Ordered My First Ferrari! 488 GTB Rosso Corsa

It seems to me you could just finance the vehicle with no mileage restrictions and own the vehicle.

$302k + sales tax ($27k +/-) (unless you register in Montana- no sales tax)
10% down - 30k
Loan amount approx $299k
3.9% through Ferrari finance or TD for 84 months puts you at 4K month.

 

First of all congrats.

Second- open ended leases can be big trouble if you get in an accident. There was a recent thread to do only a closed end lease. I'm not a believer of leasing for a toy but putting that aside- see if you can do closed ended lease.

Doubt you will get 300k back in a few years. Maybe 270-275 but at this level what's a few bucks.

And as far as writing off the lease, you can absolutley do it, till you get caught. Hard to justify writing off the car but I hold certainly try if your accountant is game.

Good luck and congrats. Keep us posted as the car gets closer to arrival.

 

Or you could use Ferrari Finance and do a balloon retail, payments would be quite a bit less and have same "residual" at end (i.e. the balloon payment) of 60 months and you could quite easily, presumedly, sell the car for a lot more and re-coup some unless you want to keep it...

And, since you cannot "finance" the car until you have a VIN, I would have the dealer work up a FFS balloon contract to see how that compares...I think you'll like it

 

Beautiful spec'ed car, mine is very similar to your "classic" build. With regards to leasing, I would stay away from an open ended lease due to what SoCal mentioned, I believe he was referring to another thread where I brought up that same recommendation. If you plan on selling the car back to the dealer within 1-2 years, then the mileage restriction doesn't mean much.

The only issue is, you can do a 3 year closed end lease, but your residual is still $159K, meaning your payments will jump accordingly, but you will recapture that equity once you sell the car back to the dealer. This just protects you should you get into an accident throughout your ownership, think of it as a hedge. Your factory options DO NOT residualize on a 488, so get rid of the forged wheel option along with the CF on the exterior and Daytona style seats, they do nothing for resale. Keep the CF steering wheel, don't you even think about removing that option.

With the 720s around the corner, your dealer is being very optimistic with the valuations... think about it, they were willing to sell you a 488 without going the usual route of a waitlist/buying a prior Ferrari. Hedge accordingly. Expect to lose around $30K-$40K/year throughout your ownership. They were not "kind enough" to give you an allocation... somebody somewhere must've backed out of an order and you probably walked into their lap at the right time, or somewhere thereabouts. If you don't believe me, ask them to show you a deal jacket for other buyers/sellers that took your route and see what they gave others for their 488 trades within the past 3-4 months to keep it recent. By law, dealers are required to keep records of every car they sell for up to 7 years, they usually keep the first 1-3 years of deals onsite, then store the older ones offsite through entities like Iron Mountain/etc. See what they show you and how "kind enough" they will be.

With regards to your accountant, make sure they know you're thinking about leasing a new Ferrari and NOT a BMW 3 series...

People just can't seem to wrap their head around the fact that Ferrari is now a publicly traded company, YoY sales and profits mean a lot to traders/investors, who won't buy into the "heritage" argument as much as their customers will. They are increasing production, coupled with the 720s, just goes to show your dealer is fudging numbers with regards to buying your car back at that high of a valuation you stated.

With regards to your monthly payment, there's not much you can do since you're getting the car at MSRP (like all others) as well as the buy rate/MF... only thing you can do is play with the lease length and options to adjust the payment.

Finally, in California, assuming the vehicle will be registered there too, you will be paying your use tax on (9.5%) of your monthly payment, this is problematic because:

Let's say your monthly payment (excluding tax) is $3,500
Well, with CA tax included, that payment goes up to $3832.50/ month...

When you decide to sell your car to the dealer, your payoff amount is:

residual value + Total remaining monthly payments ($3832.50 each) - interest charges

Your payoff will include sales/usage tax for the entire term, so in essence, you will be paying taxes for 36 months, even though you only kept the car for 1 year. Does that make sense?

Some states, like Maryland for example, will give you a credit on the value of your trade-in to eliminate this problem, not sure if California does the same. For this reason, you may want to go the Montana route.

For the aforementioned, I should send you a bill for $1000, but because I'm "kind enough", I will waive it this time around.

 

Est Monthly (w/tax): $3730...

Imo if you cant buy yourself, stay away from a Ferrari ...

 

Let me understand this. You anticipate driving about 100 miles per month? The advantage you will have on resale
Is tha about 75% of the 488's will look exactly like yours.��

 

Congratulations on an excellent spec color wise!

 

OP here's a very similar one in the flesh..

https://www.carsales.com.au/dealer/details/Ferrari-488-GTB-2016/OAG-AD-14458275/?Cr=0

 

I am a first time poster as I am currently in the market for a new 488 spider. Fully agree with all of the comments posted by boobernackle. Curious if you would think the estimated cost of ownership is slightly reduced if it was a 488 spider vs 488 gtb as I would think they would hold up better so maybe 20/30k annual ownership cost?

 

Regarding your question about coating the car, you should do that after the car is clear wrapped. Enjoy. The car looks gorgeous.

 

It's great whenever a first time buyer gets to order a car. So congrats

As to the financing thing, I'm not sure leasing is the best option here but it might be. But Ferrari financial is not the cheapest but probably the easiest to work with on these kinds of cars. Very professional.

Good luck with your decision.

 

If you are going to buy the car to be a garage queen- skip it. Drive the dang thing. So you lose another 5k a year by putting on an extra 1000 miles. Who cares. Buy it, enjoy it. Good luck and again, congrats.

 

Looks awesome buddy!!

 

Open-Ended Lease? Never do an open-ended lease. I understand it's a Ferrari but that defeats the purpose of a lease. If the bank won't guarantee the lease end value you should just do conventional finance. In reality a closed end lease should be far less money. To be honest I've sold cars for 21 years and have never done an open-ended lease and did think they existed anymore.

 

Very nice order config.

You got very very lucky or we have to wonder about Ferrari's 488 order book now.

I do think that the introduction of the ?2019 California based on the Maserati Alfieri chassis may eat into 488 production so they are pumping out the 488 production.

 

You would be correct in most cases, but with a 488, I believe the residual does not change if you do an open or close ended lease IIRC, which means Ferrari Financial is holding the equity either way. The advantage of a closed end still would be the option of simply walking away from a car that's had a major paint/repair work done.

It's like shorting a $10 stock, the most money you can ever make is $10, but the amount of money you can lose is unlimited (in theory). Hedge accordingly.

 

Hmm, well congrats.

 

"If I had a nickel....."

But I'm still happy a first time buyer got to order a new car. It's a thrilling experience and a lot of fun.

 

This. I hate to burst your bubble but my buddy just specced a brand new 488 for march delivery and he has never bought a Ferrari before. It's definitely getting easier but regardless, congrats and enjoy the ride. It's or no list, allocation or no allocation, there is nothing as thrilling as a Ferrari being delivered.