California dreaming....leasing questions

what the dealer suggests, u do the opposite

 

totally agree, you will get hammered in a lease. Buy the car, own it, and drive it the way you wish not a mere 5k per year. I have also a GTC Sport will i will trade on my new Cali .

 

to many factors and i would consider the actual cost differential between owning and leasing to be a rounding error....

1) how does your state tax leases, car ownership, plates and trade ins ?

2) do you have more productive uses for your cash ?

with an open end lease, you are responsible for the residual amount so i would worry so much about whether you structure it a 5,8,10k mile per year....

 

wait wait wait, buying the car is NOT an option cause the depreciation is MASSIVE from new.

"These cars hold their value well" lol yeah

I mean he should do the 24 months lease and then give the car in and get the new one continuing the lease, like he suggests.

If he can afford it, why not. but NEVER new.

 

between depreciation on a purchase, and the cap cost probably about the same, maybe a purchase edges out because you can always move out of the car, no car holds the value, so either lease or buy

 

He might lease a used one

 

Check with your accountant. Only a small portion of your "luxury car" depreciation will be deductible. That's only about two months worth of payments.

As for holding their value well, check the used car prices versus new and make your own assessment.

 

I plan to purchase my next car used but currently my lease is capitalized as an equipment rental.

 

The turbo is the latest greatest. I am new to my 30 and like it far more than I thought I would. Just drove it eight hours today. It's hard to pull the trigger on an F12 when the Cali does so much well. The sound on the Cali 30 is not fab, the turbo even less so. Turbo is crazy faster with a much longer high gear for better mileage. It's styling cues are almost all an improvement. I like the controls on the wheel versus the stick, like the unstacked pipes, love the change in the bridge, probably prefer the older hood.

Timing is an issue for the turbo as you may wait awhile. The louder 30 is a great car. Much more than I thought it would be. Personally, I like the turbo but probably wouldn't pay for the upgrade today. Buying today, I would more than likely wait and get the newest thing.

Lease/purchase is all math and taxes. Cash is king. Cash flow is even better. Do the math.

 

Maybe it's different with Ferrari dealers,but dealers will give a better deal if you finance rather than pay cash. The dealer makes a commission on the loan. As long as you get a loan with no pre-payment penalty, get the better sales price, finance the car and pay off the loan after the first payment. Of course this will only work with pre owned Ferraris.

 

Selling a Ferrari, unless it's a limited series OR almost new (which means used but with very little km and a good price) takes a LONG time.

If u buy a used FF let's say at 250, don't espect to sell it at more than 200 later after 1 or 180 after 2 years. Especially if u load it with km.

 

Modern Ferrari's, with very few exceptions, depreciate. In dollar terms a lot. In percentage terms, not as bad as many cars. Maser's are worse for example, which you must know.

Check cars.com or whatever to get a sense of what cali's asking prices are at age 2-3. Most would have stickered for $225-$260.

Can we ask what business you use your sportscar for?

 

well in the USA u keep prices higher than in Europe thanks to limited supplies, but who knows if u will sell it at a equally reasonable price when ur time comes.

The California T is hitting the market, ur model will be quite old when u resell it.

Then again why are u worried about resale if u're talking about a lease and return ?

 

It's an open end lease.

 

Buy the Car, you are trapped in a lease

 

Oh I absolutely agree, I would never lease a car. I was was just telling Marmist why the OP had to be concerned about the value of the car at the end of the lease.

 

Sorry, with all the back and forth i thought you were the OP, LOL

 

It's all about math, but one thing to consider is that sales tax is less on a lease. In fact, I think that's part of the reason they are suggesting a 60 month lease but turning car in after 24 or so. The sales tax may be 24/60 (40%) over that period instead of 24/24 (100%) if you had a 24 mo. lease. If you buy, you pay 100% of sales tax before you drive away. This may not matter much in states with low or no sales tax, but with a rate close to 10% in California, that's real money.

 

Yes, but sales tax is deductable on your taxes. You will pay up with a high deposit to return a car in 2 years. Could be a 30% depreciation.

 

That's not how sales tax works on leases....it's simply the entire payment times the sales tax rate each month.


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Not if you live in California? I believe sales tax is only deductible if you live in a zero income tax state for individuals?

That said, he is talking about making this a business use car. Thus the entire lease payment including associated taxes is deductible (I believe but haven't looked in a long time that there are limitations on size of deduction in order to keep people from deducting luxury cars - I know there are for purchased cars and can't recall for leased cars?)


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