Buy out my lease or lease new, but repairs needed

porsche
cayenne

#1

I currently have a 2005 Porsche Cayenne and I’m paying $600 a month with 8 months remaining. My lease is for 3 years and 12,000 miles and I started the lease with 15,000 miles on it. At the end of the lease the mileage is not suppose to go over 52,000. I have already driven 53,500 miles and the cost per mile over is $.18 per mile. Also, I need new tires and new brakes soon, and i might have “bumped” the right fog light out. My insurance deductible is $500. I don’t have a lot of extra cash on hand right now, and I don’t want my payments going up. Last point is I have good credit.



Ok now for the questions…

1) Should I turn in the lease right now (get the front fixed) and try to roll into a new SUV lease for around $600 BUT This will probably mean that I’ll have to lease a non luxury vehicle.

2)Should I wait til the end of the lease, pay for tires and brakes now, get the front fixed before turning it in, and then get a new lease in 8 months.

3) buy out the lease and start making payments for around $500 per month.

3a) does $500 seem like a lot knowing that the current Kelly blue book says that it’s worth about $19,000???

3b) What kind of issues might I have with owning past 60,000 miles


#2

I would expect maintenance costs to be quite high in the coming years. I would try to figure out the least expensive way out of this, trade down to a more manageable expense. ‘I don’t have a lot of extra cash’ and ‘I own a 6-year-old Porsche Cayenne’ don’t go well together…


#3

Texases has summed it up very well.

Try to remember that leasing is the most expensive way to get a car, so if you really want to live within your means, you need to get rid of this car and buy something with a lower purchase price and a lower cost of maintenance than a Porsche. If you have good credit, you shouldn’t have a problem getting a car loan, and as you may be aware, interest rates are still low.

Of course, the absolute best way to get a car is by paying cash for it, but if you have a cash-flow problem, your best bet is a car loan at reasonable rates. I suggest that you check the rates at a few credit unions, as they usually have better rates than most banks.


#4

Why would you even consider another lease? Can’t you see the all the restrictions and expenses added onto a car when you lease it?

Except for business only use, leasing is almost always a bad deal financially. Too many people all with their hands out for your money and too few options for you.

Time to get out of the cycle. Look at each of your options and choose the one that get’s you out of a lease at the least possible cost to you.

Try to buy your next car (maybe the same one you turned in if you like it, you can usually work a deal with them. Finance as little of the car as possible.  You want to work to the point where you can buy a car without financing.  

I am 64 years old.  I bought my first car when I was 16 years old.  I borrowed half of the cost of that first car from my father.  One other time I used a loan because I got no interest or other charges financing for two years.  At two years I paid cash for the remainder. 

That is the cheapest way of buying a car. The cheapest way of owning one is to make sure you do all the maintenance listed in the owner’s manual and have it done by a local independent mechanic.


#5

Not in my area they don’t. When I was shopping around for the best rates for my car loan, the credit unions where .5% higher or more than the rate I got at a normal, national bank. Most places will tell you on their website, you may have to call a couple more, but it’s good to shop around for the best rate you can, it’ll save you hundreds in the long run. Then, when you have that information, talk to the salesman and see if they can meet or beat that rate.
Also, look at it this way, for $600/month you could have paid for a nice Mazda or Acura in a couple years.


#6

You can also do the required maintenance work yourself, get a notebook and record at the time you do it the date and mileage that it is done at and make sure you keep all parts receipts, especially the oil and filters.


#7

Generally people who have to worry about the cost of gas/repairs/insurance on a Porsche should not be driving a Porsche.

That aside, I agree with the other responses that you need to get out of this lease and actually buy a car. Maybe it won’t be a “luxury” car, but once you stop caring what people you don’t know think about the car you drive, it’s liberating in many ways. Good luck.


#8

thank you ledhed75 for your response, but when I got the car 3 years ago the economy was doing just fine, and to your point I didn’t care about the costs. Circumstances have changed, the economy is awful, and to be totally honest I’m not making what I use to. With that being said, I have to admit that I got quite accustomed to a certain lifestyle. The reality today is that I still have champagne taste, but I’m on a beer budget. I want to have the best I can reasonable afford. Also, my husband and I own a 1994 Jeep (very beat up), it has over 200,000 miles and we drive it as little as possible - it’s going to fall apart soon. Unfortunately to your point of not caring about what other people think- I’ll have you know I feel crappy driving a crappy car.

My question is - Why is it that everyone here has said that buying a car is the best way to go. I’ve owned cars in the past, but the issue is that it’s impossible to sell them on the open market (for around KBB) and you get robbed by the dealers, when you trade them in. To me it only makes sense, if you want the same car forever. I’ve always felt that purchasing the fastest depreciating asset isn’t a sound decision. Based on the cost calculators it has always made more sense to lease a pre-owned vehicle than buy one. Why do so many people feel buying is the best option?


#9

Because at the end of the lease you’ve paid $28,000 plus whatever your up front was for a car that you don’t own. If you want to talk depreciation, your Porsche depreciated 100%.

Additionally, you owe them an extra 300 bucks for your mileage overage, and that’s assuming you park it for the next 8 months. And they’re going to charge you for any damage. And you’ve had to maintain it properly for them. In short, you got all the negatives of owning a car, only you don’t own it.

So you’ll have paid out over 30 grand when all’s said and done, and you’ll have absolutely nothing to show for it at the end of the day.

Meanwhile I can come along with 30 grand, buy your Porsche after you turn it in, and drive it all I want, and You, were nice enough to pay the depreciation for me. Thanks! :wink: But it’s a pretty crappy deal for you, because now you have to go spend more money for a car, while I’m done paying for your old Porsche, and when I decide to get rid of it, I’ll get money for it, unlike you.


#10

The Cayenne is worth about $19,000 if it is in clean condition, meaning it needs minor reconditioning to resell. Tires, brakes, and the fog lamp can add up to $1500 - $2000 easily on a Porsche. That $19,000 estimate might be unrealistically high. BTW, what is the buyout price?

The maintenance and repair costs will be high. You can save by buying a 2005 Infiniti FX35 for around the same price, but the M&R costs will be about one half the Cayenne cost.


#11

Based on the cost calculators it has always made more sense to lease a pre-owned vehicle than buy one. Why do so many people feel buying is the best option?

**

Because, when you buy a car, you can put as many miles on it as you like, and you don’t have to pay a fee for going over xxxxx miles when you are ready to sell it.

You can sell the car anytime you want, to get out of the payment, without having to ask anyone for permission to do so, if its paid in full.

After the 3 years are up, you actually have something that you can use as equity when you decide you need a different vehicle, unlike what you have right now, which is nothing.

Unless you have been putting the $150 difference between leasing the Cayenne and purchasing it into a bank account for the past several years, you truly haven’t gained anything, financially.

As for your comment about feeling crappy when you drive a crappy car, does that mean that you think a brand new Honda Pilot as being a crappy car, or does that mean that you think a used Honda Pilot that has 120k miles on it is a crappy car?

Because if you think that a brand new car with a lower tier nameplate on it is a crappy car compared to your Porsche Cayenne, then that’s a personal issue we just can’t help you with here.

BC.


#12

Some people enjoy paying cash for well maintained, fully depreciated vehicles that are known to be safe and reliable. Over the years their lifestyle lets them accumulate a great deal of liquidity and many reach the point where they could write a check for any car the dealers might have but prefer to just keep on with the proven success of the past and keep the accumulated liquidity free for really good investment opportunities or the “rainy days” that seem to ocur from time to time.


#13

It is quite difficult to reacquaint oneself with a new lifestyle after being used to it for so long. But, as you’ve found out, it’s not always good to take things in stride. Some of the richest people drive old, beat up trucks or cars, very few dabble with high end vehicles like Porsche, Ferrari, Lamborghini, etc.
Time to throw that all away and buy something more affordable, like a Ford, Honda, Hyundai, or Mazda.


#15

I just did the math on this lease. In 3 years at 600 bucks a month comes to $21,600. Holy Cow! You could pretty much buy a decent Focus, etc. for that.


#16

For Pete’s Sake, another thread rising from the dead.


#17

Yeah but still interesting. The guy says he doesn’t have a lot of money right now, yet leased a $175,000 car, is going to get a mileage charge, plus brake and body work at a dealer. I hope the girls were impressed and his brother has some cash to loan.


#18

It seems the OP was a female and she preferred being gouged in a monthly lease payment compared to dickering a sale on a used car that might result in less than the KBB price.

An excellent source tells me the Cayenne, like Rovers, is a poor resale prospect and leasing is the dealership’s best option to squeeze blood from the turnip.


#19

I am also 64 years old and purchased my first vehicle in 1967 at 15 years old. I paid $900 cash which I had in savings as I would have been required to be a be a minimum of 21 years old to sign a legal contract (loan). Did you borrow money from a private party or at that time live in a country with different laws?


#20

I like the dead threads. Unfortunately they don’t go back to the mid 1970s when my GM schools and experience pretty well ended.


#21

OK , you like dead threads, why ask a question of someone who has not posted for years.