Originally Posted by Cayman7

sorry, not following you. Penfed will do terms of 24, 36, 48 or 60 months. The amount I quoted was for a 36 month term. The residual amount they based that payment on is about $71K. Certainly you could end up upside down if the car is worth less than that, but then again it could be worth more. Plus you have a car to trade at the end of the term, which could help you on sales tax on your next car depending on where you live. Where I live, with a 6% tax rate, I'd save $4,200 in tax on a trade worth $70K. For me personally, I would not do the deal you've been presented.

Here's a link to the page if it'll help - https://penfed.org/Payment-Saver-Auto-Loan/
scroll down to the calculators in the lower right corner of this page and select "auto payment saver calculator". You can run a bunch of scenarios

To be clear, the way Penfed works (I've done several of these) you just owe the residual amount at the end of the term (in this case about $71K). At that point you can trade the car, sell it yourself or pay off or finance the balance due. It's pretty simple, and their 36 month interest rate is 1.74%

Originally Posted by aabueg2005

That makes sense. I do still need to put up the tax for the car minus trade which comes up to about $4.3k on top of the 15k down payment. So it will be a roughly $20k down. Which shouldn't be too bad. I'll run some scenarios. Thank you.

Originally Posted by Cayman7

Yes, you would need to add the tax to your down payment. Still seems like you'd be about $15K ahead in the end. BTW, I just went out to KBB and ran a trade-in value on a 2014 C4S with 36K miles. Since I didn't know the options on your car I just indicated auto (PDK) trans and left everything else at the defaults. In very good condition KBB shows a dealer trade-in value between about $66.5 and $72.5K, so Penfed at $71K is right in the ballpark. This is how I check residual values to make sure they're not inflated...good luck!

Originally Posted by zx5go

Off topic, daddyscar, is that your macadamia metallic Cayman in your avatar? One of the best Porsche colors ever in my opinion.

Originally Posted by aabueg2005

Good to know. KBB seems to inflate trade in numbers and when you talk to dealers they always say auction prices are way lower and would not even consider average price. The lowest end of the range seems to be more accurate with KBB numbers. I ran a 60 month payment saver and the residual was 40% which is fair and with the savings of 1k per month, i should have enough saved (hypothetically) to pay it off.

Originally Posted by Cayman7

yeah, as you know it's all a negotiation. I've actually had good luck with my last few cars getting the KBB average, but they always start way lower. Looks like your tax rate is pretty high in MO, so even if you traded at $65K or so you'd be pretty close to the residual with the tax benefit.

Originally Posted by aabueg2005

So finally my car has arrived at the dealer today, a whole week early from designated arrival date. So now I have been haggling with the sales manager regarding the lease. Still 5% off msrp but they would not budge on the MF of .0026. Here are my deal options:

MSRP $121,461 C4S
Sale price: $115,391
12k miles/36 months
57% residual
$995 acquisition
MF 0.0026
Monthly: $1,913



I'm not sure this is possible for you since it would require about $15K out of pocket (down payment), but a Penfed payment saver loan at $100K (their max loan amount) on a C4S is coming up at about $930 per month. That's nearly $1K less than you're looking at with the lease. That's based on a residual of about $71K, not too far from what your getting at 57% of $121K MSRP. So about $15K down to save $36K over 36 months sounds pretty good to me