Would you lease a Turbo S?

[Piper]

Never leased a car before. But maybe on an electric, I should consider it? Walnut Creek Porsche is offering 46% ($91,017) residual on a 3 year lease for my Turbo S arriving next week. Payments of $3642 + tax. Drive off is $6500. Is this a reasonable offer? Thanks for any advice.

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[W1NGE]

I don't see why not - technology is rapidly changing so advantageous to lock in a 'worse case' guaranteed future value for the next trade (you will like get more as these are set somewhat conservatively).

Key missing piece of data is the APR / finance rate - could you do better elsewhere by not using Porsche Finance?

 

[Piper]

I don't see why not - technology is rapidly changing so advantageous to lock in a 'worse case' guaranteed future value for the next trade (you will like get more as these are set somewhat conservatively).

Key missing piece of data is the APR / finance rate - could you do better elsewhere by not using Porsche Finance?

That's what I think too. The major issue in three years will no doubt include the the weight and capacity of the 2021 battery. Time to do a little studying on lease basics. Thanks.

 

[KensingtonPark]

Having leased a lot of cars in my lifetime, I think that the deal has to be slightly better than the one you are being shown to make it worthwhile. Unless you cannot come up with even a small downpayment, this deal has a fairly high embedded money factor, meaning that you could have put down a small amount of the purchase price, taken a 3 year loan and made only slightly higher monthly payments. Even if the car ends up being worth less than what is implied in your lease, you are ahead, because you own the car.

 

[Dee]

"Pwoah, that's a lot of money to own a loaner"...

 

[amelen]

Try:

https://leasehackr.com/calculator

The general idea (not porsche specific), is you want to be around 10 years on the lease hacker score for it to be a good lease deal. While Porsche recently lowered the finance rates and improved the residual on the Taycan, they still don't lease too well (esp if compared to BMW let say).

Below is a lease I got on a $157k BMW M8 for example:

https://leasehackr.com/calculator?make=BMW&miles=7500&msd=7&msrp=157195&sales_price=120883&months=36&mf=.00082&dp=0&dealer_fee=699&acq_fee=925&taxed_inc=0&untaxed_inc=0&rebate=0&resP=54&reg_fee=400&sales_tax=7.025&demo_mileage=0&memo=&acqFee_check=true&totalLeaseTax_radio=true


Monthly Payment with Tax: $1,111

 

[wemct]

Never leased a car before. But maybe on an electric, I should consider it? Walnut Creek Porsche is offering 46% ($91,017) residual on a 3 year lease for my Turbo S arriving next week. Payments of $3642 + tax. Drive off is $6500. Is this a reasonable offer? Thanks for any advice.

If the car is being leased through Porsche Financial Services, one potential benefit is that Porsche typically has a lease pull forward program. In the last 12 or 6 months of the lease, Porsche will forgive the remaining payments if you want to purchase or lease another Porsche. Some of my cars I have leased, some I have purchased. It really depends on the deal and the particular car. For instance I always lease my Maseratis b/c they depreciate like a rock and the lease terms are reasonable. I leased my Taycan because it was a first generation EV from Porsche. At the end of 36 months (or sooner if I take advantage of the pull forward program), I will be in a new EV that may have some new features or tech. It is also unclear how much the Connect services will cost after the 36 month free period expires.

 

[chrisk]

I leased my Taycan because it was a first generation EV from Porsche. At the end of 36 months (or sooner if I take advantage of the pull forward program), I will be in a new EV that may have some new features or tech.

I also leased for the same reasons.

Since you are in California, keep in mind that when you lease you pay tax only for the lease payments, not the full MSRP. If you live in a place with high sales tax that usually makes up for paying interest.
If you purchase the car and then sell it in 3 years, you will either have find a buyer to pay ~$100k for a used car (very hard) or get lowballed by a dealer when you trade in.

In any case, this is a financial decision that depends on how long you plan to keep the car, and other factors like taxes, deappreciation, interest rate, etc. You should choose what is best for your situation.

If you lease, make sure the dealer is not marking up the money factor and try to negotiate a reasonable discount over MSRP. The federal tax credit should be also be included as a cap reduction.

 

[Miwa]

I've leased one Porsche, because it was actually an incentivized deal. But unless you can write off the lease, Porsche leases are not particularly good, IMO. But there is peace-of-mind for knowing your trade-in value when you purchase a car. But you are locked in, so make sure you sign the lease during a time of the year where in 3 years you want to be purchasing another car.

Keep in mind that when you lease you pay tax only for the lease payments, not the full MSRP, so you pay roughly half of the taxes that you would pay if you purschased. If you live in a place with high sales tax like California that usually makes up for paying internest.

Note that is California-specific. Other states can handle leases different (like I think NY). Also note that many other states let you deduct the price of your trade-in for sales tax purposes.

The federal tax credit should be also be included as a cap reduction.

That's also up to the leasing company. They can keep it, residualize it, or give it all to you.

Lease vs. Buy considerations should be like a lot of financial deals... what's the MF vs the APR, etc.

 

[Piper]

Try:

https://leasehackr.com/calculator

The general idea (not porsche specific), is you want to be around 10 years on the lease hacker score for it to be a good lease deal. While Porsche recently lowered the finance rates and improved the residual on the Taycan, they still don't lease too well (esp if compared to BMW let say).

Below is a lease I got on a $157k BMW M8 for example:

https://leasehackr.com/calculator?make=BMW&miles=7500&msd=7&msrp=157195&sales_price=120883&months=36&mf=.00082&dp=0&dealer_fee=699&acq_fee=925&taxed_inc=0&untaxed_inc=0&rebate=0&resP=54&reg_fee=400&sales_tax=7.025&demo_mileage=0&memo=&acqFee_check=true&totalLeaseTax_radio=true


Monthly Payment with Tax: $1,111

Thanks, Alex. very helpful.

 

[amelen]

Thanks, Alex. very helpful.

If you're open to an out-of-state dealer (you'd have to pick up at the LA experience center or account for shipping costs), I can loop you in with one of the GM's that's doing good discounts now. Maybe a 6% discount + improve lease rates will make it a little bit better of a proposition.

 

[chrisk]

If you're open to an out-of-state dealer (you'd have to pick up at the LA experience center or account for shipping costs), I can loop you in with one of the GM's that's doing good discounts now. Maybe a 6% discount + improve lease rates will make it a little bit better of a proposition.

If you lease out of state, where do you have to return the car at the end of the lease? Some brands allowed you to return at any dealer but once I had a Ford lease that no dealer wanted to take back and I had to return to the dealer where I leased from. I am also hearing that with covid many dealers have too much inventory and they don't accept lease returns if you did not lease from them.

Edit: I am reading my lease's terms and it says I have to return it at the dealer's address or a place that the dealer chooses.

 

[amelen]

If you lease out of state, where do you have to return the car at the end of the lease? Some brands allowed you to return at any dealer but I once I had a Ford lease that no dealer wanted to take it back and I had to return to the dealer where I leased from. I am also hearing that with covid many dealers have too much inventory and they don't accept lease returns if you did not lease from them.

Good point, I *think* you can return to any, but not 100% sure for Porsche.

RE: inventory - that was a summer issue, now the issue is not enough inventory Porsche 911 build orders are out 6mo+ for most dealers. MB is about to have a huge inventory crunch (not public info yet). Subaru same. Taycan's are a little unique where it's very GEO specific. Some GEO's, like the north-east are having a lot of issues moving them and still have tons of inventory (even 2020 models). Some GEO's (CA especially) had healthy demand and dealers aren't discounting them as much. For CA, I think it helps that there is a good charging network in place and people have much higher acceptance and favoribility of EV's in general. In NJ for example - even the North NJ area that's heavily populated where I live, I don't have any EV charging within a 20mi radius around me.

Disclaimer: The agency I own works with 100s of auto clients/dealerships/OEMs.

 

[KensingtonPark]

I have returned three Audis to an Audi dealer different from the state that I originally leased it. If the lease is a standard VW/Audi Financial/Porsche Financial lease, it should not be a problem. Since it never even occurred to me that this could be an issue, I am grateful to know that it isn't.

 

[wemct]

I have returned Porsches in a different state than where it was originally leased when leased through Porsche Financial Services.

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