beachview

Gentlemen -

I have recently started my search for a 997.1. My previous cars have all been BMW and I've decided to finally break away and join the Porsche team.

I own a business, therefore leasing my cars is a must for tax purposes. Because this will be my first used car lease, I have a question regarding retail value. As some of you may know, the residual is usually calculated using a percentage of the retail value or MSRP(new car) of the car. Because this is a used vehicle, how is the retail value calculated and is it negotiable?

Any input would be greatly appreciated.

p.s. I could not find a "dealer" sub forum, so mods please feel free to move this thread to a more applicable forum.

sharmat

If you are leasing and running it through your business, I think you would be better off to just lease a new one. From what i have read in the past on this subject on this forum it doesnt make sense to lease a pre-owned vehicle. You might want to try a search to get all the specifics.

stevebmd

not sure you would want to lease either. with very low money factors and the incentive to move metal, you can get a sweet deal and be covered by warranty....

Likemystoppie?

leasing used right now looks ugly *if* there's a financial institution that can do it. Most banks these days will not lease used. And if there is; it's not pretty.

With PNCA's low money factor and high residuals, why not take advantage of the current incentives and lease a new car.


Ps; this aint 2002 where leasing a used car is super duper.

stevebmd

what he said

pvgolfer

Residuals on used Porsches are sent down from PCNA. The dealers get an updated list of residuals every two months. Residuals can be adjusted by the dealership depending on mileage/condition of the used car. Of course, the sales price of the car is always negotiable. Your monthly payment will be based on sales price, residual, and money factor. I don't know which model you're looking for, but I've sent you a PM...

Jetpilot

+1 on a new lease.

Another method would be to buy the used 997 and get a HELOC (home equity line of credit) from your bank - It's at prime rate and it's tax deductable. I haven't done this, but have freinds who have and they enjoy the tax benefit. I think this is your goal.

sharmat

+1
That's what I did.

Likemystoppie?

Unless someone REALLY wants a specific model, leasing used is brain damage. And the car has to have low mileage.

Otherwise; pick up a nice and shiney new one.

beachview

Thanks for the response so far.

I figured a pre-owned would have somewhat of a higher residual as these vehicles depreciate the fastest their first 3 years. Therefore, an '06 would maintain its value better over the next 3yrs as compared to a newer '09. In the end giving me a low monthly payment.

I can understand how PNCA can have high money factors and lower residuals for used so that would counteract my entire logic.

ds2k1

BTW, I just leased a new C2 and got a great deal...both on the price of the car and the lease itself. Very low money factor combined with good residual value = pretty low payment. Send me a message if you'd like to hear more details about my deal so you can decide for yourself if it's workable for you.

chsu74

What if you get audited by Uncle Sam? I am not saying it cannot be done but...

BSL

Well, technically PFS... But as you said, there are adjustments for mileage on the car and mileage to be driven.

To the OP's question, the residual for a used car is a flat dollar amount, not based on a particular car's original MSRP or present sale price (for reasons which are obvious when you start looking at a couple of what-if situations).

Likemystoppie?

Figure out your long/short term goals first. That will dictate which car to go after.

dasams

This is beauiful. Sucking equity out of a house to buy a car. dave