Leasing....

2014 991 Carerra 4S
24 months
5000 miles a year
Residual is 72%

MSRP is $135,485
Price is $129,400

With everything factored in...bank fees and sales tax etc.... the total cost for the two years is just under $50,000.

Monthly payment was around $1950 + and the first months payment was around $5500 with sales tax and bank fees etc.

Thoughts, comments & flaming welcome.

 

Assuming that you got the base money factor of .002 (or .002x2400=4.8%), sales tax is around 8.5% and that's the best price you can negotiate with the dealer, then yes, I believe that is the best lease you can get through PFS. I had a Honda dealer change the annual mileage and raise the money factor to come to the same monthly payment just before I signed the papers. So verify everything at signing. Some dealers are very slimy.

I'll usually google a lease calculator like this one to verify the monthly payment . . .

Put MSRP under vehicle price, negotiated discount under down payment, $0 for trade, residual based off MSRP and so on.

http://www.cars.com/go/advice/financ....jsp?mode=full

This one is my favorite calculator but it won't let you enter a negotiated price greater than $99,999! lol!

http://www.bankrate.com/calculators/...alculator.aspx

 

It depends what the MRM is. From what I understand the MRM for such well optioned cars is not very high. PM me if you want an excel spreadsheet that I put together to calc lease vs financing.

 

It sounds like a fair deal. Not great, but great is rare. Heck, I just ordered a new car and already I'm second-guessing myself and thinking that I should have bought something off the lot instead of waiting for 4 or 5 or 6 or 7 months. I don't have a build date yet, so I'm totally clueless.

The idea of spending $25K per year on a car kills me, but when you buy a highly optioned new 911 like that and keep it only 2 years, it's probably about right. You'd probably save a bunch of money (per year) if you can stand to keep it for 3 years since that third year of depreciation isn't nearly as steep as the first two.

Congrats on the new car! Enjoy.

 

The problem is that often on PFS leases, the residual on a 36 month lease is far lower than on a 24 or 27 month lease, so it works out to be a more expensive lease for 3 years than it is for 2 years. It's tough to say how good the OP's deal is without knowing the MRM and how that comes into play.

 

One parameter you didn't share is what market you are leasing in.... I believe that also makes a difference.

My (recent) experience: I went through the various financing options back in Nov when I bought my 14 C4S. What i learned is that recently the "sweet spot" on the depreciation curve for 911s is 27 months. Any more than that and you are paying a much higher monthly depreciation cost to keep up with downward curve (or should I say slope?). In the end I found that just buying the car outright in my situation made more sense as I am likely to keep it longer, never hit more than 9-10k miles/year even as a DD.

But everyone has a different situation i guess... But if leasing, and you want the lowest monthly payment then the 27 month mark is what you should be targeting.

_________________________
2014 C4S GT Silver / Black, Sport Chrono, PDLS, etc.

 

+1. When I signed my lease in June '13, the sweet spot on the residual/ depreciation curve was 27 months. At that time, the residual on a 2013 C2S 7MT with 10K miles/ year on a 27 month term was 72%. Extending the lease out to 36 months sent the residual down to about 60% or maybe even less.

 

MSRP on a base C4S is $105k. When I plugged in the numbers given along with a money factor of .002 and 8.5% sales tax, I got a monthly payment almost equal to $1950. In this case I don't think MRM kicked in.

For those wondering what MRM is . . . What is an MRM?

This is the Maximum Residualized MSRP that a vehicle can have that is used to calculate depreciation.

So basically if you order a car with a base price of $100k, and order $90k worth of options, the MRM accounts for how you don't get your money back on heavily optioned cars at resale.

 

Daddyscar is correct. A residual value once equaled some % X (MSRP). Today, lease calculations take some % X MRM (instead of MRSP).

"MRM" (Maximum Residualized Value) is used to account for the fact that some options pump up MRSP but have little future value, compared to the base price plus options on a "typically equipped" vehicle.

Porsche is a good example where one can really pile on the options, making the residual value less likely to be THAT % of MRSP. MRM curbs that enod-of-term risk for the lessor. So the best lease deal on a Porsche is to order it...and just get the base model...then lease it. This is because dealers order their inventory with a healthy set of options because the profit margin on options far outweighs the margin on the base price. Also consider lease of a CPO vehicle (Certified Pre-Owned) since about 25% to 1/3rd of the depreciation has been realized by the previous owner. Also, Mfgs can have lease specials to blow-out left over inventory, but Porsche is known to produce one vehicle short of demand.

Publishers of Residual Values are ALG, Black Book, NADA, Kelly, and of course, the Mfgs.