Have a Macan GTS lease ending in 3 weeks and deciding whether to either return at the end and search for a new car (maybe the 2019 S, but would rather not have another crazy lease pmt) or purchase the car at the lease end buyout price of about $46K, and either finance it depending on rate given, or just do cash if it’s something like 6%. Would want the next GTS but that’s a few years out and can wait; I also can’t think of another car like this besides maybe a Velar or GLC 63 and don’t want those anyway.
Given these Macans hold their values somewhat well compared to other manufacturers and models, is buying out the most economical?
Say I buy now for $46k plus tax and in 3 years sell it for say $$28-30K. Good move right? Or am I not thinking about this correctly.
Go to Carvana.com, Vroom and get a buyout quote, then you will have 3 options, return the lease and lease something new, buy the car and keep it or sell the car to Carvana for a profit and use the funds towards a new lease.
Use the phantom equity to negotiate a better lease on a new Porsche to bide time your time until the GTS is out. You could have dealers bidding against each other.
So I guess just like any leases with positive equity your have these options:
Return the car at lease end (bad option since you have + equity)
Buy out the car at $46k + taxes, calculating for any maintenance and wear & tear items for the next 3 more years.
Sell the car to Carvana, Vroom, Carmax, or privately etc. for positive equity and pocket the cash
Use the positive equity for trade-in as a negotiation tactic to give you credit for your next lease. I think thats what @Electrifi38 is referring too.
If you go with option #2 you should look for credit union auto loans with lower APR.
For #4 some people will tell you to keep the trade-in as a separate transaction to your next car lease. Keep the transaction separate. But this depends on how much the dealer is willing to give you on the trade-in.
Very helpful points, thank you.
Definitely leaning towards purchase.
New lease could be interesting but Porsche is basically charging nearly 6.5% on interest rates on leases, so crazy.
Nice summary @GeminiRam. And yes, that is exactly what I’m talking about. It’s likely got the least tax and risk implications. If you buy it today, then have an accident tomorrow, then you toileted the increased value.
ETA: a dealer’s buy cost on a lease return could be lower than the lessee’s contract buyout cost. Thus giving you an increased opportunity to leverage a better price on the next lease.