Depreciated Value

SRQ661

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I don't know if these numbers have changed, but back in April when I got my car these were the numbers, including the MRM (Maximum Residualized MSRP) which is the limit that I think you are referring to.

With Porsche Financial Services, the residual on the 4S for a 39 month lease is 49% for 10k miles/yr and 48% for 12k or 15k miles/yr (those were the numbers when I got my car). The MRM is $138,200. Those numbers are not subject to negotiation with the dealer, and are set by PFS. You will have more wiggle room with the Money Factor since the dealer usually does not do a straight pass through on its cost of funds.
I got the exact same numbers from my dealer this week...
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SFEVER

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I got the exact same numbers from my dealer this week...
I got the exact same numbers from my dealer this week...
I received the following from Porsche Financial Services, the residual on the 4S for a 36 month lease is 51% $70482 for 10k miles/yr and 50% $69,100 for 12k. The MRM is capped $138,200. (the number was increased from $129,000 back in January) Also back in January MF was .00350 now MF is .00250 on the Taycan and .0020 on all other models
 

Gogs

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I dont understand these numbers and acronyms. Could someone explain?
 


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MRM = max MSRP Porsche will base the residual off of. Any amount over that you pay for 100%. MF = money factor, which can be converted to something like an APR by multiplying by 2400. Lease payment is based on the MSRP minus the residual with a fee based on the MF.
 

T-Fury

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I dont understand these numbers and acronyms. Could someone explain?
MRM = max MSRP Porsche will base the residual off of. Any amount over that you pay for 100%. MF = money factor, which can be converted to something like an APR by multiplying by 2400. Lease payment is based on the MSRP minus the residual with a fee based on the MF.
Basically, complicated and vague so someone can make money :)
 


Miwa

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A lease is deciding the trade-in value (and date) when you buy the car. The trade-in value is called the residual and the interest rate is called the money factor (MF). You pay the difference between MSRP and trade-in value, plus the interest charge.
 

Gogs

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A lease is deciding the trade-in value (and date) when you buy the car. The trade-in value is called the residual and the interest rate is called the money factor (MF). You pay the difference between MSRP and trade-in value, plus the interest charge.
In the UK that’s called PCP, in the states can you pay the residual at the end and own the car? If so it’s basically PCP, Personal Contract Purchase. Here not many pay the residual, they typically hand the car back and enter another PCP deal.
 

Miwa

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Yes, you can pay the residual at the end and own the car. Most wont, because if you were going to keep the car, a purchase would've been a much better deal. Some states in the US have things that act like leases, but aren't in order to collect sales tax on the entire purchase. They'll have names like customer option plan or something like that. Most states you just pay sales tax on each payment, instead of on the entire amount.

Some states let you deduct the trade-in value for sales tax calculations, but CA isn't one of them.
 

JC Mann

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Yes, you can pay the residual at the end and own the car. Most wont, because if you were going to keep the car, a purchase would've been a much better deal. Some states in the US have things that act like leases, but aren't in order to collect sales tax on the entire purchase. They'll have names like customer option plan or something like that. Most states you just pay sales tax on each payment, instead of on the entire amount.

Some states let you deduct the trade-in value for sales tax calculations, but CA isn't one of them.
There are times when the actual depreciation is less than expected at inception of the lease and it’s better to pay off and sell it privately.
For example, if Porsche based lease on the Taycan being worth 50% after 3 years, but it were actually worth 70%, you could pay off that planned 50% and turn around and sell it for the 70%.
I don’t know how often manufacturers are wrong, but they have to plan on worst case scenario so they don’t lose big bucks.
For example, if they charge you lease price based on 50% value at 3 years and it were to actually nosedive to 40%, you let it go and they are stuck with it being worth less than they planned.
 

BayAreaKen

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The shortest amount of time I’ve ever owned a car is 6 years. The longest (and still counting) is 20. I considered leasing this one, but have decided against it. I will buy the car and enjoy everyday.

Anybody know if Porsche is offering an amazing financing rate (like 0%)? If so, I may finance half and keep the other half invested for a bit longer.
 

snstevens

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The shortest amount of time I’ve ever owned a car is 6 years. The longest (and still counting) is 20. I considered leasing this one, but have decided against it. I will buy the car and enjoy everyday.

Anybody know if Porsche is offering an amazing financing rate (like 0%)? If so, I may finance half and keep the other half invested for a bit longer.
When I was looking at Lease vs. Buy/Finance the Porsche Financial rate quoted was 2.49%. A low rate, but not particularly special.
 

Jon Steinmetz

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When I was looking at Lease vs. Buy/Finance the Porsche Financial rate quoted was 2.49%. A low rate, but not particularly special.
Same here. I have ordered and delivery is expected to be February 2021 so maybe I will get lucky and they will have some kind of deal going on then.
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