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Porsche Cayenne Lease Questions

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  • delta737hdelta737h Posts: 603
    edited July 2010
    heiko,

    The lease "book" depreciation is the difference between the adjusted capitalized cost and the residual value. Consider the following hypothetical example...

    MSRP.................................... 80,000
    Negotiated Sell Price............... 74,000

    Amounts Financed
    Acquisition Fee...................... 650
    Dealer Doc Fee..................... 250

    Gross Cap Cost................... 74,900
    Cap Reduction (Trade Cr.).... 6,000
    Adj (net) Cap Cost (C).......... 68,900

    Cost of Money/Residual

    Money Factor (F)............... 0.00100
    Residual Factor................. 55%
    Residual Value (R)............ 44,000 (Res. Factor x MSRP)

    Term (N).......................... 36

    Monthly Payment = Ave. Monthly Lease Charge + Ave. Monthly Depreciation
    = F x (C + R) + (C - R) / N
    = 0.00100 x (68,900 + 44,000) + (68,900 - 44,000) / 36
    = 112.90 + 691.67

    The 112.90 average monthly lease charge is analogous to the average monthly interest payment for an installment loan while the average monthly depreciation, 691.67, is analogous to the average monthly priniciple payment. The total, 804.57, is the monthly base payment.

    The depreciation is not the difference between MSRP and the residual value. The only role that the MSRP plays is in determining the residual.

    Leases are amortized in much the same way as installment loans. Most lease contracts contain an early termination clause that specifies how the lease balance is computed using the actuarial or constant yield method. This is really the same method used for installment loans. Each payment consists of two components: (1) interest (lease charge) and (2) priniciple (depreciation). The current month's priniciple (depreciation) is allocated toward reducing the previous month's outstanding loan (lease) balance. The interest (lease charge) for the current period is determined by multiplying the monthly interest rate (implicit in the lease) by the previous month's outstanding loan (lease) balance. This routine continues each month so that at the end of the lease, the outstanding lease balance equals the residual value. So, we begin amortizing the lease with the adjusted cap cost and end with residual value.

    I always encourage those with leases or installment loans to create an amortization schedule using the EXCEL spreadsheet. If you wish to payoff a loan early or, terminate a lease early, you can easily and immediately determine your lease balance plus any applicable early termination charges. If you decide to purchase your leased vehicle, the buyout will be the lease balance plus any applicable purchase option fee/misc fees + title/reg fees + plus taxes.

    Questions? Please let me know.

    John
  • heikoheiko Posts: 6
    Thank you, I am not sure that I understand all of these computations, I will review it again, however, the basic concept is similar to what I thought. First, there is a lineal determination of depreciation charge and second, there is an underlying loan charge that is based upon interest rates. I can see how the interest charge would not be based solely upon the residual as more than the residual is being financed. I look forward to hearing quotes for 2011 cayenne s, I went to look at one and evidently the dealer lost or gave back their franchise to Porsche, they didnt have much to say except that they had a few cars in the back of the lot, no cayennes
  • kyfdxkyfdx Posts: 28,495
    You have a pretty good understanding of the numbers..

    Actually, the finance charge is based on an average of the CAP cost and the Residual...

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  • sidtsidt Posts: 6
    I see from your post the residual is 55%, what is the current money factor?

    Thanks.
  • astern26astern26 Posts: 4
    Carman - what kind of rates are there today on cayenne s w 15k miles / year on a 36 month lease? thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, sidt.

    Porsche Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 Cayenne S with 15,000 miles per year are .00219 and 53%, respectively for consumers who qualify for its top credit tier.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi astern26. Please see my previous post for the information that you're looking for.

    Car_man
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  • heikoheiko Posts: 6
    Help, I am trying to figure out the math, I believe I am close on the concept.

    If the msrp is $80,000 and that is what is paid, I come up with the following:

    (.00219) x (80,000 plus 42,400) plus (80,000 - 42,400) is equal to 268.06 plus 37,600 divided by 36 is equal to $1,015 plus linear depreciation. That comes to a $2,000 lease payment.
  • kyfdxkyfdx Posts: 28,495
    You've added in an extra erroneous calculation..

    ($80,000 + $42,400) X (.00219) = $268.06.. (monthly finance/rent charge)

    (80000 - 42400) / (36) = $1044.44.. (monthly depreciation)

    $1044.44 + $268.06 = $1312.50.. (total payment.... pre-tax)

    Hope that helps....

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • heikoheiko Posts: 6
    Now I have it, thank you! So now the question becomes whether to buy a 2008 or lease a new one.
  • sidtsidt Posts: 6
    Thank you.
  • eddypeddyp Posts: 11
    Hi Car_man,

    Would the money factor and residuals be the same for a non-S model 2011 Cayenne?

    I am looking to do a lease for 36 months, 12K mi/year, with top tier credit.

    Thanks.
  • Hi eddyp. Porsche Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a base 2011 Cayenne with an automatic transmission are .00177 and 57%, respectively.

    Car_man
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  • I am looking for the lease rates (MF/Residual) on a 2011 Cayenne Tiptronic 15K/36 mos?

    thank you
  • hpohpo Posts: 1
    Hi Car_man,

    I was given .00219 money factor and 53% residual value on a 36 /12 for 2011 Cayenne S by a dealership in northern NJ. Interest rate seem a little high?

    Thanks
  • Hi Car Man,
    I'm looking to buy a Cayenne S

    Does this sound right to you,

    I was quoted, money factor and residual value for a 36 month lease 2011 Cayenne with an automatic transmission .00259 and 53%, respectively.

    ($80,000 + $42,400) X (.00259) = $317.02. (monthly finance/rent charge)

    (80000 - 42400) / (36) = $1044.44.. (monthly depreciation)

    $1044.44 + $317.02 = $1361.46 X 0.095 = $1,490.80 (total payment) based on (9.50% Tax)
    First off, is this right, and can you tell me, do you have any suggestions on getting the monthly payment below $1,300.
    Thank you.
  • Here's the information that you're looking for, jaltomare.

    Porsche Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a base 2011 Cayenne with 15,000 miles per year are .00177 and 57%, respectively for consumers who qualify for its top credit tier.

    Car_man
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  • Hi hpo. The money factor that you were quoted is right on the money. A factor of .00219 is equivalent to an interest rate of around 5.25%. That's as good as it gets on a lease of an '11 Cayenne through PFS at this time.

    Car_man
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  • Hi amac5. The money factor that you were quoted is a little high. Porsche Financial Services' current buy rate for consumers who qualify for its top credit tier is only .00219 for consumers who qualify for its top credit tier. Make sure that the dealer uses his factor to calculate your vehicle's monthly payment.

    The only ways to lower this vehicle's monthly payment are to get the dealer to use the buy rate money factor to calculate your payment or to negotiate a lower selling price.

    If there's another Porsche dealer in your area and you haven't shopped around already, it wouldn't hurt to do a little comparison shopping.

    Car_man
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  • Hi Car_man

    I'm wondering why you gave jaltomare this information.
    Porsche Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a base 2011 Cayenne with 15,000 miles per year are .00177 and 57%, respectively for consumers who qualify for its top credit tier.

    The numbers you gave me were .00219 and i have a 53% residual

    Thank you again,
    Alan
  • different trims on the models.
  • what was the payment you were quoted?
  • Hi Car_man,

    What is the new buy rate money factor and residual on a 2011 Cayenne V6 and S for October? I'm getting some crazy discrepancies from my local dealers!

    Thanks for the great forum!
  • lotus540ialotus540ia Posts: 1
    edited October 2010
    Hi Car.man,

    I need your help please. I am picking up a new 2011 Cayenne Turbo in the Bay area next week and can't seem to find any info on money factor and residual for this car. Looking at a 36 months lease deal.

    Thanks in advance for any info!
  • V6 residual is 60%. MF have been all over the map with dealers trying to BS their way to a higher #. If your credit is high you may be able to get .00177 but then they won't budge much off MSRP.
  • Hello Car Man,

    I am also looking for a lease on a 2011 Cayenne Turbo in South Florida (Miami) and I would like to know what money factors and residuals look like for this type of lease. I would be looking at 10K per year mileage.

    Can you also please let me know what money factor increases to if you do not qualify for top tier (second tier?).

    Thank you!!
  • Hi Car Man or anyone else,

    I see alot of talk about residuals and money factors but can you tell me a bottom line est of what I can expect to pay for a base Cayenne? Money down + Monthly fee? I live in S FL and dealer inventory shows MSRP on base models on the lots of about $53-55k.

    I not sure why there is so much discussion about all the different factors on the these forums ie it doesn't matter to me whether the sale price is X and the residual is X... I only care about my total cost for the vehicle for a 3 year lease. The dealers can change so many different factors that if they for instance give you a great "sale price" they can change the money factor or residual so it really doesn't matter.

    Anyone that can give me a rough est of what my total cost for this SUV would be over 3 years, the info would be much appreciated.

    thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    edited October 2010
    You're very welcome, 14dmuny. I'm glad that you enjoy it.

    Porsche Financial Services' October buy rate lease money factor and residual value for a 36 month lease of a 2011 Cayenne V6 with 15,000 mlles per year are .00177 and 57%, respectively.

    The numbers for an otherwise identical lease of a 2011 Cayenne S are .00219 and 53%.

    Car_man
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  • Here you go lotus540ia. Porsche Financial Services' October buy rate lease money factor and residual value for a 36 month lease of a 2011 911 Cayenne Turbo with 15,000 miles per year are .00219 and 46%, respectively.

    Car_man
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  • Hi kyleluken. Wow another turbo lease. Please see my previous post for the numbers that you're looking for. The residual values for a lease with only 10,000 miles per year would be 3% higher than the 15k resids.

    I'm not sure what sort of credit score one needs to qualify for this rate.

    Car_man
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