Open ended lease on an 04ish spider?

Not going to happen.

Firstly, I think you're confusing some terms. Open end requires the leasee to buy-out the vehicle at the end of the term. You can't just turn it back in and to get out of the lease, you'll likely face a hefty payout penalty. Also, much of the interest is usually front-loaded, meaning on a 60 mo therm, you won't have put much of a dent in the principle in the first 12.

Many lease cos were burned when the sky was falling. Requirements such as credit score, tdsr, amount funded and residual value have all changed. They're likely to fund less / want more down and insist on a lower residual. This is specifically so people don't lease a car and only keep it for a short period, leaving the lease co holding the bag, er, the car at too high of a value.

Leasing a depreciated vehicle such as a 360 or 550 can be a good idea if properly structured. The leasee will be paying into an asset that's depreciating at a much slower rate than that of the payment... You can create an equity position in the car over the term of the lease, which is great if you want to sell it at the end of the term, or a creative way of buying some time until you can swing the full amount of the buyout.

Don't forget that these cars require servicing and that can add up... Keep that in mind when you budget. Don't think you'll be able to defer this and just "give it back"... Most lease companies are smarter than you and many will have a wear and tear clause on exotics that can make you liable in the event you don't maintain their car...

 

If you like the looks of these models, I think you'd be better off buying a car (for cash) that's further down the depreciation curve, like a 360 (manual gearbox).

Using leasing as a form of very long term financing for an otherwise unaffordable car isn't all that cost effective. The values of F430s will be down significantly in 5 years, so you'll paying interest for a long period on a depreciating asset.

 

Maybe one of the leasing companies (Marshall Goldman, for example) would do a closed-end, 12 month lease.

Seems very short, but you could inquire.

 

Just as a question (I don't really know):

Does an 04 360 spider really cost 100K?

 

For a low mileage, pristine car, that's probably retail right now.

 

Don't use your home equity to finance a ferrari or any car for that matter.

Find a nice 328 for 45 to 50. pay cash, sell it in year.

You may be out 2 or 3K, not 20 or 30

 

I suspect it wil be financially most advantageous to you to buy it and then sell it for the year... unless you can find a leasing company that will do it for no more than lets say twice the purchase financing cost. Factoring in yearly depreciation for the car plus interest on the loan plus insurance, I can't imagine total cost would be greater than 10k-20k... but I'm not a financial wizard...

Can I ask WHY you only want to do this for a year? Is it to burn off an itch for an exotic? Bucket list? Seems buying a fully depreciated car to keep might make the most sense.. don't forget maintenance costs as well... whay the 360 and not a 328 or 348 or 355?

 

Yes, better car/better deal.

 

You like 328s?

 

Does a car club such as Gotham Dream Cars exist wherever you are?

If you're just looking to get into an exotic for a year, that seems like a pretty painless way to do it- you pay $20k or $30k or so to buy a membership in a pool that consists of a number of exotic cars. You don't pay maintainence, gas, insurance, or depreciation. You get X number of driving days a year, proportional to your buy-in cost.

The downside is that you wouldn't have 100% access to the car if you went the club route. And there's always the possibility that if you were lucky, you could get out of the car in a year for just a bit less than you paid, and you'd be ahead of where you would have been, cash flow-wise, if you'd gone the club route.

But if you're unlucky or you time it wrong (for example, if some major repair comes up during your term of ownership) you'll be on the hook for the cost of the repair plus the lease cost. Remember that even at a bare miminum, you're probably at a couple of thousand dollars for a yearly service, plus insurance, plus gas and tires, and depreciation to the tune of $1-$2 a mile under the best of circumstances. If something mechanically fails, you'll be into the car for way more than that. Go look in one of the Bradan threads and ask yourself if any of that maintenence looks cheap.

I don't know your financial situation, but it seems like you'd be looking for the option that has as much of a fixed cost as you can find, versus the gamble on depreciation, residual, maintainence, etc.

Gio P

 

Being an '04 I'm gonna guess that it is not under warranty. Your plan is great and it would be a hell of a nice year enjoying the car! That's for sure!
Here's the worst case scenario that could happen though - what if something major breaks on the car.... For example, the F1 pump system or a gearbox issue. I'd suggest to plan for the worst and have an extra 10-15k on top of the finance and maintenance costs set aside for repairs just in case! And pray that this doesn't happen.

 

Yeah, it's a recent thing.

<cough>

 

I like using the HELOC for things ike this. At the rate mine charges $100k would amount to about $271 per month in interest. Figure about $5k in maintenance / repairs (could go much, much higher if you are unlucky), another $3k for insurance, and maybe $10k in depreciation for 1 year, the total costs would be pretty close to $20k. I would suggest going for a 360 using the same strategy, it should eliminate all but maybe $3-4k of depreciation, and the interest might only be around $180 per month for a good one, making the total cost around $15k for the year. REgistration tax could also be a big number depending on your jurisdiction. Some places let you drive 6 months before registering, so I would go that route possibly, and selling within the 6 month thing.


BT

 

I would not lease. I would do without the car for a while longer, years if necessary, and then buy it even if you finance most of it. Only finance 48 -60 months max.

 

My gut is telling me you're probably going to have to go to the buy it and sell it in a year route. Just be careful of the problems that might pop up like the F1 pump or other expensive item.. be even more careful that you might like the car so much you want to keep it! Once you've had one it's HARD to go back to anything less! That's why I bought mine and financed it, perhaps consider this route... ?

This has been done before (see the blog "ferrari for a year" I think its called) when a guy bought a 355 and had it for a year. I think he used a HELOC to do it. When you do document it with pictures!

 

How many credit cards do you have????

 

Well, maybe if you get rid of the biggest/hungriest dog that would help.

Seriously, there are few automotive experiences better than driving a great sports car that you actually own. If you limit it to one year and are worried about the money or mileage limits, it's not quite the same. I have leased daily drivers and have zero emotional involvement with any of them.

If you've gone the Lotus Elise route, you can probably forgo the luxuries and automation in the 360/F430 and might enjoy a classic like a 308/328. They're still (along with the Esprit V8) the raging bargains of the exotic sports car market.

 

These leasing plans can get you in if that's what you want. I am not a finance guy, but I seriously doubt that a Ferrari lease for 100k will be 500 /month. I think it will be more likely 1700/month. Lease rates are not necessarily lower than purchase. Indeed, it may be higher. The plan to keep her for one year will hurt the deal. Yes, 360 prices have leveled off. They will indeed continue to depreciate, but much more slowly (naturally depending upon condition, provenence, and miles). You will be able to sell the car when you want to unload it. The financial position at that time is in the crystal ball. iMO, you will have equity in about 3 years but upside down in one. I think you ought to do your homework (not to be condescending-you asked) and find out exactly what the payments will be. As far as maintenance, figure $1.25/mile or $1000/year and $4000 for the 3rd year for belt service if it has just been done and you keep it that long. I hope you can scratch that itch. Just go into it with our eyes wide open.