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LowPolarMoment said:
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moto said:
i'm not sure what it is either but according the their website, it's...
"a flexible finance plan designed to provide the private user with an affordable way to drive a new Porsche every two of three years. At the end of your Preferences agreement you can choose one of three options which gives you the flexibility to select the one which is most suitable for you.
Firstly, you can part exchange your current Porsche for a new one. Secondly, you can pay the final payment and credit facility fee and take ownership of the car or as a third option, provided that the car is in good condition and has not exceeded the maximum agreed mileage, you can simply hand it back to us."
The interest they charge on this option must be pretty hefty!!
Porsche offers something similar here and it's cheaper than a regular lease.
We do have it here - but it's called Porsche Options Financing. It offers lease like payments, in fact payments that are significantly lower in most cases but technically you own the car. This differs from a lease (where the title of the vehicle is in Porsche Financial Services' name)in that the title is in your name (I recently got my title in the mail). It's a program similar to GM Smart Buy, and other balloon-loan type payments that a lot of manufacturers used here in New York state to bypass a ridiculous law concerning vicarious liability. Under this, car manufacturers could be held partly liable for the vehicle if an accident occured. It caused lease rates to be much higher in NY than in other states. It has recently been repealed (in the last few months or so) so who knows if Porsche will lease again (right now, and when I purchased my vehicle a few months ago, they did not).
You get a few options at the end of the term (here they go out to 60 months, and the usual 10K, 12K, 15K a year). I was told that I could
1) Sell the car to a third party through the dealer. This would nullify any mileage overage penalties I would have during my time with the car if I went over the allocated mileage per year. If the car sells for more than the term-end value, I would pocket that difference.
2) The term-end value is the balloon payment. At the end of the term I can put down the full amount (the term end value is 40% of your initial MSRP, e.g. on a 65K car, 26K is the balloon) or finance the remaining amount through another loan.
3) Return the car and walk away, adding a fee to do so.
4) Return the car and use the term-end value of the car as a down payment for another car. So the 26K above can be used as a down payment for another car.
The dealer I do business with is an exotics dealer so I am not sure if option 4 can be used towards other makes like Bentley and Lambo. I currently have this plan going for my '06 987S, and I plan on electing option 4 and picking up a 997 S (or a 998 if it's out by then).
