I knew nothing about MRM until I recently looked at a new 991.2 that is over the current MRM for a base carrera. MRM is Maximum Residual MSRP. For a base carrera its $108,700.00. So any amount beyond that in the MSRP (not sale price) cannot be residualized - which means you pay dollar for dollar on top of the lease payment.

Example: A car that is $3600 over MRM will have a lease payment $100.00 higher a month for a 36 month contract You could pay the $3,600.00 upfront, but that would be even more unwise than a cap cost reduction since it wouldn't reduce your payment at all and would be lost if the car were totaled etc.

So, the MRM for the carrera coupe is now $108,700. They can change it quarterly.

Has anyone heard of any planned increase for the base car. Given that most PDK carreras with 20 inch wheels, a sunroof, premium pack and Bose exceed this amount, it would seem like an adjustment for inflation is merited. I'm posing this question because I looked at a car that was almost $4,000.00 over the MRM threshold. Does anyone know of any workarounds to offset or circumvent this MRM issue?

Thanks for any feedback,
DRP

 

Doubtful. They already raised the MRM when the 991.2 came out because the cars were more expensive. $108K is already pretty heavy for a base Carrera, totally reasonable that Porsche would cap it around there. A base Carrera loaded up higher will never bring more money at the auction and Porsche knows it. When it comes to Porsche, you gotta pay to play. They have no incentive to subsidize their leases like BMW does.

 

In Canada a base car is $102,200. The MRM is $125,000. Within that amount, I can build in the following options: 14 Way seats, Premium Package, PDK, Sport Chrono, Sport Exhaust, LCA, multifunction wheel, 20" wheels, glass sunroof, Bose. There are other options, but I can't think of many that I'd really want in addition to the above on a base C2; maybe keyless entry and drive, but that is included in the US premium package. For those buying their cars, the MRM shows what PCNA thinks an over optioned car is and what the value of the options will be worth on a used car lot 3 years down the road, so be careful with stuff like special colours, full leather interior, carbon fibre, Burmeister, etc. (In my opinion).

On a lease, it's one thing to pay for the part of the car you are using up, it's another thing to pay for 100% of that part of the car that the next owner will be using up. It's another thing if the car wil be a long term hold (say 6 years) and you just want what you want.

 

+1 Exactly!

The same dealer I went to has a base coupe, no carbon brakes with an MSRP of USD $125,000.00.

I think the best way to look at this MRM phenomenon is that Porsche want you to buy a car with customized options which leaves the lease cars with more 'popular' options for the CPO market. Makes sense. I've got a suggestion - if I'm paying 100% for a part of the purchase price (over MRM), why can't I trade in that component when the lease matures? For example, a $500.00 credit for every $1,000.00 paid over MRM only to be used for lease expenses like additional mileage or toward a new Porsche vehicle contract. Actually a great idea, no? LOL

Thanks for the replies guys.

I think I may end up leasing a less expensive 991.2.

DRP

 

The reason you can't trade/turn the car in at your mythical 50% residual on options above the MRM is for one very simple reason: they are not worth that much. I suppose Porsche could try to develop some complicated matrix as to what every option would be worth at different ages and mileage but most of it would be literally pennies on the dollar. Do you think a $5,000 Bermester stereo means jack squat on the secondary market? If a buyer even knows what that is, they may be willing to pay literally $200 more for a car equipped with it than not. Do you think $3000 paint to sample is worth anything to the used car buyer? It isn't. Bottom line, if you can't spec a car you like under the MRM, then leasing is not for you.

 

I guess you buy then sell. You control the price.

 

Nope ... The buyer controls the price. You might do better or worse than you were hoping. A lease takes the guesswork out of it.

 

You are exactly correct. Further, GT Silver is now a simple metallic paint charge ($820.00 in Canada), but that colour on the Panamera or some other models is a "special colour" which costs $3,300? Who is going to pay for that at lease end.

I always look at loaded up used cars that are a "really good deal" according to the seller and find that I can come within $10,000 of that great deal on a new car with light options. I guess that is why the MRM is set where it is.

 

The MRM which is unrealistically low on the carrera (gives you $6k to play with after upgrading from the 19s w/pdk), is a way to control which base cars dealers order - or actually won't order.

Porsche want to sell more and more 911s - so leasing is encouraged. But they dont want to dilute the brand by having excess off lease inventory. Solution: any harder to sell off lease cars (due to particular & $$$ options) will no longer be leased. Dealers won't order a base over MRM. Problem solved while still being able to crank out numbers on "leasable" more basic base cars.

Take a read of total 911s article on the 991.2 S vs base where they prefer the base car - and you can further appreciate the frustration of someone who wants to lease a new carrera with $19k in options - me.

Solution for me is simply to order a car handicapped. I'll spec the 19" wheels and buy a new set of 20s, which I can then sell on this forum after lease turn in. There's always a workaround...

Regards,
David

 

You really think Porsche encourages leasing!? With their 4.8% base interest rate, accurate residuals, MRMs and fussy turn-in process I would respectfully disagree. I lease my wife BMWs. The interest rate is less than 2%, she can spec a car however she wants and it is all residualized, the residuals are ridiculously inflated to make it attractive and I have never once been hassled or charged for anything on turn-in. BMW encourages leasing to move the metal and get those sales numbers up. Once you are blowing 3-series out the door at $300/mo., the pool of customers who can afford that increases drastically. Porsche doesn't 'encourage' leasing in any way. In fact, they pretty much actively discourage it.

 

As I wrote above, in Canada, a base 911 is $102,800 and you can MRM at $125,000. That is plenty to get popular options added to a base car. As to BMW, the residual on a $90,000 5 series is about 50% at 3 years. An 8 cylinder is 4% less. That, compared to almost 60% for a 911. So, on a 90,000 BMW, depreciation over the term is $49,500. On a $120,000 911, depreciation is around the same, so the base payments will be close. Now you can understand why BMW offers low interest lease rates, but on the upcoming replacement for the 5 series, for the first year, interest rates will be the same 4.9% Porsche is asking for. Given the above, I can't agree with the position the Porsche actively discourages leasing. It started out that way in Canada with 6.9% lease rates on 48 month terms, but with a strong residual and 4.9%, you can drive a 911 for a similar payment to a BMW 550 Xi.

 

Are you joking?
If they discouraged leasing, and were effective at it, they wouldn't be selling cars.
Not enough cash buyers. And, besides, they make more money on a lease (or on finance) than they ever would on a cash buyer. For that reason, if they had to chose between selling the same car for cash or for lease, lease would win - every time. Which is also the reason why you're more likely to get a discount with a lease - they suck you into a lease with a little up front discount to make you happy, then, over the term of the lease, they'll get that back by attaching themselves to your income stream and draining your wallet. Then you give the car back - low mileage, of course, so it's easier to sell.
Car manufacturers salivate for customers with good credit ratings and a reliable income stream.

 

We'll have to agree to disagree then. BMW encourages leasing. Porsche's lease schemes are, if not 180 degrees different, at lest 90 degrees. Porsche doesn't encourage buying much either, with the prices they ask.

What Porsche does is encourage you to want the car. They are quite good at that.