16M for $229k!?!? | Page 4 | FerrariChat

16M for $229k!?!?

Discussion in '360/430' started by stokpro, Dec 31, 2010.

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  1. TimsBlack16M

    TimsBlack16M Formula 3

    Jan 27, 2005
    1,365
    Agoura Hills, CA
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    Tim
    The $12,000+ monthly payment makes absolutely no sense. Consider the math for a moment. Over a three year lease, the payments would total over $432,000 (plus the down payment) for a $300,000 car. As I recall, a friend of mine leased his 16M with approximately the following terms:

    1) $325,000 MSRP plus $25,000 premium
    2) $25,000 down
    3) 3 year term
    4) monthly payments of approximately $5000

    Tim
     
  2. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    1. How mangy miles per year can he drive?
    2. Is there a balloon payment at the end?
    3. Why would you put money down?
    4. Let's say the deal you wrote is true (which I don't think it is).... Why is it better than financing?
    5. He bought this car new with a $325K MSRP? Or he bought used for less?
     
  3. scott40

    scott40 Formula Junior

    Apr 4, 2006
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    #78 scott40, Jan 5, 2011
    Last edited by a moderator: Sep 7, 2017
    James, This... is crazy beautiful! I want it!
    Image Unavailable, Please Login
     
  4. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    So awesome. Great color.
     
  5. Joe Mac

    Joe Mac Formula 3

    Scott, for a little more than you were planning to spend for the Scud (before prices really plummeted), you could order a 458. I'm telling you the car is out of this world and far exceeds my expectations!
     
  6. scott40

    scott40 Formula Junior

    Apr 4, 2006
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    #81 scott40, Jan 5, 2011
    Last edited by a moderator: Sep 7, 2017
    Ahhhh!! I'm so fickle. I really dig the 458 in the shades I've been seeing. But isn't this cool? And it's at least 70k cheaper if not more...
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  7. tonyswfla

    tonyswfla Formula Junior
    Silver Subscribed

    Dec 2, 2007
    823
    Florida
    better hurry any buy......
     
  8. Joe Mac

    Joe Mac Formula 3

    i agree. totally killer car. you wont regret either purchase
     
  9. Sellnit

    Sellnit Formula Junior

    Mar 22, 2010
    975
    Cincinnati
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    James
    Tim, you nailed it on the head:

    for an example goto amazonleasing.com they have a calculator on the site.

    on a 265K car with 26k down (including first payment and deposit) on a 24 month term it is $5600 a month with a 151k residual with A credit. 60 month term is a bit over 3g
     
  10. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    The price is $325K

    How many miles per year?
     
  11. TimsBlack16M

    TimsBlack16M Formula 3

    Jan 27, 2005
    1,365
    Agoura Hills, CA
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    #86 TimsBlack16M, Jan 5, 2011
    Last edited: Jan 5, 2011
    Thanks...now try explaining that to Jason1st! His $12,000+ per month lease payment assumes a negative residual value...how ridiculous.:)

    Tim
     
  12. Joe Mac

    Joe Mac Formula 3

    Jason, sorry buddy but your numbers are WAY off.....$12k/month. Seriously?
     
  13. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    Based on that calculator, I was wrong.

    That calculator shows that based on a $325K purchase price, the total of 3 years of payments on that lease are $246,182.00. Then you give the car back.

    Tim, go lease away!! Sounds awesome.
     
  14. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    Joe, you're assuming that calculator is correct. The calculator also assumes A credit. Why would anyone with A credit lease a Ferrari?
     
  15. TimsBlack16M

    TimsBlack16M Formula 3

    Jan 27, 2005
    1,365
    Agoura Hills, CA
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    Tim
    From my prior post:

    A reliable Ferrari of North America executive told me that "more than 50% of domestic Ferrari buyers lease their car". Furthermore, an Auto Gallery (one of the countries larger volume dealers) senior executive told me that 70% of buyers lease their car. Reasons include the following:

    1) Given the short length of time that people generally own their Ferrari, a lease allows for considerable sales tax savings.
    2) Many Ferrari owners are leveraged, and would be hard pressed to come out of pocket for the entire sales price.
    3) Some Ferrari owners have alternative investments, and would rather not tie up such a sizable amount of liquidity.
    4) Some buyers take a "creative" tax approach, and write off some portion of the lease as an expense.

    Tim
     
  16. Jason Crandall

    Jason Crandall F1 Veteran

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    #91 Jason Crandall, Jan 5, 2011
    Last edited: Jan 5, 2011
    If so many Ferrari's were leased, Ferrari would have a leasing company.

    1) Leasing does not allow a short period of time ownership. Just the opposite. You're stuck with it the full term of the lease.

    2) It's cheaper to finance.

    3) It's cheaper to finance

    4) If you can write off a lease as a business expense, you can depreciate a capital expenditure just the same. Makes no difference. Good luck passing either off as a business expense.
     
  17. PCH

    PCH F1 Rookie

    Apr 7, 2004
    3,007
    With exotic car/Open End leasing you can get out any time.
     
  18. Sellnit

    Sellnit Formula Junior

    Mar 22, 2010
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    Cincinnati
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    James
    Oddly, I just spoke to one of my pals today, he is a collector and has leased all his cars under his business name over a 36 month period and pays for the payment with pre-tax income. I am feeling more ignorant with every conversation. Since I have had the ability to pay cash for toys I have, and have had a very narrow view regarding such items. My horizons have been broadened a bit in the last 24 hours. Does not mean I will do it, but anyone who consistently can get a larger return than the cost of the lease on their money should at least look at it. My impressions (apparently) wrongly have been that it is for people that can not afford to buy it to "rent" it. Someone here please correct me if any of the above is wrong?
     
  19. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    How? Can you be more specific?

    So I can lease a 458 for a couple months for $10K, drive it 8000 miles and drop it off and the leasing office??
     
  20. Sellnit

    Sellnit Formula Junior

    Mar 22, 2010
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    Jason you are incorrect, exotics are open ended, you can get out anytime by paying off the simple interest or residual. I have had multiple companies contact me today and they all have had similar explanations. Also dependent on your business and size revenue stream it is accepted. No where on your return does it have a line item for FERRARI, just auto expense, mileage and main. Your mileage may vary though.
     
  21. NSXLuvr

    NSXLuvr Formula Junior

    Oct 3, 2006
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    Ritesh
    Wow - this thread is all over the place.

    Regarding Leasing via business Vs. Buying personally. I have a 997 GT3 that I am leasing through my business. I figure all it does is reduce my taxable income. At the end of the lease I can turn it in or pay the residual value off. I calculated it out and talked to my accoutants. The $ numbers made sense to me and the accoutant said it was perfectly legal.
     
  22. PCH

    PCH F1 Rookie

    Apr 7, 2004
    3,007
    #97 PCH, Jan 5, 2011
    Last edited: Jan 5, 2011
    I've leased 5 Ferraris and terminated years prior to the end of my leae with no penalty. For a detailed explanation I suggest you contact Premier or Putnam Leasing as they can explain this far better then me. Also, Ferrari does offer leasing.
     
  23. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    If he is a collector, why is he leasing? He can't keep what he leases.

    I've leased many cars through my company. But, they were business/daily driver type cars. Totally different from a Ferrari. Besides, when I was leasing those cars, lease rates were cheaper than financing. That's not the case anymore.
     
  24. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    How much is the simple interest and residual?

    Ever been audited?
     
  25. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
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    Define "terminated". What's involved in terminating?
     

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