abe

I wonder how many who thought "I can make more money in the market....let it work for me since financing is so cheap", have regrets.
I don't know about those know it alls, but I know I am not smart enought to make those big returns. Its so easy to look back....now if I only had a crystal ball.
abe

geof

Yes, a year ago to now, a stable of new Porsches would have provided better returns than you-know-what.

But the time spent driving one never depreciates.

abe

But the time spent driving one never depreciates.[/QUOTE]

...makes a good add.
abe

Minok

If you are keeping the car for the long run (7+ years), then buy.
If you want to make the car yours (customize), then buy.

If you want to trade it back in after 3-4 years, for the next model, then lease.

If you cannot afford to buy, then make payments.

lig

I no longer regret paying cash for my pcar

9974G

+1
Except I never regretted it

bitterazn

It's not a good idea to take on debt you can't afford, but it's equally bad to avoid non-recourse cheap financing.

Even if you don't think you can invest the cash elsewhere, there is a value to having cash on hand vs. in an illiquid and depreciating asset.

rvklein

I financed 100% of my porsche. Rates were too cheap not to. It all depends on what YOU are more comfortable with.

lig

I'm not that money smart so I wasn't getting a great return on it anyway.

abe

Now, I am glad I wasn't that smart.
abe

MJones

Simple-
Write Check
Buy Car

clutchplate

One of the plusses in leasing is it gives you two opportunities to negotiate the price. Once when you get the car, another when you turn it in. There's a reason many car companies are eliminating leases. The residuals, in markets like this anyway, are usually higher than the cars value at the end of the least. Many car compaines will let you buy the car at the actual value rather than the residual so you get two discounts not one.

MLindgren

I had the discussion with my wife a week ago. She now appreciates having cash "tied up" in the Porsche as we likely would have lost far more than the depreciation hit we've taken so far.

lig

Better lucky than good, eh fellas?

Cheers! It's a nice sunny day here in Seattle so I'm off for a little drive.

PeterC4

If you have access to various financing options you can finance a car independently (and own it) but emulate the characteristics of a lease except you take the residual risk. For tax purposes, leasing versus owning does not result in a material after-tax difference. It is about the opportunity cost of capital and the residual value risk. I wouldn't be quick to discount leasing even in this environment. If you can pass on residual value risk to the dealer, leasing has advantages, it just carries an imputed interest cost. The benefit of owning is flexibility and the benefit of paying cash is ....well you just don't have to think about payments, but most Porsche owners probably aren't concerned about the payments generally.

I would have thought that Porsche, like other OEMs are having challenges determining appropriate residual values in this market. To the extent calculated residuals go down, lease payments will go up and the opportunity cost equation gets a lot more interesting. Of course some manufacturers will not lease you a car in this environment and have the consumer take the residual risk now. To me it was always the residual value risk that made leasing an option, but I have opted to buy ...up until now.