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Porsche Cayenne Lease Questions

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  • 99_528i99_528i Posts: 22
    Getting ready to sell my 04 Lexus GX470 for the GTS or Hybrid. Can't locate the Hybrid any dealers in N California, and I'm researching on the GTS. What is the MF and residual for leasing the Cayenne GTS for 3 years, 10k miles per year? And in some previous posts I saw a $5000 incentive, is that still applicable with any current lease?

    Thanks.
  • Hey Car_man

    Any updates on the June 2010 MF and Residuals?

    Regards,
    Schneller78
  • zheckszhecks Posts: 35
    Car Man (or anyone else)

    Do you know the MF and residual (10k & 12K miles) for the new 2011 Cayenne S models? I know it just arrived at the showroom for the S model. The regular V6 is not here until sept.

    thanks...zhecks
  • Also very interested in the 2011 Cayenne numbers (all models)....
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey 99_528i. Porsche Financial Services' June buy rate lease money factor and residual value for a 36 month lease of a 2010 Cayenne GTS with 10,000 miles per year are .00146 and 45%, respectively.

    Porsche is currently providing a $8,000 cash incentive on 24 month and a $5,000 cash incentive on 36 month leases of this model.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey schneller78. Porsche Financial Services' June buy rate lease money factor and residual value for a 36 month lease of a base 2010 Cayenne with 12,000 miles per year are still .00146 and 53%, respectively.

    Again the numbers for an otherwise identical lease of a Cayenne S are .00146 and 51%.

    Make sure to take the cash incentive that I mentioned in my previous post into account during your negotiations.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I certainly do, zhecks. Porsche Financial Services' June buy rate lease money factor and residual value for a 36 month lease of a 2011 Cayenne S with 12,000 miles per year are .00219 and 55%, respectively.

    The residual value for a lease with only 10,000 miles per year would be 1% higher.

    Car_man
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  • sidtsidt Posts: 6
    edited July 2010
    Hi,

    Any ideas on july rates and residuals on the 2011 Cayenne S. Also anyone lease a 2011 recently, what % off MSRP is doable these days.

    Thanks.
  • sidtsidt Posts: 6
    Hi Car_man,

    Curious if you know the july rates and residuals for the 2011 porsche cayenne S?

    Thanks.
  • heikoheiko Posts: 6
    I am also interested in this question. A dealer indicated that the residual for a three year lease is 55% which he said was great but then quoted a very substantial lease payment, which he said was the depreciation plus about $12,000.
    Is the following analysis correct? If a $80,000 car has a 55% residual, the residual would be based upon msrp so it would be $44,000, so there would be $36,000 of depreciation (rent) payments plus interest owed on $44,000 plus misc fees, whatever those would be plus sales tax. In the event the car can be purchased for a discount, then the rent payment portion of the lease would decrease.
    Interest rates are at an all time low, even for a car they cant be that high.
  • 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: 27,667
    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...

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • 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: 27,667
    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.
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