Counting the days and I am so excited. Nissan Red (color to sample) on the boat and should be here in 3wks!! Question for those who have a lease. I just spoke with my accountant and he recommends leasing it through my business for 3 yrs. Who have you guys used for financing and what are the terms I should look for. Is Porsche Financial a good option? BTW, I am a total lease virgin.....have always financed via loan or paid cash, so I want to avoid being violated Thanks for input in advance

 

Do a seach here about the topic; but you're going to get bombarded with opinions about leasing.

If you plan on keeping the car, Porsche Financial might not be the way to go. High residual values, but really high money factors (lease interest rates). USBank gives super low money factors, a little lower residual value but great payments.


What's your goal? Keep it after the lease is up? or the highest write off possible?

 

What's your goal? Keep it after the lease is up? or the highest write off possible?

That is a good question! I'm not sure, now that I will be leasing a car. My previous thought was to purchase and keep for a very long time > 5yrs. The option I would consider is to "trade in" the car after the lease is up and upgrade to the newer model.

 

the answer isn't too tough. you must figure out, leasing vs buying, where are you in better shape after taxes/writeoffs. then evaluate, if leasing is your decision, do you want to keep it or not. if you don't, go for the lowest payment. if you do, go for the lowest total lease cost after buying residual. i would think that porsche will charge you around 2200 for a 130k lease for 36 months. whatever you do, don't put money down on the lease

 

Doc - How did you come to the 130K number?

 

You probably don't want to lease it and buy it thru the business as the car will be trapped in the business. My vote is lease it for the least you can, then flip into the next generation, as we are due for a tech upgrade soon. AS

 

So I did a little research today and even got a lease quote from the dealer. Doc, you are correct in that I need to make a decision on whether to flip the car in 2-3yrs or buy it after lease expires. The terms of the lease necessitates you plan on your exit strategy. It is tempting to get a new car every 2-3yrs(PDK/maybe cabrio/change color and options), but I would also like to do some mods on the car that would be like burning money if I hand it back in just 2 yrs.(Venturshield/ECU/Exhuast/headers/Ipod Denison), although Exhaust/headers I could reuse. I will have to give this some more thought

 

First of all, mods are real time. You change the exhaust, you get your ROI immediately. Chip, same thing. So whether you keep it or flip it, you do the mods for fun and that's that. If you trade it in modded you will de-crease the value anyway.

Secondly, if you can lease it and fob off 25-33% of the lease payment and the upkeep, it becomes a no-brainer, unless I'm missing something.

Now if you feeling pre-purchase sentimentality already...then buy it and put it in your bedroom on a shelf somewhere. Because I can guarranty that most of the knuckle-heads here (me included) will be ogleing a 998TT about when your lease (and mine) is up.

 

i mean a car that costs about 130k, a 997tt with standard options.

 

scott-a perfect example of what we are talking about is my lease on my 2003tt. i leased it jan. of 2003 when it was winter in the northeast. there was an oversupply of turbos and i was able to get a killer lease from chase-$1425/month tax included for 39 months and 39000 miles. the residual was $79,000 (high-almost 66% after 39 months). my only inceptions was first months lease payment, there was no down payment or ccr. i drove that car until april of 06 and put 39000 miles on it. i really loved that car, but now i had a car that i just finished paying a very cheep lease on that was worth about $63000 on trade in and was going to cost me $79000 if i bought it. you say sell it for retail in the future after i buy it-that would be tough as i would have to compete with dealers who would put a warranty on it. so i walked away from it and bought a new 997 tt. this was a perfect example of a lease that was great if you wanted to walk after the end-a high residual lease. i personally have found the leaseing prices of the 997tt to be very high. buying wound up being cheeper for me. good luck.

 

That's easy, just keep your stock parts, return it to stock before you turn it in and sell the aftermarket parts. Works esp well if you do your own work.

 

Secondly, if you can lease it and fob off 25-33% of the lease payment and the upkeep, it becomes a no-brainer, unless I'm missing something.

What does fob stand for?

Thank you all for your input and help, you learn something everyday.
A 3 yr flip is looking better and better, will post my results for those interested, and pics of the "chili" car when it arrives.

 

scott- it would be very interesting if you would give us the benefit of your experience and tell us the lease quotes that you are getting, along with the corresponding residuals.

 

Here are Porsche financial lease rates:

2007 911 Turbo Coupe /

24 mo/15k mi – Residual Value 66% of MSRP – .00320 Money Factor Buy Rate
36 mo/15k mi – Residual Value 58% of MSRP – .00320 Money Factor Buy Rate
48 mo/15k mi – Residual Value 52% of MSRP – .00330 Money Factor Buy Rate
60 mo/15k mi – Residual Value 45% of MSRP – .00330 Money Factor Buy Rate

2007 911 Turbo Coupe Tiptronic

24 mo/15k mi – Residual Value 64% of MSRP – .00320 Money Factor Buy Rate
36 mo/15k mi – Residual Value 56% of MSRP – .00320 Money Factor Buy Rate
48 mo/15k mi – Residual Value 50% of MSRP – .00330 Money Factor Buy Rate
60 mo/15k mi – Residual Value 43% of MSRP – .00330 Money Factor Buy Rate

Use the following formula to calculate a lease payment:

(Capitalized Cost – Residual Value) / Term = Monthly Depreciation
(Capitalized Cost + Residual Value) X Money Factor = Monthly Interest
Monthly Depreciation + Monthly Interest = Base Monthly Payment



You can calculate your exact monthly payments if you go thru porsche financial. Also be careful of them charging you a large "doc" fee - it's just a BS charge to increase their profits (ask me how I know).

Good Hunting!

 

The proposed quote from Porsche was:

MSRP: $133.355
36 month Lease
10,000 miles per yer
61% residual value ($81386.20)
Payment would be $2265.04/Mo
This appears to be consitant with a .0039MF (best rate in his words)that he told me I would be getting.

Leasecompare gave an initial quote with 12000 miles/yr
.00352MF
$47029 Residual (very low!)
This makes the payment $3146

Still Hunting as I will call Chase and USBank. I saw the above rates and I believe those were posted by Leasecompare. I'm wondering if you can get a lease with a .0032MF! Even they gave a .00352