Deven

Don't worry about the residual, consider the money factor as well. I went through leasecompare and the residual after 4 years on my 997S cab was 33%. However, the money factor was extremely low, so as a result the monthly payment was the same compared to Porsches' most aggressive offer with a residual of 48%. A lower residual can work in your favor if the car is worth more at the end of the lease, as you can buy it and then turn around and sell it/trade it in etc.

1whobuys

These cars are going to tank...the more PCNA floods the dealers and pumps the numbers up, the more the value of your 997 goes down.

If it keeps going the way it is now, you're KIA will be worth more that your 997.
Take a look at the CGT, get out while you can.

boolala

I expect the 4 year residual to be about 45% - 50%. Thirty three percent sounds absurd.

drbf

I better trade my C4S on a KIA fast. No. I guess 8 KIA's

jcnesq

Agreed - 4 year residuals on 911's have been around 49-51% for the past decade - something is wrong with this picture!

Deven

My plans were to buy the car personally after the lease expires. Having the lowest residual means that the bulk of the value of the car has depreciated over 4 years. If the monthly payment is the same when comparing to a residual at around 50%, then the leasing company has less liability at the end of the lease as they will be able to sell it/ auction it at a reasonable profit. They will take a hit with the interest rate, but as most people return the vehicle at lease end, they will likely make a larger net profit this way. I was just looking for the lowest money factor when picking out the lease, and this was the best option from lease compare. The lease is through US bank. There are many ways to look at leasing, and I think this will be the trend with higher end vehicles as there is less liability for them. The key is to make sure that the money factor goes down, if the residual goes down.

lawjdc

About a dozen times a year I get a prospective client in my office who has purchased a car with supposedly approved dealer-arranged financing, and two days later the dealer has called the client to say that the loan was declined and the client will have to get alternate financing, usually resulting in at least a hundred dollars per month more in payment.

I have the phone number for the attorney general's consumer division handy for such occasions. The next call I get is from the grateful prospective client whose problem has been solved. (no charge from my office)

Perhaps this change in the lease residual, after you have swallowed hook line and sinker, is a variation of the same scheme.

1AS

What number did it drop from? And over how many years?AS

Paul523

Deven and lawjdc make good points. As far as money factor, check with Chase Manhattan-- they gave me unbelievable late-in-model-year lease terms on my M3 (was a June build, July deliv) of 62.5% residual, .0016 MF on a 42 mo. lease. Seriously, I felt like I was stealing from them. US Bank is usually aggressive too. Try calling Chase independently first to quote terms but when I did mine they would only transact through the dealer.

If it were me I would buy it. Maybe the dealer will concede another point off MSRP since the lease numbers have been turned on their head, then buy at that price for cash or loan through a credit union. Even better, dealer can show their heart's in the right place & commit to a 5% discount for a GT3.

Maybe it's more coordinated Porsche marketing at work but these X51 cars have developed all kinds of mystique-- production undersupply, the critics, the fabled dyno #'s, Rennlist -they could end up being pretty rare birds. An extreme comparo- think Corvette L88, a hefty $947 option on late '60s vette $4700 base sticker, now the holy grail of vettedom. My hunch is that a few years down the road the 997's with X51 will retain a 10-15% resale premium above non-X51 (unlike the 996 model's lackluster X51 package).

Unless you're able to write-off a huge chunk of the lease pmt as corp expense, buying is better anyway imho, the final bottom line will be the same or better. Sorry for the long post & too many metaphors. Nice upgrade John D, thanks!

crispenigl

It was 50% when I ordered it and now its 44%

crispenigl

Hi Deven,

Of course I worry about both I want to get a higher residual and a choice MF

no 48% residuals - i could re order the car for a 2007 model and save 6k!!

1AS

On the lease vs purchase debate, my view is changing. I was a "purchase" advocate simply due to the logic of wanting to retain the profit the lease company was making.
Business use and tax factors shifted me toward lease.
Currently, the cost of off-warranty repair seems to have skyrocketed. I'm not sure I would want any new car after the warranty has lapsed. On some cars like Audi, a replacement of the information module in the console (Multi-media interface) could exceed 25% of the then-current value of the car after 4 years
Obviously, if you can get the dealer to certify it, you could buy back your own, but then he gets a profit plus the $1800 for certification.
When inventories build, most manufacturers have subsidized leases where the residual is artificially high, often accompanied by a favorable money factor (witness the Toureg which I leased for $399).
I thought Porsche had a short foray in that direction a couple of years ago, but I didn't explore it.
Clearly, there are fewer great deals when demand is high. If the secondary market is weak, why not look for a low miles used 997, then lease that? AS