Doug, I'm really not big on pissing matches, especially with a bunch of car buddies. My only point was that we're all entitled to use are hard earned cash in whatever way that works for us. Beyond that, I respect your view
oh, the old lease vs buy debate..... they both have their merits. i have a mortage but could easily stroke a check to pay it off should i choose. i guessed i'm getting hosed for the 4.5%
That's really not my point and I said knock yourself out - which has high potential. How much is a Ferrari worth after an accident ... that 20% or 40% or whatever is iffy estimating. One wrong move on a convertible is 30k and the CCM's could run 30k in two years. F1 out of warranty could run 15k as well as other items. BMW Mercedes etc. - they are in the business of leasing cars and offer full coverage during the lease term. You guys can do whatever you wish ... but I think there is a lot more to consider than the payment and would strongly recommend buying a used one.
Thanks and I respect you for leasing My brother who is a Doctor and my other brother in business both lease high end cars but also use them for their dd's. They think they are ahead in the game and they probably are. I am really just playing devils advocate - but I do have a few questions. Does Ferrari underwrite the lease ... I just can't see why they would get into that business. The other question would be is if the car is damaged and repaired who suffers the accelerated market value? Mileage has to play a big factor - if the guy is locked and makes it their dd I don't see Ferrari only charging another .15 per mile.
Hosed in a place that you live and deduct interest - let alone the home outlasting your term of the loan and builds equity. Now if it was a second home that you used on occasion - maybe and that's why the areas where people have second homes took the biggest hit in the real estate market as well as the high end car market. People will dump what they do NOT need if necessary.
i actually don't get to deduct interest (personal exemption phaseout) but i think for 2010 everyone gets to.... haven't done 2010 yet.
Ferrari has a dedicated lease entity that is extremely competitive. Let's face it, they wouldn't be in that business unless it made sense. As far as damage, insurance obviosly takes care of the repair and if the event happens to accelerate the depreciation, it will not effect the residual established when the lease was executed. Mileage is a factor and the miles can be set at lease initiation based on expected utilization. In most cases the car will be worth more than the buy out at any given time, making it seldom worth returning the car at the end of the lease versus buying it from Ferrari and selling it privately. This is what I just did with my 2008 Spider. Work out quite well.
That's what I did with my 355 and Maserati and was planning on doing with my 458. Is it possible to get 5k miles per year on the lease or is that a bit to high?
Could be worse.... My brother in law's employer pays 4K per month for him to drive an AUDI A4 in Sao Paulo!!!!
When the 458 came out our dealer here told me that they had a deal at $25K down $2500 month with 3K per year on miles 24 months? not sure if that was thru Ferrari. It is was tempting!!!
The mileage limit only applies (and hence only hurts) if you give them the car back at the end of the lease. If you sell it first and pay off the balance, even at month 59, you are off the hook on mileage. You can also trade the car back to the dealer before the end of the lease and again, you're off the hook. With the lease you can be in a new car every year with only your monthly payments as your 'out of pocket'. (There is a $1400 lease fee at the beginning of each lease.)
Sorry I'm not the financial wiz that all you guys on here are plus I'm only 19 haha so I'm trying to understand this. So you guys arguing for leasing are saying that it makes more sense because you could invest your capitol in other business ventures that have a higher rate of return than tying up your money in a depreciating asset? I guess that would makes sense but you're still out 3-4 thousand every month. Unless the 300k that you would of spent is giving you a greater rate of return. 3 thousand is only 1% of 300k so you could be making anywhere from 12-24 thousand off that initial money if you had it invested well. So I guess it would be a good idea (considering you actually have 300k to spend) if you're trying to stay in the newest model ferrari and you don't care that you don't get to keep the car at the end of the day. Am I getting this at all or am I totally off haha?
Whether you lease or buy your going to pay for the depreciation so just take that amount out of the equation. And if Ferrari says a 458 will be worth 50% in 60 months I tend to think they are pretty damn close or else someone in their financial department is going to get strung up. The bottom line is money factor, which from what people have said FNA is offering .0027 which doesn't mean **** to normal people but multiply this by 24 and you get an approx APR of 6.48%. This isn't that great of a rate compare that to BMW who give .0016, .00111 with security deposits and I'm at 2.6% with BMW. YTD I'm making 4.22% tax free in my muni funds and add on the fact I'm deferring sales taxes and you can start to see how leasing can be cheaper then paying cash. I ran the numbers that cpiguy gave on a 458 and for me making 4.22% on my money it would cost me $89 more a month to lease. IMHO a small price to pay to keep your cash in your pocket not Maranello's. Unless you think the dollar is about to become worthless fire paper but if that's the case why the hell are you buying a Ferrari, go buy guns and ammo
I think I got 2.7 Money Factor (0.027 I think) through FFS for 5 years. They requested me $75K down. Residual is pretty good for my favor.
Sorry, take it back. Actually, my Money Factor was 2.4 or 2.45. It is normally 2.7 but when I make a down payment that FFS requires, then I could get it lower. 0.00245 or 0.0024 5 Year Lease $330K $75K Down $3100/Month.
So, over the 5 years, it is $261K out of pocket ($69k less than buying -ignoring interest value), and assuming they are right about a 50% residual it is worth $165K @5yrs so it looks like you would need to see about $100K of benefit in leasing to go that way. that big of a down-payment makes no sense for a lease IMO -not turning me on (and I like leasing in general)
