Sanjaghak

Hi,
My GT3T will be here in the next month or two and I start to think my options for paying for the car.

I never pay cash for a car, as car loans are still very low rate (in this market they are almost free money). I financed all my previous cars with my credit union (multiple cars at the same time) and have great relationship with them. They quoted me 60months @2.49% and 72months @2.99% for the full amount + tax and fees.

Then a friend mentioned using one of these companies that are offering lease plan for luxury cars and that I will end up with much cheaper monthly payment (which means more money for my investment and my business) and tax benefits (although I am not sure if I would ever risk having IRS on my back for reporting a $200k car as company vehicle!). So I contacted few of them (suggested by my friend) and their quotes came back quote high (like $3210 for 60 months and $70k balloon for the end). What I found out is that they put a very low residual value on the cars, something that make sense for a AMG S series, a Bentley or a RR but not for 911 GT cars that hold their value quite well ( high mile used 2014 GT3s are still going for over 70%-80% of their MSRP).

So now, my question is that are specialty financial companies out there that are offering lease programs better suited for collector/limited cars that will hold their value overtime? Any recommendation or previous positive experiences?

Thanks,

jvmax

I would finance in this case over a lease. Since you will be able to sell your car for msrp in 2 to 4 years.

Mech33

Dreaming.

Sanjaghak

I am sure GT3s will depreciate in the next 4 years (unless they end up to be last manual naturally aspirated 911s, which in my mind is hight unlikely). Mine with PTS and CXX options maybe less than some others but they will.

Only reason that I am looking for the lease option is that if a financial service company put a for example %80 residual (as I mentioned consider its market and history) on my car for 3yrs/5k miles even at 5% APR I will end up paying $2200 each months ($1000 less than my loan) and at the end of 3 years I will probably finance the buy out price to end up with about a same payment.

I am looking to see if these type of specialty lease exists or not.

neurotic

same was also echoed on .1GT3/RS

look at me now....below sticker and sinking faster than an old man in a warm bath tub

PorscheFrank

I've never heard of such specialty leasing companies. I think any financial institution is going to lean towards a conservative figure on the residual value. Doesn't make sense to assume otherwise for them. You are far better off financing this type of vehicle.

WernerE

You might try a bank that offers retail financing to car dealers (e.g. U.S. Bank, etc.). I haven't found Porsche's residuals or money factors competitive with the GT3s.

You're correct the residual is lower than anticipated FMV at end of lease. It's possible Porsche does this for two reasons I can think of: 1. Demand > Supply for GT3s and Porsche doesn't need to incentivize the sale of this model and 2. If Porsche set a reasonable residual on the GT3 after 2 years (which would be around 70%+), it would be a far higher % than the 911 Turbo models, effectively producing a lower monthly payment for the GT3 and hurting comparisons w/selling Turbo cars to customers.

Maverick787

GT cars have always been bad leases because of what’s stated above. With the above deal 60 months cost of the lease 192k if I read correctly with a 70k ballon? Wouldn’t buying this car out right close around 170k pending spec unless there’s a big ADM built in the deal.

ajag

Looks like nice rates with your credit union for long term financing (which one is it btw if you don't mind sharing?). I'd stick with cash or finance on a GT car.

abiazis

I got a bank loan at 3.99% from Morgan Stanley secured by my liquid assets...........3.99% for 7 years with 10K down.....about 23K in total interest.............my goal was retirement cash flow since I retired and this was my retirement gift to myself...........

Yippiekiaye

Alan Smithee

More likely #1, with the assumption a majority of lessees return at term end with a retail value far above residual.

Anybody know PFS rates/residuals for the GT3 right now? Just curious.

NateOZ

+1 - And if you really want to borrow to invest, do it with a margin loan. Right now $200k at IB is 3.16%, tax deductible. Sure there is some rate risk, but tax affected depending on your state it's more in the range of 1.6%.

C.J. Ichiban

Lease residuals are bad on these types of cars because they have to account for the higher pct of dummies that crash them while leased. Not as many 70 yr old lease customers in a C4 cab pdk trashing it at Sonoma etc.

So look at the bad residuals as Porsche Financial protecting themselves from the thousandaire hooligans that tend to trash or over-mile their cars...a totaled GT3 is a lot worse buy back!

Also as said earlier if you can get 3% for 72 months then do that. Way better than what amounts to 7+% on a lease.

Last: if you guys think interest on car loans is going down or staying flat...they have gotten hiked a half dozen times in the last year with all the brands I sell. Get while gettings good.

harryz

Keep leasing in perspective. It is a financing instrument that allows manufacturer's to sell more cars both today and in the future. Few people want to or can write checks for $150m or more. The solution to facilitate the sale is to offer a financing alternative like leasing. That accomplishes two things: you can sell more cars if the person only has to come up with a monthly payment and there is a long term stickiness between that customer and the manufacturer. That stickiness because of the lease allows a manufacturer to market to the lessee particularly at lease end when they will need another car.
As JCPenney said when he introduced credit into his stores " a cash customer is only a customer today but a credit customer is a customer for life".