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Another factor to leasing is that many many people lease their cars through their businesses and write off a large portion of the cost from their taxes. If you are acquiring a car to keep, buying makes sense. If you turn them over every three years, leasing is better.
Dealers don't care if you buy or lease. Either the bank or the leasing company owns the car...for the dealer he just has the money in his pocket and the car off his books.
As for resale value of a three year old Porsche....unless it is a special limited edition, it will be taking its biggest hit in those first three years. Don't look at used Porsche retail asking prices to determine value...look at what the dealer will give you in trade. Your 3 year old Porsche will be worth 40% less than what you paid for it, not counting taxes and license fees.
My sources say that people don't want to take the depreciation hit on a $100,000 dollar car that they are going to trade back in within 3 years for the next model. The purchase makes no sense to them. They modern Porsche buyer keeps the miles well below the lease limits and most new Porsche 911s will never see a 30k service from the first owner.
Finally there is someone with their finger on the pulse of the modern Porsche buyer. Thank you, I'm sick and tired of people just projecting their opinion a sense fact!
You're missing one important detail. Resale value. Just for ****z and giggles I priced out a base model 911 lease. $1199/month with $7199 down. After 3 years you will have paid a total of $50,363. KBB values a 2015 911 (currently 3 yrs old) at $73,367. Assuming I buy with $0 down and have a 3 yr loan, I pay $2932/month or a total of $105,552. I sell the car for $73,367 after 3 years then the car cost me $32,185 to own for the 3 years. By buying I am $18,178 better off. And that's assuming turning in the lease with no over mileage or damage charges.
There's a reason dealers love leases. They make more $$$ on them.
To clarify, I used a base 911 price of $92,500 with 9% sales tax and 3% int rate.
Thanks for a more complete example that factors in resale for the buyer. In summary:
Leasing.
Total payments are $50k
Resale proceeds are $0.
Total cost $50k
Buying.
Total payments are $105k
Resale proceeds are $73k
Total cost $32k
Conclusion: Buying costs a slightly more than HALF the cost of leasing.
Here's 5 year data on the Rennlist 996 popular 1999 Carrera:
Insurance actuarial is usually pretty accurate. That's how they make money, so having the right info on costs, and values determines premium rates.
What this tells me, is that we are in the nadir of depreciation curve, and prices have hit rock bottom(presuming no more engine surprises). The 928 is just coming out of its nadir, so there's a slow but noticeable climb now. It could be 2 or 15 years before the price starts to go up, but at least the worst is basically over.
I bought an Avanti 20 years ago because I was SURE they were right on the cusp of a huge increase. Sigh,,, still waiting.
Just took my '02 996 C2 6spd Cabruilet in Lapis Blue/Grey with 62k home for $22,170. Great condition with a couple of dings. Soft top has a slight yellowish tinge either from UV (Texas/Arizona car) or someone tried detailing it with something and it got an off-color. With that said, no maintenance records and 60k wasn't done so I went ahead and schedule that maintenance, the IMS bearing, RMS replacement, and clutch replacement. That will cost a pretty penny so I factor that into the price of the car. I think you can find a good 996 perhaps on the private market with a motivated seller. A lot of these now are on their 3rd owner and up with 80k miles+. I really wanted a 6spd for my 996 so it took a little searching to get everything right with factory installed options, etc. Best of luck on your search!
Last edited by daddyscientist; 08-27-2020 at 09:50 AM.
Just took my '02 996 C2 6spd Cabruilet in Lapis Blue/Grey with 62k home for $22,170. Great condition with a couple of dings. Soft top has a slight yellowish tinge either from UV (Texas/Arizona car) or someone tried detailing it with something and it got an off-color. With that said, no maintenance records and 60k wasn't done so I went ahead and schedule that maintenance, the IMS bearing, RMS replacement, and clutch replacement. That will cost a pretty penny so I factor that into the price of the car. I think you can find a good 996 perhaps on the private market with a motivated seller. A lot of these now are on their 3rd owner and up with 80k miles+. I really wanted a 6spd for my 996 so it took a little searching to get everything right with factory installed options, etc. Best of luck on your search!
Did you have a pre-purchase inspection on the car? If so, how are the cylinder bores?
03-19-2017, 02:36 PM
