BostonDuce

Try to find a balloon loan.

No trap doors like a lease, lower payments than a straight finance.

Keep as much cash as you can if you get sub 3% rates. Money hasn't been this cheap in forever. Put it in a FDIC 1+% savings account and draw it down using ACH transfers as needed. You'll be borrowing @<2%.

BD

CodeRed

^ hadn't ever considered a balloon loan...sounds interesting, any sources?

saeyedoc

The problem with a balloon is you can find yourself upside-down at the end of the term, especially if you've been in an accident or had any body work done.
My current BMW is a balloon loan, but I have a guaranteed buyout option at the end of the term, I can just turn it in like a lease.
I tried to trade it for a Porsche several months ago, I was almost 10k in the hole due to an accident I was in.
I look at the lease as paying more for the option to just turn the car in, not worry about the value at the end of the turn.

C4S993

Then how else do you lower the monthly payments ?

Jay13

You put your 30k in the bank or other secure investment and you dip into it each month for the difference in your lease payment between what you wanted to pay and what your lease payment actually is.

Assuming your lease includes gap insurance, there is no good reason to buy down the lease and close that gap. Say your car is stolen the day after you buy it. The value when it left the lot as a used car was, say, 80% of the price paid. So on a $100,000 car, the value is $80,000 (your insurance pays this) and the lease "gap" insurance will make up for the difference between the $80,000 and whatever you owe in payments and residual on the lease. If you put down money, all you are doing is putting your money at risk instead of your insurer and the finance company's insurer.

C4S993

Thanks Jay,

That makes sense to me, NO $30k downpayment.

Today I talked with the mngr at Main line Porsche re a 12k miles Gt3 that had a roll bar and track seats. I asked abt a 2 year lease and they said that would be tad over $40k depreciation in two years ! Is that possible ?

Patrick

Musclehedz101

As a side note to take that to the next level. If you can get something documenting what that CU will give you, take that to the dealer's finance guy and tell them the business is there's to loose unless they can beat your offer!

Dealerships are "incented" to use a number of finace organizations outside of Porsche's, hence their push to not close you with Porsche finace.

It's a buyers market and you haold all the cards! Play hardball, you have nothing to loose, they do!

Just my $0.02 worth

saeyedoc

Lease rates are usually not favorable for used cars. The residual is a fixed value based on the MY, not a percentage of purchase price or MSRP. Add the incentives from Porsche in, and it can sometimes be less expensive to lease new.

porscheforfun

Penfed new rate 2.49! What a steal and up to 72 months

Marine Blue

The dealer did everything they could to get me to get the loan through them but they just couldn't match the rate. They were shocked that I was able to get a better rate than what Porsche was offering (3.9% for 72 months).

Looks like rates came down again, I'm really surprised to see that considering the threat of inflation.

gravedgr

Zeus993

I like the gt3 but a recent trek with the older 996Gt3 was horrible, worse than my 993 C4S. I would hope the 997 Gt3 is less darty and bone jarring (?). 2nd choice is the GTS Cpe, 6spd. Recent test drive of a C4S was less than inspiring. I yearn for the 993TT low end torque but want a new Porsche and dislike the new TTs, too pricey.

Patrick[/QUOTE]

My understanding is that the 997 GT3 is a very different car from the 996. Still raw and gutsy but better at the slow speeds as well. They seem to improve this car with every evolution. Better engine, suspension, engine mounts etc...

spiderv6

60 months. 72 months. ???

I never finance cars but thinking about doing so because of the low cost of borrowing, but 5 or 6 years of repayments just does not compute with me. Would be an anchor around my neck.

Is it just people who keep cars for that long or are you guys changing cars and changing loans ???

saeyedoc

5-6 year loans will usually give you payments close to a lease and loan balances at the end of 3 years close to the value of the car.

MacaoGP

I am planning to lease a c2s for 2 yrs 5k miles before the 991 comes out. But I will lose around $37k of lease payments in the process. The dealer said 70% residual is a "great" deal. Don't know if I should pull the trigger? What level of income should a person be to spend this kind of money?