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You're correct in how the payments are calculated. There's some benefit to dealers/banks in early termination when the cars depreciation is less than predicted. They also get to move a new vehicle in the process.

You can negotiate the buyout. Anything is negotiable. However the bank can obviously stick to the terms originally in place. I bought out a couple of leases. Mostly because I couldn't dedicate the time to hunt for a replacement, but in some instances I just didn't see anything I wanted to replace the current vehicle with. I still own one - the 350Z in my garage. If memory serves me, the buyout was north of 22k. I waited until two months before termination and offered them 19. They balked. As time approached, they got back to me with a counter. I stuck to my offer and they eventually accepted. Did the same with an F-150 I had leased as a work vehicle. As the term neared completion, I got a call from the leasing agent to see what my plans were. We reached a mutually agreed upon price. I was happy because I didn't have to take time away from work to look for a replacement. Had a Tahoe I loved - the Tony Soprano version ;P and didn't want to part with it just yet so I purchased it at lease end for the stated terms. I eventually stopped leasing because I realized I like to keep my vehicles beyond what would make sense as a lease in terms of interest payments. Now I just pay cash so there's no interest payment at all.
Thanks for all the info! I've leased a handful of times but it's always been with the manufacturer's leasing subsidiary and there never was (or I never found a way) to negotiate with them. Very sterile relationship. There never seemed to be a person or even an office to talk to except an operator in a call center who at best could read payoff information from their "screen." You know what I mean.
 

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Thanks for all the info! I've leased a handful of times but it's always been with the manufacturer's leasing subsidiary and there never was (or I never found a way) to negotiate with them. Very sterile relationship. There never seemed to be a person or even an office to talk to except an operator in a call center who at best could read payoff information from their "screen." You know what I mean.
I leased thru Toyota, Nissan, Ford and Chevy and always had a way to talk to a leasing specialist directly. This is how and why dealers will "get you out of your lease" and into a new vehicle. They negotiate the buyout lower to a point where they have "room" for resale pricing. It's basically the same thing as trading in a car with dollars remains on a loan. They pay off the loan, give you some cash toward the purchase and still have room built into the price for resale as a used vehicle. Banks, which essentially is what you're dealing with when leasing, do not want to own cars. They will talk to you if you're interested in buying out your lease. Everything is negotiable :)
 

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I leased thru Toyota, Nissan, Ford and Chevy and always had a way to talk to a leasing specialist directly. This is how and why dealers will "get you out of your lease" and into a new vehicle. They negotiate the buyout lower to a point where they have "room" for resale pricing. It's basically the same thing as trading in a car with dollars remains on a loan. They pay off the loan, give you some cash toward the purchase and still have room built into the price for resale as a used vehicle. Banks, which essentially is what you're dealing with when leasing, do not want to own cars. They will talk to you if you're interested in buying out your lease. Everything is negotiable :)
Great stuff! Thanks again! (It was exactly your point, that leasing companies, ie, banks, don't want to own cars, that I thought translated into not having a process to essentially renegotiate terms. That is, they know their exposure going in, and simply wholesale lease returns as they come back. No need for a process to handle cars one by one. Now I understand I was wrong.)
 

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Discussion Starter #24
I’m leasing my car through Porsche Leasing. Has anyone tried negotiating a lease end buyout from them? I’d be interested in who you contacted and how you did.

I looked at what comparable cars are selling for and most are significantly more than the buyout price for my car. I even compared 2017 models to my 2018 to adjust for the fact that I wouldn’t do a buyout until 2021. Same answer. Of course, the current craziness has kept my mileage pretty low, as people have said I know the car’s history and it’s the color I like (which is no longer available). If I decide on the buyout route, there’s over a year in the lease and things can change. The only reason I’m raising it now is to because I could order a 2021 now (to buy, not lease) for delivery around December and, according to the dealer, Porsche would let me out of the remainder of my lease.
 

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The old adage, “a bird in the hand”. I’d keep what you have. JMHO. I keep thinking I want to make a change but I go out and drive mine and those options or specs I think I need are insignificant. Driving cures all.
 
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Is there an option to buy the car at the end of the lease with a CPO? This way you would have (nearly) the same warranty, a car that you know and have debugged and $23k in your pocket.

Unless you want PDK with Sport Chrono that you may not have currently.
I am confused. He probably needs to spend more than $23k to buy out the car at the end of the lease?
 

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Discussion Starter #27
O.p. here. You’re both right. True- I would have to spend a lot more than 23k to buy out my leased car. The 23k is the difference between the amount to buy my 2018 Boxster S at lease end and the cost of buying a new 2021 Boxster (not the S). Obviously, a 2021 S would increase that difference a lot, but I don’t need an S.
 

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I’m leasing my car through Porsche Leasing. Has anyone tried negotiating a lease end buyout from them? I’d be interested in who you contacted and how you did.

I looked at what comparable cars are selling for and most are significantly more than the buyout price for my car. I even compared 2017 models to my 2018 to adjust for the fact that I wouldn’t do a buyout until 2021. Same answer. Of course, the current craziness has kept my mileage pretty low, as people have said I know the car’s history and it’s the color I like (which is no longer available). If I decide on the buyout route, there’s over a year in the lease and things can change. The only reason I’m raising it now is to because I could order a 2021 now (to buy, not lease) for delivery around December and, according to the dealer, Porsche would let me out of the remainder of my lease.
I would personally keep your current car. As others have said, you'd be going down in level (S to base) for a large increase in price. You already know the car & its history, and even better it's the color you like. I think another real consideration is that the latest generation is slightly down on performance due to governmental changes dictated in the interim.
Buy the car you know, add what you need, bank the rest or take a nice vacation when you can.
MOO
 

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No brainer here. You’ve already taken the depreciation hit. Car is barely used. Carplay can be added(aftermarket “mirroring”or even OEM install). Smart money to buy it out (as a leased car, you’ve already “overpaid” anyway-unless you got a “0” money factor-lol).
 

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If, based on your research you are seeing comparable cars sell for significantly more than your buyout, then that is all the more reason for you to buy your car out since it’s at a discount to the market.

But to clarify - don’t construe that as somehow getting a good deal. All that means is that the residual value in your lease contract assumed a depreciation level much higher than actual. So you have already paid for that “discounted” buyout in the form of higher lease payments.
 

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...
But to clarify - don’t construe that as somehow getting a good deal. All that means is that the residual value in your lease contract assumed a depreciation level much higher than actual. So you have already paid for that “discounted” buyout in the form of higher lease payments.
And ... you paid sales tax on the original purchase price and now likely will pay sales tax on the buyout amount (the case in all states with sales tax I believe), and perhaps tag and registration fees again too?
 

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And ... you paid sales tax on the original purchase price and now likely will pay sales tax on the buyout amount (the case in all states with sales tax I believe), and perhaps tag and registration fees again too?
It's been a while since I looked at leasing, but I believe the sales tax is based on the "percentage" of the car you will "use" during the term. It's a sales tax on the payment amount. Essentially you are paying sales tax on the depreciation plus the interest calculated. This also includes sales tax on any form of gap insurance as well. It's the total payment plus sales tax on that payment, to arrive at a total monthly payment. I believe this is how it works.
 

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It's been a while since I looked at leasing, but I believe the sales tax is based on the "percentage" of the car you will "use" during the term. It's a sales tax on the payment amount. Essentially you are paying sales tax on the depreciation plus the interest calculated. This also includes sales tax on any form of gap insurance as well. It's the total payment plus sales tax on that payment, to arrive at a total monthly payment. I believe this is how it works.
I see that's the case in most states, but in some states you pay tax on the full purchase price.
 

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I'm glad I've never leased a car after hearing all of this.
Ha don’t get discouraged. While generally the most expensive form of car ownership, there are plenty of upsides to leasing. Generally lower payments vs financing, downside depreciation risk born by lessor vs lessee, always under warranty, certain tax benefits for qualifying individuals, option to purchase at lease end, etc.

Leasing can be fairly complex though and most people don’t understand the inputs and risks. Also, some brands and models lease much better than others where the numbers make sense while others are outrageously expensive compared to buying.
 

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I tend to buy and hold vehicles. Over the years I have gravitated to reliable, albeit boring, vehicles. My youngest to go are usually 10ish years old. I don't really care about aesthetics once past 4 years. Point A to B. The 718 will likely follow the same pattern and will be relegated to outside cover once something newer comes along. However, at this time, my wife's new CRV is outside under shade, but exposed to elements. Higher value car gets the garage space. Once that ends, out it goes.
 

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Ha don’t get discouraged. While generally the most expensive form of car ownership, there are plenty of upsides to leasing. Generally lower payments vs financing, downside depreciation risk born by lessor vs lessee, always under warranty, certain tax benefits for qualifying individuals, option to purchase at lease end, etc.

Leasing can be fairly complex though and most people don’t understand the inputs and risks. Also, some brands and models lease much better than others where the numbers make sense while others are outrageously expensive compared to buying.
Your comments are all spot on! Under certain circumstances, leasing can be the best way to go.
 

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I tend to buy and hold vehicles. Over the years I have gravitated to reliable, albeit boring, vehicles. My youngest to go are usually 10ish years old. I don't really care about aesthetics once past 4 years. Point A to B. The 718 will likely follow the same pattern and will be relegated to outside cover once something newer comes along. However, at this time, my wife's new CRV is outside under shade, but exposed to elements. Higher value car gets the garage space. Once that ends, out it goes.
Right. Leasing doesn't fit when the plan is to keep a car for a long time.
 

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I’m leasing my car through Porsche Leasing. Has anyone tried negotiating a lease end buyout from them? I’d be interested in who you contacted and how you did.

I looked at what comparable cars are selling for and most are significantly more than the buyout price for my car. I even compared 2017 models to my 2018 to adjust for the fact that I wouldn’t do a buyout until 2021. Same answer. Of course, the current craziness has kept my mileage pretty low, as people have said I know the car’s history and it’s the color I like (which is no longer available). If I decide on the buyout route, there’s over a year in the lease and things can change. The only reason I’m raising it now is to because I could order a 2021 now (to buy, not lease) for delivery around December and, according to the dealer, Porsche would let me out of the remainder of my lease.
I have a 2017 base Boxster and was thinking of getting 2021 but there really hasn't been any significant changes and no one will know you have a new car unless you change the color. There are minor outside differences but almost nothing inside. I am disappointed because I generally trade when the warranty runs out. Now I don't know what to do.
 
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