I test drove the Touareg V8 and the V6 it doesnt come close to my Cayenne.

 

You know what to get!!!

 

Drew,

What is the 'Porsche Options Loan' program? Is there any advantage of getting it versus a regular car loan from a credit union?

Also, I amtrying to run your numbers but the math isn't working. For example, from your first post you are saying the monthly is $800 and the price is 47k but I am putting your numbers into loan calculators and it is not working out (eg 47k over 48 months with no down, even at 1% is $929.29.

 

Porsche Options is basically a ballon loan. They calculate a residual value just like a lease and you pay the difference between the sales price and the residual plus the interest on the total loan amount. A big benefit is at the end of the loan period you can turn the car in and walk away just like a lease. With the sorry state of the used car market today that seems like a safe play.

Also I live in Chicago where normal leases don't work well. With a lease here you have to pay the sales tax, 8.75%, on the purchase price up front just like you would if you payed cash. The gotcha is that you also have to pay a "use" tax of 6% on the payment amount every month. So leases here have an effective tax rate of almost 14%. Oh and if you decide to keep the car at lease end you have to pay the sales tax again to transfer the title into your name. Ouch....

With Porsche Options the car is titled in my name from day one just like a traditional loan. Oh and one other benefit is that if I trade the car in against a new car then I only pay sales tax on the difference between the two. So for me the resale protection and lower payment are a no brainer.

YMMV (Your Mileage May Vary)

Drew

 

That's the first time I've heard of a lease that you pay the tax up front, must be really different.
Also does OPtions cover Gap protection? It looks the same as lease aside from the ownership/title like you had said. The resale protection is kinda weird, meaning you dont pay the depreciation if you trade it in? just curious

 

Drew,

So it really is a lease then, because if at the end you want to keep it,
then you have to pay a lump sum to still buy it outright. Are you limited
on your mileage? What did you decided to do?

Best Marvin

 

He has already paid for the depreciation since the most mart of the monthly payment is an amortization.

 

Update - Well I started to review the details of the options program and I didn't really like what I saw. First off the interest rate is 7% as compared to my bank on a traditional loan at 5.09%. In the end it is interest that costs you money. Porsche gets the payment down by setting a high residual, 57% after three years. I bet the vast majority of Options cars will exercise the turn in option. Of course if I turn in then I lose the Illinois sales tax credit on tradeins of approximately $2,500.

So I get to pay $3,000 in extra interest over three years and most probably lose $2,500 in tax credit. Oh and a $450 turn in fee. Not a very good deal as compared to a traditional loan.

So I decided to go with the base Cayenne. My orignal dealer got very aggressive when he heard I found a cheap S. Since I decided to go with traditional financing the Cayenne at $45k was just a much better deal than the S at $54k.

So now I wait for the car to arrive. It is on a ship currently. Hopefully it will be here by Christmas.

Options -
Black exterior, black standard leather
Exterior package black
Moonroof
18" Turbo wheels with all seasons
Auto climate
Driver Memory
Front seat heaters
Soft look leather seats
Light comfort package

Drew

 

Must be a trick question or something...get the S

 

i went with options plan at about 5.5% and decided to pay up towards principle and refi with traditional finance option through credit union.
Glad you went with Loeber. See you around and let's team up for mods.

 

Drew--

Cool - so your special-ordered an '05 V6--- does it have manual transmission?
Good job on the financing too.