2021 Porsche Lease Deal and "Discount" - not sure what to make of this?

yomankat

I've always bought my previous cars and keep them for more than 5+ years. Pardon for being a lease newbie....

Went into the dealer today because they through some back and forth with a bunch of dealers, this one said they'd do 8% of MSRP on a 2021 Base Cayenne or Macan

We picked one out base Cayenne on the lot - $82,790. Before all this time - we had not discussed anything about payment. I was purely negotiating on price and expecting 8% off.

Then I told them I was going to lease...

I got the MF and RV's previously thanks to this forum and was expecting a MF a .0020. When I got the lease paperwork there were a couple of things I hadn't anticipated:

1. the gross cap cost was not $82,790 * .92 = $76,166.80. It was $2100 more. They explained that they had $395 for ceramic coating and $495 for some kind of car tracking (safgard???) as dealer addons and they put in $1100 for pre-paid maintenance for 2nd year that they claimed would raise the residual by 1% and basically "pay for itself"
2. the MF was marked up from .0020 to .0025, 4.8%-6.0%

It was minimum DAS - all fees + first month's payment at ~$3400 (can't recall for sure). 42 month lease, ~$1200 monthly payment. My tax in my county is 9.25%. The RVs *seemed* to be in line quoted from the forums.

when I had plugged all of this into Leashackr Calculator, I was expecting a $1046 payment.

I told the dealer I hadn't anticipated a .0005 markup on the lease - they told me they had to make their money somewhere. I told them - you are - the 8% leaves 2-3% on what is 10% off MSRP as somewhere around their cost (from what I read). They said - that's not true and that 8% is their cost - and that they had to make their money somewhere and there for the MF markup.

8% off - were they assuming all along I was going to finance/lease and that's how they were going to make their margin? If I hadn't said anything and told them I was going to pay cash - were they going to say - "oh then our discount isn't 8%???" - totally confused

I walked away after 3 hrs of being at the dealer past close. Wasn't comfortable and felt stupid that not only were they making money off the car cost/price differential but also the financing.

I guess this is why Porsche doesn't lease well - aside from the high base MFs in the first place???

kyfdx

yomankat said:

I've always bought my previous cars and keep them for more than 5+ years. Pardon for being a lease newbie....

Went into the dealer today because they through some back and forth with a bunch of dealers, this one said they'd do 8% of MSRP on a 2021 Base Cayenne or Macan

We picked one out base Cayenne on the lot - $82,790. Before all this time - we had not discussed anything about payment. I was purely negotiating on price and expecting 8% off.

Then I told them I was going to lease...

I got the MF and RV's previously thanks to this forum and was expecting a MF a .0020. When I got the lease paperwork there were a couple of things I hadn't anticipated:

1. the gross cap cost was not $82,790 * .92 = $76,166.80. It was $2100 more. They explained that they had $395 for ceramic coating and $495 for some kind of car tracking (safgard???) as dealer addons and they put in $1100 for pre-paid maintenance for 2nd year that they claimed would raise the residual by 1% and basically "pay for itself"
2. the MF was marked up from .0020 to .0025, 4.8%-6.0%

It was minimum DAS - all fees + first month's payment at ~$3400 (can't recall for sure). 42 month lease, ~$1200 monthly payment. My tax in my county is 9.25%. The RVs *seemed* to be in line quoted from the forums.

when I had plugged all of this into Leashackr Calculator, I was expecting a $1046 payment.

I told the dealer I hadn't anticipated a .0005 markup on the lease - they told me they had to make their money somewhere. I told them - you are - the 8% leaves 2-3% on what is 10% off MSRP as somewhere around their cost (from what I read). They said - that's not true and that 8% is their cost - and that they had to make their money somewhere and there for the MF markup.

8% off - were they assuming all along I was going to finance/lease and that's how they were going to make their margin? If I hadn't said anything and told them I was going to pay cash - were they going to say - "oh then our discount isn't 8%???" - totally confused

I walked away after 3 hrs of being at the dealer past close. Wasn't comfortable and felt stupid that not only were they making money off the car cost/price differential but also the financing.

I guess this is why Porsche doesn't lease well - aside from the high base MFs in the first place???

I don't know the markups from MSRP to invoice, but I'll guess the dealer is correct, that it is less than 10%
It's typical for luxury makes to markup the money factor, thought that doesn't mean you should accept it.

As you've discovered, it doesn't do much good to negotiate a discount in a vacuum, without knowing all of the other parameters. (MF, extra charges, etc). The dealer could have easily promised you 12% off, then marked up the money factor to .00300.

If adding the maintenance package actually increases the residual by 1%, then it doesn't pay for itself, but it comes pretty close ($1100 vs. $828 less depreciation). That's assuming the maintenance package itself is reasonable at $1100. Of course, the $395 and $495 extras are without value, especially for someone that is leasing.

This is a pretty typical experience at a high-end dealer (or any dealer). Dealers try to meet your offer (8% off), while preserving as much profit as possible. When negotiating, if you are sure of your numbers, once you get a quote, there isn't much point in trying to refute the dealer's arguments, just give the the number you are comfortable with, and see what happens. Sometimes you get it, and sometimes you don't.

At least, by knowing the numbers beforehand, you knew the money factor was marked up.

TyVil

They're entitled to mark up the money factor. If you would have been upfront about leasing the whole time - you could have saved a lot of time. But you played games.