My Uncle is in the process of getting a 2008 Carrera 4S Cab. He told me the deal he got and I could be wrong but it does not sound like a good offer. It is not final so let me get your opinion. Also the payments are going to be made by a business not him directly.

MSRP 109,690
Selling price 105,690
12k/yr
60 month lease
Nothing down except 1st payment and luxury tax
$1400 (including tax)

Please let me know since it is not too late to back out.

 

dayum.

 

Should have smacked him when he told you it was a 60month LEASE.

 

The words "Porsche" and "Deal" don't go in the same sentence anymore. They are ridiculously expensive to lease these days. Porsche has been shipping cars to other parts of the world where the dollar is stronger. 2 years ago a dealer would have, say, 100-150 cars in stock, from the cheapest to most expensive Porsche. These days, a dealer probably has less than half that, and not much coming in the pipeline. It truly sucks..

And as for the deal...Anyone interested in LEASING for 60 months, you may as well buy the damn thing..

 

Who in the fawk does a 60 month lease?

 

Just about every bank does 60 month leases. 99.9% of the time, it doesn't pay to do it, which is why you rarely ever hear about it.

 

I meant individual, not financial institution...

 

I bet a 39 month lease would yield a lower monthly payment, interest on a lease of that nature is like small mortgage, why pay a higher sum of tax/interest?? To me it wouldn't make sense. At the end of the day, tax included he would be paying $84k to drive a car for 5 years he could buy for roughly $115k, if he would up his payment to about $1650/month and do a 72 month loan he'd own the car, assuming stretching out the term didn't impact the interest rate. The way I look at a lease like that, would he sell this car in 5 years for $25k? HELL no, buying would be a much wiser use of money, because in 5 years with average miles that car would still be worth at least $40k. Then again if its a company car, the lease would be a better deal regardless what it costs.

 

Guys...look at who making the post to begin with. The apple doesn't fall far from the tree does it?

 

so pretty much he is signing his life away, thats great 60/mo are u kidding me

 

60 month lease is insane!

 

the older I get the more I think a 60 month car loan is foolish.

 

 

^^ Im so glad you guys are back.

 

So what advice should I give him?

 

Just say no!

 

Ummm, in case you didn't notice the tone of every other post above^^, tell your uncle to from the deal.

 

Actually, I think you should tell him to do it.

 

I'm no expert but paying $84,000 for $50,000 worth of depreciation doesn't make much sense to me.

$1400 x 60 = $84,000

2003 Carrera 4S Cabriolet with 60000 has a KBB of $57,000.

107,000 MSRP - $57,000 = $50,000.

$50,000 over 60 months at 6.0% = $61,478 in total payments.

$84,000 - $61,478 = $22,522 in stupidity

If you can't explain that to him, he deserves to be taken to the cleaners.

 

By the way, is your uncle Michael Scott?

 

That's nuts. He could own in it 60 months for not a whole lot more per month.

 

The residual from porsche is 46% and the money factor is .00310

I am calling around and everything is pretty much in that range

 

Why is he even looking to lease any car for 60 months? He'd be better off buying whatever it is and trading it in than wasting 60 months of payments just to drive the car 12k miles/yr. Even if they payments are being paid by a business, I'd would imagine he wouldn't want them to get raped THAT bad (if at all).

 

, That's absolutely too long for a lease.

 

ROFL he's getting fucked on both ends. That's AWESOME.

.00310 = 7.44%

46% residual on $107,000 is $49,220 ...

OMG OMG OMG I'm dying here. He's getting fucking jobbed so badly.

 

yeah that is so long of a lease. tell him to either buy the damn car or just say no.. 60 months is wayyyy to long to be puting payments on, and the numbers on that car are just crazy.. especially the depreciation and all that

 

Whats funny is that i will still bet his uncle will get it.

 

I have no idea who these people are, what they make, so on and so on.

My first question is financial; does he need some kind of a depreciating asset to throw in as a tax writeoff of some kind?

If so, then everyone needs to step back and understand what it means to be truly rich.

If not, then its a ROYAL jobbo. The length of lease + that money factor is the CRUSHER .

46% residual on 5 years isn't that bad, is it? That puts it around $50K on lease return. 6 year old 996 Carrera 4 convertables are currently trading in the mid to high $30's, that's under 50% from new. I dunno, I haven't done this crap in a while.

He actually got a decent deal on the cap cost, being 4K off the Monroney. A psychological gift from the salesman perhaps?

Basically, we need to know the rest of the story. If Dude is a board level exec with a company supplied expense account...and has say $2000 or $2500 a month to throw towards transportation, then rock on man! Don't let me stand in your way.

He gets a sweet car, doesn't have to pay for it, the salesman at the Porsche dealership bangs his wife in a bathtub of Dom Perignon after the sale, and everyone wins.

If not, then you're gonna have to 'splain it to me, Lucy. ...

 

Look at the numbers I posted. I think they're making about $22k in extra finance charges and $11k on the residual.

 

I'm curious, how is that figured? I haven't done this in a while.....

Thanks,

-Mirror

 

If he's not paying for it, who cares how much it costs or if it's a good deal.

IWHI, but only for 2 or 3 years; So I could hit something else later.

 

These are October's rates....I doubt Nov. rates changed.

2008 911 Carrera 4S Cabriolet
24 Month – Residual 68% of MSRP – .00320 Base Rate
36 Month – Residual 59% of MSRP – .00320 Base Rate
48 Month – Residual 53% of MSRP – .00330 Base Rate
60 Month – Residual 46% of MSRP – .00330 Base Rate

Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms



Why would he go 60 months? That's completely stupid, look at the dump the residual takes and even the buy rate is slightly higher.

For this Porsche, you do a 24 month or 36 tops term....24 months is the strongest program though.