Planet-9 Porsche Forum banner

1 - 7 of 7 Posts

·
Registered
Joined
·
73 Posts
Discussion Starter #1 (Edited)
I'm starting to think about what to do when my 2013 981S lease runs out in one year. Originally I put down a lot to keep the payments low with the intention of buying it out at the end of the lease which is $46K. With the discount the original sticker price was $86K. It's loaded with just about every option except the park assist so it's far from being an off the lot vehicle. It has a "whopping" 5500 miles which will probably run up to 7500 by the time the lease ends.

I'm considering moving into a 911 Targa 4S or 4GTS (if it's still offered). I'll probably lease that one too. I started thinking about it. Does it make more sense to buy out the lease on the 981S when it ends and use it as a trade-in? Or would it make more sense just to turn it in and start from scratch with the 911 and not buy-out the current lease? The amount of time in-between turning in the 981S and getting the 911 would be, I'm guessing, a couple months or more depending on the backorder. For several reasons I prefer not to finance it.

Thanks for your help! DannyK
 

Attachments

·
Registered
Joined
·
6 Posts
Your decision to buy out the vehicle at the end of your lease is going to be very dependent on what your residual is at the end of your lease term and how much the car is worth at that time on the open market. Also, keep in mind that when you buy out the car from the leasing company, you also have to pay sales tax on the residual value of the car at that time. There is a new company out there called Tred.com that will sell your leased vehicle for you, do the listing, handle the test drives, payment, title transfer, etc. They take 5% of the sale but you might be able to negotiate that down a bit. I don't think it's worth doing this until you're very close to the end of your lease.

The only reason you should consider just turning it in is if the value of the car is at or below the residual value. I would be careful of selling your vehicle to a private party. Apparently there are crooks who are passing fake cashier's checks that even banks are having trouble identifying.

Best of luck with your decision!

Sandy
 

·
Registered
Joined
·
331 Posts
I'm starting to think about what to do when my 2013 981S lease runs out in one year.........
I'd keep that car. It's beautiful and well equipped.
The 911 is going to be an extra 30K+ with similar equipment.
Additionally, you've taken the biggest financial hit already, why not get some equity underway and trade it when you're tired of it?
 

·
Registered
Joined
·
299 Posts
I'm not sure why people put large down payments, circumstances in life change and usually the interest you save is very negligible compared to the financial freedom you have.

Assuming you have any self control, all you needed to do was put the money you would have used towards a down payment into a high interest savings account.

Then set up an automatic transfer to the account your leasing company is making the monthly deductions to top off the difference.

With this method, it also allows you to manage your monthly payments. For example, in the summer months you might have higher personal spend; so you might opt to have higher contribution to your monthly payments. Conversely, in the winter months you might have lower personal spend by staying in more, so you can contribute higher.

When I did my calculations, I was saving only $800 over the course of the lease by putting a hefty down payment. It made little sense to do so and definitely prevented flexibility with end of lease situations. Also, unless you have waiver of depreciation to match the lease of the term, if you car was a total loss; you would likely lose all of your down payment.

As others have stated, you will have to see the market value of the car before deciding if you should buy it out. If you have no intention of buying back and you are concerned about your 911 wait time, you can ask the dealer to extend your lease by a few months. Most dealerships offer this option so you have time to get into your new vehicle, this is even easier since you are buying another Porsche.
 

·
Premium Member
Joined
·
5,836 Posts
You can trade in a lease. You can even trade in a lease to another dealer and even on another brand. I've done both many times.
 

·
Registered
Joined
·
73 Posts
Discussion Starter #7
Thanks for all your replies. Yes, I'm aware of having to pay tax on the residual value. Actually the 911 I'm looking at would be closer to an additional $100K, not $30K. I know usually it's not a good thing to put a large amount down on a lease especially with taking the "hit" as you mentioned, but for me it's working out really well. Yes, it saved about $3K in interest, but that wasn't my main reason. The biggest hazard of doing something like that is the risk of getting into an accident. Gap insurance would cover the difference if I put little down, but with a lot of money down, if I had an accident gap insurance wouldn't have been enough and I would've had to make up the difference. Fortunately it never happened and I'm past that point in the financing. I'm hanging onto my 981S for now. Besides it's gorgeous! Yes, I realize the value will be lower especially once the summer' passed. I've decided to buy out the lease and sell it, but I don't know when that'll be. It definitely won't sell it privately and there are alternatives as some of you guys mentioned, as well as many others. I'll explore them all and let you know what happens. Again, many thanks for your comments. I really appreciate them.....DannyK
 
1 - 7 of 7 Posts
Top