Dealer says I can get a CPO on my current lease vehicle for the CPO fee + my original lease end buyout price and any services dues at the time. Anyone have experience with this with this process ?

 

dealer is right

nothing shady here. gets done all the time.

 

Wife did it with her Cayenne.

 

good to know....

 

That makes me feel a little better but am still confused. Sales guy says it can be done. The dealers financial guy says there is no way I can get a Porsche extended warranty on my car when I buy out the lease, makes no mention of this process and trys to sell me an overpriced extended warranty from some third party company. One of them is BS-ing me. I won't be doing anything on it until I see it in writting from the dealer. Interesting enough Porsche Financial tells me the best the way to buy it out is just do it with them and forgo the dealer all together with no mention of the CPO option at all. The whole process seems a good deal less clearly defined than I would have expected from Porsche.

 

First, many times the financial guys that sell the aftermarket products work on a commission so they have a vested interest in moving a particular product. In general, many car dealerships, even if you walk in with a wad of cash, won't let you out the door without a visit to the finance people (at least that has been my experience). In this case, however, the finance guy is right - Porsche won't "extend" the warranty - but that isn't what you are doing. A CPO isn't a warranty extension and there are a number of things that the warranty might cover that the CPO coverage will not. (I don't mean to say a CPO is crap, it isn't. It is just not as inclusive as the original warranty.) That said, it seems that there are two sides working against the middle. The dealership is willing to CPO your car and realize a profit from the deal while the finance person wants to sell you an aftermarket extended warranty where he might see a little profit (as well as the dealership). I'm just guessing here but it seems to me that the greater profit for the dealership comes from the CPO. Insofar as Porsche clearly defining policies and procedures, well, I'm glad that they are better engineers than administrators.

Edit.
I had bought out a lease from PFS for a third party sale. They are right about it being easy to simply buy out the car but I don't think they understand the nature of the CPO. It was written on this forum (or another) a while back that in order for a dealership to CPO a car they have to own it and sell it to you. That is, you can't buy out your lease and then walk into the dealership and have them CPO it. I think the way it was described was that your lease ends and you bring your car to the dealership, the dealership has first right of refusal for the car (otherwise it will go to auction). The dealership "buys" the car from PFS, CPO's it and sells it back to you. I don't know this for a fact but you'll probably have to pay PFS the $400 disposal fee and on top of the cost of the CPO from the dealership there will probably be some administrative selling costs that they will hit you with (license fee, etc.). Even with these costs it's probably still a better deal than a third party after-market warranty. You'll probably want to get everything in writing and make sure that you have some type of (binding) agreement with the dealership that they will sell you the car back. (I'm sure they would but you are giving up interest in the car and it will belong to the dealership for a short period of time. Who's to say that if someone walked in and offered $15K more than you were paying them (the lease payoff that PFS charged the dealer) that they wouldn't sell your car from under you. For your own peace of mind you may want to consider something in writing that protects you. I'm sure it's just over-kill but better safe!)

Best of luck and if I've misspoke on anything I hope anyone who knows more will correct me!

 

Speaking of CPO vs aftermarket extended warranty, I purchased my car 997.1 last year. By the time, it was still under warranty. Since it was my first P car, I didn't even know how important the warranty matters. I should have asked the dealer to CPO the car at my cost instead of paying aftermarket extended warranty. What I am thinking now is if I should keep this P car for few more years or should trade in for later 997.2. Paying aftermarket extended warranty may not be a good idea than the depreciation of newer model?? What would you say?