Porsche lease quote

I just went into a Porsche dealership to inquire about a Cayman. They pitched me the following lease, which sounds really fishy to me, but I want to check with the experts here. They said I couldn’t take the quote with me or take a picture of it, so that’s probably a red flag right?

The quote was for a $1689/month payment, $4500 drive off (including a $2500 cap reduction), and 39 month term for a $89k MSRP car. That’s $65,871 in payments over 39 months for a $89k car! Crazy right! I pointed that out to the salesman and said, what are the residual and money factor you’re using. He came back with the same computer generated lease statement but with the just the numbers 0.60 and 0.0028 handwritten on the paper. Plugging the numbers into the leasehackr lease calculator though, I’m coming up with about a 0.46 residual assuming a 0.0028 money factor given the rest of the numbers. This is basically a horrible lease and sounds like they were fudging me on the residual they used?

They can’t fudge the residual. It’s set by the bank and can’t be changed. They can certainly mark up the money factor, though, which I’m sure they did.

Oh good to know. Can you elaborate on why they can’t fudge the residual and why it’s set by the bank and not them. With a 0.60 residual though, then to get to the $1689 payment they quoted, I had to use a 0.0050 money factor per below. Is that likely what they did and basically lied to me that it was a 0.0028?

Judging by how fast they depreciate you might be better off with a one year old used Cayman S

That’s exactly what I’m doing (1 or 2 year old certified pre owned). I would never actually take this lease, I’m just curious as to what they were trying to pull over me.

Potentially, yes, they may have marked up the money factor. 0.0028 may not even be the buy rate money factor to begin with.

Were there any dealer-add ons/dealer fees? Is your sales tax 7%, doc fee $80, and registration $400 (the preset calculator values)? Where are you located?

The residual is set by the bank because they are the ones issuing the contract.

Porsches notoriously do not lease well.

I don’t remember the exact fees, but they were somewhere around the preset numbers in the calculator. Surely even if I’m off by $1000 on the fees that still doesn’t explain this ridiculously expensive lease and the money factor that is way way off right? Yeah, I’ve heard that Porsches don’t lease well, but even given that, it seems the dealer was being dishonest on top of that as I checked the edmunds forum and currently MF and residual for 36 month/10k miles leases are 0.0012 and 0.60.

You are correct, even if the fees are slightly off, there is still a major discrepancy.

The issue you’re having is two fold: the dealer marked up the MF and you most likely exceeded the amount that Porsche residualizes. All Porsche models have a certain MSRP that they residualize to (could be 72k for example) any MSRP over that number is payed for in the lease. In other words if you have a 90k car and Porsche only residualizes to 72k, you will pay that full 18k difference in the lease payments on top of that marked up money factor.

This is news to me. Can you point to an official documentation for this?

2018’s with 5k to 6k miles are mid to high $50’s all day long, definitely better to buy these things

Where is this coming from? A new cayman S residual is like 61% for 10k, if I’m not mistaken and the MF is .00112. Caymans are the cheapest porsches to lease.

Take a look at any of the Edmunds Porsche forums. This number is called the MRM or max residualizes MSRP. Mazda has the same thing.

Where meaning which dealer? Porsche West Broward in Florida.

And yes, I forgot about MRM (maximum residualized MSRP). I read about that somewhere too and forgot. So I’m sure that’s part of the high cost in addition to their MF trickery. Is the MRM set by the bank behind the lease? Is the idea that once you keep adding options at a certain point they stop retaining any value in the resale?

The MRM is set by Porsche. A lot of it has to do with the fact that you can pay $500 to get leather trimmed air vents or different colored seatbelts and there aren’t a whole lot of people who would spec a Porsche the way you would.

And those silly add-ons add exactly $0 to the resale value.

So per Jamiemose, the residual is set by the bank, but the MRM is set by Porsche? I would have thought they’d be set by the same ppl.

One of the mods posted a decent explanation on February 25th on that thread

Well, I guess you learn something new everyday… When I think about it, it sounds logical for banks not wanting to residulize some of the stuff that are worth nothing at lease end…

Can I just post here? I’m trying to get into a new 2018 Cayman S: I’ve tried to negotiate for more of MSRP but nobody is willing to budge.

MSRP: 78710
Selling: 76210
CA TAX: 3375
Dealer/State Fees: 723.00
Residual: 47226 or 58%
10k/39 month lease.
Current numbers to take it home are 2110 drive off and 1070/month.
I was able to get him down to 1050/month With the wheel and tire package it would be about 1090/month.

How’s it look? Any help is greatly appreciated. Thanks!