qwerrewq

Expecting our 2025 GTS in late September, and we are now torn between cash vs. financing vs. leasing.

Initially, we wanted to buy it since it's the last gas version Cayenne GTS, but now we are having second thoughts. The rise of electric cars has us wondering if gas cars will become obsolete in the next 5-7 years. If the GTS is a great drive and gas cars remain dominant, with plenty of gas stations and no major drawbacks compared to e-cars, we'll likely keep it long-term. But if e-cars become the norm with superior technology or no one wants the gas GTS anymore, leasing may be a good option since it allows us to opt out. We already have two gas cars and adding an e-car is always on our radar. I'm not a huge Tesla fan, and I think the current Taycan is still in its growing pains phase, so we've been holding out.

Also, any advice on financing vs. paying cash? The current rate from Porsche is around 7.4%, which is higher than our other investment options, so we are more towards cash, love to hear your thoughts!

Thank you.

3Series

Have you asked Suze Orman? Ok, just bustling your nuts.
if you can earn a ROI greater the 7.4…..
For a lease, you’ll have to figure the rent charge and residual and do the math….

A Cayenne is not special, don’t try to predict the future with it. Whatever happens will happen. I know for a fact it’s not going to be a $1M car in the future…..so I wouldn’t worry about missing out on anything. You can always buy another one if you sell the car.

On_Your_Left

The MF on P-cars is usually pretty crappy. They typically don't lease well.

7.4%? You can get lower than that if your credit is decent. A quick search shows BofA in the high 5's..... and there are probably credit unions out there than can beat that.

qwerrewq

Thats so true we can't predict the market. We've never try leasing before, so I was wondering if it might be a good option. But their lease rate is really bad, the MF converting to APR is ~10%

qwerrewq

Their lease MF is crappy! We were told financing must be with Porsche Finance, we can't finance with anyone else. And the best rate Porsche can offer is ~7.4% for 800+ credits. We haven't leased or financed a car before, do you happen to know if people can finance through a different bank and just pay Porsche the cash outright. Is that allowed?

kayjh

As long as you give the dealer a cheque for the purchase price, why would they care (or even know) about the financing??

On_Your_Left

If your dealer is refusing to take 3rd party financing, I’d walk…… that’s slimy as hell.

rdboxster

The really only way a dealer can push you to finance through them is with incentives. I have always found banks and credit unions to have better financing. My 22 is financed through my bank but that’s from the days of 3% int. Even at 5% int I would really consider cash if you have it.

C5 Pete

Has anyone used HELoC money for purchasing? Likely better rates than straight up car loans. And keeps your invested cash doing what it is supposed to do.

toma nova

We buy and hold vehicles so financed our Cayenne at 2.19% in 2021. No brainer.

We just bought a Polestar 2 at 1.99%. I think it's the perfect compliment to the Cayenne - around town / errands, commuting, torque an ICE can only dream about. Cayenne tows and road trips and is way more comfortable. I don't see an EV replacing the utility of our Cayenne in the next 5-7 years (or longer).

I'd finance the GTS and enjoy it until I didn't, whether that's 2, 5, or 10 years. Look around, there is still reasonable financing available.

Hunky

Really can't imagine aquiring an EV with anything other than a lease.

On_Your_Left

OP is not buying a EV

Needsdecaf

Gas cars are not becoming obsolete in 5-7 years. If anything, as more EV's proliferate, they will be pushed up in desirability in order to appeal to those who cannot own, or refuse to own, an EV.

Even if EV adoption were to continue unabated, and I don't think it will, it would take an entire generation (people, not cars) before ICE cars even approached obsolescence. After all, the average age of cars on the road today is steadily increasing.

Signed, a realistic EV fan.

Blend

There are a surprising number of dealers in the US that, if you intend to finance, will not sell to you unless you finance through a particular lender or select group of lenders...Porsche dealers included. Sometimes it's tied to circumstances, i.e. pre-owned or out of state purchases. I haven't researched the exact method to the madness other than dealers that do this are clearly financially incentivized to hold very firm on the policy.

In my experience, these lenders were incredibly uncompetitive relative to what I could find on my own, and in at least one case the dealer was ready to offer a discount nearly equal to the "make whole" difference in interest cost over the term of the loan I could've gotten elsewhere. In that instance the dealer made sure I knew that I could even refinance after 90 days with zero penalty...which was partially true - the reality is most auto loans legally cannot have prepay penalties, and this would've been no exception, so there was nothing stopping me from refinancing the moment the car was in my driveway. When I asked them to explain why they insisted I couldn't do so for 90 days, I got no clear answer. My guess is their financial incentive is tied to some period of the loan being outstanding, and so they would use some loophole to hold the buyer hostage until then. So despite the discount, the lack of transparency sketched me out so much I passed (Porsche dealer).

To answer the "how would they even know" part - my guess is lenders look at the risk differently than a refi and have to write the check directly to the seller (not the buyer) to ensure they receive title. Maybe if you live in one of the states that allows the buyer to hold title despite a lien, then you could pull it off...

kayjh

Thanks, I hadn't thought of that. I guess if you have enough collateral (other than the car you are financing) you wouldn't run into that problem, but if not and the dealer wants to make money off the financing and won't let you finance elsewhere, I guess you have to find another dealer.