hello all!
as I am waiting for my first Porsch 911 allocation, I am still debating whether to finance, lease or pay full cash for it giving how high the total cost of ownership of 911 is? Financially I am in the position to pay 200K cash for the car but I am also pretty confident that I can generate more than 10% in my portfolio with 200K cash in hand. If I do pay the whole car off with cash, I will lose the opportunity to generate high return with the 200K extra cash. For currently 911 992 owners, did you lease or finance or pay full cash for your 992 and why?

 

If you are so confident that you can generate 10% return, after taxes (cap gain, divi, etc), it's probably more or less the same as your lease/ finance rate.

Guess it comes down to whether you agree with Porsche's residual value in your agreement for a lease.

Having said all that, it doesn't sound like you have any emotional attachment to this vehicle. Go for the lease as you can just hand back the key after a couple of years.

 

This is the internet…everyone paid cash.

 

I think you answered your own question... Lease lol Then at least if you wrap it around a pole you can give it back after.

 

To do that financial comparison make sure you compare apples to apples. The investment return you quote is probably before taxes and the interest on a personal lease is after tax money. So either take away your marginal tax rate from the investment return then compare or gross up the lease rate to equate how much before tax money it equates to for you to net the lease rate.

 

Do tell...

 

I think he needs to generate 20% to equate to the lease rate after the the CRA is done with him... this is Canada lol

Also when you lease don't you pay the rate on the car minus the residual ? , not sure about this .. just wondering.

 

Porsche's residual values will be absurdly low. For example, the residual on my 4-year lease for a 992 C4 with an MSRP of about $140k that ended in January, 2024 was $78,000...I paid it out and sold it privately for north of $130k. The absolute stupidest thing a person could do at the end of a 911 lease is give the car back (unless it's had a horrific accident and has massive diminished value); the second stupidest thing would be trading the car back to the dealer unless you're getting some serious "help" on another car, such as MSRP on a GT3 or one of the specialty cars such as a Dakar.

 

Most TTS and GT buyers buy in cash. Regular 911 trims Id see more financed and leased.

I’d buy it cash and forget about it.

 

Please... As noted above, everyone on the internet "pays cash".

 

If you’re buying 300k cars, you should be able to buy it cash and forget about it. Otherwise, it’s too much at that point in time.

I really hate paying interest, unless it’s very very low and it ain’t very very low anymore.

 

its 1/4 point lower now lol

 

Debt is a fact of life. Most people have debt on their houses, credit card debt, every business uses debt as part of their capital stack. I really don't believe there are hard and fast rules about "paying cash" if you are buying an expensive car. There are people out there that lease lamborghinis, ferraris and even bugattis. That's why every exotic brand that I know of has a leasing/financial services department.

 

"Shut up and take my money!"

 

I would think you'd have to have a 7 figure income to finance or buy a $300,000 toy so what does it matter.