My GT4’s 36-month lease expires in the spring. Typically I’ve just turned cars in at lease-end and moved on to something new (usually pre-ordered/built). The GT4 is different, though. It’s the first time I’ll be ending a lease with the market value of the car significantly higher than the contractual residual value. If I simply return the car to Porsche Finance, I’ll be leaving $30k+ on the table. Most likely I will purchase the car at end of lease and then decide whether I want to keep it long term or sell it for a profit (actually just a recouping of my 3 years of lease costs).

Since this is the first time I’ve been in this position, I have a few questions:

— Must Porsche Financial agree to sell the car to me at lease end at the contractual lease residual value (around 55-60k) or can they force a renegotiation of the buyout price, increasing it to market value?
— How likely is it that my dealership will tell me that if I ever want another GT allocation from them in the future, I should simply return the GT4 to them at lease-end so they can be the one profiting from the difference between residual value and market value?

Thanks in advance.

 

Typically the buy out at lease end is predetermined, therefore it is your choice to keep or return. I have never heard of a dealer renegotiation of the buyout price just because for ONCE the values are in your favor. I would discuss with the dealer if they will give you credit of a decent portion of the difference towards a new car or sell it yourself.

Good Luck!

 

Really? I'd like to see that math.
I don't see how the dealership could, at this time, renagotiate the residual value.

 

Your payments determined the residual. They cannot change that amount after you've been paying.

Take the car. You will always be able to trade it in for a GT allocation if you want.

Or if you don't want it, find a private buyer for a lease take over now - you can sell your lease to them and pocket cash (or at least you can in Canada).

 

lease is between you and Porsche financial , so dealer has no say in the matter
buy it from Porsche financial , and tell your dealer that you will give them a call when you want to sell the car, and they can buy it from you at market price at that time.

 

Current market value of GT4s around 85k-90k
Lease-end residual value around 57k
If I simply turned it in, 90-57k = 33k of equity I would be walking away from

 

 

If you are just planning on getting another car do not buy out the lease unless you have already paid the sales tax on the full value. In California we pay tax on the payment instead of the full value of the car, but not sure about NY.

If NY is similar then trade the GT4 in on whatever you want as your next vehicle. You can actually trade the car in at any time since there is a predetermined depreciation schedule which is one of the advantages of a lease.

 

Agree. Do not buy the car out... you will simply lose $ on sales tax (some, not all).

You simply trade the car in before the lease is up. Treat this trade in as if you own it, because you will need to negotiate the trade in price. No need to tell them it is a lease until you get a $ you are happy with.

Then, negotiate price on whatever you are buying. You can even trade in, and have them hold the money until you get the car you want (if they don't yet have it).

Do take advantage of this, as you said - you built up the equity, might as well use it.

 

Would you not end up paying the same tax though? if you buy the car out, pay the tax and then trade it, you will get the credit on the tax paid and only pay taxes on the delta to the new car price. either way, the tax is already paid on the equity that you own.

Jpr

 

Yes, you are right.

But it also depends on what he decides to do with the next car - buy or lease. He can lose some money on sales tax if he leases again, but keep it if he finances or buys outright.

Lastly, when you buy out then you have to wait for paperwork to clear and receive the title in the mail (more transactions on car history as well). Just more steps that can be avoided in my opinion.

 

Unless your GT4 has very high miles you will still come out ahead by taking advantage of the Equity on your car. Sales Tax in NY is anywhere from 7 - 8.75% on $57K . Your GT4 if less than 15K miles in even mild spec should be a $80-$85K car...you can theoretically make a nice tidy profit.

Having worked Audi of America myself, VW Financial is our parent company when it comes to Leasing , and no Porsche dealer will make you pay the price for not turning it in, and if they do, find another one and write to Porsche of NA .

Also, any good dealership , regardless of brand , should be able to give you the appropriate " trade-in" value for the GT4. They can payoff the lease once you trade it in . Since you're in NY , feel free to PM me if you need any assistance.

The only added costs should you buy the GT4 other than paying the sales tax is the agreed Lease end buy out fees which should be on your lease contract.
BTW, you deal with PFS on this, not the dealer. They don't care whether its a Cayman base or a GT4...they're interested only in getting it off their books.

 

 

End of lease purchase option price is pre-determined in paperwork. You would be crazy not to buy it for that. I cant think of a rational reason why you wouldn't.

 

Rational would to let me buy out the lease. Where at PFS should I send the money? Don't worry about cleaning the car, i'll take it as is.