Confidential Dealer Incentive Plan from Porsche

Link to "AutoSpies" article <a href="http://www.imakenews.com/autospies/e_article000088015.cfm" target="_blank">http://www.imakenews.com/autospies/e_article000088015.cfm</A>

I'm sorry Don. Can you explain to neophytes (read: non-leasers) like myself what exactly this means. Sounds very confidential and high profile. Regards.

It is current lease factors for Porsche. It is not public info. and should not be there. It actually can hurt people like me..... Porsche Certified Sales Professionals..... Thanks.

John... can you please explain? Thanks, Scott

Are these the dealer costs on financing and leasing or are these the rates the customer pays?

its the "dealer cost" sheet. IMO the retail rates are high!!...bank america is offering rates for 60 months of 4.74!! The lease factors are really High..

John Murray...sorry if I upset you. I thought if someone the size of "AutoSpies" had this info then it must be public knowledge for just about everyone. (Don't take any of my stars away) <img src="graemlins/c.gif" border="0" alt="[ouch]" />

I don't understand these lease factor rates. For example it shows a factor of .00260 for 700+ rating 48 month lease on used car. Cap cost of, say $60k x .00260= $156/month. That does not make sense. I wonder if the factor should be .0260 which make monthly payments of $1.560. Is there a printing error? <img src="confused.gif" border="0">

JWT,you forgot to add the deprecation. the 156.00 a month is the "fiance charge" aka rent Rent + deprecation = payment and the neat thing...the lender gets "rent" on the cap cost, and the residual....sooooo the rent would be closer to 250ish a month.

Thanks, Phil. What would the monthly depreciation run on the average?

Jwt, deprecation is figured off of MSRP......ie, the residual value for 48 months is probably around 49% for 15k per year....so if msrp is say 75K... 75000.00 x 49% = 36750 36750 resd. + 60000.00 cap cost =96750.00 96750.00 x .00260 = 251.55 deprecaciton = cap cost - resd.value 60000.00 - 36750.00 = 23250/48 = 484 484 + 251 =735 payment approx, other factors like lic fees, 1stpayment, lux tax figure in.....

The depreciation would be the difference of Cap cost and residual.. Auto Spies was not nice enough to provide a residual, so it's fairly useless.

Here is the definition of "Money factor" ________ Money factor -- A leasing term that expresses the cost of borrowing. It is similar to the interest rate paid on a conventional car loan, but it is expressed as a difficult-to-understand fraction. To convert the money factor to a recognizable interest rate, multiply it by 24. For example, a money factor of .00345 x 24 = 9 percent interest. The money factor is negotiable, and consumers who lease a new car should look for a money factor close to the current interest rate charged for new-car loans. ___________ <a href="http://www.bankrate.com/brm/definitions.asp?channelId=17&letter=a" target="_blank">Auto Loan Definitions...</a>

so if anyone needs lease payments, Just let me know, I will need exact msrp, cap cost, money facttor, term, cap cost reduction(if any) etc....

That makes sense guys. Thanks for the explanation.

Felker, Yes the Money factor may be negotable....most lenders allow mark up of 1.5...soooo .00260 + .00150 = .00410....thats the negotable part, the .00260 is the "buy rate" some manuf. have really dirt cheap lease rates...ie the current lease rate on a volvo s60 is .00050 for 48 months, and the least expensive rate I have ever seen......if you are Ford motor company employee, retiree etc....24 month lease rate is .00001 on a volvo v70 2.4

Sorry John Murray, I agree with Phil McGrath, you can get much better lease rates than those shown on the Autospies document, and if Porsche dealers are trying to mark those up further then it is a really bad deal for uninformed customers.

"Sorry John Murray, I agree with Phil McGrath, you can get much better lease rates than those shown on the Autospies document, and if Porsche dealers are trying to mark those up further then it is a really bad deal for uninformed customers." Trying and doing all day long!!!