I’m looking at CPO Cayennes and a dealer has offered the attached 24/10 deal on a 2023. I’d appreciate any input but my first question is the application of the residual – in my admittedly limited experience (new cars, BMW loaners), the residual was applied to the original MSRP, with a change in residual based on miles – this car was originally $111K and it has 19K miles. Here, the residual (57%) appears to be applied to a number listed as MSRP ($87,340) that is neither the original MSRP nor the advertised selling price.
1. On a CPO, does dealer get to establish its own “MSRP” to which the residual applies? And is the residual percentage established by PFS? Which, if either, is negotiablle?
How does this deal look - seems high in light of broker’s advertised deals
I’m obviously not certain which model & trim level you’re looking at (it doesn’t matter much either). I’m also too lazy to look at the programs atm lol, but I’d bet that is the MRM for that particular unit. Maximum residualized MSRP- basically any money beyond the MRM is just excess, at least in regards to the structure of a lease.
The residual value is based off of the MRM figure (IF the vehicle MSRP reaches that MRM cap) and not the actual MSRP. MRM replaces the MSRP in the lease calculation… which is what you see on the deal sheet. The MSRP isn’t changed, just a portion of it is used when calculating the lease. MSRP can be $200k but if the MRM is $80k, the lease will be based off of an “$80k” car not a $200k.
This is an example of why people should use a broker for some areas of leasing. Not only do you have to understand all of the intricacies of the structure based on the specific unit, you also need the Porsche programs which constantly change.
OP - I’d recommend maybe reaching out to @IAC_Scott. Looks like you’re in IL, I know he has a few dealers in the Midwest area but can also ship.
Outside of Porsche, I believe I had seen the option listed on the calculator for Maserati (looking for poops and giggles) and just didn’ t understand it completely. Thank you for the explaination!
thanks very much, quite helpful, the MSM is new to me. Does the dealer set the MSM or does PFS?
I did talk to several brokers, including Scott, who was very helpful. Unfortunately, none were able to find a car meeting my minimum specs (Cayenne S e-hybrid, leather interior, any color but white) so I resorted to calling dealers directly.
OP - I’m not sure where you’re getting your 111k msrp but I believe that is incorrect. This would be a run-of-the-mill cpo deal. Also the “deal” sucks.
False alarm in this instance. I overlooked it being a MY23; there is typically an MRM on new/demo units which is what I ran with ha. Also I’m fairly certain that the advised msrp is incorrect
Can someone please explain how in the hell some dealerships still use this Reynolds and Reynolds ERA system to do leases? This is the only MS-DOS app that I can think of in wide-use in 2025.
Like the chances of getting a hack has to be mega-low from any showroom that still desks leases this way.
No, that is not entirely correct although I misspoke above when I said I limited my search to “S” - what I actually told the brokers was “must be Hybrid - any level from Base to Turbo with S as sweet spot - preferably highly optioned, must have leather, any color except white”
I got the $111K MSRP from the published Monroney (attached), which is for a 2023 Hybrid in Quartzite Grey - not sure where you got your Monroney.
So, my question remains - who sets the MSM - the dealer or PFS? If its PFS, I assume its non-negotiable? If its the dealer, is it negotiable?
The unit that was quoted in your supplied deal sheet is the vehicle that I had referenced, not the one you had provided the WS to. There is confusion somewhere between you and the dealer. Your referenced E-Hybrid is listed at nearly 84k; they’re not going to discount that car over 14k grand. Your quote is on the INCORRECT car.
Yep, I don’t think it makes a lot of sense which I why I’m not doing it. The primary purpose of my post was the MSRP question - which I’ve now learned about the concept of MSM (very helpful, thanks).
But I’m not sure the numbers are as crazy bad as you think – if its dropped about 38% from MSRP after 2 years (about 42K), how much more will it drop after 2 more years? Maybe another 20-25K? Maybe more? Who knows, its a bit of a stripper and not sure how that impacts depreciation? I think I would take the risk of buy/sell vs the lease but others may disagree.
Thank you very much for pointing that out - the stock number is indeed incorrect, which likely means the proposed deal is incorrect. I should have read more carefully and I apologize for not understanding your point sooner. But I can assure you that all communications between me and the dealer related solely to the Grey Hybrid.
I’m going to ask him to requote but I suspect that the numbers will be even worse from my perspective (which is somewhat skewed from seeing the excellent deals Scott and the other brokers have posted).
If you are financially savvy (as much as one can be while owning a late model Cayenne), own it for longer than 2 years and get into the flatter part of the depreciation curve. Your effective monthly payment will beat the living snot out of this quote.
