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Lease or buy? Hi guys. In the process of buying the wife a 2017 targa 4 GTS. GT Silver/Bordeaux and black. Well equipped. Question is do I lease or buy (finance) it? She’s in a lease now in her 2015 c4s cabrio but the payment on a new lease is more than twice her current car. Financing is a bit less monthly payments. Worried about resale of course. My local dealer urges me to lease it solely because if we finance and have an insurance claim that is not a total loss, there will be a carfax and he afraid value will be destroyed. He’s right. A lease doesn’t matter in this regard. On the other hand, it seems to me that the resale value on a targa let alone a 4 GTS won’t be near as bad as porsche financial projects at 53% in 35 months. Can’t imagine this $167k car being worth only $88k in 3 years.
IMO, on a Targa GTS, they are hammering you for close to 20% more in anticipated depreciation than you are likely to see in 3 years. That's takes care of a lot of diminished value on the odd chance you bend a fender during that time. I would buy.
IMO, on a Targa GTS, they are hammering you for close to 20% more in anticipated depreciation than you are likely to see in 3 years. That's takes care of a lot of diminished value on the odd chance you bend a fender during that time. I would buy.
thank you. That seems to be popular opinion. I’ll buy.
Leasing makes more money for dealer. You say he urges you solely.... just know, as nice a guy as he is, lease = more profit. His point is still valid, though perhaps less so?
Leasing makes more money for dealer. You say he urges you solely.... just know, as nice a guy as he is, lease = more profit. His point is still valid, though perhaps less so?
exacrly. I know they make more leasing. Guess I’m trying to beat them at their own game. 🙂
For us to evaluate a lease deals you would need to give us the build MSRP, residual value and the money factor (and then you still need to watch out for random ripoff fees). They will be reluctant to give this, but they are required to before you can sign. So they can as well get it over with.
"money at signing x, monthly y" doesn't tell us anything useful.
Residual value might also depend on the build. Porsche belongs to those manufacturers that knock residual value off when there are too many expensive options. A GTS is a good thing to lease since more money is in the "base" car and less in options.
Residual value might also depend on the build. Porsche belongs to those manufacturers that knock residual value off when there are too many expensive options. A GTS is a good thing to lease since more money is in the "base" car and less in options.
This is called MRM, it's model dependent. If you go over that, you pay 100% over the life of the lease, it's not discounted for depreciation. Options can get very expensive at that point.
For us to evaluate a lease deals you would need to give us the build MSRP, residual value and the money factor (and then you still need to watch out for random ripoff fees). They will be reluctant to give this, but they are required to before you can sign. So they can as well get it over with.
"money at signing x, monthly y" doesn't tell us anything useful.
Residual value might also depend on the build. Porsche belongs to those manufacturers that knock residual value off when there are too many expensive options. A GTS is a good thing to lease since more money is in the "base" car and less in options.
There are definitely some BS fees but if I buy out of state I also have to pay shipping. Lesser of two Evils. This dealer refuses to NOT mark up lease rate. So he’s at .0025. Base is .0022. Residual is 53% for 10k, 54% for 7500 miles which we are ok with. Msrp is $167,485. MRM is $164,800. 5% off msrp is my deal. (Better than 20 other dealers all of whom have no build a lot or car she wants color and build wise). Dealer has $845 dealer fee, $475 tag fee (estimate, will be actual once issued), $229 BS tag agency fee. Found 1 awesome dealer in Cleveland who will match but wrong colors and options, Plus shipping. Attaching a printout of lease vs buy from dealer. Regarding financing rates, this is buy rates but I will refinance within a month or so at 2-2.49%. So about $100-150/mo less.
im not looking for feedback on the deal, only lease vs buy.
Actually I think that looks pretty reasonable for a Porsche lease with 10k miles.
Still, if you look at the resell value that 991.1 GTS Targas bring (both GTS and Targa independently are worth a lot) it seems that total cost would be a lot lower in the buy case.
The partially red interior might be a resale value dampener. Otherwise the GTS is great since it is the only way to get a lot of options without them deprecating like rocks.
There are definitely some BS fees but if I buy out of state I also have to pay shipping. Lesser of two Evils. This dealer refuses to NOT mark up lease rate. So he’s at .0025. Base is .0022. Residual is 53% for 10k, 54% for 7500 miles which we are ok with. Msrp is $167,485. MRM is $164,800. 5% off msrp is my deal. (Better than 20 other dealers all of whom have no build a lot or car she wants color and build wise). Dealer has $845 dealer fee, $475 tag fee (estimate, will be actual once issued), $229 BS tag agency fee. Found 1 awesome dealer in Cleveland who will match but wrong colors and options, Plus shipping. Attaching a printout of lease vs buy from dealer. Regarding financing rates, this is buy rates but I will refinance within a month or so at 2-2.49%. So about $100-150/mo less.
im not looking for feedback on the deal, only lease vs buy.
I'd re-run those numbers using 2.24 APR for 60mo and 2.49% for 72mo (I believe that's what it goes to if you extend to 72mo).
Then, call Alliant Credit Union in Chicago and use them.
Or, have the dealer match the finance rate and finance. That MF of .0025 is 6% - crappy with cheap money available these days.
I'd re-run those numbers using 2.24 APR for 60mo and 2.49% for 72mo (I believe that's what it goes to if you extend to 72mo).
Then, call Alliant Credit Union in Chicago and use them.
Or, have the dealer match the finance rate and finance. That MF of .0025 is 6% - crappy with cheap money available these days.
I believe
lol. Already a member of Alliant and spoke with them. Found even a better rate with suncoast credit union. 2% 72 months with our credit.
Porsche financial is not at 2.24% for 72 months. I was promised buy rate and shown their current rate sheet for tier 1.
But i will refinance with alliant Or suncoast very shortly afterwards. For sure. Probably add a bit of equity even though it’s almost free money. I’ll see.
The difference over 36 months is 5K. The lease payments over over 36 months are 99,180.00 and the first 36 months finance are 110,000.00 or 11,000 more but the balance owing is 73K on finance. The lease end value is 89K or 16K more. The difference is 5K. That would be the cost for insuring diminished value in case of an accident. The lease gives you that protection.
lol. Already a member of Alliant and spoke with them. Found even a better rate with suncoast credit union. 2% 72 months with our credit.
Porsche financial is not at 2.24% for 72 months. I was promised buy rate and shown their current rate sheet for tier 1.
But i will refinance with alliant Or suncoast very shortly afterwards. For sure. Probably add a bit of equity even though it’s almost free money. I’ll see.
Then, I'd tell the dealer it's a cash deal and bring your Credit Union cashier's check. They should not be making that much from you - they are doing just fine on the car alone.
Why should you have to re-fi a car? Bring your cheap money with you. It takes about 4 minutes to get approved by these credit unions and the check usually comes overnight.
06-22-2017, 08:37 AM
lease or buy 2017 TARGA 4 GTS?
