snstevens
Well-Known Member
- First Name
- Sam
- Joined
- Jul 10, 2020
- Threads
- 23
- Messages
- 780
- Reaction score
- 977
- Location
- Kirkland, WA United States
- Vehicles
- Taycan 4S
So in general you are correct. Side-by-side the lease is a bit more expensive, but I've found it usually not to be much more (couple of thou....).I’d be curious to know by what measuring stick you are using to make this statement. Given PFS lousy lease terms you’d have to get equally horrible loan terms to say the lease vs loan is break-even.
There are plenty of reasons to consider a lease, tax benefits for someone who is self employed, ability to walk away at the end of the lease term in the event the vehicle is damaged, sure, but strictly financial reasons is not one of them. And their terms don’t even make for noticeably lower payments. With current loan rates, using all the same numbers at sale, you’d have roughly 8-10% of purchase price more trade equity at 36 months than you would have in value above residual.
I’ve never owned a Porsche for longer than 3 years, and I’ve never leased one either. I take good care of them, and I use favorable loan terms. So I’m not sure why you feel like a lease is what will allow you to trade up in 3 years. I would just say it forces you to trade up in 3 years, but it certainly doesn’t guarantee you the best deal at trade.
So since no one likes throwing away cash, why do I lease? The answer has two parts - 1) I really want to upgrade my EV every 3 years. The rapid change in battery technology, charging infrastructure, and other hardware improvements (plus possibly changing EV brands) make me want to move on to the latest technology. I'd really like to upgrade on a 2 year cycle, but I'll settle for 3 since a 2 year lease is much more expensive. 2) I have been hit by other drivers three times in the past 10 years. The first two times I was stopped and they ran into me anyway. The last time (in my 2020 Taycan) I was doing 35 mph and someone turned into my lane in front of me at the last minute (no one hurt but frame twisted and car totaled). In spite of my best efforts there are a lot of distracted drivers out there, and I don't like dealing with the diminished value question and all the hassles that come along with that, so basically I'm renting the car.
I also take good care of my cars, so I think the leasing company is glad to have me as a customer, and if I ever do fall in love with a particular care I can always pick it up at the end of the lease for a pre-determined price and either keep it or sell it myself. For me this is worth a little extra upfront, but I can understand if its not for everyone.
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