GT3 Lease or Finance???
#31
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Keep in mind that using post-crash money to buy right now may mean you miss some of the market rebound (if you believe were recoving) over the next 3 years ... can make putting that money into a depreciating asset very expensive
Leasing versus buying is a toss-up really, all depending on individual circumstances - i.e. business write-off, risk aversion to market conditions, incentives etc. If you believe you can invest your money and achieve a greater return than the money factor, then hold on to your money. Really depends on each deal.
The put option is nice, but it's not free - you pay for it in lease inception fees, although its cheaper for the lease companies to purchase residual insurance in bulk
I got a 5% lease on my 07 and chose not to use cash - better left in the market. Looking back, I'd have been better off buying outright!!
There is no right single answer to this question - don't let anyone brow beat you away from leasing, it's fine if you're gonna purchase frequently and the deal makes sense financially!
US bank and others have pre-purchase penalties, so watch out on that front
Leasing versus buying is a toss-up really, all depending on individual circumstances - i.e. business write-off, risk aversion to market conditions, incentives etc. If you believe you can invest your money and achieve a greater return than the money factor, then hold on to your money. Really depends on each deal.
The put option is nice, but it's not free - you pay for it in lease inception fees, although its cheaper for the lease companies to purchase residual insurance in bulk
I got a 5% lease on my 07 and chose not to use cash - better left in the market. Looking back, I'd have been better off buying outright!!
There is no right single answer to this question - don't let anyone brow beat you away from leasing, it's fine if you're gonna purchase frequently and the deal makes sense financially!
US bank and others have pre-purchase penalties, so watch out on that front
#33
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#36
The lease companies are working on "blind" actuarial data with "written down" transactions (taken from perhaps less than 1% of the market, since transactions are infrequent) so the leases are looking at purchase around US$75K ... if you're looking at a nice example (probably more like $85-90K) then a lease would be borderline usury.
Porsche has reduced residuals this month (August compared to July) so, along with higher rates, leases will become relatively more expensive. If you're buying a new 911, it seems that now is the time. If you wait into the last three months of the year, either the economy will have improved and you're out of luck with leases and purchase prices, or the market will have tanked and you're less likely to want to buy that car anyway. We're heading into a no-win for customers and that spells a no-win for Porsche. Batten the hatches!
#37
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CGT is right. part of the reason used car now cost more to lease is not just the residual. the banks are scared from all the car lease losses they took, they r jacking up rates right now. in fact, porsche financing is the most aggressive right now.
but that is in itself a prob for future porsches. beside GTx cars, you can lease any 09 cars at very very low money factor with some serious msrp reduction. while that's nice and dandy for new car buyers today, when you try to sell that car 3 years or sooner down the road, you will see that your up front price reduction will catch up with you due to the super low sales price then.
but that is in itself a prob for future porsches. beside GTx cars, you can lease any 09 cars at very very low money factor with some serious msrp reduction. while that's nice and dandy for new car buyers today, when you try to sell that car 3 years or sooner down the road, you will see that your up front price reduction will catch up with you due to the super low sales price then.
#38
CGT is right. part of the reason used car now cost more to lease is not just the residual. the banks are scared from all the car lease losses they took, they r jacking up rates right now. in fact, porsche financing is the most aggressive right now.
but that is in itself a prob for future porsches. beside GTx cars, you can lease any 09 cars at very very low money factor with some serious msrp reduction. while that's nice and dandy for new car buyers today, when you try to sell that car 3 years or sooner down the road, you will see that your up front price reduction will catch up with you due to the super low sales price then.
but that is in itself a prob for future porsches. beside GTx cars, you can lease any 09 cars at very very low money factor with some serious msrp reduction. while that's nice and dandy for new car buyers today, when you try to sell that car 3 years or sooner down the road, you will see that your up front price reduction will catch up with you due to the super low sales price then.
#39
Remember the 90s, currently the Dealers have an inventory problem. That will not be continued as Porsche will be required to cut production to balance the equation, and put a "ceiling" on the supply for the time being, causing a dearth in the used car market down the road.
While not an investment ever, it bodes well for future reasonable resale (especially considering heavily discounted purchase prices (it is always about the delta)). Heavens above, look at how the price of used Porsches has risen in the past few months (go figure), the Dealers are having to pay up to get the good ones. I for one just don't understand why, but it is a fact.
And don't forget all that inflation (to come?) from the, as yet, unspent "stimulus" package is going to be your friend (re value on your older Porsche), while the rest of your $$$ become worthless.
It is amazing how "fickle" the world is. People carped about the last GT3 not being a real car because it had a sunroof; and now the current one has no sunroof and nobody is buying it.
As a specialty car, right now, the 997.1 GT3 has to be the bargain of the century.
While not an investment ever, it bodes well for future reasonable resale (especially considering heavily discounted purchase prices (it is always about the delta)). Heavens above, look at how the price of used Porsches has risen in the past few months (go figure), the Dealers are having to pay up to get the good ones. I for one just don't understand why, but it is a fact.
And don't forget all that inflation (to come?) from the, as yet, unspent "stimulus" package is going to be your friend (re value on your older Porsche), while the rest of your $$$ become worthless.
It is amazing how "fickle" the world is. People carped about the last GT3 not being a real car because it had a sunroof; and now the current one has no sunroof and nobody is buying it.
As a specialty car, right now, the 997.1 GT3 has to be the bargain of the century.
#41
^
Is that popcorn, or your daily meds?
Is this a case of wishful thinking on your part, a comment or an opinion? Or first hand knowledge of transactions?. Or could it be humor?
Either way, when you clarify, I am sure it will be helpful, as a data point to those in the market.
My data point is that "Dealer" wholesale prices are currently significantly above the 50% level. I certainly hope you didn't sell yours too cheaply.
Is that popcorn, or your daily meds?
Is this a case of wishful thinking on your part, a comment or an opinion? Or first hand knowledge of transactions?. Or could it be humor?
Either way, when you clarify, I am sure it will be helpful, as a data point to those in the market.
My data point is that "Dealer" wholesale prices are currently significantly above the 50% level. I certainly hope you didn't sell yours too cheaply.
#43
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Hi Moot. Can you elaborate on "while that's nice and dandy for new car buyers today, when you try to sell that car 3 years or sooner down the road, you will see that your up front price reduction will catch up with you due to the super low sales price then." It seems to me the new car buyers who will pay for the "clearance sale" pricing on '09 cars will be the buyers paying "fair" prices prior to the discounting. I'm looking at a hefty discount and part of the "self-fulfilling" nature of the discount is looking ahead two or three moves to consider likely resale. I mean, it's a sort of chicken and egg problem -- I wouldn't expect such a high discount if I didn't see low resale down the line and I wouldn't see low resale if I wasn't seeing aggressive discounting ... : )
#44
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if i want a car i only have ONE question. can i afford it or not.
if the answer is yes, i buy it, price and dep'n doesn't really matter. i buy what i can afford and like. with each GT3 i lose about $40k, but with each GT3, i enjoyed 20k miles of bliss.