Selling and leasing cars is a complicated business. If you’re a luxury brand like Porsche, chances are good that you lease a lot more vehicles than you sell outright. When it comes to buying a 911, stepping up to the plate with a check that starts at $80k is a tall order. On the other hand, if you break it down into a “digestible” $1,200 per month or so, the cost seems more within reach (at least to some). Leases are good for business, because they also turn over a lot of clean, low mileage used cars, and a $65k, three year old 911 is a lot more attainable for most people. So what do you do when your three year leases decline, reducing the future population of used cars? If you’re Porsche, you find a way to restructure leases for 24 months.
So far in 2011, Porsche has more than doubled the number of 24 month leases offered in previous years. Falling interest rates have dropped monthly payments to the point where a 24 month lease is nearly as attractive as a 36 month lease. In the case of the 911, a typical 36 month lease runs $1,118 per month while the 24 month lease runs $1,263, or just $145 more per month. Shorter leases ensure that clean used vehicles are available for interested buyers, and allow customer leasing 911s to step up to a new car that much sooner. Porsche’s own research shows that those leasing 911s are much more likely to lease another 911 that customers leasing other Porsche vehicles. It’s worth checking out online car leasing companies like Economy Leasing.
Source: AutoWeek
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
