Any leaseholders considering buying out their lease?

[snstevens]

I just wanted to follow up on this, since I successfully bought out my lease. What I said here:



ended up being correct. Since I'm in California, I did have to pay sales tax on the buyout amount.

In other words, the buyout amount consisted of:

depreciation = cost of new vehicle - residual

base payment = depreciation / (# of lease payments)

buyout quote = residual value + (# of remaining lease payments * base payment)

final buyout amount = buyout quote + sales tax

By buying out early, I was able to avoid all remaining rent charges on my lease, which saved me around $7k compared to if I had bought out at the end of the lease.

I did the buyout through my dealer, as a result they handled all the DMV paperwork for me (and charged me doc fees of ~$100). I went in to sign some docs, took about an hour total. The new title and registration will be mailed to me.

Alternatively, I could have done the buyout through PFS directly, but then I would have had to do all the DMV paperwork myself.

I just want to confirm that your "Lease Buyout" formula above is correct.

I'm 14 months into my lease, and after talking with PFS it turns out I can save $17k by buying out the lease by the first of October. I still owe the "Base Payment" for each remaining month of the lease, but not the "Rent". I also found that the "Residual" is slightly higher than if I waited until the end of the lease period, but not by much.

Still, saving $17k is something I'm considering since I love the car, and my best guess is that there will be significant delays getting a new MY Taycan at the end of the lease. If I'm wrong about that, and decide to go with a new model I can always trade in my 2021 Taycan.

At this point I'm leaning toward buying out the lease, but I plan to wait until the ANA6 update is completed on my car in the next 1-2 weeks and evaluate the stability of the uPdate before making a final decision.

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[submatrix]

I just want to confirm that your "Lease Buyout" formula above is correct.

I'm 14 months into my lease, and after talking with PFS it turns out I can save $17k by buying out the lease by the first of October. I still owe the "Base Payment" for each remaining month of the lease, but not the "Rent". I also found that the "Residual" is slightly higher than if I waited until the end of the lease period, but not by much.

Still, saving $17k is something I'm considering since I love the car, and my best guess is that there will be significant delays getting a new MY Taycan at the end of the lease. If I'm wrong about that, and decide to go with a new model I can always trade in my 2021 Taycan.

At this point I'm leaning toward buying out the lease, but I plan to wait until the ANA6 update is completed on my car in the next 1-2 weeks and evaluate the stability of the uPdate before making a final decision.

You pretty much have the same line of thinking I did, except I'm 16 months in. I'm surprised they adjust your residual if you buy out early though, and unless I'm misunderstanding what you're saying, a higher residual equates to a higher buyout than if they had honored the original residual on your lease contract. Would love to hear more details about this.

 

[snstevens]

You pretty much have the same line of thinking I did, except I'm 16 months in. I'm surprised they adjust your residual if you buy out early though, and unless I'm misunderstanding what you're saying, a higher residual equates to a higher buyout than if they had honored the original residual on your lease contract. Would love to hear more details about this.

I was incorrect above. The actual version for my car showed a residual of $74,250, which is what was used in the Lease Closeout computation by PFS.

 

[vedder77]

Thanks! This post literally saved me. My local Porsche dealership added $20K in rental fees to my GTS lease agreement and I didn't notice (my mistake, won't happen again). I'm in month 1 of a 39 month lease so I'm just going to buy off my lease and move on.

 

[gnr3312]

I’m trying to buy out my lease and actually refinance it with my local credit union but the bank wants a PO from a Porsche dealership, any of them could do it according to my CU. However when I called my Porsche Austin and Porsche San Antonio, they told me they can’t do it, has to be the originating dealership. Has anyone been able to do this like my CU wants it done? The selling dealership is 3 hrs away from me and they’re not responding to calls or emails.

 

[Detect]

Thanks! This post literally saved me. My local Porsche dealership added $20K in rental fees to my GTS lease agreement and I didn't notice (my mistake, won't happen again). I'm in month 1 of a 39 month lease so I'm just going to buy off my lease and move on.

interest rate/money factor is set by PFS not dealership, although dealership can mark it up. base money factor on porsche lease is pretty high, 8-9% last time i checked. a one-pay brings it down a little bit.

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