Leasing a 911 GT3 RS 4.0

[swimd]

That title should get your attention. Warning, stupid question ahead.

I have never leased/financed a car before but just read into the topic and it occurred to me that all examples assume depreciating assets.
What happens then when a new car like the 911 GT3 RS 4.0 (unexpectedly?) gains value during the ownership?

Do you pay the monthly rates based on a conservative residual value that was calculated before the contract was signed (for example 70% after 2 years) and the leasing company keeps the difference between the calculated residual value and the actual residual value or do you get some money back?

[Dave Hedgehog]

if the car you purchased appreciates it has no affect on your figures, you have entered into a contract based on a fixed set of figures

if the car appreciates substantially it is in your interest to pay of the outstanding finance at the end of the term and take full ownership of the car rather than handing it back so that you can profit from the increase (assuming the finance has some sort of balloon payment)

Edited by Dave Hedgehog on Tuesday 22 July 15:00

[rfoster]

Contract hire (most common form of lease) does not allow any form of ownership at the end of the agreement - if the car is sold for more than the leasing company was expecting, well that's a bonus for them. They've taken the risk on the vehicle's resale value.

If you consider a finance lease option instead, you still don't own the asset but assume responsibility for the vehicle's resale value (i.e. you sell the vehicle on behalf of the finance company at the end of the agreement and retain the majority of the sales proceeds, usually 95% or thereabouts.)

[BoRED S2upid]

Out of interest how much would one cost to lease in the first place?

[Dave Hedgehog]

BoRED S2upid said:

Out of interest how much would one cost to lease in the first place?

depends on the agreed purchase price, deposit, number of payments, final payment (if you have one) and interest rate £1000-£1500pm would be a reasonable ball park

[CampDavid]

I guess it's all about risk and how much you want to gamble on the future value.

Contract hire is black and white, you pay the deposit, the monthly and hand it back after the agreed period. You care not for the resale value. You therefor spec your Mondeo V6 in yellow.

PCP with a guaranteed future value spreads the risk. You can either hand it back at the end or buy the car for the GTF payment. Handy if it’s gone north, as with the GT3 4.0

Bank loan – you own it and assume all risk.

[rfoster]

BoRED S2upid said:

Out of interest how much would one cost to lease in the first place?

New 997 GT3 PDK, 3+35 rentals, 10,000 mpa, non maintenance with RFLs supplied: £1623.78 + VAT per month

[XAF]

rfoster said:

Contract hire (most common form of lease) does not allow any form of ownership at the end of the agreement - if the car is sold for more than the leasing company was expecting, well that's a bonus for them. They've taken the risk on the vehicle's resale value.

I'm on my fourth lease car, sent two back, bought one at the end, and the one I've just got the lease company explicitly pointed out the option to buy at the end of the term. We'll see on that one in two years, depends on how much they want at the time!

[cb31]

rfoster said:

New 997 GT3 PDK, 3+35 rentals, 10,000 mpa, non maintenance with RFLs supplied: £1623.78 + VAT per month

I might be wrong here but that means £74k for just under 3 years. Surely you are better off buying one new for £79k (if you had the cash up front), or am I missing something?

[lamboman100]

Paying £1 - 2k a month for Porsche dullness is bonkers.

Better to spank the cash on something exciting / s*xy, like an Aston.

[CampDavid]

[rigga]

lamboman100 said:

Paying £1 - 2k a month for Porsche dullness is bonkers.

Better to spank the cash on something exciting / s*xy, like an Aston.

Yea OK .....

[rfoster]

XAF said:

I'm on my fourth lease car, sent two back, bought one at the end, and the one I've just got the lease company explicitly pointed out the option to buy at the end of the term. We'll see on that one in two years, depends on how much they want at the time!

Officially with any lease agreement, you cannot own the vehicle at any point of the contract. Some leasing companies (Lex, Alphabet) will offer to sell the vehicle to an unrelated 3rd party at the end of the agreement (who could then sell it onto you.) What they won't do is give you a price to purchase at the start of the contract, that would be determined by the vehicle's value at the end of the term.

[Dave Hedgehog]

rfoster said:

XAF said:

I'm on my fourth lease car, sent two back, bought one at the end, and the one I've just got the lease company explicitly pointed out the option to buy at the end of the term. We'll see on that one in two years, depends on how much they want at the time!

Officially with any lease agreement, you cannot own the vehicle at any point of the contract. Some leasing companies (Lex, Alphabet) will offer to sell the vehicle to an unrelated 3rd party at the end of the agreement (who could then sell it onto you.) What they won't do is give you a price to purchase at the start of the contract, that would be determined by the vehicle's value at the end of the term.

I bought my R32 golf at the end of the 3 year period, They did not contact me about buying it but when I got the letter about arranging collection I rang them up and they where happy to sell it to me for 2k under book price , saved them all the costs of collecting it and auctioning it with no guarantee on the sale price, fee's etc

[rfoster]

cb31 said:

I might be wrong here but that means £74k for just under 3 years. Surely you are better off buying one new for £79k (if you had the cash up front), or am I missing something?

Yes - they're £102k! But contract hire probably isn't the best route for a car that is likely to hold its value well (but of course that's not a certainty, which is why people still consider lease.)