leasing a ferrari

Need more info, money factor, cap cost, residual, mileage restrictions. Do you pay excise tax on the entire price or just the lease amounts? Can you expense it for business?

I financed my 2014 Spider at 3% FYI.

 

Check your PM brosef.

 

I used Premier for my open ended lease. I've used them before. Easy to work with easy to get in and out of.

 

Premier is top and great deals ..... now please never use Putnam its a scam its not a real lease they play word games. You can never get out its like getting a divorce you never stop paying ! unless you keep full term they will kill you and or they open end you !

 

Just curious on the details. I switch cars often and maybe a lease would suit me better. How much down (percentage is fine) did u need to put down?

 

You should never have to put money down on a lease.

It makes sense to lease sometimes only if the money factor and residual value are good.

 

Agree. I'd need to know the lease specifics but usually if the car gets totaled or stolen, that money is gone along with the car.

Leasing is just another form of financing so run out the numbers all three ways and make your decision.

 

+1. 0 down for sure, if a leased car is totaled you eat your downpayment. I'm not 100% sure but perhaps Gap insurance aids the lessor in this situation.

I get these notices for leased exotics now and then, most of them require $20000+ down. I guess that's what it takes to make a Bentley lease palatable given the residual is 50% in 3 years LOL.

 

This is not always true. In open ended leases (like mine) I want to stay ahead of depreciation and I am not a mile weenie (I'll put 5-10k) miles on my 458 a year.

Open ended leases are essentially financing with a balloon at the end. The less down the more money that is subject to finance fee's. I'll be out of mine in 2 maybe 3 years.

 

This varies. Email them and they will give you all the details.

 

The 2 year lease on the 458 is pretty reasonable right now, don't recall how much down but the lease is about $4000/month but most the money goes toward paying the car down to the residual (about 255k believe) and not interest.

 

Which financing company are you referencing here?

 

This would make leasing less attractive for business as only the interest and not principal can be deducted as a business expense correct?

 

One Fchat sponsor bashing another? very nice.

to the OP - we lease ours. Leasing, for us, given a number of factors, worked well in that I live in a state where it allows me to pay less tax....primarily sales tax.

Each situation is different so compare your options.

My tax guy is hyper-conservative, so he won't let me even think about deducting a Ferrari for business use....especially these days. (nor will he let me register it in Montana, etc etc - ha ha).

We've used Putnam, was a very good experience. FFS has some good programs depending on your situation. A closed-end lease protects you from unpredictable depreciation anxiety but are limited (low mileage) and more expensive than a good open-ended. No single right answer for you, but for us it works well.

 

My insurance, American Modern, insures to the payment price. You total the car and you get a check for what you paid. End of story

 

For business, you can deduct whatever percentage of the entire lease payment you use for business (not just interest), less the add back on pricey cars.

 

For the lease returns, how anal are the leasing companies charging back for "scratches, and wear and tear"? Of course some can be in the eyes of the end of lease inspection.

 

With Premier there is no "returning" the car. You either pay the lease off or sell the car. There are not mileage limits or condition requirements.

 

Why not just buy the car in the first place? The point of a lease is to not have to worry about the depreciation. You know how much you are at stake for. If you have to sell the car at the end, then you've taken an unknown depreciation hit AND paid for the lease as well. I'm not putting it down, I just don't understand the advantage.

 

It's a fair question. But $200k++ is a lot of money to tie up in a vehicle, opportunity cost of money and what not. Much more palatable to throw a percentage down, pay a couple grand a month. Interest rates are not awful and, for some, there is some write off potential. This is my situation anyway.

 

Cool. I respect that.

 

So just finance it. That's the exact same idea and rates are still super low.

 

I can easily write a cheque for the full amount but i choose not to put that much cash into something that is losing money. I do lease purchase and pay 15%-20% deposit and minimum monthly payments over 4 years with a baloon at the end. I never run the full term and will change it after 24-36 months. It will cost a bit in interest but i can use my cash to make more money rather than putting it in a lump of metal.