Okay Lease Gurus, whut wrong with dis picture?

But it is cheaper 1299 per month vs 1765.

Its all about the payments...........

 

And the protection of the lease on residual value. If you happen to wreck the car during your lease period and have it repaired well, the residual value is not affected. If you purchase the car and wreck it during the four year payment time, you will have to suffer the depreciation of a wrecked and fixed car.

Drawbacks in Texas:

If you want to keep the car at the end of the lease, you will have to be purchasing it from the leasing company and have to pay taxes again on the residual value. Yes, tax on the whole lease price at lease inception and taxes again if you want to keep it. Remember, it went from the dealer to the lease company the first time=first sale and now you purchase it from the lease company=second sale=taxes due on residual..........

Generally your deductibles will have to be lower and you liability limits much higher on a lease vehicle than on a purchased one.

Just a couple of thoughts.....

I only sold about 4000 cars during my 23 years in the car business and in that time I did write quite a few leases. More guaranteed balloon notes than leases.

 

I looked at the same situation. Basic Problem: Maser's have completely crappy residuals.

If you were to lease a BMW or MB, then the 3 year residual is around 58%! That's when the payments become much lower.

Also, make sure that the dealer or financing party is giving you the best rate of the lease. Yes, that can be negotiated also.

Your sale price on the lease should be same as your purchase price for normal financing. The financing discussion should begin after you have settled on a price with the dealer.

Another thing: never, ever put any cap cost reduction on a lease!!!

 

Agree totally. The dealer is making the same in the actual sale portion of the transaction. The lease factor is where you can make up the difference. Also check into the mileage limitations. 10k 58%, 12,500k 56%, 15k 52%, 18k 49%. That would be typical residual numbers on a 3 series BMW on a 36 month lease with different per year mileage factors. Keep the lease shorter to minimize your total out of pocket costs.

 

You can't compare a BMW lease to a Maserati. First off, the so called lease special (closed-end) Maserati has is with Chase Manhattan and it's at 48 months with the only available mileage at 10K per year (no 12K or 15K option). Secondly, Residuals on almost ANY exotic car will be terrible let alone the Maser and the money factor has been bought down per Chase and Maserati Dealers. I currently have a 2006 GS Coupe with delivery miles and cannot come remotely close to the factory lease special because of the buy down on money factor. Last but, not least, the factory lease special indicates a HUGE cap cost, sure you can elect not to put it down but, what do you think that will do to your monthly payment, it sure won't bring it down. Bottom line, Maserati's have one of the worst depreciations and leasing or buying one new does not make sense at all, only if you're getting a tax write-off on your lease, a which point, it doesn't matter what your monthly is, as long as you do not put any cap as down. Wait 2-3 years when they have taken their biggest depreciation.

Oh yeah, only 12 years in the business but, 75% of my transactions have involved leasing.

 

whats the NPV of each ?

 

I'd be the guy that buys it for $39K in 4 years.

 

You seem to be neglecting taxes which would bring the numbers $2500 closer as a WAG.

 

Exactly my thoughts! Neglected NPV in your calculation.

 

Please note that Porche Financial Services will not lease a Carrera GT to anybody, Chase will. I would guess that Chase's aggressive lending causes them to have to give low residual values to make up for the cost of dumping these cars at the end of a lease.

 

no reason to ever pay msrp for a mazer. take $10k off the sticker and then run the numbers.... ?

 

yeah, ime, only the manufacturer's financing arm will do "reasonable" residuals. obviously they sometimes do overly-aggressive residuals to spur sales too, but that's their problem. a third party won't.

the balloon options are great if you can work with a lender (like Putnam) to set it however you want (within reason, of course) - since it's your car at the end regardless. from a financial mathemetics point of view, i think this is the best way to fly - you pays your money and you takes your chances - but they're your decisions and estimates.

doody.

 

I get more like $5 grand more to lease than to buy because of the tax differences...could be more or less depending on how your state taxes auto purchases. In Michigan the tax rate is 6% so here goes:

purchse price of car 90,238 * 1.06 = 95,652.28
5 years at 6.75% = 1882.77 after 48 mos you owe 21,788.24. PROVIDED you can sell the car for 39,950 you gain 18,161.76 back of the 90,372.96 you spent on the car leaving you with a total outlay of 72,211.20.

Lease the same car at 1,299 per month and you pay tax of 77.94 per month in 'use tax'. Added up with taxes included your payments over the 48 month term are 69,834.24. Add the downpayment of 10,727 to that plus the additional 'use tax' on that downpayment of 643.62 and you get a total cash outlay of 77,463.12.

On this car at this term it probably makes sense to buy the car. However, realize that you take the risk on the resale.

 

you can't buy a Honda at $1000 over dealer cost....might be pretty tough on a Maserati.

 

Not really. If you're paying sticker on a Maserati for anything other than the MC12 you're getting ripped off...

 

Could you expand on that? Is this about the additional cash outflow of ~$400/mo and the future cash inflow of ~$20k for the buy or a comparison of both? Or neither?

 

But Uro....They stopped building 330 GT 2+2's in 1968.....?????