So now that wifey’s Volvo XC60 lease is about to end in September I told her that we can get another XC60 lease for roughly the same price. She asked me if it made sense to finance a used Macan and I started doing mental gymnastics to evaluate against leasing. The only way I’d consider a used Porsche would be with something like a Max Care Warranty from Car Max.
Option 1: Volvo XC60 lease Roughly $630/mo for a 36/10 with 1st month due at signing. (after Loyalty/costco/etc etc)
Quickly glanced at a 17’ Base Macan. Found this on Carmax
Option 2: [https://www.carmax.com/car/24364013](https://2017 Porsche Macan $33,998* 44K miles)
Their quote for the Max Care plan to warranty the car to 100k is $5579 ($150 deductible with a $100 deductible if you take it to a CarMax certified shop)
Basic auto loan calculator tells me that this car with the warranty would be roughly a $825 payment on a 60 month finance term (using a 7% interest rate from my credit union).
She typically drives approx 10k/year. so driving this for a bit over 5 years should still be within the 100k warranty period. As soon as the car would approach the 100k we’d sell it.
For the past 20 years we’ve leased cars as to not deal with the headaches of depreciating assets but I just wanted to pick the Expert Hackers’ minds if this makes sense to do from a total cost of ownership perspective.
I’m not sure how reliable the Macan’s are and how much the scheduled maintenance would be. Basically I’m not looking for unexpected car bills. Also dont know what the depreciation curve is and what a 9 Year old Macan with 100k miles will sell for.
Positives with Volvo lease: free oil changes, loaner if needed but of course I would need to lease twice to cover the lenth of 5 years of the Macan ownership.
The positives of ownership: would be that if the lease climate improves within next few years (yeh I know we’ve been all waiting for that since '21) we can always sell the car and walk away from it.
The downside would be a potential hosing on the value of the car if used car values tank. An accident potentially lowering the value of the car (something I havent had to think about with a lease).
You’re going to return a 3 year old volvo, pay $100/mo more than demos were leasing a few months ago, drive it until 2028 when this Base Macan will be 11, borrow that money at 7% - how much do you think it will be worth in 2028?
Perhaps I should add that I’m not tied to a Macan. it can be a roughly 30-34k car from CarMax with plus an extra 3-4k for their MaxCare warranty. It can be a Q5, a A5 sportback or an A4…something comparable in luxury and practicality to an XC60. I’m just considering if from a long term TCO perspective it makes sense.
Serially leasing virtually anything in the entry-level luxury class and above doesn’t really make sense from a TCO perspective in today’s environment, no? But an older Porsche is even worse. I assume an average maintenance visit could easily cost $1K at a dealership.
And, as much as I like non-elevated vehicles, nothing is as practical as an SUV… except a wagon, a minivan, or… another SUV.
If an A4 is really okay w/ you, then take a look at what A4s are going for in the marketplace. My impression is that you could likely lease one at a better price than what you listed for another XC60.
Buy a Lexus or Acura and wrap it with a warranty, that’s worth borrowing at these rates. European luxury does not usually age well, and even with a Carmax type warranty it’s aggravation and old tech and increasingly expensive maintenance and worn everything — after a series of new leases. If you want German lux or another Volvo then lease it, rent your fun and limit your risk to the total lease cost. Or buy a CPO.
Have you looked for the alternative brands? Lexus RX350 seems to hold better value based on the historical data. Lexus offers 4.99% financing APR, so it would be cheaper than your local CU. Lets say if you finance 50k with $0 down for a new 2023 RX350, your monthly payment would be $943 for 60 months term. Plus it comes with 4 years warranty. Or extend your loan term to 72 months, then your monthly payment would be $811 if the APR is 5.25%
Keep in mind that Porsche scheduled maintenance is ridiculously expensive. With Volvo, this has been free for you. Consider an XC40 if your wife is okay with something smaller. $1750 lease bonus, $1000 Costco, $1000 loyalty on it here in DC. More cash than XC60
