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Getting ready to pull the trigger on a Macan S. Just wondering how many of you are leasing vs. purchase? I'm kind of thinking that this is a car I'll keep for more than 3 years....who knows? I can do either or...not a business owner. Thanks and happy holidays/new year!
I was gona lease to keep monthly payment as low as possible.
Ended up Financing to own with extended warranty as I plan on owning it for 3-5 years.
I will end up trading it after warranty expires and it will most likely become a CPO for somebody else.
With finance to own I can always sell it or trade it sooner....
It will be some time until they face lift the Macan so I will not be selling it anytime soon...
From what I've read Porsche is not making the Macan lease deals very attractive but I didn't even consider leasing. In my personal experience most the vehicles I anticipate holding on to for a long time are the ones I flip out of earliest and the ones I think I'll own for a short period I tend to keep.
I really like my Macan S and think I'll keep it for quite some time. The only reason I see getting out of it anytime soon is if I hit the lottery and trade it for a fully optioned Turbo!
That's quite a bold generalization. I agree leasing because you cannot afford buying the car is a bad idea. However there are circumstances such as the ability to l w/off a portion of a lease payment for business, can make leasing sensible. Purchasing a car that except for a select few, is a rapidly depreciating asset is not a great financial decision. Furthermore, the desire for some to have a new trouble free car can justify the cost of a lease.
As has been mentioned, Porsche does not subsidize it's leases (because they don't have to, to sell what they want) and it is also obvious that they do not subsidize their CPO and new car loans. For the lease to work financially best for you, you have to know your future average annual miles quite accurately so you don't get penalized for excess mileage, and you must fully maintain your vehicle in every way, including fixing dents and any ”unusual" wear and tear, and not want out of the lease early. If you decide to lease, you can also end up being penalized if you don't drive as much as allowed in the lease, because you will have already paid for that much mileage and its "usual wear and tear". Leases are also more complicated to understand the actual deal and to compare against other dealers offers. If you do end up deciding to buy, IMO PenFed.org CU has the best loan rates in the USA for new Porsches, and anybody can join if you fully explore the membership qualification options. They have what they call a Payment Saver Loan where you own but payments are sized like a lease, with a balloon due at end where you can sell, trade, refi or pay off the balance - https://www.penfed.org/Payment-Saver-Auto-Loan/
Buyer be aware...
Bmw lease well. High discounts off msrp, very low money factors, subsidized and high residuals. Porsche do not lease well as porsche isn't subsidizing their leases.
Would need to know the money factor and residuals before anyone can give you an accurate answer. Every time I pencil out the true cost leasing comes out ahead, sometimes by a little, other times by a lot. In California you pay all the sales tax (around 9%) if you purchase but not if you lease which makes a difference.
As has been mentioned, Porsche does not subsidize it's leases (because they don't have to, to sell what they want) and it is also obvious that they do not subsidize their CPO and new car loans....
I'm not so sure about that assessment anymore. It's not as though Porsche is untouchable anymore -- several other manufacturers have shown that they have learned how to make world-class sportscars too.
The whole reason Porsche is offering the Macan is to keep the brand relevant to mainstream buyers. The days when Porsche dealers couldn't keep up with demand seem to be waning. Porsche simply doesn't have enough of a performance/quality/exclusiveness edge to keep its prices in the stratosphere.
Consider this: in the US for several months of 2014, the C7 Corvette alone outsold all Porsche models put together. That shows how much pressure Porsche has to keep its costs in line. Let me repeat that: as ugly as the Corvette is, ALL Porsche models together still can't outsell it. The Corvette is that good, and that aggressively priced. Likewise the Macan is entering a crowded market segment, which is why Porsche had to work so hard to keep the entry price of the Macan as low as it could.
So Porsche knows that the best thing it can do in the short term is get more competitive in their financing and pricing. Let's hope prospective buyers see more attractive financing options in the future, especially now that the Euro/$ exchange rate is closer to parity than it's been in many many years.
There's a really good iPhone app called Leasematic that does two things - 1) it lets you do what-if analysis on lease deals to find out the effect changes in the variables have on the payment, and 2) using it makes what you don't know about the mechanics of leasing obvious, so you can learn and negotiate a deal from a better position.
BMW does favor leasing, no doubt. I believe that they make a boatload of money on their CPO program, so making leases a little cheaper gives them a guaranteed and predictable stream of CPO inventory. Also, there are a lot more places for a finance guy to hide profit in a lease deal than there are in a purchase (again, good to brush up using Leasematic). Mercedes is similar.
Most of the time, BMW will even let you terminate a lease up to 6 months early if you are buying or leasing another BMW. So in that world, it really does make sense to take a look at leasing, even if you haven't considered it otherwise.
Porsche (and Audi, maybe VAG altogether) don't behave the same way. I've seen a lot of lease guys come over to Porsche and resort to buying after the analysis. Nothing wrong with that.
12-24-2014, 11:02 AM
Buy vs Lease
