I’m thinking about getting the next generation (maybe 2017) Porsche 911 GT3, leasing it for 3 years and then buying it after the lease is over.
This is the first time I’m leasing so here’s where I’m getting confused:
GT3s are not depreciating quite as much as other 911s so say the residual value that we set at lease signing is 60% or $90K from MSRP of $150K. What happens if at the end of the lease the resale market value of the car is say $120K - will I be buying it at $90K or $120K?
For those who leased Porsches before - what types of deals were you guys able to get?
You buy the car at the predetermined residual, in your example 90k, but I have to ask why lease in the first place? If its for a business ok, but if not just take a loan. I don’t know what Porsche’s MF is right now but i am guessing you can beat it at your local CU on a loan. Why pay a bank fee and a higher interest rate if you are just going to buy the car in 36 months anyway?
Let me know if this makes any sense. The whole idea behind leasing first then buying is so that the business eats up the depreciation. Because the depreciation is basically artificial, I’m essentially getting a car I’ve owned since new for a lot less than market price.
Not sure about the tax implications of writing off business taxes for depreciation – but if the goal is a lower residual (i.e., more depreciation), you can always go for the maximum mileage option.
you should ask your accountant about accelerating the residual value. IE if you get a good tax benefit from leasing, instead of having the residual at 51% for 3 years, decrease down to 15% for those three years. from my understanding you can write off the depreciated portion of the lease and not the interest.
My understanding is one can take the lease payments and multiply it against the percentage of use i.e. 80% business use and 20% personal use. If that is the case, isn’t it the same as deducting the depreciation cause the lease payments are essentially depreciation + interest?
Are you familiar with the market for GT3’s? It’s possible they won’t even make a GT3 for 2017 (991.2) and if they do, it’s going to be tough to find a dealer that will sell it to you for MSRP unless you have a prior relationship. Low mileage used GT3’s are still going over MSRP right now.
The values of Porsche’s specialty cars are pretty sensitive to mileage so a 45K mile GT3 is going to take a pretty decent hit. With that being said, the residuals on even the low mileage leases are overly conservative.
