The problem with buying an Ex-leased Ferrari

Sorry bud, I’ll try to keep the revs down for ya


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You infer that leases are causal somehow, as if people who buy them do not treat them the same way

 

I have leased every Ferrari to date and treat it as though I own it... why you ask? Well, I lease a Ferrari (closed end) to hedge against an accident. If I were to wreck the car in any fashion and need to have it repaired, then yes, it goes back, but the new owner can gladly do a thorough inspection to know exactly what was repaired/replaced.

 

I think it's the driver not the lease, and how many "owners" have a plan to trade-in or sell their cars within the same time period (3 years or less)? Personally I do not lease, and although I don't buy with a plan to sell, there are times when the desire for the next car outweighs common sense, but I will always treat the car as if it will be in my garage forever. I assume most here feel the same way.


Jim

 

Whether or not leased cars are generally worse or not, I sure wouldn’t want his neighbors car.

 

For the life of me I can’t make sense of leasing. But to each their own.

 

If you live in California and changes car every 2 to 3 years, the lease option makes the better financial sense, as you are only paying taxes on those monthly payments. If you buy the car outright with cash, you pay the full amount of the sales tax and doesn't get any of that back when its time for you trade your car in. Uncle Sam takes all your tax money and you don't get any of it back. This, of course, only applies in California.

 

Here in the UK many people lease the car through a company to get a tax break on it.

I asked the dealer the other day what %age of new F cars are financed he said roughly 50%

Regards

Michael

 

Understood in california as I lived there for 30+ years but you pay 4 grand a month for 3 years and plus a 50k down payment....I dont know man- just seems like a waste.

 

"Lease expense - 2017 Ferrari 488 - $80,000" on your company tax return is just begging an audit from the IRS.

 

Nope...and I am in Cali.

 

Math works in favor.

 

Of course we're talking about leasing vs finance again!

The MAIN variable to consider between leasing vs finance is how long you plan on holding on to the car before you trade in (which is sometimes difficult to predict, but if you can do it ahead of time then you're in a better position):

If you know you'll be trading in at around 2.5 years or sooner - LEASE! You will pay less tax but more interest, however since you're only keeping the car for a short time the greater interest is ok. Mileage restrictions don't apply because you'll be selling the car back to the dealer prior to lease term end.

If you'll likely keep her for more than 2.5 years - FINANCE! You will pay more tax initially but less interest overall.

It ends up being a wash at 2.5 years because the higher tax you pay when you finance is offset by the higher interest you pay when you lease.

For a typically optioned (i.e. ~$50k in options) 488 GTB costing ~$310k, an open ended lease is $4200 with NO DOWN PAYMENT ($12k drive off includes first month, security deposit, fees). Open ended is the way to go, just treat the car like you bought it and take good care it. Don't let people scare you about "what if you get in an accident with open ended lease!" It's no different if you got in an accident with a financed car! Accidents are tragic, but don't miss the benefits of an open ended lease because of that argument! Even closed ended leases would typically get sold back to the dealer because the residual set by Ferrari is so low that you often have equity in the car. I imagine that if you really bang up the car maybe your better option is to just hand it back at the end of the lease but I would guess this happens less than 5% of the time. And if you do sell back to dealer (whether open or closed end lease) then, again, mileage restrictions don't apply, there is no penalty, drive as much as you want and realize that you will get a lower offer from dealer when you trade in - just like if you had bought the car!

Cheers!

 

So let me throw this scenario out. You buy a 488 gtb- call it 300k. Throw in tax and license and it’s 330k out the door. The car assume will depreciate 25k in a year.

I pay cash. I drive the car for 2 years and a the end of two years I trade in the car for something else and the dealer offers me 250k. In Arizona I get my taxes back when I trade for the next car.

It cost me 50k roughly to drive the car for 2 years.

If I lease- at your number 4000 a month plus 8k additional security deposit and such- I’m almost at 100k out of pocket after two years.

Because of this I can’t make head or tails why it makes any sense to lease the car other than the fact you don’t have 300k to throw down on a car.

 

Seems a pretty balanced assessment, I agree. To the used car market: leased cars are, almost by definition, less taken care of than cars that are bought to keep, which in turn means some pretty much abused 458s will enter the used car market and will enter the garage of an unsuspecting owner.

Kind regards,

Nuno.

 

I wouldn't touch a car that was leased with a 10 foot pole, people who lease Ferraris simply don't give a damn about the car and are likely buying it for the badge, reving it before the engine is warmed up to look cool, go hard with the shifts, touch the leather with greasy,sticky fingers. Leasing makes sense on something that will take a giant hit in value like a Bentley or a Rolls,AMG,M , but the F12 and 458/488 are holding their values well.

 

absolute conjecture, speculation, and nonsense. You're speaking in absolute terms perhaps you'll show us where you've studied all leased cars and owned cars to come up with that conclusion? Choosing not to buy because of perceived percentages is one thing making blanket bold statements like that is nothing but unfounded nonsense

 

an absolute generalization here is probably unfair but i think the market will indicate a lease car with one lessor is less desirable than a car with one owner for the reasons indicated