Interested in Lease Data

http://www.putnamleasing.com
They do leases extremely high-end cars.

 

to my knowledge, nobody does closed-end leases on cars like this. putnam, premiere, and their ilk do open-end leases. the deals are more like balloon loans than leases, but being a lease is a win for sales tax purposes in most states.

doody.

 

FYI: At the current time in California, Chase does offer Ferrari/Maser standard "closed-end" leases. This may also be true in other states.

 

Never lease! The small tax advantage one may get is far outweighed by the disadvantage of the money you end up paying to use the car as well as the even more money you pay if you then want to own the car. NEVER LEASE OR FINANCE A TOY!

 

As mentioned above, Putnam Leasing does offer a lease program on Ferrari as well as other makes, but our leases are structured differently from "traditional" leases from Chase, etc. Chase does have a closed-end lease program on new and used Ferraris, but their program is not very aggressive or flexible. We at Putnam are usually able to offer a better lease solution for those so inclined. If you have specific questions, please feel free to contact me directly.

[email protected]

 

while i agree with frank's protestation 98%, everybody's financial situation is different. if you're not sure whether you should lease or not, talk to your financial advisors. leasing makes a ton of sense for some people, although it is a mistake for most people.

doody.

 

Without sparking a big lease/finance/cash debate, let me just say that leasing is most definitely NOT for everyone. We are a small company, and don't expect everyone who buys a new or used Ferrari or other exotic to lease with us. We provide a leasing solution for those clients for whom it makes sense. Granted, there are individuals out there who may be leasing their vehicles for the wrong reasons. When we don't have the best solution for a particular client, we will say so. Leasing can provide tax or other financial benefits in certain cases, and we are here to serivce those needs.

In the end, though, it is up to each boy and girl to use their head and consider the facts and do what they think is in their best interest.

Not to border on advertising, but if anyone has any questions, please don't hesitate to contact me. Putnam is very active with the Ferrari Club, and generally are the preferred leasing agent for the National Meet as well as the Cavallino classic.

 

I just received confirmation this morning from Putnam that I was approved for my lease for a 360 Spyder.

Now the benefit is is that I am a small business owner and will lease the vehicle for 5 years in my Company Name. Tax write off! I will have a residual value at the end of my lease but can re-lease it with $ 1.00 residual next time around since it is in my company name. If you lease it as an individual they can only re-lease it with a minimum residual of 15% buy out.

Only bad thing about the whole thing is that Texas requires the sales tax to be paid on the total value of the vehicle upfront (although it is tax deductible with the feds), while other states only charge tax on the depreciation value during the term of the lease.

All in all, it is a good deal for me. I am able to purchase most of my exotics this way.

 

I would suggest that you ask for an amortization schedule from the lease company before signing. One of the things I recently discovered from one company was that 60 months was really 58. (Two months went in the leasing companies pocket!) The total cost of the lease was huge, and that the actual interest rate I was paying was well above market. When I looked at all the numbers, I was paying thousands more for the car than I would have payed if I just borrowed the money from a bank. You have to look at an amortization schedule...then make up your mind. I always look at the total cost of the vehicle when buying.

By the way...I finance most of my exotic toys for a while....usually paying them off early. I like to maintian a certain amount of liquidity. Only the really rich can pay cash.

Also...as I discovered on election day when a 17 year old kid made a left turn in front of my Z06 Corvette I was driving (thank God it was not my Ferrari) and after hitting him found myself in a ditch...life is short...enjoy the ride!

 

Free, but what do you do about the tax when your company sells the car to you personally or to a 3rd party? If you have depreciated the car down to $1, you will owe tax on the amount over that $1 that you sell the car for.

 

I am a sole proprietor, the car will always be in the Company Name. I see no need to ever transfer it to my name. If for some reason I did decide to do that then I could buy it from the company for what ever amount I chose too.

I very seldom sell any car I purchase. I usually keep them till they wear completely out.

 

So how many "worn out" cars have you thrown away over the years?

 

Well lets see:

1966 Pontiac GTO
1968 Pontiac Firebird
1972 GMC Truck
1981 Oldsmobile
1983 GMC Truck
1985 Cadillac Broughm
1988 Jeep
1992 Chevrolet Truck

All were purchased new, except the Pontiacs, and I pretty much wore em all out, I either towed them off or gave them away to friends or relatives who wanted them.

I did trade in a Mark V once on a new Firebird I gave to my daughter (was upside down on the loan value)

I still have the following in my garages or shop:

1947 Willys Jeep
1958 Chevrolet Corvette
1988 Ferrari Testarossa
1989 Chevrolet PU
1995 Dodge Dually
1997 Viper RT/10
1999 Plymouth Prowler
2000 Dodge Durango
2001 Dodge Dually
2004 Jaguar XJR-S
and my soon to be
2003 Ferrari 360 Spyder.

All are in excellent shape and probably will not part with any of them for a while.

I just love vehicles. The more the merrier!

My wife however, thinks I am crazy to have so many vehicles.

 

Frank, although I paid cash for my 355 I can still see one benefit of financing (albeit not leasing). What if my cash is invested and making a hefty rate of return (ie much higher than the car loan). How does it make economic sense to pull that cash out of a high return investment and put it in a car?

Ben

 

I leased my new car (M3) with the intention of buying it at the end. I kept the $$ I was going to use in our company stocks. Our stock price has 3x since and still going.

Now I can pay for it in full with some left.

 

You pay a higher interest rate on a lease vs what you can buy money for purchase, but save sales tax on the purchase amount.

One point though that fails to get noticed...you pay sales tax on the principle AND interest payments on a lease, right? Any eggheads wanna help me figure that one?

My brain hurts.

 

In Texas, when you lease a high end exotic you pay the sales tax on the entire selling amount of the vehicle up front. (Our legislators need to work on that one)

 

Having worked with this in multiple states, here's a quick comparison:

Texas, sales tax paid only on trade difference, so trading a $50k car on a $100k car, you only pay 6.25% of $50k (the trade difference). This is regardless of lease, finance,or purchase. Sounds bad for a lease, but if you trade out of your lease just before the end of the term, you can recouperate some of your taxes on your next purchase.

California (among others) you pay sales tax on monthly payment (interest/rent charge and all) on a lease, or the full selling price on a purchase and the rate is the standard tax rate for the county in which you register the car (as high as 8.5% when I lived there, still in the 7.5% -7.75% range if I remember correctly). As a side note, CA has very high registration costs based on purchase price as well.

In both cases (again this apply to other states as well), you are responsible for the sales tax on the residual amount if you take the lease to term and purchase the vehicle for the residual value.

Dependent on the car and its value, our program is set up to allow the client to re-lease the car at the end of the term. Also, most of our leases are eligible for a transfer of equity, meaning there is a way to change cars in the middle of your term.

Long enough post for now. I'll explain how that works later.