Open ended lease deal on 458 Yay or no?

My advice take it for one month then buy it or something, In such beauty you can't stand the idea of leasing..
I would lease an SUV (RR 2014) but not 458

 

If I did my math right you would have nearly $400k wrapped up in this car after 60 months assuming you paid cash at the end....

Pay cash or don't buy it.

 

In addition you can write off the difference it costs you to get out of it through the business. Definite tax benefits if you're not planning on keeping car. 488 will effect depreciation but probably not substantially for 1-2 years. The car has a wait list and will be more expensive than the 458.

 

How can it be a 100% write off through the business??

 

and how do you do this with a Ferrari.

Feel free to ignore this well intended suggestion. Don't buy something like this until you can pay cash.

 

How many miles/year permitted on the lease?

 

If I were going to do a 458 right now I would do a '11 with less than 5k miles for about 200k. writing off a 458 through a business is fraught with peril. It's usually expensive to get out of a lease a year early.

 

Just bought a 2010 with 6K, 195K, through my business. Picking it up tomorrow ))))))Financed through Ferrari. 60 mth 3.99 with 90K balloon at the end. Traded my 348. Monthly payment just above 1600. Plan to drive it a bit and then trade in 2 to 3 years.

 

Your lease deal kinda stinks...

Per my calculation you are paying a money factor of over .0033, which translates to an interest rate of 8% or so...that's at least double the interest of standard financing...

Good luck...

 

If your looking for a creative way to buy the car let's say 270 k use your bank. Put down 100k with a two or three year balloon . It's better than a lease and you may be able to run as a business expense. This will cost you much less than that 8 pct lease deal.

 

If I remember correctly my accountant said you can write off 100% of a lease but if you purchase a car it has to be depreciated over 7 years. He also stated there is a limit to how much they allow you to write off, so be sure the total cost of the lease does not exceed that limit.

 

Your thinking kinda stinks! The cost is the cost! cash, finance etc makes no difference. as a Wealth Planner for 30 years it still amazes me how successful people do not understand how money actually works.
You either pay interest or lose the ability to earn interest. if the cost of the money is 3.9% that's cheap money. It all about the use & control of those dollars. If you watch how the wealthy live they don't pay cash they collateralize!

Good Luck!

 

Are really using it for your business.
To pickup clients and to see clients.

 

Very true they don't use there money they use everybody else cash.
But when u are a millionaire with 40 million in the bank it's easy to do this vs
Guys with a couple million.
The very wealthy get special attention.

 

World's most giant IRS red flag: Leasing a Ferrari and writing it off for business purposes.

 

Mayor u are correct.
That's what I stated above.

 

For me buy a minty used with depreciation hit taken, pay cash and move on.

 

Even if your business is automotive-related, and you are using it for valid business purposes?

 

Will it raise eyebrows yes. Is it legal...that's between you and the IRS.

I will say it will cause a likelihood of an audit and IRS always wins on an audit--not matter what (at the very least the $10K+ in attorney fees).

Choose your battles.

 

I was creative in my 13 458 Spider purchase. Paid wholesale through an auction for $273K, MSRP $340K+ thanks to Allen Faulkner (I hired him to find the right car for me). Put $50K down because I wanted to leave my money in the stock market, getting higher rate of return on my investments. Took a HELOC loan at 3.99% variable rate. Then refinanced my home (had lots of equity) and got 2.875% on the new 10 year loan on my house. I could've paid off the car with cash but didn't want to take it out of the stock market. 2.875% loan will actually be lower since I can write off the expense when filing taxes on my house so effective rate is even lower than 2.875%. Almost like borrowing free money. Hope this gives you some ideas.

 

Agree 100% with The Mayor. I was going to do something similar, but was dissuaded by my accountant. Traffic cameras are everywhere these days, you will have to justify the 100% business use if audited by Uncle Sam.