Purchase or lease a 2016 FF

FFS is great. Low key. Lease has the obvious tax benefits and the walk away. Purchase has the Sales Tax hit, and the need to sell. They do 84 months however. If you're getting out of it for sure, why not lease?

The 3 yr. FF residual used to be 250 if I recall. So if they're 175 then you're probably stuck there. What are the numbers? Without that it's impossible to say.

 

Lease it!

 

In most states, you still pay sales tax (and use tax, if applicable). Or that tax is passed through by the lessor.

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Why not just buy an older car? There are plenty of examples with under 5k miles. Then you pay less in sales tax and need to worry less about depreciation? There are few differences between the model years.

 

Here is one - this car has been on the market for quite a while and I'm sure you could get them down on price:

https://www.cars.com/vehicledetail/detail/647016037/overview/

 

Frankly, I have never found it more advantageous to lease over buy regardless of any tax law/rule etc. Buy the car (if you can or finance) that way you can enjoy it payment headache free and swap it when or if you are every ready without lease payout issues.

From what I learnt hanging with some dealer owner friends a good lease deal just means they took a portion of the car profits and stuffed it into the lease to cover the cheap money and better residuals.

 

+1
Moreover, there is the hassle of limited mileage with a leased vehicle. I'm sure that's not the problem with the way most people drive their Ferrari/Lambo. With me, that's a big problem because I easily log well over 10000 miles a year.

 

no shields - way to go!

the math doesn't lie. if you can finance at 1.9 percent that's tough to beat. only way leasing is better than financing is if you are able to right off the lease payments to a business. If you are just leasing it personally I wld think your better off financing.

 

Dollar for dollar, I'm sure 1.9 is more palatable.

The lease does have its advantages, though ... you will know exactly how much the car is going to cost you over the period of time you lease it for. The depreciation on the FF seems like a gamble to me, given the original sticker. Where is the bottom? If you lease, you don't have to worry about that, and if the bottom is higher you can buy out the car and cash in the equity. If it's lower, that's not your problem. In my state, you only pay the sales tax on the lease payment, not the total amount of the car, which is a lot of money at this level. Finally, god forbid, if you have a mishap in the car and it needs bodywork or paintwork, if some idiot playing Pokemon go runs into you, that's not your problem, either, as long as you have it properly repaired. If it's totaled, you have the gap insurance to take care of it. Selling a car like an FF down the road after it's got a ding on the Carfax or paintwork on it, that will be a task.

I guess I would ask myself whether the payments over the life of the lease is worth it to me to enjoy the car, and whether or not I can be disciplined enough to stick with the car through the end of the lease. I speak from experience, having just bailed on a newly leased Jaguar ; )

But I did pay for the Ferrari.

 

LOL
It's a new road hazard thanks to all those Pokemon Go zombies. Recently on a long road trip, my wife mentioned that as a reason to not take the nice, winding 2-lanes non-divided country road, and instead go for the straight, boring 4-lanes divided highway.

 

If you go with a single lease payment, don't you lose it all if the car is totaled? Maybe not a high probability, but worth considering.

 

If you are an "S" Corp, or some other type of business entity, you can lease the car yourself and then in turn lease it to your company and receive a deduction for a percentage based on how much it is used for business. I leased my SLS Final Ed. directly through my company and it's been great. It's in the company name and every expense related to the car comes off the top at year's end. BTW, there are some AMAZING deals on used FFs out there. Low miles. Perfect condition. Good luck however you decide to go. They are fantastic cars. LOVE the FF!

 

Is the lease a closed end lease or open? If open the market risk is on you. I would never take an open end lease.

 

Approx 6.9% interest rate on that lease

 

I didn't have the info for the residual payment or the cap cost reduction, so I just used an example that I thought sounded right for an F12 in the current market. I don't have any info from Ferrari Financial or anything like that, so it will surely be different for you and depending on the dealership. But at least once you have all the numbers you can just plug them in.

The general formula I've always used for a lease payment is as follows if you use the values below:

P = Price of car

CR = Cap reduction, or the amount you put down after subtracting the following: 2 months payment, DMV, Tax on cap reduction, acquisition fee, etc.

N = (P-CR) or Net price after cap reduction

R = Residual Value (Usually a percentage of the sales price. For FF's through Ferrari Financial they are pretty good right now I think)

D = Depreciation Fee: This is N minus the Residual value divided by the length of the lease.

F = Finance fee: This is the product of (N+R)M

M = Money Factor is a preset amount by the bank.

Payment is equal to (D+F)1.09 This is to account for state tax. The .09 is California State Tax

So if you want to know what your payment would be on a 36 month FF lease, here is an example:

P=275,000 Based on an F12 average build and a discount.

CR=35,000

N=240,000

R=175,000

D=(240,000-175,000)/36 which equals $1805.56

F=(240,000+175,000)/.00235 (estimated money factor) which equals $975.25

Monthly payment for 36 months: $3031.08 In this example you would probably be putting 45K down in total.

I think for a single payment you could just plug in the money factor and multiply by the number of months and add your drive off cost. But I could be wrong.

Let me know if this works for you. If not, I can e mail you a spread sheet in XL with the formula in it. Good luck!

 

Impressive math VRDJS. Thanks for posting that.

In favor of leasing:

* In Cali and many other states, you only pay tax on the amount depreciated in the lease vs. buying and paying sales/use tax on the full value.

* Given the <ahem> very limited and illiquid market of buyers for the FF, the final price at which you sell it might be much lower than the residual value. 12 cylinder cars in general are a tough sell and I don't know what color or options you seek but unusual choices here could make the sales market even less liquid for you. The lease takes advantage of the dealer's ability to find a buyer, ie a liquidity premium.

That said, leases are usually a worse financial deal than buying in part because the buyer often doesn't realize that they should still negotiate the price of the car down just as if they were paying cash. Use VRDJS's calculator for a good comparison.

You owe us pictures after you get it!

 

That's a great write-up by vrdjs! Subscribed.

Consumer Reports mentioned this as well.

 

Thanks for that, sir. The tax thing is actually a huge reason that I lease cars. You pay on the cap reduction and then on every month's payment, so you're only paying Uncle Sam for how much of the car you use. Then, when you go to sell, you aren't as behind as if you'd paid, say 36K in tax for a new F12. And, yes: We MUST have photos. I freaking LOVE the FFs.

 

Uncle Jerry in your case, not uncle Sam

(as someone mentioned above, leasing can be great *if* its closed end. Open ended is a whole 'nuther thing.)