Lease or buy Roma

Not a tax expert but I understand many new exotics are leased. I'd consult with your accountant. Good luck with your decision.

 

You WILL get hammered when you sell it and the lease should reflect that in the rates …

 

My recommendation is to get the lease quote so you will know what the residual value will be at lease end. That will give you a sense of what you may lose whether you buy or lease.

Good luck.

 

For some reasom that I cannot explain,ROMA resale values are plummeting currently. Which means that purchase option is very risky right now. The lease residuals may not yet refelect the downturn in market resale, so It might be a case of lease being more advantageous for once!

 

To me, the most valuable features of a lease are (a) the tax benefits (which can vary considerably depending on your circumstances), and (b) the option value embedded in the lease.

Every lease I've seen gives the lessee the option to purchase the car at the residual at the end of the term. This option can be quite valuable. If the car depreciates more than the residual (because of market conditions, an accident history, etc.) you hand them the keys and walk away. But if prices stay strong, you can buy the car, trade it in and pocket the difference. At least in CT, it's a surprisingly easy process that can be handled by the dealer when you buy the next car.

Of course the lessor presumably understands all this and will build it into the price. A lower residual also makes the option less valuable, and in my experience, residuals tend to be quite conservative (low) on cars like this.

And then there are all the other costs of a lease, most importantly the interest on the high average principal balance. Those costs may outweigh the benefits if, for example, the residual is low and the interest rate is high.

Personally, I've found the option worth it for some car purchases, not worth it for others. If I had to guess, I'd bet it won't be worth it for a Roma - rates will be too high and the residual too low. But don't take my word for it - I'm only guessing.

Anyway, TLDR: Don't forget to consider the value of that option!

 

What did you decide to do?