doh!

 

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.

 

The only thing acceptable to me is Base Money Factor, and that's 0.0020 (right now, for top credit tier).

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.

 

PFS mandates MF rates based upon your credit score, anything above 740 is 0.002 ... if the dealer adds more then simply refuse to sign the lease because
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THIS IS OUT OF DATE, but it will give you an idea...

 

+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.

 

This!!!!

 

That's still 4.8% - seems high for a lease. Hope it has a good residual.

 

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.

 

+1 the residual isnt that great either, I think on my lease at 30mths 7.5k p.a it was around 65% ... I guess that PFS dont need to subsidize their leases like BMW do for volume...

 

Great information. Thanks fellas!

 

If I were you I might opt for 5.5k mi/yr and if you go over (and do not buy the car at the end of your lease) pay the overage ...

 

Agree with all the points above:
- 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!

 

Oh - and pictures please!

 

+1
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.

 

10k Klik's per year? I don't think they offer such low distance's in the states unless negotiated! It's usually 10K, 12K or 15K miles. Ten thousand miles is barely just under 62 hundred miles?

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.