I've Got My Lease Options: What's the verdict?

[tmrqs]

I'm still waiting to hear back from the Finance team but want to ask about a 12mo lease with a 1 time payment, see if it allows to be about the price of purchase but having an out after 12 months if unhappy for some reason.

 

[ExVolt]

I intended to buy, but my dealer was very transparent about taking the lease to get the $7,500 tax credit. So, I took out a 24 month lease.

PFS lets you request the payoff amount at any time. So I requested it a few weeks after we took the car home. The number was $6,500 less than the final price of the car. So it’s pretty black and white that this route saves you money.

I asked my dealer if I can just pay it off now in order to not pay any more finance charges. He asked me to wait until after I made the 6th lease payment as otherwise Porsche MAY “penalize the dealership” to the tune of $7500. I don’t understand this completely, but it has something to do with Porsche needing time to receive the rebate from the government. If I payoff before they get the rebate, Porsche gets mad.

So I’m going to just wait 5 more months to payoff. At that point, I’m still ahead $4,500 so it’s all good.

 

[krissrock]

So I’m going to just wait 5 more months to payoff. At that point, I’m still ahead $4,500 so it’s all good.

I'm very curious as to how you calculate this?

 

[Spyerx]

Some of these leases are not too good that are being posted.

I did a one pay 24/12k lease (these work like escrow accounts and you save some MF) on a Macan 4 2024 (picked up a week ago).

Keep in mind dealers can add margin on MF and Residual rates... make sure you are getting buy rates.

$36k out of pocket total, which includes the origination fee, tax on the payments (CA), and first year tax title license.. $92k car, MSRP. $59k residual.

I felt this was a decent deal. If I want to buy the car at end of year 2, my total out of pocket would be $95k (so $3k of fees). This includes a small discount off MSRP + the $7500 credit which a lease is the only way to capture it.

I haven't leased a car in a LONG time, and I have never leased a porsche (and I've owned over 20 of them), but I paid cash for my Taycan and in hindsight I'd have done better to lease based on the depreciation rates. I figure I'd rather hedge the depreciation, capture the tax credit, and also, the tech is changing so fast... I'd rather have my daily drivers under warranty.

And yes; if you lease, please discuss with your dealer if you plan to pay it off. Porsche absolutely does charge dealers back if a lease is cancelled (I am not sure exact timeframe). I find it best to be transparent with the dealer if I want to get cars from them in the future, especially special cars.

 

[PanameraFrank]

@Spyerx how does that work? Is it through the dealership or a 3rd party?

I've never heard of that before. Does it handle mileage overage the same way ($0.30/mile)?

 

[Spyerx]

@Spyerx how does that work? Is it through the dealership or a 3rd party?

I've never heard of that before. Does it handle mileage overage the same way ($0.30/mile)?

The lease is with PFS. Just ask for a "one pay" Mileage overage is the same. You can also call and pre-buy mileage before lease end. All this is pretty typical lease stuff.

Of course, laying out $36k there is some cost of money there etc. Everyone has to do their own math.

 

[PanameraFrank]

The lease is with PFS. Just ask for a "one pay" Mileage overage is the same. You can also call and pre-buy mileage before lease end. All this is pretty typical lease stuff.

Of course, laying out $36k there is some cost of money there etc. Everyone has to do their own math.

Ah, I see. They just cut you a slightly better MF for prepaying.

What MF did they give you?

 

[Spyerx]

Ah, I see. They just cut you a slightly better MF for prepaying.

What MF did they give you?

I dont recall exactly off top of my head, but it was buy rate PFS. I'd have to go look. I think one pay might get 50bps on MF better?

 

[ExVolt]

I'm very curious as to how you calculate this?

The cost of the car, service contracts, stargard, and various fees totals $117,767.06

We paid $5,600 cash due at signing. This included our first lease payment.

$117,767 - $5,600 = $112,167 (purchase price - cash surrendered )

However, the payoff is $105,805; $7,000 less than if we paid cash.

How is this reconciled? The cash due at signing was actually $13,100. Porsche subtracted the EV tax credit of $7,500 from the $13,100 to come up with the actual amount we had to pay at signing: $5,600. In essence, Porsche paid the first $7,500 that was due using the EV tax credit. It’s in black and white on my lease.

If I wanted to be a jerk, I could pay this off right now and be $7,000 ahead of buying outright. Instead, I’ll keep my dealer happy and pay 5 more months of finance charges of ~ $500 per month. So I’ll be $4,500 ahead rather than $7,000. Everyone is happy.

 

[krissrock]

ok so here's what i'm tryin to understand. your payments are about $2,500 right?
if you make 4 months of payments, that's $10,000...and if you buy out the car, the value is basically going to be, maybe a couple hundred less than the purchase price, if that. it's not going to depreciate much at all to Porsche after 4-6 months...
so now you have what you paid during those months, and damn near the full value of the car to buy - minus down payments.


you get what i'm saying?
what is your residual value after 6 months? you said they told you that before

 

[PanameraFrank]

you get what i'm saying?
what is your residual value after 6 months? you said they told you that before

To pay off early is just the residual as agreed at lease start plus all remaining payments minus all remaining financing charges. Residual depnds on lease terms, usually between 48% and 64% for Porsche.

So say a 24 month lease on a 100k car with 60% residual. You'd pay 23 x (monthly payment-monthly finance charge) + 60,000.

You can, technically, pay off immediately and only incur service fees & one month of finance charges while getting $7,500 to match the Porsche tax rebate. You will almost certainly lose access to that dealership moving forward, unless you made your plan known in advance and they agreed.

As far as if you bought a Macan and immediately tried to sell it back to the dealership, you'd generally be looking at a 10% walk off depreciation, not a couple hundred dollars.

 

[krissrock]

To pay off early is just the residual as agreed at lease start plus all remaining payments minus all remaining financing charges.

ahh i think i get what you're sayin now.

 

[tmrqs]

Adding my own data points here - if anyone has thoughts.

 

[Tacoman]

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