What is the best source for reasonable pricing guidance for our cars? I am considering getting out of my lease early (I have around 10 months left on a 36 month lease), and thought I would see how much it would cost me to do so, whether a) someone on here was interested in the car, or b) if I spoke with a dealer as part of a trade-in on something elss.

'08 Carrera S, 6-speed, 26K miles, sport classics basalt black, with sand beige interior. Limited options on the car, but the necessary xenon lights, SSK, BOSE upgrade, memory seats. Installed techart springs and H&R sways, and have the sweet sounding "gundo" hacked muffler. Car in mint condition in every way, sans the few obligatory chips in the hood.

Thoughts / direction appreciated

 

Know nothing about valuation of leased cars. Just wanted to mention if you are thinking of trading a car in with a lease you should get up to speed on pricing new cars too, cause you'll be of course buying or leasing a new car.

If you focus solely on the value of your current car if traded in turned in early for another car dealer may sense you are a trade in buyer -- one interested in getting a good "trade in" allowance for his trade in and play around with the price of the new car to what he gives you on the trade in he more than makes up for on the new car's price.

When you trade in a car you are completing two car deals. You are selling a car to the dealer (your trade in) and buying a car from the dealer (the new car obviously).

Sincerely,

Macster.

 

Thanks Mac...I agree I actually think one of my buddies at the office may be interested in it, as he knows I baby it and it would be a great second hand car. Or, he may choose to just take over the lease for the next 10 months, so that he has the joy of driving a sweet porsche, but does not have the "lock-in" of the 36 month term. I am hoping dealing with the dealer will be the last alternative.

 

Cole,

I don't know the "particulars" of your lease but let's assume you want to trade the car in. Using these "example" numbers here is what you would need to "break even" on your lease.

Residual value at lease end = $50,000
10 months at $1,000 / month = $10,000
Disposal fee = $500
Adjustment for abnormal wear = $0
Excess mileage adjustment = $0
Total commitment = $60,500.

So, using the above example, you would need to get about $60,500 on a trade in to break even. If it is a Porsche lease and you want to lease from Porsche again, they may give you a little break to “re-lease” with them, but you will have to look at the “old car trade in value” and the “new car price” that they quote you to make sure you are not getting money on one end but paying for it on the other end.

If your co-worker wanted to take over the lease (you need to check to make sure your leasing company will allow the lease to be transferred), then you are "off the hook" for the remaining 10 payments and the residual value. It may be worth your while to offer your co-worker the cost of the Disposition Fee and maybe a few extra $$ for assuming the lease.

Let’s assume your co-worker wants to purchase the car at lease end. If it is a Porsche lease, I think they are pretty firm that the Residual Value at lease end is the price your co-worker would pay to by the car. Other leasing companies have been known to be willing to sell the car at lease end for an amount that is less than the stated residual value in the lease contract, especially in this economy. If they take the car back and end up having to wholesale it, they would probably end up getting less than the residual value, so they may be willing to deal a little on the price at lease end.

I know I kind of rambled here, but I am just trying to go through some options to give you an idea of what to look at and some things to cover with your co-worker.

 

Tim K is correct except the dispostion fee is $350 I believe. Its not going to be easy to walk away from a leased vehicle early. Porsche generally wont let you buy the car for less than the residual either.

 

Trader, not knowing the particulars about his lease (i.e. Porsche or other) I needed to use some amount as a place holder just to make sure he figured the disposition fee into the total.

Anyway, thanks for giving us a more accurate number.

 

Good Point Tim, I assumed it was a PFS lease.

 

Thanks guys it is a PFS services lease I'll likely end up keeping it until much closer to end of lease term. Its an awesome car, and I certainly have no interest in getting taken to the cleaners just to end the lease early (luckily, its not an affordability issue) Thanks guys

Cole

 

Not sure I would call it getting "taken to the cleaners" The issue with any lease not just a PFS lease is that you signed on for a term and the leasing company expects you to honor that term. PFS will from time to time offer deals to let you out a few months earlier if you're going to roll into another Porsche. I guess it just sounds to me that when I hear the phrase "taken to the cleaners" that some party is doing something below board or unethical, thats not the case this time.

Enjoy the car for some more time! Use it in good health,

Tr220

 

Thanks trader we're on the same page I simply meant that in other leases that I have previously had, the market value of the car was "greater" than the residual plus the remaining payments, so rolling out early was easier. In this case, mu suspicion is that the opposite is true, which would mean I would be bringing several thou to the table to jumpt out and into a new car, and that seems like a waste of m,oney I'll likley keep to term, rack up the miles, and then jump into something new when it makes more financial sense.

 

Many have had luck with the online programs that find people who want to take over lease payments.

 

Yea I agree with you Cole, in past economic times on occasion you'd have a situation where the buy out option was worth while ahead of the end of the lease. Generally these days thats not been the case, especially with so many months remaining on a high priced car.

Way back in 1990 I bought a brand new E30 M3 from Braman in Florida, i then sold it to a leasing company and leased it back for 3 years. The buy out wa sso attractive that I bought it again from the leasing company and flipped it for a few grand.