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Discussion Starter · #1 ·
My 718 Cayman will be arriving in May. This will be my first Porsche. My last 4-5 vehicles I have leased, primarily because I find myself getting bored with a vehicle after a few years. I’m not thinking that’s going to be the case with the 718 but I’m still thinking of leasing (2 years). I don't track my cars or do any mods so leasing is not a problem. I know a lease will cost a little more in the end but I like the fact that I don't have to take a loan out or pay cash (and possibly have to pay taxes on capital gains) to buy a car.

Would like to hear how other people approach this choice of lease vs. buy.
 

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I just leased a car for my wife a few months ago. It was my first time to lease. I don’t think capital gains is a factor in this decision at all, these cars don’t appreciate in value. While it is nice in one sense to know that I have no more money to pay on this car except for tires, (and the lease) until I turn it in, I have to admit that I don’t care for how it makes me “feel”. I think I would prefer that my payment is going toward ownership. Historically, I have usually kept most cars for several years longer than my payment term. It will be interesting to see what we do in 2.5 years, lease another for her or buy it again.
 

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I am adamantly opposed to leasing, the financial planner "Dave Ramsey" calls them "Fleeces". In most cases, you wind up paying more than buying the vehicle outright. I think one exception is businesses that can write the lease off and there is a tax advantage.
 

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I tend to keep cars a long time. Part of this is because I like getting really familiar with a car. I like really getting to know all the mechanical bits on a car and I like being able to fully learn its dynamic boundaries when driving.

Also, I'm too cheap to lease. The "benefit" of being able to own a new car every 2 years or so is not a benefit to me. And it's a "benefit" that isn't free. It's something I'd be paying for that I don't want.

I've owned the Spridget that I race for over 45 years.

I've had my MGB for about 15 years.

I just sold a 2000 Miata. I bought it as a new leftover for $18,000. I had 17 years of excellent service from it, requiring only oil changes, brake pads, a cam belt.....all easy stuff I did myself. After I sold it locally I figured it only cost me about $75 a month to own.

I bought the Cayman for cash so the longer I keep it, the better the finances work out. I intend to bring it to the assisted living facility I end up in. :)

Also, one of the reasons I bought the Cayman is because it's galvanized. I know that this will extend it's serviceable life so I can keep it even longer. That's the plan.
 

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Financially, it doesn't make a ton of sense to lease a Porsche. If you take decent care of them and don't go crazy with non-performance related options, the cars tend to hold their value well. In 2-3 years you could sell it and take less of a hit than leasing one for the same amount of time. You do have to think about resale a little if you go this route, which means probably going with a less exotic color, and not going crazy with leather/interior and technology options.

In addition, Porsche also generally doesn't offer as good leasing rates as other brands.
 

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I just returned my first least. It was a 2015 Fiat 500e. That lease made sense - 3 years, 30,000 miles, $82/month. :)

But my 718 will be replacing my 2004 VW R32. My other car is a 2012 truck, and I kept my first car, a 1997 Jetta VR6 until 2012. I keep cars a long time.
 

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Discussion Starter · #7 ·
Has anyone else chosen to lease, and if so, what prompted that decision?
 

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Discussion Starter · #8 ·
I don’t think capital gains is a factor in this decision at all, these cars don’t appreciate in value.
I was referring to the capital gains I would have to pay taxes on if I took money out of the market to pay buy the car.
 
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I lease my 718 and my other 2 cars are also leases. There is no single right answer for everyone as we all have different things to consider. Biggest reason for my lease? I am like you I want new cars every few years. Yes financially if you plan the purchase well like others suggested, financing might put you in a slight better off spot but there are a lot of things to be mindful of (color, options, miles, service record, timing to sell, etc)

To me the slightly higher cost of leasing is something I am willing to pay extra for to be worry free during my ownership. Plus leasing keeps me in chain and don’t go crazy with mods (knowing that I am wasting money), which my wife is very happy with, and I don’t need a lot of miles/ year so my monthly payment is a lot lower comparing to financing and makes it a no brainer decision everytime I have my sales rep run the numbers.

Again it’s all personal choices and can’t go wrong with either. Good luck with purchase and post some pics!
 

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While the maths may work out differently based upon a number of factors, I have found that the break even point between a lease and ownership is typically around 5 to 6 years. If you are going to hold your car for 5+ years, buy it. If, like me, you never hold a car longer than three years (and often begin new car shopping at the 1.5 year mark), then leasing is the way to go. YMMV.

I will say this, VAG products tend to have horrible leases. The only reason I was able to lease my 718C was because I got an amazing deal from a particular dealership. Their deal was nearly $200/month better than the next best quote I got.
 

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I always buy. I tend to keep my cars for a long time so leasing wouldn't work for me. If I buy the car then I can keep it as long as I like and I know the price is fixed. Also the leases I see around here are insanely expensive for low yearly mileage. I'd have to not drive the car for several months to even make that half of the equation work.
 

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I leased car when I was able to write off for business purpose. Did not have to keep mileage and just designate the whole car for business use only since I had another car to drive for personal purpose.

Most recently I purchased my Macan, and sold after just 18 months. I think I would have done a lot better if I had leased instead of purchase, and that is mostly due to the fact that I paid sales tax on the purchase, and lost all that when I sold it. If I had leased, tax would have only applied on the depreciated portion. However, my original intention was to keep the Macan for a long, long time, but finally decided that I miss the manual transmission, and just cut the loss and steer towards getting a 718 Cayman with a stick.
 

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Discussion Starter · #13 ·
Several weeks ago the Sales Manager told me the Porsche loan rates were not good, so I started looking around for the best rates. I found a local bank that is offering new car loans for under 3%. Last week the finance guy at my dealer called me today to discuss financing and when I told him I was most likely going to finance the car through my local bank he started giving me an attitude. He was like, "Why would you want to do that? That will be more time consuming, blah, blah, blah." I told him, it very simple, if you can beat the rate (and terms) I'll finance through you, if not, I'm going through my local bank.


I know he wants the business, but why in the world would anyone pay a higher interest rate at a dealer if they can get a lower one locally? It was almost like he was insulted that I would even consider not going through Porsche.
 

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I've both leased and done traditional finance. Don't forget, there are end of term costs for leases that can add up, I had a BMW that was over the mileage limit by a few thousand miles, and of course there are any number of things that could be considered excess wear and tear. I got out for around $300 (my car was in very good condition) at the end, but that's something to consider. I had intended on doing the pull ahead program with BMW to get a lot of those charges waived, but at the end of the period I wanted to get a Porsche instead. The biggest advantage to a loan is with enough down and a good interest rate, you're going to wind up being in an equity position on the car within 3 years (sometimes less). If you're putting down $5000-6000 on a car, and the car is worth $5-6000 more than you owe after 36-42 months, you're going to significantly lower your payment on the next car, and the next car, etc. etc.

That said, using a 718 as a daily driver and putting 10-12,000 miles a year on it, it doesn't make a lot of sense to lease, especially with Porsche. Their lease specials are almost always based on 5k miles a year.
 

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Wow... I went through a credit union I've used for three other cars. Let's just say well under 2% and everything else was a deal. They could not match it.
 

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Wow... I went through a credit union I've used for three other cars. Let's just say well under 2% and everything else was a deal. They could not match it.
Do you mind sharing what Credit Union is under 2%. USAA is quoting 3.29% It seems about the best I have found.
 

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Do you mind sharing what Credit Union is under 2%. USAA is quoting 3.29% It seems about the best I have found.
Alliant Credit Union. Got it down more with their gap insurance, even though I'm usually never negative after my down payment. I've heard three dealerships say, "Wow, even USAA doesn't give rates like that." Never thought it meant anything but I guess there's some truth to it.

Their rates change quite often, so at times it'll be above or below. I do recall them telling me they were going to go up for a bit but a promotion is usually the best time to jump for it. The lowest rate I've ever received was 0.99% for a Tesla. So IMO promotions are the best time. Best of luck!
 

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Discussion Starter · #18 ·
Do you mind sharing what Credit Union is under 2%. USAA is quoting 3.29% It seems about the best I have found.
Alliant Credit Union. Got it down more with their gap insurance, even though I'm usually never negative after my down payment. I've heard three dealerships say, "Wow, even USAA doesn't give rates like that." Never thought it meant anything but I guess there's some truth to it.

Their rates change quite often, so at times it'll be above or below. I do recall them telling me they were going to go up for a bit but a promotion is usually the best time to jump for it. The lowest rate I've ever received was 0.99% for a Tesla. So IMO promotions are the best time. Best of luck!
According to their website, their best rate right now is 2.74%. PenFed is 2.49% for 3 years. Those rates are about the same as my local bank. The finance guy at Porsche claims he thinks he can get me a rate in the low 2’s. We’ll see.
 

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PenFed offers a product called Payment Saver Auto Loan. Lower monthly payments with a balloon at the end. Plus free GAP insurance. It’s available on current model year and previous 2 model years, if buying used. Acts a little like a lease but no additional lease fees. You own it, so sell or pay balloon at end of term.
 

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Discussion Starter · #20 ·
Just heard from the finance guy at my dealer. They can give me 2.24% financing for up to 60 months with no pre-payment penalty.
 
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