Yes, you can lease them and we actually do a large amount of leases. Seems to be the way to go for those who use the vehicle as a business tax write off and know they will benefit from not paying all of the taxes upfront. As far as miles go, our leases are opened ended in which you own your own equity. The banks put themselves in a safe position and know you will have equity at the end of the lease. So to clarify, there is no mile limitation as people usually think of them. When you decide to terminate the lease or at the end of the lease you will either buy the vehicle for the buy out, sell the vehicle or trade the vehicle to a dealer. Mileage will only affect the value of the car and therefor your equity but you will not be upside down unless you put an extreme amount of miles.

You can feel free to call me for more information on it and I would be more than happy to answer any questions, and if you'd like I could always shoot a sample lease your way.

 

jk996tt and tortesq1, thanks for your insight.

 

what do you mean by the following quote....the DP goes towards paying down cap depreciation (ie the depreciation between start and finish ie residual). so the higher the DP, the less depreciation spread over time and hence lower payments since part has already been paid off...my understanding is you are responsible for the car AND probably depreciates LESS than what FOA is saying (ie $139k in 5 years? maybe....) as prices have held up well (2012-2013 still get near MSRP....)

maybe you were referring insurance not gonna pony up much? clarify?

 

Let me start off by stating I'm no car leasing expert and I defer to the pros on the board with respect to same. That being said, my personal experience is that in most cases the majority of the lease down payment (DP) is allocated to sales taxes and a lesser portion to cap cost reduction. Therefore, if the vehicle is stolen or totalled the DP is never recovered. Which is why its better to structure a lease with zero DP. Probably the one turnoff with my 458 lease is that FFS required the DP at least for the sales taxes. My last Porsche 997TT was a smaller lease price but zero DP. I think FFS is really trying to accommodate small individuals like me but until they offer zero DP closed end leasing they will never be Porsche, BMW, MB, etc. when it comes to leasing, although I'd love to be wrong. I hope that going mass produced with the Maserati Ghibli's will radically change their leasing perspective. I know plenty of people that spend $2K-$3K per month leasing their cars, but they get real miles (ie. at least 10K-12K p/yr.) and they just turn the car in at the end of the lease term (ie. closed end lease). Putting $30K down AND being required to buy the car back at a fixed price after 60 months is a bit of a buzzkill, but it makes the mileage issue irrelevant (even though the lease states 3500 miles p/yr.). IMHO this is a modest price to pay for having THE best sports car in the World, bar none.

 

Hi - thanks for the thoughts. Only difference is theoretically you should put down some (not just to pay registration, license, etc fees) but also because you're paying interest (typically 0.0027 which is roughly 6%) on the balance of the amount. So if you put down minimal or just to cover license fees, that's good, because you only pay taxes as you go by month (so if you keep the car 1-3 years, you're only paying state sales tax ie 8-9% on the amount it's depreciated). In CA that's a huge benefit b/c if you purchase the car (ie not lease) then immediately you pay 9% sales tax on a $250k car ie $25k cash you're never gonna get back. Hence why leasing is very good for those states like CA (i found out NY/CT you get tax credit back if you sell the car for the amount u sell it back for..CA doesnt do that it's gone, it's gone on Day 1).

But back to the point is you pay 6% on the balance. So if you some cash you should try to pay down some of the balance because you're paying interest on that at a high 6%.

A portion of DP does go to things that are normal, license/registration $1-2k, some tax on the initial cap cost reduction, and first months' payment, and deposit. these are all normal.

 

also with regards to the above statement, each month it's the same payment, it's about half cap cost reduction, and half tax on that amount and interest expense.

eg take a $3k monthly payment. about $2k is cap cost, $200 is tax (eg 9% sales tax), and $800 might be interest expense at 6% on the balance you're still depreciating down...

its the same payment each month. NOT like a mortgage where on a house, upfront you are indeed paying more interest expense (so bank gets it's money first), and small principal, which then over time, changes the proportion each month....for car lease it's the same each month.

 

Three very common open ended leasing companies for exotics are:
Premier Financial, Manhattan Auto Leasing, and Putnam.
I've leased through each one if these companies.
I lease the car(s) through my corp.
I've consulted my CPA on amortization schedules.

I have a buddy who leases his 458 and put very little $ down.

 

I never put any money down. That money is lost forever should anything happen to the car or the most common scenario is that you change car before the lease ends. Most of them also charge you two payments upfront and then 1-2 payments for ending lease early as penalty. If you're leasing an exotic car and plan to finish the lease, you'll be ok because you'll start building equity usualyl after the first year. For addicts like platique999 and I, we lose out with each car change....my wallet bleeds but my heart sings with each change...

 

Why are Premier Financial, Manhattan Auto Leasing, and Putnam potential leasing potentially better than Ferrari's Leasing Program? How are these leasing companies if have a closed lease with their inspection of the Ferrari right before the lease terminates? TIA.

 

Ferrari Financial is better for Ferrari's, other exotics don't have direct banks usually.
Lamborghini just started using Porsche Financial though IIRC.

Ferrari Financial doesn't have an early term penalty either, with regards to money down being lost - its the same story if you don't put money down, you will be negative equity when you exit the lease early and have to cover the difference between sale price to dealer and the lease buyout cost.

 

Never said they were better...obviously shop for the better rate between all potential leasing companies.
Not sure of your 2nd question...I've traded and sold quite a few cars out with these leases - there's no inspection I know of.

 

Since you have used each of these companies, is there one that you would recommend over the others?

I have received quotes from each, and they vary quite a bit. But other than the straight up quote, is one more flexible than the other?

 

In August, 2012 I ran the #'s with Ferrari Financial Services (FFS), Premier and Putnam and while all 3 were close in the basic #'s (ie. down payment, monthly payment and required purchase price at 60 month lease end) on a new 13 458 Italia, FFS had the best deal. Specifically, FFS had the best interest rate. Having the lowest cost of money translated into the best monthly price and purchase price. Premier and Putnam did a great written financial analysis for me, but ultimately just didn't have the financial prowess (on my deal) of FFS. Now if it was a pre-owned F car FFS might not be as competitive, but, once again, you need to have all 3 companies (4 if you add in Manhattan Leasing whom I'm not familiar with) do a written pro forma with respect to your financial obligations. Remember that you are talking about #'s that are equal to the value of a house in many parts of the US so I'd also strongly advise the lessee/purchaser to have their accountants review and confirm which specific deal quantitatively is best for their fact pattern. Now .... after all this financial BS its time to buy your dream, saddle up and let that high pitched beastie roar.

 

Sorry for the late reply...my last purchase, I consulted my CPA. I was comparing Manhattan vs Premier. There numbers were very similar but my CPA felt more comfortable with Premier's amortization schedule. There are small "hidden" fees as well and early termination of lease penalties to consider.
I have had multiple cars with Premier.
Putnam was less transparent with me so I dropped them.
Feel free to PM me for more details.

 

Thanks for the reply. Good to know! I was leaning towards Putnam but I am going to go back and re-evaluate.