fanny bay r1

I buy Porsche's at why you guys spend to drive them!! Then I do my own servicing!!

JTT

20,000 kms/yr is a lot? Up until a few years ago, I would average 50-60K/yr. Down to around 30K/yr these days. <shrug>

theiceman

great thread if you wan to understand leasing vs buying . I have never leased so I have a dumb question .
What is the residual ? the agreed amout they buy it back at ? say 50% or 55% of the original value ?

Also do you get charged for dings and scratches when you return the lease ? is that factored in ?

I heard you can buy a "protection package" that is offered by some manufacturers that protects you when you trade it in up to a certain amount , does Porsche do that ?

Onami

The residual is what "you" can buy it for at the end of the lease. There is normally equity left after paying the residual, so dealers are happy if you do not buy the car out.

Yes, you can be charged for "excessive" damage and wear and tear. It is pretty well spelled out in the contract. I had a neighbour get dinged for $3,200 for excess body damage. You can buy protection up front, but I have found it cheaper to repair it yourself if it is excessive. I did not factor that in my costs as I didn't have a single dent or scratch after 62,000 km...

theiceman

I can just imagine them saying " sure you can fix it yourself but it has to be to our specs at a porsche approved shop.
$$$$
Good info though.
From what I know about leasing your payments are based on the cost of the vehicle minus the buyout. So you pay financing on 30k instead of 60 for example.
But if you buy your payments are based on the full 60
Is that true or did I just invent it ?

If so I imagine the calculations to see which is a better way to go are very complex.

Onami

You finance the entire nut, but pay for the depreciation and tax on the portion that you use (cost minus the residual). The only real benefit to leasing is that you know your exact costs going in and if you crash the car, you can still walk away from the car at the end of the lease without penalty. If you bought the car and crashed it, you would likely take a hit when it came time to sell.

Pags993

I am curious about the crash and walk away aspect. Does anyone close to the industry see that part changing as far as responsibility for diminished value because of a crash during the lease period vs just getting charged for dings and dents?

A few years ago we returned an MB C300 that sustained a 10G repair due to an idiot changing lanes without checking his blindspot first. If OEMs are worried about dings and dents how can they just look the other way with diminished value due to collision claims and tarnished carfax's etc?

Maitre_Absolut

For your first question, there is too much uncertainty around the actual financial loss due to there being a prior accident. There is no objective way to measure it. The finance co's basically self insure this risk.

In a closed ended lease, you are obligated to return the vehicle in certain state. Whether or not it was crashed during the lease is irrelevant to your obligations. In an opened ended lease, the residual value would be influenced by the accident history.

Onami

Absolutely correct!

Ironically, when we were picking up my wife's RX350 a few weeks ago (which we bought), the finance manager was telling us how she just had her car written off in a parking lot and will only lease from now on due to the loss she took.

theiceman

I have decided I am not smart enough to lease. Il just save up my thousand dollars and buy jumpers 996 c4s 😉

Spyerx

First rule of Porsche ownership: NEVER ADD UP THE RECEIPTS.