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    Porsche 997 Leasing Residuals

    Anybody have discussions with Porsche Financial Services to discuss what the "residual cost" of the car is expected to be, based on a 24 month lease. Looking into leasing for the first time, and trying to understand all the parameters here.

    LeaseCompare.com, and other such leasing sites don't have the 2005 997 information yet.

    Many thanks.

    Re: Porsche 997 Leasing Residuals

    Rasta, The residual, with Porsche Credit on a 2005 997 Carrera at 24 months/ 15,000 miles per year is 69%.
    The Carrera S is 65%. These numbers are surprisingly low.
    It also makes no sense that the residual on the S is lower
    than than the regular Carrera. Revvv

    Re: Porsche 997 Leasing Residuals

    Quote:
    Revvv said:
    It also makes no sense that the residual on the S is lower
    than than the regular Carrera. Revvv



    Hmm. You really have to wonder what the logic was when they arrived at those figures.

    Re: Porsche 997 Leasing Residuals

    Thanks Revvv. I actually got the same "65%" response when I checked in with the dealer today. I also got the residual value quote for 36 months: 56%.

    Unbelievable. I guess the flipside of it is that you can purchase the car at the end of the lease, and flip it for the true market value, which should be substantially higher. No?

    Re: Porsche 997 Leasing Residuals

    Sorry for the stupid question (I have never leased before). The 65% of the purchase price includes options (but does not include licensing and sales tax)...right?

    If the car was $85,000 with options, and another $8,000 for sales tax and license, Porsche would pay 65% of $85,000 at the end of two years?

    Re: Porsche 997 Leasing Residuals

    Yes, Seattle USA. While I have never leased before either, that is my understanding as well based on my discussions with the Dealers. Taxes suck!

    Re: Porsche 997 Leasing Residuals

    From a friend's experience whom didn't pay sales tax.

    Open up a P.O. Box in Montana and order your car from a dealer in Montana you won't pay a penny for sales tax. He did this for his Turbo and actually still does for all of his cars.

    Re: Porsche 997 Leasing Residuals

    I was heard that Porsches on average have a residual of 60% or more after 3 years. The actually right down their own depreciate their leasing cars to 55% within 3 years so they can register a gain on resale. Check their annual reports for proof...

    TEE

    Re: Porsche 997 Leasing Residuals

    Sadly, Washington State, with a high sales tax (and right next door to Oregon with no sales tax), has already figured out that dodge. You pay sales tax when you get the Washington license plates, even if it is purchased out of state, and cars with out of state license plates are routinely pulled over looking for tax dodgers.

    The good news is that I found out you only pay sales tax on the lease payment, not on the full purchase price, since the vehicle was not actually sold. Of course if you end up buying the vehicle at the end of the lease term you would pay then.

    Re: Porsche 997 Leasing Residuals

    I got an offer on a 4 year / 60k km 997S lease and the residual is only around 40-41 Percent, which translates into around 40k Euros.

    That is ridiculous since even 7 year old 993s sell for that price - and the new S is said to be quite a good offer with appropriate demand as a used vehicle!

    Actually, 911s always sell for a higher price than is stated in major used-car references around here.

    Re: Porsche 997 Leasing Residuals

    Quote:
    Seattle USA said:
    ...The good news is that I found out you only pay sales tax on the lease payment, not on the full purchase price, since the vehicle was not actually sold. Of course if you end up buying the vehicle at the end of the lease term you would pay then.



    ...And the bad news is that leasing is virtually non-existent in New York due to an arcane law that doesn't provided OEM manufacturers with appropriate liability separation, effectivley making them liable in a lawsuit should somebody driving a leased Porsche get sued for reckless driving.

    So we can't freakin' lease a Porsche!!

    Re: Porsche 997 Leasing Residuals

    Rasta, I could have told you in the first place, that you can't lease any car in N.Y., due to recent legislation. Now
    if you had a valid address in another state, we could lease
    you a car. You should buy your 997 anyway ! Revvv

    Re: Porsche 997 Leasing Residuals

    Just talked to my dealer. An interesting option for those that were just going to pay all cash anyway is called a prepaid lease. Just like a normal lease (interest rate, residual, term, miles alloted), except that you write one check at the beginning, and there are no monthly payments. At the end of the term you hand over the keys and walk away. Interest rates are lower because its all prepaid, and obviously the initial check is lower as well. Most useful for those who like to play with cars for a period of time and then get a different one.

    Anyway, if you were going to pay all in cash, ask them what the cost of a prepaid lease would be and then decide if it makes sense.

    Re: Porsche 997 Leasing Residuals

    Quote:
    Seattle USA said:
    Just talked to my dealer. An interesting option for those that were just going to pay all cash anyway is called a prepaid lease. Just like a normal lease (interest rate, residual, term, miles alloted), except that you write one check at the beginning, and there are no monthly payments. At the end of the term you hand over the keys and walk away. Interest rates are lower because its all prepaid, and obviously the initial check is lower as well. Most useful for those who like to play with cars for a period of time and then get a different one.

    Anyway, if you were going to pay all in cash, ask them what the cost of a prepaid lease would be and then decide if it makes sense.



    I had heard about this as well SUSA - thanks. The one think I need to get clarity on (maybe Revvv can help) is whether this would be allowed in New York state, because it is still technically a lease, and therefore probably not legitimate.

    Yet another option that a dealer informed me about was making a bullet payment (similar to a prepaid lease), but on a loan instead of a lease. There is no security deposit, no first month's downpayment, and you can return the keys at the end of the ownership period. HOWEVER, the one downside on this is that since you effectively purchase the car for the duration - you pay sales tax UP FRONT for the whole value of the car, which you can't claim a refund back at the end of, say, two or three years when you're done playing around.

    No easy answers here...

    Re: Porsche 997 Leasing Residuals

    Actually you can lease cars in the state of New York, depending on what you're leasing. Many major leasing companies pulled out of NY, but others haven't - for example BMW FS just upped their initial lease fee slightly to include cost imposed by extra liability insurance (smarter way to go IMHO). Not sure what Porsche is doing, but last time I checked they were still leasing in NYC. Another alternative is balloon financing, which many financial groups have structured just like leasing (including a closed-end agreement) - downsides are more limitations on deducting payments as a business expense, and you pay sales tax on the car's whole value instead of just the leased value (although you can apply a tax credit on the car when you trade it in at the lease end).

    Re: Porsche 997 Leasing Residuals

    airkewl, thanks for your thoughts. The Porsche dealer I spoke with indicated Porsche doesn't lease in New York, but I'll reconfirm with a few of the other dealers.

    Any sense of what balloon financing rates are like for 24 month bullets?

     
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