Dr. G

Understanding that financing a depreciating asset is not the most financially beneficial situation, I am curious about the benefits of financing long term (60 mos+) vs. a 3 year lease. I've read that the cost of owning a car for 3 years and selling it is pretty much equal to the cost of leasing for 3 years. Are financing APRs significantly less than lease APRs? Would it be more beneficial to take the payments out over a long period and try to sell the car after 3 years, or just take the "sure thing" with the lease?

1999Porsche911

Obviously the effective interest rate has a lot to do with the decision. However, everything being equal, the longer the term of the loan, the better since you will be paying back in depreciated dollars. Buy...don't lease unless it is a killer of a deal.

Dr. G

I figured that would be the best route. There is one caveat, though. In a purchase situation I need to be more deliberate about the colors/options for the car. I've been talking to my dealer about cobalt blue and he did mention that "it could be harder to sell or hurt resale." Even if it's not true, it makes me weary of picking a color that the dealer has already commented on - especially if I choose to trade the car in to said dealer. I may be "safer" with a silver/black car vs. a cobalt/terracotta car.

1999Porsche911

You do not buy a car for an investment. Get exactly what makes you happy and don't worry about what it may be worth in the future. If you were only interested in value, then you would not be looking at a Porsche.

Dr. G

Point well taken - but... I know myself pretty well. I'm sure I'm not the only one in the "gotta have the latest, greatest.." camp. I've been a porsche fan since I was a kid and actually took a hit on an '03 cab when I bought my 993TT. I sold the 993TT to pay for my wedding and put a down payment on a new construction, but that find the mundane life of sedan driving is getting old quickly.

That being said, I'm sure I'll have the itch to get into Porsche's newest version of the carrera every few years.

Nine9Sixer

my soul is crying. i sincerely hope she had better curves than your TT.

Illinicane

If you are certain you will want to change the car every three years, and you are ok with a fixed payment per month for a car on an indefite basis, then you may want to consider a lease. The challenge will be to get a lease that is low enough to make it worth your wild.

I have opted to purchase my car, and know that it is mine.

Dr. G

No one knows what the future will bring, so I'm thinking that a finance would be better. More of an issue is deciding whether to get a C2S or C4S. But that's been covered in countless threads.

jplanaux

These threads about financing a Porsche always confuses me. I think that all of the different financing options fit people in different ways. What works for me probably will not work for others and vice-versa. You may have write offs that I don't have or I may have some that make sense from a tax stand point. I studied the lease vs purchase years ago and decided that leasing was not for me. I have not visited it in many years and it may be worth my while now, but my thinking is this. What the hell? Why are we scrimping and calculating for a few thousand? If we were really interested in saving a few thousand, we would not be buying a Porsche anyway. If the savings are greater than a few thousand then the answer would be VERY obvious, hence there would be no reason for asking the question.

And I am thinking that if you can really afford a Porsche, you have been somewhat financially successful already and probably do not need advice from the internet. Or you have been very lucky (financially speaking) and maybe you need a financial adviser who can settle the argument by presenting all of the facts that fit YOUR financial picture. OR the savings of a few thousand will make or break the deal - if this is the case maybe the purchase needs total rethinking.

My 2 cents.

Chris from Cali

I had the exact same thinking, and I am also keeping mine for the long run.

mzn50

Make sure on a lease you measure the residual value owing.. they can make it very appealing and provide a high Residual.. make sure you do the math.. Also look at the no milage limit lease.. they are fine.. but if you do more then the 10K per yr.. they will nail you on the return... Lease returns are more of an Art then a science I think

Other then that.. Leases are great.. mine was perfect !

Rick in Colorado

My thoughts are, on something like a Porsche, if you can't pay cash, you really can't afford it. That said, the saying is that 'debt is cheaper than equity' (meaning keep your money in the market), so you may want to finance to maximize your overall portfolio. But...as I said, if you HAVE to finance, you may have the wrong car.

Dr. G

My foreign market investments have been yielding higher interest rates than I would have to pay by financing. I do agree that cash is the way to go, but my invested cash makes me a good deal of money.

500

Lease new, buy used.

With the new facelifted model coming out it may make even more sense to lease if you're getting an 07 and will only keep it a few years

I like leasing because you can return the car with no questions asked at the end and roll right into something new

My CPA tells me leasing is a bit better for my circumstances and she has explained why quite a few times and I nod like I'm paying attention but I'm not; so don't ask why it's better for me

500

Amen to that. My international investments are leading the pack and have been for the last 4 years and would guess they will for 07 as well.