Thoughts on Lease vs Purchase?

[Klepper]

buying the put, leasing, shields you from that scenario

Yup, and the cost of buying the "put" is the cost of money difference between lease and buy.

It may very well be worth it for something like the Taycan.

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[Klepper]

I leased my Taycan basically for two reasons. 1) I’ve learned that I like to turn a car over to often really to buy it. 2) the technology is going to change so much in the next 2-3 years that I wanted the ability to change the vehicle.

Its funny...these are two reasons I usually DON'T lease. The way I see it, leasing is more restrictive than buying. If you buy, you have full control to sell the car after 3 weeks, 3 months, or 3 years, etc. With a lease, you are kinda stuck with it for the lease term (sure, there's some circumstances where they might let you out early). I usually change cars quicker than 3 years, so hate being stuck in a lease.

As an example, many years ago I was living in Canada, and I had just leased a vehicle there (Honda Pilot). A few months later, I got transferred to work in the US. The trouble was, Honda Canada Finance wouldn't let me take the vehicle to the US. I had to break my lease, which cost me a TON of money. Had I purchased instead of leased, it would have been a non issue.

 

[JimBob]

Omitting the financial terms of a lease. Which do you think would be preferred after 5 years. A new 911 C4S or a new Taycan 4S bought today.

 

[Filback]

And what do you think depreciates more? A 4S or a Turbo?

 

[JimBob]

Maybe someone could compare the lease terms of new Taycan with a new 911 or Panamera. That should show what Porsche thinks of the future value.

 

[norwbjorn]

a refinance of the morgage at 1,4 % is a nobrainer here, but i m deeply worried that the development in battery tech will make the Taycan hard to sell in 3-5 years. Theres already a lot of used Taycans for sale here, buying 1.gen could prove costly.

 

[kort]

Its funny...these are two reasons I usually DON'T lease. The way I see it, leasing is more restrictive than buying. If you buy, you have full control to sell the car after 3 weeks, 3 months, or 3 years, etc. With a lease, you are kinda stuck with it for the lease term (sure, there's some circumstances where they might let you out early). I usually change cars quicker than 3 years, so hate being stuck in a lease.

you can always buy out of the lease, and the later in the term, dealers will take you out to sell a car, my porsche almost promised that after 2 years that they would consider pulling me out if I buy another porsche. just part of the negotiating fun

 

[themickd]

Omitting the financial terms of a lease. Which do you think would be preferred after 5 years. A new 911 C4S or a new Taycan 4S bought today.

Definitely the 911 C4S, which holds its value as well as any modern car I know. I just sold my '14 911 C4S for about 55% of MSRP. That's likely higher then the 3-year residual on a Taycan 4S lease. FYI, I just ordered a heavily optioned '21 Taycan 4S but do not have lease terms yet to determine lease vs buy.

 

[JimBob]

With respect to leasing, why not just buy a properly inspected second hand Taycan. The dollar hit on these cars is huge, both in relative terms and absolute terms. As long as the battery is good and there is some warranty left, it makes huge financial sense. I have the impression some are reaching to buy this car and that can't be a good idea.

 

[Klepper]

With respect to leasing, why not just buy a properly inspected second hand Taycan. The dollar hit on these cars is huge, both in relative terms and absolute terms. As long as the battery is good and there is some warranty left, it makes huge financial sense. I have the impression some are reaching to buy this car and that can't be a good idea.

I looked at buying a used CPO Taycan, but there was just not enough savings to make it worth it. With the $7500 tax rebate on a new one combined with the discount I got on a custom order, used ones were nearly the same price.

 

[rich_r]

Im finding the same thing. Granted used taycans are at most a year old so that’s part of the reason plus Covid has pushed used car prices higher than normal.

 

[Mouse House]

Non-US view here but the terms of the lease being offered were absolutely terrible, from memory residual 39% at 3 years and over 5% interest. The kicker was that when I eventually managed to get the terms and conditions it specifically excluded me from being able to buy the car at the end of the lease, which might have mitigated the low residual.

I can't see a Taycan depreciating anywhere near that much in 3 years. If there's any incredible new tech that comes out (not actually that likely given eg the glacial progress by Tesla just to make slightly larger battery cells) there's always the option to just sell the thing before whatever new model becomes available.

 

[Mr.Smith]

Non-US view here but the terms of the lease being offered were absolutely terrible, from memory residual 39% at 3 years and over 5% interest. The kicker was that when I eventually managed to get the terms and conditions it specifically excluded me from being able to buy the car at the end of the lease, which might have mitigated the low residual.

I can't see a Taycan depreciating anywhere near that much in 3 years. If there's any incredible new tech that comes out (not actually that likely given eg the glacial progress by Tesla just to make slightly larger battery cells) there's always the option to just sell the thing before whatever new model becomes available.

The Taycan is too new of a model to have an accurate residual so Porsche will be conservative and come up with a terrible number of 39%.
Resale Data is starting to emerge which is strong. It means a future lease program will be very attractive due to higher residuals.

Of this 39% was 55%, it would be a no brainer to lease it.

They have created a market that makes it advantages to buy new over a lease or buy used

IMO Porsche is the best run, financially sound OEM

 

[andix]

Problem with leasing is you pay interest rates. Not smart these days if you have the cash.
Also, I always own my Porsches quite long, obviously not BEVs so far.
So far, value preservation was always amazing, especially for the 911s. I sold one at literally no loss…

 

[LukeManning]

Funnily enough I've found that most of my Taycan clients have paid cash for their vehicles. Very hard to convince many Taycan clients to finance or consider a lease.

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