Expected payments on used Ferrari ?

I'm leasing a used ferrari at $100k with first month, last month as down payment (plus doc fees, acquisition fee, DMV). On a 60 month open-ended lease where I can buy the car at the end for 35k, what is the expected monthly payment (not including CA tax which is added on).

Are open-ended leases a bad idea on a used car? I want to lease rather than finance for reasons not included here.

 

Missing some essential data:

Tell me the price of the car and the extra costs and interest rate or "money cost" as they sometimes call it in leasing and I will tell you the payment.

Tell me the payment and price/costs and I will tell you the interest rate you are paying.
Alden

 

60 month open-ended lease
$97k
Pay 2 months up front + CA sales tax
DMV fees $850
Doc fee: $250
Acq fee: $995
Balloon payment: $35k

I guess what I'm trying to see is if I should shop around or go with their $1,407 + tax payment for 60 months on an open ended lease.

 

My calculation shows you are paying about 7% for the money, I think you can do better. New car loans go for 2-4% so you see what I mean?

Do you have to pay sales tax on the vehicle at lease initiation and tax on the payment each month too? I thought it was and either/or thing, but I have not leased a vehicle in quite a while.

Calculator here that will tell you your interest rate on the lease, usually hard to get them to tell you this figure:
Lease Rate Calculator

Open end lease, the good and the bad, the balloon may be 35K or not:
http://www.investopedia.com/terms/o/open-endlease.asp

I am not an accountant or F&I guy, but I did stay at a Holiday Inn Express a few weeks ago.

Alden

 

Thank you! The +sales tax is on the monthly payments (up front 2 months and subsequent ones). I'm comparing Putnam and Premier - they're between 5.4 and 5.9% .. I've read mixed reviews about open-ended lease. People swear by it or trash it.

 

That seems like an awful lot for a used car.
For a used Ferrari, my bank is giving me 2.75% on a 60 mo loan.

 

There are also lenders that are willing to go on a longer term that specialize in exotics, up to 10 years. Woodside Credit and CCL. Usually more expensive than a traditional loan, but may be cheaper than the lease game. Woodside may have an early payoff fee.

 

If you take out a 10 year traditional loan at 6%, your payments would be around 1080, paying around 130k in full. Your deal might be (very) slightly lower at full term (unless you finance the balloon payments which will make it much more expensive), but if payments are your issue, you could always put more on when you can or have a little extra $ in your pocket if you need it. Leases always seem inflexible to me.

 

yikes, 7%...
ive got an unsecured credit line with my bank with variable interest at 4.5-5%...I could prob get even better, but I almost never use it.
might want to look into it.

 

You are welcome!

With an open end lease you are taking the risk that the car will be worth what they project at lease end, if not you pay more at the end.

Of course, if the car is worth more than projected, they would owe you a refund. Good luck getting that check cut!

There is more "fuzzy math" in the leasing biz than anything else I have seen.
Alden

 

These are all items I have been trying to research. Nice to see there might be some other options out there.

 

I used Lightstream to finance my car.

Unsecured loan @2.9%

Sid

 

More good info, thanks!

 

Penfed is similar but secured.

I wouldn't want a payment that high but if you're ok with it I would rather up it another 300 and have the car payed for in 5 years or bump it to a 6 year loan and you own it at the end without having to come up with another 35k.

 

This. Then sell or trade the car and get 50-70% back. (I'm assuming maximal depreciation)

Unless of course can write off the lease.

 

The purpose of going open-end lease at 6% vs. finance at a lower rate was writing off the portion of the lease that will be used for business (please let's not get into the "you can't write off a Ferrari" discussion). My plan was to sell the car in a couple of years and I am assuming near maximum depreciation.

The wording of these leases is very confusing and I've read some pretty scary stories of people being charged a lot of unexpected fees when paying it off (more than the typical 1 month payment penalty). So I'm thinking maybe it's better to just buy it all cash and not get the write-off benefits. But I probably won't do that either because my state's 9% tax will be due on the entire purchase price versus the lease, where it's only due on the payments made ($120 a month tax).

Hmm...

 

You're LEASING a USED car with a BALLOON??? Wow...I want to meet that salesman.

 

x2 LOL

 

CPA + Attorney advised against it, so I had to pass.