So I realize I’m about to get crucified, but I wanted to create a case for a brand that Leasehackr has always told me to buy and never to lease: Porsche. Specifically the Boxster S I just signed a lease on. Here are the numbers on buying vs leasing for 39 months on a 2019 with an MSRP of $80,730:
BUY with the $5000 discount that my broker was able to get me at $75,730.
Edmunds trade in of 2016 Boxster S with same options is $35,613.
Depreciation: $40,117
Tax: $7,468
Prepaid Maintenance: $3,825 (what I paid in the lease)
Interest (60 month loan at 4.62%) for 39 months: $5,725
$40,117 + $7,468 + $3,825 + $5,725 = $57,135
Year, Make, Model, and Trim: 2019 Porsche Boxster S including lease end protection and 50k pre-paid scheduled maintenance:
MSRP: $80,730
Monthly Payment: $1398
Minimum Drive-Off Amount: $3450
Months: 39
Annual Mileage: 15,000
MF: .00247
Residual: $41,172
Region: NorCal
The total cost of the lease I just signed including tax, lease protection and 50k miles pre-paid maintenance is ($1,398 x 38) + $3,450 = $56,574.
So owning for 39 months would have cost approximately $57,135 and my 39 month lease will cost me $56,574.
Not a stupid question at all. It’s easy to overlook this, and it can wipe out the savings one gets on the longer term, particularly on higher-MSRP units.
Looks like the play here is to buy a 3 year old CPO. Based on all the numbers that you’ve provided, you are going to spend more on a 3 year lease than actually buying a 2016 model. I am guessing it will be worth something in 3 years.
The stupid 1% rule means total lease cost should be ~ 36% off MSRP. In this case it comes to a whopping 70%.
Now, to analyze your lease, its a good thing that you leased because:
Residual isn’t guaranteed, so you have a peace of mind that if you bought it, you don’t have to worry about the trade in value
You saved about ~3.5K in taxes if you had bought it new, as you would have paid tax on the residual amount as well
However, the case for buying is:
The MF on lease is very very high. And remember, the average amount financed on a lease is always much higher than average amount financed with standard loan.
Are you sure about the 60m interest rate? Won’t CUs given you a better loan?
That doc fee is really high? Not sure if its the acquisition cost.
Do you really need to spend 3.8k on maintenance for 45k miles? I know some of these scheduled maintenances are pricey but sheesh, this seems pretty steep.
Porsche offers 4.24% on 60 month purchases right now. CU would probably be a little cheaper.
Average financed amount on a purchase is lower over the life of the lease, but during the 1st three years of a purchase it’s actually not all that much different, unless you put a lot down.
He’s in CA, so doc fee is set at $85. Looks like that’s the acquisition cost.
CU would be a lot cheaper. Top tier credit loans from a CU in the SF Bay Area, which is near OP (from the pictures). Granted they go up from here, but wow.
Your comparable rate should be cut in half. Edmunds trade in value is the lowest amount of effort, a quick gander at six speed or rennlist shows a much higher actual sales price.
I guess if you take the worst possible inputs to try to justify the decision, then the math works.
“Looks like the play here is to buy a 3 year old CPO. Based on all the numbers that you’ve provided”
The problem is the numbers he’s provided. Just bought a boxster s, and no fing way is a 3 year old box s worth 35k. Lmk when you find a 2016 for 40ish (his 35k plus profit and reconditioning).
Cayman owner here. The Goodyear F1s on my 2016 lasted 19k miles before I replaced both sets (even though the fronts had a bit more life left). Do my fair share of spirited driving on backroads and 2-3 HPDE per year (no track time). The current Michelins PS4S seem on their way to last between 15 and 20k as well. So no, not 3-4k miles. Not even close.
