Why Few Porsche Deals?

Porsche dealsWe don’t know if you’ve noticed but we don’t often mention Porsche deals on this web site.

There’s a good reason — Porsche almost never offers any great deals or heavy incentives on their automobiles. However, Porsche is not in the business of playing in the discount car market, even in a tough economy. You either want a Porsche, or you don’t. And you either pay the price, or you don’t.

If you want to finance your Porsche purchase (a large percentage of buyers pay cash), you might be able to get a reduced interest rate through the dealer (as low as 1.9% APR), assuming you have a fantastic credit score. Don’t expect to ever see 0% APR however.

That’s not to say you won’t be able to squeeze out a token price discount or a “free” option occasionally but any thought of paying anywhere closer than shouting distance of dealer invoice price is nothing more than a pipedream. However, you might be able to do better on a almost-new used Porsche with low mileage.

Actually, the best Porsche deals come through leasing.  Leasing provides the company a way to “discount” their cars — although minimally — in a way that doesn’t make it obvious. We’ve seen recent lease deals with moderately low money factors of .00118 (2.83% APR interest rate) with decently high but not impressive residual values. Some deals include credit for up to three monthly payments, or waiver of last payments on an existing lease.  With little or no price discount, this makes these deals only slightly better than average, as determined by the Lease Evaluator in the Lease Kit from LeaseGuide.com.

One of the problems with many of the low-payment lease deals advertised by Porsche dealers is that they are based on extremely low annual mileage limits — as low as only 5000 miles per year —  and very high down payments. Five thousand miles per year is not realistic for anyone who uses their car for anything more than driving to the Yacht Club on weekends.

Therefore, if you are looking to lease your next Porsche, work for any price discount you can get, look for a low money factor and a high residual for the lowest possible monthly payment.

If you don’t understand car leasing or need to know if leasing is right for you, we suggest you visit LeaseGuide.com where you’ll find a free Lease Guide and lease calculators.

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments

No comments yet.

Sorry, the comment form is closed at this time.