2022 Porsche Taycan RWD - $107k MSRP - $2060/month $2600 DAS

All of it. You are misunderstanding the spirit of ‘LeaseHacking’ IMO.

This is a valid concern, you want to pay 7.2% interest on it tho…

Pros to leasing

  • Deduction
  • No liability or downside if car is damaged

Cons to leasing

  • Very high interest rate (MF)
  • Deductions??? It’s not that big of a deal.
  • You pay sales on the interest & depreciation of the car - you are not a genius, you’re still paying sales tax good sir or madame or enby.

Pros to Financing

  • Taycan GVWR is 6k lbs + which qualifies for one time full depreciation (Ask your accountant, you get to write off the whole car in one year, but pay income tax if you sell it
  • Deduction on sec. 179
  • Car will hold it’s value better than Porsche’s RV
  • Claim state and federal tax rebates and incentives
  • Lower interest rates, you could get a 24-month loan as low as 1.xx%, verus 7.2% on the lease

Cons

  • You pay sales tax 11.5%
  • Income recapture (if you sell the car and took the full upfront deduction, income recaptured from the car will be taxed)
  • You own the car (on the hook if car is damaged, but insurance will compensate with diminished value)
11 Likes

Thanks for posting some actual useful information.

I do understand the car doesnt alight with the “spirit” of leasehacking. Not every car will fall under the “hacking” category as well. Ive had some pretty solid “hacks” in the past all with first payment+dealer fees+registration 11.25% taxes rolled into payments… So I guess I understand a thing or two about leases.

This would be a lease under my business, so the write offs help - Dep the entire car in one year is not of benefit for my business, Sales tax on the entire car is roughly $13.5k, and total taxes on the lease are ~$6k.

I am being offered base MF ~6.24% (about 2% higher than financing with PFS for 60moths.) Leasing also allows me the ability to sell the car at the end of the lease, if the used value is higher than the lease end buyout, and walk away if its lower, or if the vehicle is involved with an accident etc.

1 Like

Porsche doesn’t even lease well as is. During these times absolutely horrible. Run or throw ur money away.

No, I just added sales tax because the tax credit doesn’t impact the payment (or the loan balance at any point).

OP was already aware of the tax credit so I didn’t call it out again, but perhaps I should have for good measure.

1 Like

Yeah but this feels like it’s being sold well over sticker.

1 Like

I’ve also been toying around with Porsche sedans.

Obviously the market may be very different in three years, but this was my experience looking at a used one last week (a 2020, coming right up on 3 model years old):

Someone other than me will pay at least close to the $126k asking price for the ~3-year-old example I drove last week, which that had an MSRP of $135k.

FWIW, I think the base models will have a steeper depreciation curve, but time will tell.

2 Likes

This is accurate. The base models have a significantly higher depreciation curve. S and above are investments lol.

1 Like

I PM’d you. No where in IL is there a 11.25% tax rate. There are a bunch of things missing here like if you have the performance plus battery or not (different RVs) and where in IL you are located.

2 Likes

Please explain how you bonus out a sedan. Also, how do you take Sec 179 on a bonused out asset?

@theesoterictruth - Curious if you considered/priced out Audi E-Tron GT?

Op should talk to a CPA, but I was under the impression the GVWR mattered

1 Like

5-year straightline depreciation.

1 Like

MACRS depreciation subject to luxury car limits. Even with a bonus it’s quite a bit less of a deduction on a $100K car than on a lease.

It sure does… for vans, trucks and SUVs. You can try calling it a turnip truck and hope that the IRS auditor fell off of one. GLWT!

3 Likes

Im sure you can do just as much work truck things out of a Taycan as a G63.

100% true but that’s how the current laws are written. Further, the failed BBB proposed much better EV credits for trucks and SUVs than for passenger vehicles as defined by tax code. Go figure!

1 Like

Have you considered Audi etron GT? The Taycan at that price is the single motor model. The same price can get you the dual motor version. Audi might lease better. I lease one last year, about 1220 including tax. Includes 9k from fed and Cali rebate, plus 10k from early lease return. Not a great deal but I think much better than the Porsche lease.

:100:

Same goes for the EV tax credit and “for personal use”. You might be able to say “I drove this EV < 1000 miles / 2 months and flipped it for something different because I didn’t like it”, but after your 3rd 4xe in the same calendar year, GLWT…

Don’t expect the nebulous stuff to end in your favor without rock-solid evidence, forget saying the opposite on a public message board.

2 Likes

get the 4s has long range.

You can get performance battery on the base too.

1 Like