Macan EV: Who is leasing vs buying?
08-30-2024, 01:33 PM
#61
Turbo, a Cap Cost reduction is a customer down payment, dealer participation (discount) or a combination of both.
The $10k driveoff is $6,331 cap cost reduction, $2,230 fee's, 1st payment of $1,426. (1st payment is paid at the start of a lease)
The $10k driveoff is $6,331 cap cost reduction, $2,230 fee's, 1st payment of $1,426. (1st payment is paid at the start of a lease)
08-30-2024, 01:37 PM
#62
4% is not reasonable if we're talking no risk investments, aka treasuries. Current 2 year is 3.9%, plus with an effective tax rate of let's say 33%, that's only 2.6% earned. Plus every month you're paying $1400 from the principal $90K, which further reduces the net interest earned. The number will be far lower than $13K.
Perhaps seek the advice from a financial advisor, 4% is conservative unless you are parking cash in a no risk investment. Buying a depreciating asset is not risk proof!
08-30-2024, 01:38 PM
#63
tmrqs, a couple of thoughts on your comparison.
1. The Fees' listed are not all lease fees, the PFS acquisition fee is $1,095. Total fees' listed are $2229.75. That $1,100 difference would be added to a cash or finance transaction.
2. It looks like Sales Tax in that state/county are 8.6%. On leasing the sales tax is based on the payment not the purchase price. total sales tax on the 39 month lease is $4,416.75. On a cash or finance transaction sales tax would be $8,388.44
3. Money/borrowing isn't free. The PFS rate is something like 9%. In this transaction the net cash price, or amount to finance ( after downpayment is $90k, cash/finance don't get the $7500 rebate). If you were able to get a reasonable 4% return for that $90k cash after 39 months, you would have an additional $13k in earned interest.
In summary, $1,100 + $3,970 + $13,000 = $18k Lease lift in this transaction
1. The Fees' listed are not all lease fees, the PFS acquisition fee is $1,095. Total fees' listed are $2229.75. That $1,100 difference would be added to a cash or finance transaction.
2. It looks like Sales Tax in that state/county are 8.6%. On leasing the sales tax is based on the payment not the purchase price. total sales tax on the 39 month lease is $4,416.75. On a cash or finance transaction sales tax would be $8,388.44
3. Money/borrowing isn't free. The PFS rate is something like 9%. In this transaction the net cash price, or amount to finance ( after downpayment is $90k, cash/finance don't get the $7500 rebate). If you were able to get a reasonable 4% return for that $90k cash after 39 months, you would have an additional $13k in earned interest.
In summary, $1,100 + $3,970 + $13,000 = $18k Lease lift in this transaction
But in another state, sales taxes need to be added - both for lease (on payment) and for purchase.
Re: #3, I did not detail the plan to finance it. I was talking about buying upfront, based on cash in hand - which I also used for the lease as a way to earn interest.
If one has to finance to buy the car, they would also not accrue interest by not spending the money during the lease.
Appreciate the feedback, it's not a straightforward exercise and lots of variables for sure!
08-30-2024, 01:48 PM
#64
TMRQS, NP, yeah can be tricky, lots of variables!!! I remember you enlighten me on no NJ EV sales tax. In this example, both would them benefit. Good luck on your purchase!!!!!
08-30-2024, 01:50 PM
#65
Intermediate
Is it possible to lease the car to get the tax credit, wait a few months and then pay it off? Seems the cost of borrowing money is pretty significant these days, and I'd rather use my savings (even losing the interest) but not have a payment each month. I know I would have to pay the acquisition fee, but I would assume not the disposal fee since I would be purchasing the vehicle (not turning it in).
08-30-2024, 01:54 PM
#66
Is it possible to lease the car to get the tax credit, wait a few months and then pay it off? Seems the cost of borrowing money is pretty significant these days, and I'd rather use my savings (even losing the interest) but not have a payment each month. I know I would have to pay the acquisition fee, but I would assume not the disposal fee since I would be purchasing the vehicle (not turning it in).
I was informally quoted a savings of about $1.5k... and I would save way more (through interest) by paying monthly instead.
If the one payment 3 months into the lease didn't factor in as much interest, it would be the best way to go to benefit from the $7.5k discount.
08-30-2024, 02:54 PM
#67
Instructor
That's one thing I've considered as well but it seems the one payment would be very close to what you would pay over 39 months anyway.
I was informally quoted a savings of about $1.5k... and I would save way more (through interest) by paying monthly instead.
If the one payment 3 months into the lease didn't factor in as much interest, it would be the best way to go to benefit from the $7.5k discount.
I was informally quoted a savings of about $1.5k... and I would save way more (through interest) by paying monthly instead.
If the one payment 3 months into the lease didn't factor in as much interest, it would be the best way to go to benefit from the $7.5k discount.
Last edited by TurboIXXI; 08-30-2024 at 05:59 PM.
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TC Cruising (08-30-2024)
08-30-2024, 06:47 PM
#68
Intermediate
My dealer just said I could do a 12 month lease as well. I'll be curious to see how the numbers pencil out. I saw in another forum the current residual for a 2024 ICE Macan is 78% on a 12 month lease. I took a bath on my Taycan that I had for 12 months so the 12 month lease sure sounds appealing.
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TC Cruising (08-30-2024)
08-30-2024, 08:19 PM
#69
My dealer just said I could do a 12 month lease as well. I'll be curious to see how the numbers pencil out. I saw in another forum the current residual for a 2024 ICE Macan is 78% on a 12 month lease. I took a bath on my Taycan that I had for 12 months so the 12 month lease sure sounds appealing.
08-30-2024, 08:46 PM
#70
Intermediate
I bought a CPO 2022 in 2023 for $96k plus tax. Sold it a year later for $63k. So I ended up about $40k down. That is what a 12 month lease sounds good to me..and then at the end of 12 months I can re-evaluate. We will see what the CPA says.
08-30-2024, 08:56 PM
#71
It's a misconception a shorter lease means lower payments.
08-30-2024, 08:58 PM
#72
Getting a 12 months lease to then buy or re-lease the same car is an even worse way of losing money I'm afraid.
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Awas (08-31-2024)
08-31-2024, 01:56 PM
#73
Instructor
more than likely the rates will drop substantially in 12-24 months, so a 12-24 month lease then refi purchase would net lower interest overall, right?
9% rate on lease currently
6-7% rate on purchase currently
4-5% rate on purchase in 12, 24, 36, 39 months.
this is just in terms of getting the 7500 off that will cover the first year interest until rates drop.
I can’t see how 9% lease for 39 months is better than 12-24 months. Refi or lease at a lower rate later.
Last edited by TurboIXXI; 08-31-2024 at 02:00 PM.
08-31-2024, 06:03 PM
#74
I drive a lot so I'd love a 12-24 month lease because I'd be able to pick up the $7,500 tax credit as well as be able to rotate into a new Macan EV every 12-18 months.
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TC Cruising (08-31-2024)
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usctrojanGT3 (09-01-2024)