Buying vs leasing (and possibly buying then): my numbers

[SupremeHustle]

You'll always pay one month, so whatever gives you the smallest rent charge. But the difference will be minor.

Just make sure you double check the paperwork before you sign. I checked mine and there was nothing about a penalty for buying out early and the paperwork on the pass through credit didn't have any stipulations, but make sure that's the same for yours before you sign.

I would recommend paying for 3 months (so really only 2 additional months). While you may not care about your dealership (I certainly don't) you may also find service very difficult/slow/no loaners available in your area if you buy out immediately. The dealerships talk to each other and while they have to service your car, there's nothing stopping them from putting you as their least important customer. You may also be rejected by PFS for further leases.

You'll just pay 2 additional months of rent charges, but you'll still save a ton. I think it's probably the fairest option.

That's sage advice on the service part of it. Thank you.

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[PanameraFrank]

That's sage advice on the service part of it. Thank you.

You got it! AFAIK and as far I've seen from everyone that's discussed it, as long as you pay 3 months no one cares if you buy it out.

It's an extra two months of rent charges (you always have to pay the first) but I think it's worth it just for the peace of mind. I don't care about the dealer getting a dime but I also like Porsches and don't want to run into trouble later.

 

[USMA81]

If I had it to do again, I would have waited. I bought out of state and won’t interact with the selling dealer again, but I now think buying it out before three months is poor form. The little bit of interest savings I gained by not waiting, maybe $500-1,000, to me, were not worth worrying about. I’m not out to screw the world, but apparently at the time I lacked the foresight on this decision.

 

[alxman]

I’m trying to figure out whether it’s worth scheduling an appointment with Porsche finance ahead of time to discuss my options, buying vs short term leasing (to take advantage of the tax rebate). We have always bought our cars and that was always my intention but now I’m reconsidering after some opinions in this forum. My car is not expected to arrive until the end of the month. I have tried to get some information from my SA but it’s like pulling teeth. Do you guys think is worth it or should I just wait until the delivery date to negotiate? My prior experience when buying a car is that it tends to be a back and forth situation. They offer a deal and then go to “consult” with someone when you have objections. I don’t want to waste my time if they are not going to be clear until the day you receive the car.

 

[rmwrip]

Picking my Turbo up in a few days. My final decision is to trade in my X5 and pay cash. Any kind of lease seems too much of a hassle and I’m not convinced I would save that much in the long run. I’ve only leased 1 car 35 years ago and I didn’t like the feeling of “renting”. I plan to do PPF and ceramic coating and would rather spend this money on something I own.

 

[tmrqs]

Picking my Turbo up in a few days. My final decision is to trade in my X5 and pay cash. Any kind of lease seems too much of a hassle and I’m not convinced I would save that much in the long run. I’ve only leased 1 car 35 years ago and I didn’t like the feeling of “renting”. I plan to do PPF and ceramic coating and would rather spend this money on something I own.

Look at it this way: get a 12 months lease, one pay, and buy the car in 3 months. The money you’ll save will pay for PPF + Ceramic and then some.

 

[rmwrip]

Look at it this way: get a 12 months lease, one pay, and buy the car in 3 months. The money you’ll save will pay for PPF + Ceramic and then some.

So how much would this save?

 

[USMA81]

My estimate: of the $7,500 benefit, one can realize a savings of 3-5 thousand, depending on how long you wait to pay it off (Porsche get a portion via fees and interest). I’ve never leased before, but did this time. See my comments on this thread.

 

[rmwrip]

My estimate: of the $7,500 benefit, one can realize a savings of 3-5 thousand, depending on how long you wait to pay it off (Porsche get a portion via fees and interest). I’ve never leased before, but did this time. See my comments on this thread.

My SA gave me a proposal for a 39 month lease. Would these savings be the same with a 3 month payout or would a 1 year lease be better?

 

[tmrqs]

My SA gave me a proposal for a 39 month lease. Would these savings be the same with a 3 month payout or would a 1 year lease be better?

Shorter lease and one payment - it will lower the money factor vs the one used on traditional (monthly) leases.

 

[rmwrip]

Shorter lease and one payment - it will lower the money factor vs the one used on traditional (monthly) leases.

Makes sense. Now I think I would feel dumb not to do this. Are you guys letting your dealership know this plan?

 

[cottony]

Makes sense. Now I think I would feel dumb not to do this. Are you guys letting your dealership know this plan?

my plan going in to delivery day was that I would reciprocate whatever type of energy they gave me.

if they had kindly asked me to wait a little bit (even if it was 1 yr) before buying out then I’d gladly do it. But instead they threatened me with the clawback if I bought out early as well as a bunch of fear mongering about warranties and maintenance packages + bunch of other shady stuff.

And so i was like “ok fuck them, I’m just gonna do what’s best for me then”. I have several dealerships nearby so won’t be working with them again.

Unfortunately I doubt the other dealerships will be any better — I think theres too much incentive in the dealership model to exploit customers.

 

[nischalr]

I’m trying to figure out whether it’s worth scheduling an appointment with Porsche finance ahead of time to discuss my options, buying vs short term leasing (to take advantage of the tax rebate). We have always bought our cars and that was always my intention but now I’m reconsidering after some opinions in this forum. My car is not expected to arrive until the end of the month. I have tried to get some information from my SA but it’s like pulling teeth. Do you guys think is worth it or should I just wait until the delivery date to negotiate? My prior experience when buying a car is that it tends to be a back and forth situation. They offer a deal and then go to “consult” with someone when you have objections. I don’t want to waste my time if they are not going to be clear until the day you receive the car.

It will be difficult to negotiate sale price on an ordered car on the day of delivery, likely they are going to charge you MSRP unless you pre negotiated a discount when you ordered.

On the other hand, trying to negotiate a discount on a car that is in stock already might be doable.

As for dealing with finance rates and lease deals, the lease money factor rate is fixed by Porsche and you just have to make sure they are not marking up that rate and that they give you the "buy" rate for the lease.

Porsche financial may give you a competitive rate on a loan for a purchase or you can come in with your own financing though your bank or credit union.

As for the sale price, if you custom ordered the car and didn't agree on a discount, good luck with that on delivery day. They will assume you are invested enough in the custom order that you may not walk away.

You could walk away and in the US, I believe they have to give your deposit back (assuming you gave one) and you could then negotiate with that dealer or another dealer for a vehicle that is in stock.

 

[rmwrip]

So I have a quote for a 1 pay 12 month lease. To buy outright is 118,000. Total paid buying the car with single pay of 45,300 and 80,800 buyout at the end is 126,200. My trade in will be 44,000.
So paying the lease off after 3 months would save about how much? How much per month is the “renting” in other words?
Thanks

 

[cottony]

So I have a quote for a 1 pay 12 month lease. To buy outright is 118,000. Total paid buying the car with single pay of 45,300 and 80,800 buyout at the end is 126,200. My trade in will be 44,000.
So paying the lease off after 3 months would save about how much? How much per month is the “renting” in other words?
Thanks

you'll need to look up the lease contract for "Rent Charge" under the itemized amounts; you then pro-rate it based on how early you buy out. in your example, if you buy out after 3 months, you'd save $RENT_CHARGE * (9/12)

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