Lease vs Buy

DavidE- Bath

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Hi

Im in the U.K. and I’m wondering whether to lease or buy my 4s which is scheduled for delivery late April/early May. I have a limited company so can do a business lease, or just buy it outright. It works for me to buy it through my company either way with the BIK rates so low.

The thing that’s got me thinking is being unsure how residuals will go and thinking a business lease would remove that uncertainty.

Against it is I might want to keep the car after a 3 year lease period.

Interested in others thoughts.

Best
David.
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charliemathilde

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In the US at least, the loan rates for financing are much much lower than the Porsche lease. Like half. Depends on credit and circumstances a little but broadly speaking Porsche leases are terrible. However there are a few caveats that may swing things to the lease, principally the guaranteed residual. Depreciation rates on luxury sedans are steep. These don’t hold value as well as a 911. And the taycan is a v1.0 tech product as much as a car. The second gen will be a lot better. In the next two years there will be new competing Tesla and Audi products which will effect demand. It’s hard to predict what the depreciation will be exactly but it’s likely to be at least Panamera and probably worse.

I’m buying and I’ll considered the many thousands in saved loan rate vs lease as a hedge against the possible delta on the residua. YMMV.
 

HK111

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I bought. Keep it simple and stupid. Plus more flexibility - cars can be sold, after all.
Cheers,
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Persuader

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Residuals in the UK on a PCP are quite good.. Much better than a Panamera.
 

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Do PCP it protects u to you regards depreciation and also allows you to change the car when we suits

th massive advantage of leasing is the 50% vat you can claim and the fact you won’t pay the ridiculous additional road tax
I will be receiving a lease quote through my fleet policy tomorrow so I’ll advise what that cost difference will be over 3yrs
 


Dave T

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Do PCP it protects u to you regards depreciation and also allows you to change the car when we suits

th massive advantage of leasing is the 50% vat you can claim and the fact you won’t pay the ridiculous additional road tax
I will be receiving a lease quote through my fleet policy tomorrow so I’ll advise what that cost difference will be over 3yrs
I’ve always paid cash for my cars and was planning on doing so for my taycan as well. But if leasing works out to save money I’d love to hear it!
 

Persuader

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Do PCP it protects u to you regards depreciation and also allows you to change the car when we suits
th massive advantage of leasing is the 50% vat you can claim and the fact you won’t pay the ridiculous additional road tax
I will be receiving a lease quote through my fleet policy tomorrow so I’ll advise what that cost difference will be over 3yrs
The road tax is still the same cost with a lease. It's just built into the payments.
 

Lfcdan

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The road tax is still the same cost with a lease. It's just built into the payments.
I understand that but as it’s included it’s something to bear on mind

when I had quotes months ago for the Taycan 4s (inc for 3yrs and 10k pa annum the total costs to me over 3yrs were (minus 19% corporation tax, £3,500 OLEV grant and on the lease 50% Vat claim)
PCP = £36,300
Lease = £32,900 (inc £320pa RFL)
On the 4s it’s not a bad saving

i have since changed to a Turbo and my fleet supplier couldn’t supply a quote on this model but it was updated Friday so I’ll let you know the revised price differences
 


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DavidE- Bath

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Thanks all the info is really helpful. I haven’t leased a car through my business before but can you get contracts that allow you to buy the car at the end if you don’t want to hand it back, like PCP? With BIK so low it doesn’t make sense for me to take the money out of the business at 50% plus tax and do a personal contract.
 

Lfcdan

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Thanks all the info is really helpful. I haven’t leased a car through my business before but can you get contracts that allow you to buy the car at the end if you don’t want to hand it back, like PCP? With BIK so low it doesn’t make sense for me to take the money out of the business at 50% plus tax and do a personal contract.
I don’t think you will be able to buy it at the end but you normally get the option for friends and family

as this is a first version vehicle with no used sales history i think PCP iOS the way to go, if the car is worth more than the GFV then its a bonus and you can part exchange for the newer model ie GTS version
if its worth less you can just hand the keys back
 
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DavidE- Bath

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Ouch. Got a contract hire price and it came in at 6 + 35 payments of £1,467.20 plus VAT. Given I can get half the VAT back that comes out at £66k over 3 years and 30k miles. That’s without maintenance and is probably because there are £27k of extras on my 4S build I guess bringing the price to £110k.
 

Lfcdan

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My 4s quote that was only 93k inc options was £972pm for 35 payments with 3 months deposit!
38 x 972 + 20% vat -19% (corp tax) - half vat is about £32,650
 

Bobrae99

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Ouch. Got a contract hire price and it came in at 6 + 35 payments of £1,467.20 plus VAT. Given I can get half the VAT back that comes out at £66k over 3 years and 30k miles. That’s without maintenance and is probably because there are £27k of extras on my 4S build I guess bringing the price to £110k.
Can you share the MSRP of your build and it’s residual value and interest rate? Problem is with 27k in extras, part of the lease is above the MRM so you are paying 100% of the cost of those option over the 36 months. In that case, it’s probably better to just buy the car.
 
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DavidE- Bath

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Can you share the MSRP of your build and it’s residual value and interest rate? Problem is with 27k in extras, part of the lease is above the MRM so you are paying 100% of the cost of those option over the 36 months. In that case, it’s probably better to just buy the car.
the quote i got didn’t specify the interest rate and residual. I do know that the MSRP of the build is £110,383 though. Porsche build https://www.porsche.com/microsite/porsche-code/default.aspx?c=/PLR8QLD3

I’m guessing I’m paying in full for most of those options on a lease.....
 
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DavidE- Bath

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Just to update I ended up with a Porsche PCP through my business at 6.1% APR, £110k list price, £55k deposit and £55k GFV after 3 years and 30k miles. I’m happy with that. Applying for OLEV grant now to try to get in the queue before it potentially runs out.
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