2qwik4u

if so..good or bad idea? How much of a price break should 1 expect?

leo

Robin 993DX

You can lease any type of car new or used, but if you are considering leasing why don't you also look into the "ballon payment financing plan", which is almost the same as lease but you do have the option to buy it at the end or return the car with a minor panelty. Many people finance high price automobiles that way, it keeps the monthly payment down and at the end you can either pay off the car to keep or return it.

But personally I would never finance another car again, if I can't pay for it in cash I would not buy it until I have enough money saved up for one. With the finance charges I paid for my 993DX I could have bought the EX (tt) model....


[ 06-06-2001: Message edited by: Robin 993 DX In Atlanta ]

Timg-B'ham

I agree with Robin -- the balloon payment option is a good way to go. All the advantages of a lease w/out the worry for milage limits.

Know that in addition to these finance options, a good Porsche dealer can do just about anything for you with a used 911 as they can for a new one.

Your options also include adding an extended warranty. For a while, PNA was giving a 1-year warranty with the purchase of every used car sold by dealers. (Not sure if that's still being offered.)

Good luck and I hope you enjoy your new Porsche!

Greg Fishman

I am not an expert of leasing,but I have a brother in law in the business and have gone through the same process when looking at finance options.
A baloon payment option is just a loan with a lump sum buyout.
A lease is the same thing but you have the option of turning the car back in, with a penalty for wear and tear, mileage, etc. If you lease the car and want to buy it at the end you should be in the same situation, provided similar interest rates, as you would be in a baloon payment finance contact.
The problem with leasing a used car is that the money factor (interest rate) is usally much higher than it is for a new car. Plus the residual value is lower also, because the bank doesn't want to take a 5+ year old used car back and have to auction it, they want you to be in a better financial situation to trade or buy the vehicle and will "penalize" you if trade the car back in.
The end result is that you could be paying a higher payment for a used 993(or 996) than for a new 996.
What you need to look at is the complete picture. The total payments over the term plus the buyout, and then decide if a lease or other financing option is best. If you are just looking for the lowest payment, there are even some companies that do open ended leases, but that is something I would stay way from. I know a few people that have gotten buried in cars because they got suckered in by a $400/month payment on a $40K+ auto.
Questions?

2qwik4u

Thanx for the info guys.

leo

jwt996

I look at leasing as a way to pay for the car as I use it and not spend capital on a depreciating asset. I would prefer to preserve capital for investment purposes. BTW my lease on a used 99 996 C2 is at 9.25% with extended warranty to match the 4 year lease.

SeanD

My GOD! An intellegent group of people. If you all had posted this info on say a Honda board, they would have fed you to the lions!! I have NEVER seen intelligent or correct posts about leasing or ballon payments. I was a Finance Manager for 3 years at a Toyota dealership in Atlanta. Where the heck were you guys as customers then?

Anyway, I affirm (most) everything that was posted.

Keep in mind that you only pay tax on the payment not the entire amount of the car since Uncle Sam doesn't know what you are going to do with the car (buy, sell, trade, drop) So if you were to buy a car under a trad. finance for 60 mos, you pay the tax when you buy the car on the ENTIRE amount. If you were to sell the car in say, 2 years, Uncle Sam does not give you a refund.

Also keep in mind that all leases have gap insurance. This covers "gap" cost of the cars value in a total loss since most insurance companies only pay 80% of the wholesale value and sometimes you can owe more at the time of a total loss than then the insurance company is willing to pay. you don't pay for gap insurance, the leasing company does. They HAVE to cover the loss since they still own the car. A bank on the other hand, leaves that liability up to the owner since they have committed to purchasing the car ahead of time.

By the way. I am leasing my 95 993 for 36 months. The money factor is low and the residual is $21,000. Pretty good. It was about $167.00 less than a 60 month finance and I will either sell it before then or buy/refinance it at the end of the lease.

On last tid-bid: NEVER NEVER NEVER turn in your car at the end of a lease!! Trade it, sell it, buy it, but don't drop it! That is the ONLY time that they hit you up for wear and tear and miles out of pocket. When you trade, they just take excess miles and wear and tear out of the value of the car. The only time you want to drop it is if the value of the car is less than the residual amount. This only happens with autos that have low resell value (like a gender-specific car such as the Ford Probe was or the Mitsubishi Eclipse is... women purchase these autos new but never used. Most women won't buy used cars because they are not inclined to understand the mechanical aspects like men are. It's call buyer's gap.) Residual value is typically very low on these cars anyway and the payments can be HIGHER than a trad. finance. Most dealers know this now though and only lease autos with high resell value and thus high residuals.


That's my $.02 I should have been in a Porsche dealer not Toyota!

Sean

[ 06-15-2001: Message edited by: SeanD ]

Phil

very god posts on leasing. I am the general manager of a volvo, gmc, buick, pontiac, honda dealership. When I bought my 1998 c4s I looked at both options. in my opin. leasing a new car is the way to go, if the factory is subsidizing the lease. Not many major lenders are leasing used cars, ussually private lenders are, I chose to purchase the car. I leased my wifes jag xjr, and her suburban...both were cheap money factors, with big resduils...(both will go back to the lenders!) with used leases, the residuls are ussually so so low!!..... you are better off just buying the car. a couple of things to consider when leasing...1) higher resd. = lower payment= car goes back! Infalated value..most manufactors have taken huge losses on that end!.(market share is all that counts with new cars)..2) on used do the math!...low resd.= higher payment, plus one thing most people never realize(trade secret)...if you buy the car at lease end, you have to pay sales tax on the purchase price, plus any dmv due, and if you re finance it....interest on the price!....If sounds to good to be true.......it is!