Lease question

Just curious to know people's experiences. Have any of you done a lease where at the end of the lease the residual value is more than the market value? Ie, the residual value is US$68,000 but the true market value (resale price) is US$60,000 (just an example)? It makes more sense to just return the car at that point, but has anyone then experienced a lot of "fines" or penalties for additional depreciation for such items as chipped paint, "excessive" interior wear, and what-not that gets levied by the bank in an effort to recoup their loss? I thought I'd post it here at the 996 segment since the earlier 996's should be coming off lease at this point. TIA.

My experience as a Porsche saleman, not as a lease customer is: If the car is leased through Porsche financial, you should be able to drop it off, pay the turn-in fee(if there is one) and walk away. With other banks, Chase-Compass, etc. they know they will not get your business again anyways, so they gouge. Porsche wants to earn your business again, they are liberal as far as scratches and normal wear and tear. Residual value is 99% of the time more than market value. The only way this changes is if the mileage and condition is exceptional. e.g. If you buy a 15K mile/yr lease and only use 5K per year, well then it is probabbly worth more than the residual, but if you use the whole 15K, then it will not be. Another factor is down payment. This applies only when trying to get out of a lease early. If you put only inception fees down (this is called zero down) then it will ALWAYS sting to get out early. If there is a large down payment (capitalized cost reduction) then getting out early seems to work. Good Luck with the leasing, it is just another way to finance a car. For me, leasing is not an option, I like to modify my cars....

Most of the lenders are reasonable with regards to paint chips, and normal wear and tear. Usually if the damage can be "hidden" by a business card there will be no charge. Tires of course must in decent shape.

I'll echo John. From what I've gathered, if you lease a car through the 'parent' leasing company--996 throught Porsche, a MB through MB, they will be reasonable at the end of the lease. Second party leasing will act like the gestapo. That's been our and friends' experiences.

One way that the buy out can be much more than the FMV, especially on Porche's is options... my Boxster is up in 2 months and the FMV is approx $32k. The buyout on the car, 70% of the MSRP is $44k! This is due to the residualizing of ALOT of options, carbon fiber, 18" wheels, etc. My new 996, also going to be a lease, will probably suffer the same problem. Exotic options, although they may hold value in a retail sale in the future will burn the leasing company in any wholesale transaction. Unfortunately, their loss is my gain. I have made it easier for them by keeping the mileage low on my car, but I know they will have a tough time moving it on the other end. My 996 may be even worse. Who is going to pay $70k for a C2 coupe in 3 years, even if it does have the X51? <img src="graemlins/burnout.gif" border="0" alt="[burnout]" />

Thanks for the replies, y'all. Good info to have. This question was more for the next car. I didn't want any constraints on the C4S, so I wanted it clearly mine to do as I wished. Thanks again.

Wow, these residuals seem high. I was in looking at a 996 recently with sticker of 81k and the residual on the deal they were talking (60 month) was $41k. That seems about right for a 5 year old car with average miles.

pig4bill, The numbers I gave were only examples, but pretty close to what I remember was offered to me on a 3 year lease no money down if I wanted to lease.

I driven BMW's for majority of my adult life from 3/5/7 and the 7 I did lease and boy did BMWNA gouged me for every cent. They probably would eat up the costs($2250) if I went for another BMW(which I didn't) so paid my fees and would never lease again. Regards. Mike