lease negotiation help
Rennlist Member
Joined: Jun 2013
Posts: 1,331
Likes: 11
From: Bay Area, CA
Thanks for the feedback folks. I had another exchange today we're moved from MF of 0.0032 to 0.0029 (6.96%).
The stats on my deal is: 2015 C4S PDK (ordered to my specs)
MSRP $139,600
Purchase price $136,100 (2.5% off)
I aim to put $25K down and am going for a 24 month, 5K miles lease.
With a money factor of 0.0029 I'm quoted:
24 months / 5K miles / 25K down/ MF 0.0029
Monthly: $1,823 incl taxes
Residual at lease term: $91,427 (67% residual)
24 months / 7.5K miles / 25K down / MF 0.0029
Monthly: $1,897 incl taxes
Residual at lease term: $90,120 (66% residual)
Do the dealers get to tweak the residual value or is this straight from PFS?
Thanks.
The stats on my deal is: 2015 C4S PDK (ordered to my specs)
MSRP $139,600
Purchase price $136,100 (2.5% off)
I aim to put $25K down and am going for a 24 month, 5K miles lease.
With a money factor of 0.0029 I'm quoted:
24 months / 5K miles / 25K down/ MF 0.0029
Monthly: $1,823 incl taxes
Residual at lease term: $91,427 (67% residual)
24 months / 7.5K miles / 25K down / MF 0.0029
Monthly: $1,897 incl taxes
Residual at lease term: $90,120 (66% residual)
Do the dealers get to tweak the residual value or is this straight from PFS?
Thanks.
You may be surprised - mention GTS and they will probably want to negotiate.
AND - they are ripping you off on the MF still!
Additionally - do the math on extra miles (at 0.30 cent per mile) and you would go with 5K miles all day long. In your example the lease pmt differential over the 24 month lease is $1,750 vs the $750 you would pay for the extra miles above 5,000.
Oh - and you should never put money down on a lease car.
Drifting
Joined: May 2002
Posts: 2,042
Likes: 30
From: Beautiful North Carolina
The OP did not bother to fill out his or her profile, so we don't know what market they are in. Maybe 2.5% is the best that they can do. My dealer will try for a 0% discount, and often gets it. If the deal is done, there's nothing that they can do (except walk away). Rather than make them feel bad (badly?) about the deal, maybe you could have phrased that better? 
Otherwise, your advice is spot-on.
Again, we don't know the circumstances - maybe they have bad credit?
I concur.
Otherwise, your advice is spot-on.
Again, we don't know the circumstances - maybe they have bad credit?
I concur.
Rennlist Member
Joined: Jun 2013
Posts: 1,331
Likes: 11
From: Bay Area, CA
If the deal is done, there's nothing that they can do (except walk away). Rather than make them feel bad (badly?) about the deal, maybe you could have phrased that better?
Otherwise, your advice is spot-on.
Again, we don't know the circumstances - maybe they have bad credit?
I concur.
Otherwise, your advice is spot-on.
Again, we don't know the circumstances - maybe they have bad credit?
I concur.
In this case it seems like the buyer is still negotiating - so consider it timely encouragement
There really is no reason why the dealer couldn't do the buy rate if they wanted to.
Drifting
Joined: Apr 2012
Posts: 2,546
Likes: 1,312
From: Indiana
Why would anyone put 25k down for a lease? Isn't the point of leasing to let the manufacturer take the hit on depreciation and the leasee save cash?
Personally I have never put cash down on a lease; would you pay a landlord that much in rent early?
$1800/month with $25k down is insane! Look elsewhere.
My current leases with Porsche are $1200/month on a C2cab with $118k sticker and a Panamera S with $105k sticker; no cash down.
Personally I have never put cash down on a lease; would you pay a landlord that much in rent early?
$1800/month with $25k down is insane! Look elsewhere.
My current leases with Porsche are $1200/month on a C2cab with $118k sticker and a Panamera S with $105k sticker; no cash down.
Racer
Joined: Aug 2014
Posts: 366
Likes: 9
The manufacturer does not take the hit on depreciation, the person leasing always does. What you will pay is the difference between the current value and the projected value (after you used it for a few years and put a few miles on it) plus interest on the projected value amount, which the manufacturer is "lending" to you.
Your comparison with rent would apply if your landlord allowed you to pay 33K for a year of rent in advance, as opposed to 12 monthly $3K payments.
Your comparison with rent would apply if your landlord allowed you to pay 33K for a year of rent in advance, as opposed to 12 monthly $3K payments.
Last edited by Alex 911; Oct 9, 2014 at 03:02 PM.
Racer
Joined: Aug 2014
Posts: 366
Likes: 9
Burning Brakes
Joined: Oct 2006
Posts: 879
Likes: 76
From: NW Arkansas
ANY leasing advice forum would tell you that putting money down on a lease is a no no, $25K down is nuts. If you've got that much to put down and are willing to, I don't know why you wouldn't go with a finance deal. Pretty sure you can still get 1.99-2.49% 60 month financing these days, that would make much more sense to me even if you only plan on keeping it two years.
And I guess it's just me but I find it amazing that people consider paying over $1800 a month for a car they can only drive 400 miles each month.
And I guess it's just me but I find it amazing that people consider paying over $1800 a month for a car they can only drive 400 miles each month.
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Three Wheelin'
Joined: Jul 2014
Posts: 1,882
Likes: 513
Negotiate as hard as you would with cash. The dealer makes even more money from leasing because he knows you'll be back in 24 - 36 months (and the F&I department will get paid on a lease as well, though they'll be more successful selling you Xpel or 3M film than a service contract).
Don't "buy" more miles per years than you have to: If you drive 10k miles a year, don't lease with a 15k miles per year residual.
You should buy the car you want, but manufacturers move the residual % based on the car and how it's equipped. Note: You are shopping for the highest residual possible!
The money factor times 2400 = interest rate, which should be competitive with a financed deal..
You can reduce your monthly payment with a larger down payment, but I'm not sure why you would put more money in a depreciating asset than you have to unless you're minding the monthly budget and cash flow.
Don't "buy" more miles per years than you have to: If you drive 10k miles a year, don't lease with a 15k miles per year residual.
You should buy the car you want, but manufacturers move the residual % based on the car and how it's equipped. Note: You are shopping for the highest residual possible!
The money factor times 2400 = interest rate, which should be competitive with a financed deal..
You can reduce your monthly payment with a larger down payment, but I'm not sure why you would put more money in a depreciating asset than you have to unless you're minding the monthly budget and cash flow.
3rd Gear
Joined: Oct 2014
Posts: 3
Likes: 0
Thanks for the feedback everyone.
To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA
I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.
Thx.
To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA
I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.
Thx.
Rennlist Member
Joined: Oct 2002
Posts: 26,144
Likes: 3,907
From: S.F Bay Area
Thanks for the feedback everyone.
To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA
I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.
Thx.
To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA
I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.
Thx.
Racer
Joined: Aug 2014
Posts: 366
Likes: 9
Thanks for the feedback everyone.
To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA
I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.
Thx.
To answer a few questions:
- I'm was thinking of money down to reduce the monthly payment
- My credit is very good - never missed payment, excellent income, etc.
- My market is Seattle, WA
I'm going to see the dealer this weekend and will report back on my progress. I'm also going to look at financing options - I was told PenFed had very favorable rates.
Thx.
Former Vendor
Joined: Jul 2013
Posts: 1,312
Likes: 104
2015 C4S Coupe PDK
$139,600 MSRP
Residual value is set by Porsche Financial but so is the MRM amount which in this car is $130,610. So in this lease deal you have $8990 which is not residualized one penny...meaning that $8990 comes out of your pocket dollar for dollar which over a 24 month lease adds $374 a month to your payment! There is nothing the dealer can do about that number. The money factor is determined by your credit as well...with PFS you need a 740 + score to qualify for Tier 1 credit...not always the case in my experience.....
$25,000 down is never a great idea on a lease as you are defeating the purpose of the lease which is getting more car for less money....my 2 cents....
7th Gear
Joined: Oct 2014
Posts: 7
Likes: 0
From: Miami
Hi guys, new to the forum and I'm looking to lease a 2014 911 base. Mary of $98k and I'm willing to put $6k down for a 27month lease and 7,500miles per year. I'm wondering if I could get a payment around $750. The dealer advertised $950 per month
Drifting
Joined: May 2002
Posts: 2,042
Likes: 30
From: Beautiful North Carolina
Who is Mary?
Note to everyone: Auto-correct is not your friend. Proof read!