911topanamera

This is probably a dumb question but would appreciate some advice/explanation by those willing to help. I'm up for a pull ahead on my current porsche and just going over financing terms and lease terms. The 992 I want to order, under leasing terms, is over Porsche max residual value and the dealer states I would have to pay for those options dollar for dollar. I was wondering if someone could clarify what this meant and how I could use it to calculate the lease monthly payment.

I can also word it like this:
992 I spec'ed cost lets say 140k but lets say Porsche would only residualize up to 130k. If i knew the MF and the RF, how would i calculate the extra 10k that doesn't get residualized? Would it just be split up separately over 36 months lease term?

Thanks for any help and sorry if confusing. All that said I'm gonna finance with rates so low lol, but figured i should know all of this.

rhr992c4s

The extra 10k will be paid for over the 36 months equally, plus the interest.

gatorfast

From a purely financial point of view that sounds like an awful deal. I have never heard of this before...Porsche will only allow a certain amount of options to be residualized on a lease?

BIGWORM

I suggest you not lease at all. Porsche leases suck.

911topanamera

yes i agree, terrible deal. ill def be financing, esp with current rates.

however, i didn't think this was uncommon as a highly optioned car will still not sell for significantly more than a similar less spec car which is why i thought they had residual limits. is this not true of porsche leases? am i getting played?

mikey94025

My high $140s C2S similarly had a residual cap of low $140s for residualization. I also had to pay ~$6K into my 36 months payments. It's not ideal, but it is reasonable that a very high fraction of extra options on Ps won't maintain the same % value after the lease period as the base car (and vs. other comparable 2020 992s in 2023). For my C2S I had over $34K of options added onto the $113K base price.

911topanamera

thanks for input, agree this seems standard for porsche leases and varies with different models levels

mikey94025

I have leased many luxury cars (I find it convenient and like the guaranteed cost during the "rental" period) but Porsche is the only one where I've encountered this cap on what can be residualized. Again, probably because Porsche vehicles can get substantially-priced options. I found this term: “Maximum Residualized MSRP” (MRM) mentioned in https://rennlist.com/forums/992/1173...30k-911-a.html.

rhr992c4s

I think this residual cap is also country/region specific. I don’t think every country does this.

carsrmyvice

MRM is real and it’s one of the many reasons Porsche leases are crap. High rates, MRM, low discounts, realistic residuals. Unless your accountant is making a case for you to lease these cars are best off bought cash or finance.

gcurnew

You have to option the heck out of a 911 before you hit the residual cap; Porsche Financial lease rates have dropped 2 percentage points since the beginning of the year in my country, and are now quite reasonable (which is usually not the case) compared to other luxury brands such as BMW, Mercedes, and Lexus; the discount one receives off MSRP is the same for a lease or a purchase; Porsche Canada residuals on leases are VERY low...at the end of my lease there will be somewhere in the neighborhood of a $20k differential between the residual value and market value in a private sale.

With one exception (an AMG), I've always bought out my leases and either kept the car or sold it privately to put the differential in my pocket and dramatically reduce the TCO. Handing back the keys at the end of a 911 lease makes zero sense as you give up any equity in the car; trading it for a new 911 or other Porsche the dealer will typically give you something higher than than the residual value but well below the price they offer it for sale; the best scenario is to buy out your 911 at lease end, and either keep it or sell it yourself.

Lease versus purchase is frequently debated here and on other forums. Don't need to rehash that, but what has changed is Porsche (in Canada) lease rates at .0020 MF / 4.99% are now in line with other manufacturers.

rhr992c4s

gcurnew. Is there a residual cap in Canada? My C4S is a very high spec with MSRP of about 190k. If there is a limit, I would expect my car to hit it.... but it didn’t. I’m in British Columbia, so I did a short 2 year lease for luxury tax reasons. When the lease buyout drops below 125, the tax rate on the buyout changes from 26% to 15%. I plan to buyout the car as soon as the buyout drops below 125 (at about 1 & 3/4 years) with either cash or financing though my own bank. The interest on the lease is approximately a wash with the tax savings, and I get to hang onto my money for 2 years. I have no intention of giving the car back a lease end.

gcurnew

I've been told by the Business Manager and Sales Manager at my local dealership there is (EDIT: or more precisely was at the time of the discussion in 2019) a residual cap, but that it's quite high. That B.C. luxury tax is a killer...no matter what you do, it can't be circumvented entirely. Sounds like your approach mitigates the pain and is a smart way to go.

Good thing that for now at least there's been no more talk about adding a 10% federal luxury tax on top of PST and provincial luxury tax.

daddyscar

Out of curiosity, I looked up how Porsche leases are in China where apparently a 20% down payment on their leases are required. That will make you think twice about checking the ceramic brakes, Atacama beige and Burmeister option boxes.

https://www.porsche.com/china/en/acc...e-3wayleasing/

carsrmyvice

I live 10 mins from the Canadian border and think of southern Ontario as part of my home region but unfortunately you guys pay quite a bit more for cars. 5% would be a horrendous lease rate in the states. Many bmws lease in the 2-3 range after MSDs which Porsche also doesn’t allow.

I understand residual can be combated by buying and trading at end but many here lease for the luxury of easy dispossession should there be a Carfax etc

Thankfully you live next to one of the most beautiful places in the world (Banff) so who really cares!