Lease maths game
08-04-2015, 02:52 PM
#31
Rennlist Member
08-04-2015, 07:39 PM
#32
Rennlist Member
Since I'm dealing with this, literally, tomorrow, any guidance on what I should consider to be an acceptable range for lease MF right now? Guessing .002 is exceptional, but what's acceptable?
Thanks.
Thanks.
08-04-2015, 07:40 PM
#33
Rennlist Member
Why? Because the dealer makes money selling the car, I should be treated no differently if I pay cash vs. lease. Don't try to grab more on the back end.
08-04-2015, 07:47 PM
#34
Rennlist Member
the additional money goes into their pocket and nowhere else.
I'd recommend picking the optimal lease period (for me it was 30 mnths) which gave the best residual at 7.5 or 5.5k mi/yr.
zero cap reduction ... also watch your MSRP vs the MRM (which is the ceiling above which PFS will not amortize $'s over the lifetime of the lease, so you end up paying 100% of those $'s on your lease yourself)
THIS IS OUT OF DATE, but it will give you an idea...
08-04-2015, 07:50 PM
#35
Rennlist Member
+1 to all of Larry's points.
And to emphasize the zero cap reduction point, if your car gets stolen or totaled, the lease gets paid off, but you get none of the payoff overage (you don't own the car in a lease). This is different from financing (conventional auto loan), where you own the car, and the bank has a lien on it.
And to emphasize the zero cap reduction point, if your car gets stolen or totaled, the lease gets paid off, but you get none of the payoff overage (you don't own the car in a lease). This is different from financing (conventional auto loan), where you own the car, and the bank has a lien on it.
08-04-2015, 07:52 PM
#36
08-04-2015, 07:55 PM
#38
Rennlist Member
08-04-2015, 09:10 PM
#39
Rennlist Member
It's the base MF that Porsche Financial Services sets. Sometimes they do incentive MF's that are lower, but this is their base. I've never considered PFS to offer competitive MF's compared to BMW FS, for instance, but this is the price we pay to lease a Porsche through PFS.
08-04-2015, 09:37 PM
#40
Rennlist Member
Great information. Thanks fellas!
08-04-2015, 09:39 PM
#41
Rennlist Member
08-05-2015, 01:48 AM
#42
Rennlist Member
- MF at buy rate of 0.0020
- No money down
- Go for the minimum miles - 5,000. You should check by having them run it at 7,500 and 10,000 but every time I've checked it works out better to just do the min and pay the overage if it happens.
- Term - seems like Larry has found the sweet spot - but have them run it from 24 months and up. Even ask them what the sweet spot is - the finance guy will know.
Good luck!
08-05-2015, 02:03 AM
#44
I would just add - I don't believe in putting money down. Sure it lowers your payment, but if you exit the lease early (say using the 12 month lease pull in they offer, you effectively lose that money).
Also, always go with the lowest miles available (looks like you are), and just pay any mileage overage as it should work out cheaper. You can do the math on this to verify.
Also, always go with the lowest miles available (looks like you are), and just pay any mileage overage as it should work out cheaper. You can do the math on this to verify.
I have always leased and agree: never put anything down (cap cost reduction= 0). MF is negotiable and should be 0.002. Miles are variable on how much you intend to drive it but err on the low side.
08-05-2015, 10:04 AM
#45
Drifting
Join Date: Jul 2009
Location: Belmont Shore in Long Beach CA
Posts: 2,740
Likes: 0
Received 2 Likes
on
2 Posts
Even 15K miles seems way way to low for me. The first year we had our Subaru we put 33K miles on it. But Subaru's were made for driving like Diesel's.
Seem's like I'm behind the times with leases for I never intend to do so. So 6K kilometer's seems ok if they do lease's at 5K miles. What's the point but to pay some institution to house their car for them.