Financing vs Lease

[dgkhn]

It's also false economy with Porsche. The $7500 savings gets eaten up by higher money factor, leasing fees, and fairly conservative residual calculations to the point that the monthly payment, even with $7500 off over 36-39 months, is only about $100 less compared to a 60-72 month loan.

The reasons to lease a car are actually very straightforward:

1. Business expense writeoff
2. You only keep cars 2-4 years on average and want to avoid negative equity at trade-in time
3. You want to keep the car for 8+ years and various incentives add up to a lower total cost compared to financing.

Only the last one takes some fairly simple math to work out. You're looking at whether the total interest payments over your loan term are more or less than the leasing sum of (rent charges + payoff loan interest - additional rebates/incentives - interest earned on

in addition to the EV credit, and a couple of other reasons stated in this thread, there are at least two more reasons, potentially. The first reason when it applies (but it rarely or never applies to Porsche) is that car manufacturers will subsidize leases, generally by having artificially high residual values resulting in bargain monthly payments. BMW does this fairly frequently. I believe, for example, Hyundai is doing that with some EV's right now. The other reason is the certainty of the residual value versus the risk of high depreciation; this applies, especially to EV's.

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[alxman]

I leased my car for 39 months, 10k mi/yr in order to capture the 7.5k incentive. And I paid off the lease after 3 months without penalty. I saved about 4k compared to buying outright. Another reason to wait 3 months in GA is the ad valoren tax. If you pay off your lease before 3 months you pay taxes for a new car vs used car, about 2k difference for the Macan.

 

[seabird]

in addition to the EV credit, and a couple of other reasons stated in this thread, there are at least two more reasons, potentially. The first reason when it applies (but it rarely or never applies to Porsche) is that car manufacturers will subsidize leases

Yep, that's #3. Lower total acquisition cost.

The other reason is the certainty of the residual value versus the risk of high depreciation; this applies, especially to EV's.

Agreed. That's #2.

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