Macan EV: Who is leasing vs buying?
#136
Instructor
Here are some residual values for 2024 Macan 4 and Macan Turbo (no turbo included) at 15k miles per year.
Macan 4-----------24mo-63%, 30mo-58%, 36 or 39mo-54%, 48mo-45%
Macan Turbo ----24mo-60%, 30mo-55%, 36 or 39mo-51%, 48mo-44%
Add 2% for 12k miles and add 3% for 10k miles per year. (add 1% for each drop in miles at 7500,5000,2500 miles)
Macan 4-----------24mo-63%, 30mo-58%, 36 or 39mo-54%, 48mo-45%
Macan Turbo ----24mo-60%, 30mo-55%, 36 or 39mo-51%, 48mo-44%
Add 2% for 12k miles and add 3% for 10k miles per year. (add 1% for each drop in miles at 7500,5000,2500 miles)
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Chrnometer (09-25-2024)
#137
Drifting
In Canada, An EV Macan 4S, 36 months, 20,000 km/year (12,000 miles), zero down, 9.49% interest rate. Residual is 49% = expensive lease. But, I doubt it will sell for it's residual in 3 years (with all the EV advancements/improvements coming each year in the EV field) so a lease might be the better option if you don't keep your EV for 5 years. Just my $0.02 worth.
#138
In Canada, An EV Macan 4S, 36 months, 20,000 km/year (12,000 miles), zero down, 9.49% interest rate. Residual is 49% = expensive lease. But, I doubt it will sell for it's residual in 3 years (with all the EV advancements/improvements coming each year in the EV field) so a lease might be the better option if you don't keep your EV for 5 years. Just my $0.02 worth.
If so, it’s still cheaper to buy cash and resell then.
If you can sell it for less than that, then leasing is the way to go. But have a hard time imagining a $100k Macan EV would go for $30k in 3 years.
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#139
Instructor
The real question is: will you be able to sell it for the residual minus $15-20k?
If so, it’s still cheaper to buy cash and resell then.
If you can sell it for less than that, then leasing is the way to go. But have a hard time imagining a $100k Macan EV would go for $30k in 3 years.
If so, it’s still cheaper to buy cash and resell then.
If you can sell it for less than that, then leasing is the way to go. But have a hard time imagining a $100k Macan EV would go for $30k in 3 years.
Realistically, 50K in 3 years is about right, as most lease quotes seem to give this as a ballpark figure and might even hold its value better than Tyacans as SUVs are more in demand. And don't forget early Taycans had a range of just 220-240 miles.
#140
Here are some residual values for 2024 Macan 4 and Macan Turbo (no turbo included) at 15k miles per year.
Macan 4-----------24mo-63%, 30mo-58%, 36 or 39mo-54%, 48mo-45%
Macan Turbo ----24mo-60%, 30mo-55%, 36 or 39mo-51%, 48mo-44%
Add 2% for 12k miles and add 3% for 10k miles per year. (add 1% for each drop in miles at 7500,5000,2500 miles)
Macan 4-----------24mo-63%, 30mo-58%, 36 or 39mo-54%, 48mo-45%
Macan Turbo ----24mo-60%, 30mo-55%, 36 or 39mo-51%, 48mo-44%
Add 2% for 12k miles and add 3% for 10k miles per year. (add 1% for each drop in miles at 7500,5000,2500 miles)
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usctrojanGT3 (Today)
#141
Drifting
The real question is: will you be able to sell it for the residual minus $15-20k?
If so, it’s still cheaper to buy cash and resell then.
If you can sell it for less than that, then leasing is the way to go. But have a hard time imagining a $100k Macan EV would go for $30k in 3 years.
If so, it’s still cheaper to buy cash and resell then.
If you can sell it for less than that, then leasing is the way to go. But have a hard time imagining a $100k Macan EV would go for $30k in 3 years.
#142
I guess my thinking is if it isn’t worth its 50% residual after 36 months, it’s the dealers problem. If it’s worth more (like my Cayenne was) then I can take that “equity” and roll it into a new car or just buy it out and drive it. The only fly in the ointment is the interest rate.
If it’s worth 40%, you still overpaid it and the dealer make $$.
If it’s worth 30%, then you’re on par with buying and selling it - the dealer made no money.
If it’s worth 20%, then it is the dealer’s problem because they lost money on it.
#143
maybe i'm being cynical but i see porche lease terms as a way for them to take advantage of people who want a porsche but can't pay cash for it. sure a lease acts as an implied put... but the breakeven on that put is a bit unrealistic.
#144
Burning Brakes
As I said, even if the car is worth the 50%, it will have cost you $15-20k more to get it that way (vs buying cash) and the dealer made $$$.
If it’s worth 40%, you still overpaid it and the dealer make $$.
If it’s worth 30%, then you’re on par with buying and selling it - the dealer made no money.
If it’s worth 20%, then it is the dealer’s problem because they lost money on it.
If it’s worth 40%, you still overpaid it and the dealer make $$.
If it’s worth 30%, then you’re on par with buying and selling it - the dealer made no money.
If it’s worth 20%, then it is the dealer’s problem because they lost money on it.
I think you are not weighing enough the residual risk of leasing/owning a luxury EV. I think there is a much higher likelihood the actual residual after 36 months would be less than what is stated in the lease, which of course the lease provides protection for. Also, the lease provides for the protection of the residual should you get into a fender bender and the car now has a blemish on its record. This is always the case with a lease, but I think the additional hit of an EV repair makes this protection that much more valuable.
Anyway, no argument that in the general sense a lease is typically the most expensive way to get a vehicle. But in the case of a luxury EV I think the protection offered with a lease is well worth it.
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redtanrt10 (Yesterday)
#145
I imagine the percentage of buyers of any brand who pay cash, without any form of financing, is quite small. I'm not sure how this is being taken advantage of; it's more a reflection of the extent to which credit is a part of life for the majority of the population.
#146
Instructor
#147
I dont think your comparison of buying cash vs lease is fair in this case. Of course there will be a huge interest savings in buying cash which accounts for the $15-20k you mention, but to be fair you need to factor in the lost earning potential on the cash purchase which likely negates most of that.
I think you are not weighing enough the residual risk of leasing/owning a luxury EV. I think there is a much higher likelihood the actual residual after 36 months would be less than what is stated in the lease, which of course the lease provides protection for. Also, the lease provides for the protection of the residual should you get into a fender bender and the car now has a blemish on its record. This is always the case with a lease, but I think the additional hit of an EV repair makes this protection that much more valuable.
Anyway, no argument that in the general sense a lease is typically the most expensive way to get a vehicle. But in the case of a luxury EV I think the protection offered with a lease is well worth it.
I think you are not weighing enough the residual risk of leasing/owning a luxury EV. I think there is a much higher likelihood the actual residual after 36 months would be less than what is stated in the lease, which of course the lease provides protection for. Also, the lease provides for the protection of the residual should you get into a fender bender and the car now has a blemish on its record. This is always the case with a lease, but I think the additional hit of an EV repair makes this protection that much more valuable.
Anyway, no argument that in the general sense a lease is typically the most expensive way to get a vehicle. But in the case of a luxury EV I think the protection offered with a lease is well worth it.
It does not negate most of the lease cost but some of it, for sure.
I take your point about the fender bender and it being a protection against it.
But if one intends to buy the car and keep it say 5 years, it’s a time limited protection at a high cost: you could get rear ended on month 40 (after you bought the car paying a higher price for it) and the result is the same.
The lease can be appealing to some for sure: if you think the car value will absolutely tank, you don’t have the cash and would finance instead, you don’t want to be bothered selling the car yourself and you know you don’t want to keep it for more than say 39 months, then sure. The lease makes a lot of sense.
But what I am warning people against is thinking that a lease is an economical route to buy the car because of the $7.5k incentive.
It is not, it will cost the buyer much more despite that bonus.
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Awas (Yesterday)
#148
I actually did the math (a few pages back) taking into account the money one would make in interest by going the lease route.
It does not negate most of the lease cost but some of it, for sure.
I take your point about the fender bender and it being a protection against it.
But if one intends to buy the car and keep it say 5 years, it’s a time limited protection at a high cost: you could get rear ended on month 40 (after you bought the car paying a higher price for it) and the result is the same.
The lease can be appealing to some for sure: if you think the car value will absolutely tank, you don’t have the cash and would finance instead, you don’t want to be bothered selling the car yourself and you know you don’t want to keep it for more than say 39 months, then sure. The lease makes a lot of sense.
But what I am warning people against is thinking that a lease is an economical route to buy the car because of the $7.5k incentive.
It is not, it will cost the buyer much more despite that bonus.
It does not negate most of the lease cost but some of it, for sure.
I take your point about the fender bender and it being a protection against it.
But if one intends to buy the car and keep it say 5 years, it’s a time limited protection at a high cost: you could get rear ended on month 40 (after you bought the car paying a higher price for it) and the result is the same.
The lease can be appealing to some for sure: if you think the car value will absolutely tank, you don’t have the cash and would finance instead, you don’t want to be bothered selling the car yourself and you know you don’t want to keep it for more than say 39 months, then sure. The lease makes a lot of sense.
But what I am warning people against is thinking that a lease is an economical route to buy the car because of the $7.5k incentive.
It is not, it will cost the buyer much more despite that bonus.
The $7500 incentive makes a much bigger impact on cheaper EVs than it does on something that costs $100K+.
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ToasterThief (Yesterday)
#149
Drifting
I dont think your comparison of buying cash vs lease is fair in this case. Of course there will be a huge interest savings in buying cash which accounts for the $15-20k you mention, but to be fair you need to factor in the lost earning potential on the cash purchase which likely negates most of that.
I think you are not weighing enough the residual risk of leasing/owning a luxury EV. I think there is a much higher likelihood the actual residual after 36 months would be less than what is stated in the lease, which of course the lease provides protection for. Also, the lease provides for the protection of the residual should you get into a fender bender and the car now has a blemish on its record. This is always the case with a lease, but I think the additional hit of an EV repair makes this protection that much more valuable.
Anyway, no argument that in the general sense a lease is typically the most expensive way to get a vehicle. But in the case of a luxury EV I think the protection offered with a lease is well worth it.
I think you are not weighing enough the residual risk of leasing/owning a luxury EV. I think there is a much higher likelihood the actual residual after 36 months would be less than what is stated in the lease, which of course the lease provides protection for. Also, the lease provides for the protection of the residual should you get into a fender bender and the car now has a blemish on its record. This is always the case with a lease, but I think the additional hit of an EV repair makes this protection that much more valuable.
Anyway, no argument that in the general sense a lease is typically the most expensive way to get a vehicle. But in the case of a luxury EV I think the protection offered with a lease is well worth it.
#150
Instructor
And that 8% is before tax? 🤔