Anyway Steve...I don't know why you keep beating on the high mileage issue. No one here said anything about putting a lot of miles on a Ferrari. The original topic was simply why it costs so much more than it should to lease a Ferrari.

 

because milage based depreciation is a major issue that the lender must account for. I am simply explaining that there are a lot of factors that you guys are not considering, as well as the fact that you are grossly overestimating the value of a used 360 Ferrari in the first place.

I was under the impression that this thread was posted in order to gain some information. what i am explaining is that it is not a mystery why 360 leases are not $600/month. The milage issue is just one factor. Oh yeah, and the reason that I KEEP beating on it is that i'm bored and i had a ****ty day so far.

 

I leased the Stradale and depreciation is calculated at 50% over 5 years (mileage is either 5k or 7500 - i don't remember, for 25 to 37.5k at the end of 5 years). A friend of mine received a similar residual value on his new Spider. There are primarily only two real players in the F-car leasing biz - Putnam and Premier, and they both use pretty similar residual numbers. My 996 cab will probably enjoy depreciation over 5 years not too far off (50% so far after 4 years with only 4k miles/year) the Stradale and Spider.

 

Steve, do you just give information, or do you listen to it as well?

Sorry you had a ****ty day.

 

both, what is not clear about what i am saying?

1) Ferrari's do not hold their value as well as you think over 3-5 years

2) their values are extremely milage sensitive

3) their values are extremely condition sensitive (what happens to the leasing company if you get into a major accident but not enough to total the car?)

4) banks are taking on a large risk by leasing such an expensive car, expect that to be reflected in your money factor

i could go on but now feel like i'm beating a dead horse. what is it you would like me to listen to?

 

Steve - the mileage is a moot point because any lease has a monetary charge for excess mileage. The figures we're discussing are based on a conservative number like 2,000 - 4,000 miles per year. The penalty for over mileage is something like $1 per mile.

Ben - clearly 50% depreciation over 5 years is an ultra- conservative number. There are plenty of 1999 360s out there selling for well over 50% of original MSRP.

 

argh, i'm getting frustrated now. The point is that there are very few, if any companies that are going to give you a 2000 mile/year lease. they don't want people paying $1000/month for a car they shelled out $160,000 for.

 

Using these criterion, would this be a reasonable lease calculation for a 5 year lease on a 360 Spider?
-residual of 50% of the sales price of $190,000
-$15,000 down and 6.5% interest
-7% sales tax calculated on monthly payment

=$190,000/2= 95,000 x 1.065= 101,175 - 15,000 = $86,175/60 = $1436.25 x 1.07 = $1,536.79/mo.

That seems very low for leasing a Ferrari, especially if it could be sold at more than $86,175 at lease end, or bought by someone else for a higher amount any time during the lease if you get another car.

 

Nothing in particular.

I just wondered if you think anyone but yourself and Ayn Rand have valid points.

 

no, your math is way off. The lease payment using those numbers works out to about $2207. I'd be happy to send you the Excel lease calculator template i made.

 

yes, some people do but you appear not to. do you have a point to make or would you prefer to simply continue to passive aggressivly insult me?

 

The first point I made not only valid but factual and the discussion has since revolved around. You dismissed it and then have just agreed with it.

"The lease payment using those numbers works out to about $2207. " In your words

"friends...payment over 2K a month." In my words

Anyway, I'm not here to argue, just to converse and I certainly don't want to continue your bad day.

My apologies Steve and here's to many more good posts!

 

Both Putnam Leasing and Premier Leasing market open end leases... there is no mileage allowance, and you don't turn in the vehicle at the end of the lease term - you're responsible for payment of the residual value, which in many cases is lower than the value of F-cars. The leases are structured to maintain a positive equity (rightside up) position so the leasee can sell the vehicle at the end of the term for a profit, or buy it outright at a discounted price.

The components of an open ended lease are: the interest on the purchase price (Cap Cost) over the term of the lease, the depreciation over the term of the lease, and the money factor (interest rate). Leasing companies can gouge the consumer on any combination of the lease components, so buyer beware.

Bottom line: For many it makes perfect sense to lease depretiable assets, and purchase assets that appreciate (like real estate). Why purchase an F-car for $200k, keep it for 3 years and sell it for $150k, when you could finance (lease the $50k depreciation amd interest on the cap cost) and invest the remaining $150k on assets that will earn you money.

Just my two cents worth

 

In your first post you gave finance payments. I posted that financing (which in the automobile industry means taking out a loan to BUY the car) has nothing to do with depreciation. You then referred to it as leasing. I apologize for assuming that you knew the difference

I am clearly not here to argue, just trying to answer the original question because i happen to be a finance professional (not auto leasing thank god). It is you who began with the personal attacks.

-Steve

 

Steve - I am truly not trying to be argumentative here, but my lease estimate comes up to be pretty similar to Battery's #, not yours.

Battery appeared to use simple interest rather than ammortized compound interest, so the payment I came up with is $1565 + tax.

This is based on $80,000 of depreciation (already accounting for $15K cap cost reduction), .0027 lease factor, and 60 months.

Steve - you also mention that few, if any companies are going to provide a 2K mile per year lease. I can't speak to the truth of this, but I do know that every advertised Ferrari lease has a really low mileage limit like the 2K miles mentioned above.