Best strategy to purchase a lease turnback

turbo3six · 07-28-2011, 06:39 AM

I have a friend with a very very low mileage Cayenne that is scheduled to be returned soon at expiry of the Porsche Financial lease. I would consider buying this car if I can buy it right? He has ordered a 2012 Cayenne and will be taking delivery soon. What is the best strategy in this case to avoid the dealer markup on the lease return vehicle?

speednme1 · 07-28-2011, 10:54 AM

Your friend can purchase the vehicle at what ever price the option to buy is. Then he could just hand you the title. One thing to keep in mind is, if the value of the vehicle is less then the option to buy. The current owner can negotiate the price with the dealer. That would be my best option. Though if your friend is returning it to the same dealer he originally purchased it, they might certify it. Giving you an extended warranty and the price may not be too far off from the " option to buy price". Good luck on your purchase.

Rey

vracer · vracer's Garage

Watch the sales tax. I don't know Fla., but in Cal, you would both be retail buyers, and subject to tax. (If he didn't pay tax on the whole thing when he leased it.)

turbo3six · 07-28-2011, 04:32 PM

Rey and Richard,
CPO and sales tax considerations are both excellent points. Thank you!

chasrolex69 · 07-30-2011, 07:35 AM

Howdy, I work at a Porsche dealership, here is how you should handle this transaction, first, the Porsche dealer can buy it from Porsche financial services for far less than the stated buyout-residual once the car has been grounded( all end of lease paper work turned in to Porsche) have your buddy use it as a pre-trade in on his new car( he gets the tax benefit toward his new car) , The Porsche dealer will pay about 2-3k less than the stated residual, you should be able to buy the lease turn in at a fair price and the dealer will have 2 car deals instead of 1!! The dealer should make about 1500-2000$ just for doing some extra paper work , good luck!

turbo3six · 07-31-2011, 03:59 AM

Very interesting economics from the inside...thanks! It's a GTS and I think the dealer will most likely try to sell it for high retail.

techweenie · techweenie's Garage

Porsche Financial Services is quite possibly the worst financial company in the world to deal with. They should be willing and able to negotiate a deal, but be prepared to speak with people who sound like they were recruited from the lowest-performer tier of your DMV. Not only my own personal dealings, but those of people I've worked with to sell cars have been horrendous, with incorrect payment information; even incorrect addresses for payoffs provided.

If a known dealer is involved, you will be better off to pay attention to the excellent advice from chasrolex69.

chasrolex69 · 08-05-2011, 02:02 PM

Forgot to add, Porsche charges us the Porsche dealers $2500 boxsters caymans and $2900 911, turbos cayanne per car for the cert. program, the end user-purchaser pays that fee as well, there are many excellent service contracts you can buy for far less and have the same or better warranty, always check out your option on service contracts.. btw, i just did a 2 car deal exactly as you ask for, the guy buying out the lease saved $5500 and the new car buyer saved $3200 in taxes, good luck