Anyone lease their 458?

The decision depends on a number of factors but I don't think raw title ownership is important. It is strictly financial and varies from person to person. I do think a buyer should look at both options then make the decision for himself. In my case (in the US) I had a lot of liquid assets against which I could borrow at 1.95% which is less than the asset yield.

 

Leasing vs Buying debate can go on forever.

The one thing nobody has mentioned is that if one decides to lease it is best not to put any money down. (ZERO CAP COST REDUCTION)

If the car is totaled or stolen all the money that you have "put down" is lost and can never be recouped !!!!! CARDINAL RULE IN LEASING IS DO NOT PUT MONEY DOWN (if you have the choice,which in almost all cases you do)

(The argument to put money down to lower the monthly payment doesn't hold water....You still have the money in the bank and can use it to make up the difference in the monthly payment.)

 

Isnt one issue with the lease to buy that you eventually end up paying all the sales tax on the "purchase"?

 

The only reason to rent someone else's money is that you have to have whatever it is or you can make more money than it cost to rent it.

 

No, it is actually one of the significant advantages of leasing. You only pay sales tax on each payment and when you sell the car early, you do not pay tax on the balance. On my last 430, it saved me approximately $13,000 in sales tax.

 

What if the 458 is the company car?

Very little to no tax deduction for a company to purchase the 458.

On the other hand, the company would have a nice tax deduction for leasing the 458.

The other alternative is to take approx. 415K out of the company as salary, give 35% (100K) to Uncle Sam and purchase the car.

 

I get so tired of these comments. I can lease my Cali and have real different benefits. One of them is the fact that I couldn't otherwise afford the car.

J

 

Not in Illinois.
Here you have to pay entire sales tax based on purchase price,pay it up front or add to your payment and then pay it again if decide to buy it out at the end of the lease.
Welcome to Communist Republic of Illinois.....

 

WOW!

 

OUCH!

 

After reading this whole thread I still haven't learned which is a better option.

I've learned that it depends on the person, but that's pretty much it.

Lets say I want to keep it for 5 years, buy or lease, which would be the cheaper option?

 

If you're gonna keep it 5 years, and I mean truly keep it, then likely the "cheaper" solution is to lease. Simply from total amount of dollars laid out over the 5 years. Now, the only problem with this is that at the end you turn the car in and nothing left to show.

More cash out with finance, or potentially with loss of investible income from the money you would pay out in cash for the car. Just depends on what you want to do with the money, and how you could better use the money.

J

 

Thanks for the response.

Anyone else can chime in here.

It's a tough choice, but I think I'd rather be comfortable enough to purchase it, but if I can't get to that point, a lease isn't a bad idea either. It depends on a lot of things.

 

+1 Talk about a Taxable State, no wonder our Esteemed President is from that state.

 

Texas does the same thing!

 

There's not even a leasing option here, and tax is 115%. I'd take either one of those state tax schemes in a heartbeat. It's brutal here.....

 

Leasing is really for situation like....
You need a smaller payment or less immediate out of pocket.
Tax deduction (you can get tax deduction when is a purchase too)
Control depreciation (but thats really for close-end lease)

Best leasing deal will needs to be...
High residual.(not sure what % its based on)
low money factor 0.2x is standard not high not low, more to the high side.
discount from msrp (not going to happens on F cars)

So leasing a F car is just a ok deal and I still consider not worht it, unless you need smaller payment or less out of pocket.
Also, if you want to purchase the car at the end of lease, you will end up paying more than just finance it at the begining....a lot more.

 

Read the post. I said that if you keep it five years and give the car back in, then you are out "only" 180k. Of course this is spread out over 60 payments. You can use that total amount of capital spread out however you wish during that time. Possibly earning for you depending on situation, rate of return, etc.

Secondly, you only lose that 180k if you turn the car back in. Lets say you owe 120k, the car is worth 145k, you are out only 155k over the 3 years if you were to sell it before lease end. There would be other factors in there, however, that is a simplistic view.

I am sure that leasing is not for everyone. However, to disregard it as an option is not smart either. Depending on each individuals position financially it could be very attractive for a variety of reasons. What bugs me, and this is not directed at you, is that old mentality of only people who could not afford the car lease. That is just ignorant. There are other reasons.

J

 

It was, I believe, 48-50% for my 5 year on the California through Ferrari Financial.

J

 

Residual on a 458 right now is 141k (5yr open)
Money factor between .00225-.0025

 

So a 458 with a $280,000.00 MSRP, with 10K down for 60 months with 7 percent tax and a residual of $141,000 or 50% along with a Money Factor of .00275 or 6.6% would cost $3509.87 per month.

That is $210,592.20 plus $10,000 down or a total of $220,592.20 over a total of 60 months.

Now there are lots of ways to look at this, but for the leasing company if they take the 458 back in 5 years and the 458 has limited miles, say 3,000 a year or 15,000 total, there is a pretty good chance they can sell it for soemthing close to the residual, so they should make a decent amount on the car, not to mention what they make off the money rate.

Now that you know the lease cost and who is making the money on the deal, look at a straight finance or cash deal and take in to account your own financial circumstances and you should be able to determine which is better for you.

All though for sure the least costly approach is to continue dreaming about the 458 and go to Exotic Racing in Vegas a couple times a year and drive the wheels off a 458, this should save you about $250,000 in costs easily

 

Yeah, for me it more about cash flow, which is why I lease. I don't measure my lease payments against specific investments, but instead it leaves me with more cash to operate my business, which if everything goes right, should have a significant upside

I understand the logic of having the cash or comparing a lease vs investing and which is better, but it simply doesn't apply to me.

 

Yes but that 6.6% is not APR, is average, if you translate that to APR is like almost 10% I think, I don't have the formular but I remember 12% average = 21% apr.

If you like the cash flow or ROI is greater than the finance charge, I would lease it but thats assume you going to need that 260k to invest on something. like all out down to last penny, otherwise the ROI reason doesn't really make sense.

If your company want to use it for tax deductible, lease it too, is good.