hankinjax

Porsche USA has come out with national lease offer on 992 base. First thing that jumps out at me is that it is for 5000 miles a year. What is everybody else's opinion on the offer? I know the interest rates on these leases are horrible but i never keep a car more than 2 or 3 years.

2020 911 Carrera Coupe

3 Actual lease price determined by your authorized Porsche dealer; your payments may vary. Closed-end lease offered to qualified lessees with approved credit by Porsche Financial Services through participating U.S. dealers. Must take delivery by 12/2/2019. Estimated payments based upon MSRP of $113,670 (includes delivery, processing, and handling fee) for a Model Year 2020 911 Carrera Coupe with the following options: Carmine Red Paint, Premium Package, Wheel Center Caps with Colored Porsche Crest, ParkAssist (Front and Rear) incl. Surround View, Lane Change Assist, Power Sport Seats (14-way) with Memory Package, Interior Trim in Brushed Aluminum. Model pictured may have optional features and equipment. Price excludes any title, taxes, registration, license fees, insurance, maintenance and dealer fees. Lease payments of $1,349.43 for 36 months total $48,579.48 based on the adjusted capitalized cost of $104,135 (requires dealer contribution which could affect price). Total due from customer at signing $11,979.43 (first month's payment, acquisition fee of $1,095, and capitalized cost reduction of $9,535). No security deposit required. At lease end, lessee pays excess wear, $.30/mile over 15,000 miles and $595 disposition fee. Purchase option at lease end $72,749 plus taxes. Specific vehicles and options are subject to availability and your price may vary. For additional information see your participating authorized Porsche dealer or visit Porsche.com/usa.

WCE

Crazy expensive lease - but Porsche's are crazy expensive!
Not sure what the interest rate is, but you pay about $8k over the lease term.
Funny how it says "requires dealer contribution", but the cap cost plus your cap cost reduction paid upfront equals MSRP, so the dealer isn't contributing a dime!
64% residual value after 3 years but only 15k miles total - seems almost reasonable, however that mileage limitation would bug me every month when I make that payment!
Just need a business to charge this whole fiasco of an investment to...

Michael Smith

That his ridiculous. 5000 mi/yr is like paying them to hold your car in the garage.

ianmSC

Funny thing is, I know plenty of people in LA who don't drive 5000 miles a year, lots of people live in Beverly Hills and work on the west side, and despite the traffic it's only a 3-5 mile drive each way in some cases. I don't know what the point of having a 911 is if you only drive it on crowded west side roads, but I'm not a rich person, so what do I know.

That seems like a very bad lease, a $9535 down payment is nuts. I thought the acquisition fee was $995 recently, so I guess that's gone up too. The Leasehackr score for these numbers is 5.6, which is pretty darn bad, assuming 0% discount. With CA sales tax, works out to be closer to $1516/month, all for 5000 miles. Might as well go for 10,000, pretty sure it only brings the residual down 2%, or at least, it does on most of their models. That would be $1578/month or $2,232 extra over 36 months for 15,000 extra miles, which would cost you $4500 to buy at lease end. Or do 7500 miles a year for the 1% bump and plan on doing a pull ahead program, if you know you're always going to want a Porsche. That's $1537/month or $1386 extra total for 7500 more miles vs. paying $2250 at lease end.

Getting a 5% discount with the same numbers lower the payment to $1356, so get a 5% discount. At least. There's probably 30% in these cars all said and done.

JRoach

Are you planning on keeping it longer than the 3 years?

detansinn

BMW and Mercedes subsidize their leases. Porsche doesn't have to and it shows in the numbers.

This Porsche lease "offer" works out to be ~$4/mile and you haven't even put gas in it.
You'll come out ahead, buying the car, and selling it in 2-3 years versus going the route of this lease.

I have leased cars when it made sense to do so, but it just doesn't make sense for this particular car.
You're much better off making that $12,000 a down payment on a loan versus setting it on fire at lease inception.

ianmSC

Exactly. My parents leased a Cayenne recently because they got a 9% discount and the resale or trade in value of the Cayenne is terrible. It wasn't a fantastic lease either, but they put essentially $0 down and the payments were manageable because of the residual and discount.

So, doing the math, unless the actual value of the car is more than 60% at 36 months, it's about the same at 3 years. If you get a 5% discount on that car and buy it for $107,987 with $12,000 down, at 72 months and 3.44% with CA sales tax, your payments are $1477 a month and at the end of 36 months you owe $66,162 on a car that's worth 60% of initial value, or $68,202. That difference is eaten up by the extra payments though. So it needs to do better than 60% in trade in (unless you're selling private) to make a huge difference over 3 years. Of course if you keep the car 4 years that changes dramatically in your favor, but the OP said he doesn't keep cars for very long, so...

Needsdecaf

Trying to understand a lease without knowing the MF and residual is nonsensical.

Having said that, this looks like a real crap lease.

kayjh

I think you can work out the MF as you have the msrp', cap cost, down payment, fees and residual. In Canada the lease rate is 6.99% with a 64% residual. On a 135,000CAD build, 4% discount and zero down the lease is $2,300 (36 month/10,000 miles). Using a lease calculator shows about $600/month in finance charges (Ouch). Based on those numbers, I’d just pay cash for the car. The high residual is good but the interest rate kills it. If I could get 7% on my money with little risk ....

cscrogham

Perhaps indicative of early sales?

Tpup

Only $3.95 per mile...

sali1980

I pay close to $1400 a month but I never paid $9000 down. I like to change car every 3 years and drive it like I stole it hence lease is the best option for me.

1. Try to get a decent discount
2. Try US Bank as their money factor is far better than PFS as a dealer recently told me he’s referring clients to US Bank instead of PFS

Patriot

^^ same here, very happy with rate offered on my 992 S by US Bank. Dealer didn’t even bother going to PFS, despite Tier 1 credit.

Fatih Tetiker

Is it possible to lease through U.S Bank instead of PFS in US? I did not know that.

b1st

Another factor to consider is the probability of you having to get rid of the car earlier than 3 years in high sales states. In the extreme example, if you bought the new 992 and sold it / traded it in the next day, you will have wasted $10k in sales tax in California, gone. That's in addition to the drive-off hit you get. Had you leased you could still trade it in for the the market value, which would be no different than if you had purchased, but you will not have spent the sales tax that you will never get back. I'm on this boat unfortunately. I purchased my 718 S brand new 1 year ago in California and now need to sell it (for personal reasons). I'm out $7k in sales tax right away in addition to the depreciation. Had I leased I would probably be $4-5k ahead. I'm looking to get a 992 now and will be lease instead of purchasing.