be included with politics and religion on the "never talk about when drinking" list).

Best part is, if you're driving a Porsche there is no wrong answer!


As for the experience with my current 997, let's just say 3 ridiculous accidents which muddy the CarFax (all either stopped at a stoplight or stop sign, the first one 3 weeks after purchase!) make owning the car no fun no more. No body damage (the replacements were limited to bumper covers and exhaust systems), the car is in perfect mechanical shape and I bet I would have to sell it for 15-20% below comparable value. Stupid; but welcome to LA.

10 GT3

A couple other things to consider. First, you can get a better interest rate on a buy than 4.5%. I can get 3.8% right now without any haggling. If anything happens to a lease vehicle during the term, such as an accident, you are responsible for the devaluation cost. As part of the turn-in at the end of the lease, the car is also inspected. Any noted track rash can also hit your wallet. Have you ever heard of anyone getting their full deposit back? You also have to very sensitive to the mileage. Mileage overruns on a lease are very costly.

I do agree leases are viable options for the following:
1. You want to change cars frequently (ever 2 to 3 years)
2. You don't plan to put a lot of miles on the vehicle (the lower the miles expected up front, the lower the lease cost)
3. You are planning to keep the car stock/unmodified
4. You are not planning on tracking the car

Alan Smithee

How do you figure? If it is repaired by an authorized Porsche shop, the car is considered as good as new.

What the OP is considering is exactly what I did with my 997 - at around month 32 of 36, I sold it outright to a Porsche dealer and put $10k back in my pocket. It had a ton of track rash on the front bumper cap, rear fenders, and windshield - black car with no film protection. Mileage was right about where it should have been based on 12k/year.