Hi all - just joined this forum. I am about to get my first Porsche after dreaming about one since I was 4 and have a quote for a 911 coupe black edition built how I like delivery this summer. MSRP is 88k and now have 2 choices. I got a good deal on a 2yr lease which will cost me 34k over the life of the lease or I can buy it. How much discount should I expect to get if I buy it? I know values will go down when the new one comes out be realistically, specced the way I like the new one will be a 105k car which is just too much. I looked at getting a used 997.2 S but specced the way I like they are still 70k+tax and I prefer owning a new one for that money. Thoughts on lease vs buy and what price I should try to negotiate? If I lease it and then decide to buy it after the lease is up in 2yrs will I get a good deal?

Many thanks!

 

Personally I'd rather buy. Discount on the car should be the same whether you buy or lease.

 

Frankly, your logic seems jumbled. Here's how I'd approach it if I were you:

1. Pick your budget (e.g. 50-60k, 70-80k)
2. Rank order attributes (e.g. model, year, mileage, condition, options, etc.)
3. Search based on the above (e.g. autotrader, cars.com, porsche website, etc.)
4. Assess what you get for your budget

At this point one of two things will likely happen:

a) very few cars (if any) were returned in your search based on your budget (i.e. your budget is too low for your wants)
b) you have a selection of cars within your budget that meets your criteria -- congrats

As for financing, read up on car leases. Leasing is not inherently bad, it just takes some effort on your part to determine if any one lease deal is good or bad for you. Leasing through Porsche's finance division tends to involve high money factors ("interest rate") above what you'd otherwise get from a loan.

Auto loans are in the 2.5 - 3% range for both used and new. At these low rates I think it may makes sense for many people to finance the car, and put their $ to work elsewhere. Each person is different though.

An alternative is to get a balloon loan -- this keeps your payments low, keeps you out of the restrictions of a lease, and also helps you put $ to work. See PenFed and their Payment Saver loan.

Two other points:

1) dealer does not care if you lease, pay cash, or finance. Well, actually not true, as some dealers in some states may actually make extra $ from you if you lease or take a loan through their source.

2) a new car is a used the car minute you drive off the lot. Make sure you carefully evaluate the cost/benefit of having new

 

For an $88K budget, I would look at a used CPO 2009 C4S with ultralow miles and you might still have money left over for whatever you want to do with it in terms of mods, etc....you avoid a big part of the depreciation hit that way. Especially if this is your first one - don't get too stretched because after you own it for a while, you will want to upgrade to the next big thing. I know - it happened to me. I went from a C4S to a GT3, but I bought good used cars with below 10K miles on them. It saved me when I sold my C4S because I did not take much of a hit.

Just some thoughts from someone who has been there and done that.

 

You should negotiate the price first, be vague about whether you plan on buying or leasing. They can make money off financing, so if you say you want to pay cash, you may not get as good a deal. Since the residual for a lease is based on MSRP (up to the MRM) and the payments are based on what you pay, it's key to get as much off as you can, has a big impact on payments. The MRM is the max MSRP used to calculate residual, over that you pay 100%.
With a lease, you need to know residual and money factor (MF). Residual is non-negotiable, may vary depending on the lender. The residual will change depending on how long the lease is, miles/yr, PDK vs manual. The residual sets what you can buy the car for at the end of the lease.
There is a base MF (buy rate) and a sell rate. For PFS, the dealer is allowed to mark up the MF by .0004 at most, this is negotiable.
Leases can be a good financial decision if you like to own new cars and only keep them for 2-3 years. You don't have to worry about what you can sell the car for when you're ready to get a new one. You basically pay extra to have the option to just walk away. With the 991 coming out later this year, no one knows what impact that will have on used 997 values.
The best financial deal is often buying a 1 or 2 yr old car that has a CPO or other extended warranty and keeping it for several years.

 

Thanks all. It looks like leasing it is the best option for me. Only question now is whether the 6% discount I am getting off MSRP for a manual car is a good enough deal or if I should shop it around. A 2 yr, 7.5k/year lease is costing me 10k down and 1k/month.

 

6% off is not bad

i have one lease on a car priced out, car msrp 128k we agreed on price of 117k
10k down 2 years payment 1800 a month with 12,000 miles a year.30 cents per mile overage..MF i think is .0022...
still debating on it.

 

You don't want to put any money down on a lease, if you total your car on the way home, your insurance will pay off the leasing company and you lose any money you put down. If you're trying to keep payments to a certain level, put that money in a savings account and use it to make part of your payments.

 

With those amounts you're putting down, why not just buy the damn thing? And with only 7500 miles/year ? Dang if I'm putting down $10k, I'm buying!!

 

On my ordered C2S coupe, I got 3% off MSRP.

Late June or early July delivery (2012 model), will be near the end of
the 997.2 production.

 

at the end of 2 years i think both options equal out to the same,
the positive side of the lease even if you wreck and its repaired the dealer
takes it back, no worries on selling it.you can still buy it at the end of the 2 years if you really want to keep it.

buying or leasing a new Porsche after 2 years your going to be out 30k+
one way or another.

 

Especially with high-end cars, any damage done and repaired and good luck getting a decent price when you go to trade or sell it. Leasing takes the risk out of the equation.

 

damn they took you for a ride. they have 13% in the car. you should have got AT LEAST 7% off even up to 10%... try and renegotiate or get your deposit back and order the car somewhere else. porsche dealers don't like to discount as much on ordered cars, but you can certainly do MUCH better than 3%.

 

The whole lease vs buy gets so confusing...here is my plan buy an extended warrenty'09 S from a PP with low mileage, drive it for 2-3 years and then trade it in on a 991. Will likely use a PenFed balloon loan to keep the payments down, but put around 20% ($15K) down to begin with...how does that sound? BTW, if I crash it oh well too bad, but I will just wrap it into a new loan/lease on trade in. Also, I have my own company, so I can write off the lease payments/depreciate the car.

 

Well said. I would go CPO on an older model and save the depreciation hit.