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Prices Paid: Buying & Leasing Experiences Porsche 911 Lease Questions
145 messages, Last post on Sep 27, 2008 at 8:54 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: jax1fdr (Apr 07, 2007 11:05 pm) I would agree in a heartbeat that if I could take the cash purchase price of my car, divide it by 72 and have that be my payment for 72 months, it would be a no-brainer deal. But in your example, you aren't actually buying the car for 0% interest, you are leasing it for 36-48-60 months after which you have nothing. Using 4 years, you are paying a total of $62,000 to lease a car costing $93,100. If that total lease cost is less than what your own borrowing cost (or opportunity cost) plus expected depreciation is, then the lease deal is good. If not, it's not. That's still pretty simple to me. |
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Replying to: Car_man (Mar 19, 2007 3:13 am)
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Replying to: outdrguy (Apr 11, 2007 9:28 pm) |
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Replying to: lowbmc (Apr 06, 2007 3:06 pm) As far as how much of a down payment you should make on your lease goes, the answer is none. I personally always advise consumers not to make large down payments on lease vehicles. Consumers who make one risk losing it if their vehicle is totaled in an accident or stolen and never recovered. All consumers who choose not to make any down payment have to pay at lease signing are their vehicle's monthly payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, their acquisition fee that is charged by the bank they are leasing through... Porsche credit charges $745, and any required state taxes or fees. The lease payment of the car that you are interested in will depend upon what sort of selling price you are able to negotiate on it. If you provide me with this car's approximate selling price I will gladly use Porsche Credit's current lease program to estimate what your monthly payment should be. Car_man Host Prices Paid Forum |
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Replying to: lowbmc (Apr 06, 2007 6:26 pm) Car_man Host Prices Paid Forum
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Replying to: outdrguy (Apr 11, 2007 9:28 pm) Car_man Host Prices Paid Forum |
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Replying to: Car_man (Apr 23, 2007 3:59 am) I'm curious as to your thoughts on how I would evaluate the purchase vs. lease, using the figures for lowbmc's car.: Lease: $1,277 x 60 months = $76,620 total payments over 5 years. Purchase: $93,190 (I'm using this figure, although it sounds very high for a loaded 911S Coupe - I would shoot for a 10% MSRP discount to $87,300). Financing/opportunity cost over 5 years at 5% after tax borrowing rate = $23,300. Total cost of purchase = financing + depreciation. For lease to be a better deal than purchase, $76,620 needs to be less than $23,300 + depreciation; i.e. depreciation needs to be more than $53,320. In this case, if the car is worth more than $39,870 in 5 years / 60k miles, you would have been better off buying. Lots of assumptions there - but in my case, where the underlying cost of borrowing is less than 5% after tax, I would have a tough time leasing. Not to mention that I would hate monthly payments of nearly $1,300 in the few months that we had crappy winter weather. I bit my big bullet once, but prefer that to 60 deep pin pricks. What say you?
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Replying to: habitat1 (Apr 23, 2007 11:51 am) Also, Porsche never provides any lease support on the 911. This means that if you want to lease one through Porsche Credit you will have to use its standard lease money factor of .00310. This is equivalent to an interest rate of over 7.4%. You may not even be able to find a dealer that is willing to lease you this car without marking your money factor up. If this happens your interest rate will be even higher than this. It looks to me as though you would probably be better off financing your new 911 rather than leasing it. Car_man Host Prices Paid Forum
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Replying to: Car_man (May 18, 2007 3:16 am) |
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Replying to: habitat1 (May 18, 2007 9:47 am) With all due respect... if there was a " magic " formula that would provide anyone with a " good " deal leasing a $100k vehicle, there would not be a single leasing company in business. IMO from personal experience leasing cars.. unless there is a good business reason that allows you depreciation or a deduction, the leasing companies have you by the short hairs..good luck. Chromedome |
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