Lease or Buy ?

This topic (buy, lease or borrow?) has been discussed at great length many times on this forum. Just a few minutes browsing the archives will yield a wide variety of viewpoints to consider. I think you’ll find most (but certainly not all) people around here believe buying a depreciating asset (like a car) for cash is always better regardless of "the current market". Then there are those who disagree believing they can realize greater overall wealth by leasing or borrowing for the car and then judiciously investing the unspent money.

My opinion is that you should do lots of homework in the archives here and decide based on your own particular situation and wealth management skills. Good luck!

 

If you are really rich and can afford to pay cash it is always the best way to go.

If you own a business and can justify writing off a portion of your payment that is great.

If you can use that cash to strengthen your portfolio then leasing is a great idea.

It seems the Fcar would have a good residual value, therefore you should save $$ over the finance option...Still depends on the money factor and the acquisition fee etc...

Another great resource is www.6speedonline.com they have an entire section on leasing. Good info and some recommendations for leasing companies.

Good luck..

 

Depends on the yr/model. The 'GT' Ferraris tend to depreciate pretty badly; the F430 might be closer to a normal depreciation curve. The Enzo is probably just going to move up.

Overall, though, I agree: if you can afford it (and the depreciation), buy it. The real estate and stock markets aren't all that attractive right now.

 

It would seem that unless you think a car will appreciate in excess of 8% a year you should buy it. Most leases are 6.5% or higher (pre-tax money unless you can run it through your biz) which would require that you make in excess of at least 6% (close to 3% in the States after taxes) to compensate for the taxed gain on sale of the appreciation. Meaning...you will need to take too much risk with the capital you won't need to deploy with a lease to make up the difference. Translation? Buy it....the real question in my mind is how much net worth do you guys think someone needs prior to deciding to buy a +$200k car?

 

Easy... 201k. The extra 1000 is for gas.

 

You don't need any net worth. If you want it, buy it, find a way to pay for it, if that doesn't work, sell it and try to do it again as soon as possible. I charged the downpayment, have ~20k in the bank, bills are 10k a month, and financed for 12 yrs.

Does it really matter in life? Is any of that important? NOPE.

If you want it and a bank will finance it, you'll find a way to pay for it, I have faith.

 

cash is king

 

Great first post!

You got it Tony!

The right idea anyway - not sure about the cash.

 

Well, something is the king, though. We can all agree on that.

 

All money is relative. If you can buy cash, good for you. Anytime we have cash, my wife is buying art with it, so that does not work for me.

Now, if I pay attention and be very efficient in our business, and do the same work with one less person, I have more than enough left over to lease a Ferrari 360 Spider, if I can cut two people I can have a Ferrari and a Spyker.

I'm working on how to do with three people less...........