Thoughts in leasing vs purchasing

satchurator

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BofA ended up giving me 1.79 for 60, 100% LTV somehow. The payments with no money down (either lease or purchase) are with in a few dollars of each other. I think the residual and rate must be poor on the lease.

I don't know how long I'll keep this but it could be 5 years. I don't know what I'd get my wife next that could be better than this.
@zer0t Did you encounter pushback from the dealership in going with outside financing? Are there additional hoops to jump through compared to using Porsche Finance?
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zer0t

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@zer0t Did you encounter pushback from the dealership in going with outside financing? Are there additional hoops to jump through compared to using Porsche Finance?
Not really, they were like the lease a good deal you should do it. There was no way they were going to push PFS they'll match bank rates. I don't things work the way the used to on rate markups. The transparency and the ease of applying online take that away. Moreover, BofA works directly with most dealers where you provide them a code after your approval. The approval process used to take about 30 mins but they've been innundated and it can take a day or two. That was another reason they pushed the lease, they could've delivered the car a couple days earlier.

If people finance through the dealer using a bank they're getting beat. If the manufacturer has incentivized programs (like 0%, .9%) then you use them. Other than that I don't know who would use the dealer markup number directly at this point.

TL;DR they didn't really do much to convince me not to use my BofA loan knowing they couldn't get near 1.79% for 60 months making the 0 down payment a few bucks cheaper. That comparison also includes the 7500 going into cap cost instead of my quarterly tax filing. So even money and a 7500 tax credit for me.
 

nycebo

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@zer0t I had the same thing with my lease into purchase approach using BofA. Applied, got a code, gave it to salesman at Porsche and good to go. Outstanding rate, though not as solid as yours. BofA indicated that it varied state to state and was also based on pre-existing banking relationships. Man, you nailed it with 1.79%
 
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zer0t

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@zer0t I had the same thing with my lease into purchase approach using BofA. Applied, got a code, gave it to salesman at Porsche and good to go. Outstanding rate, though not as solid as yours. BofA indicated that it varied state to state and was also based on pre-existing banking relationships. Man, you nailed it with 1.79%
Yeah I have a long relationship with them so the I expected the rate at 1.89 (50 bps discount advertised for relationship) but somehow it came out 10 bps less. I didn't ask any questions. And yes it varies from state-to- state.
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