"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"

Nope, there is NO one who will do a closed end lease on an F-car. When you lease an F-car, you maintain 100% exposure to diminished value. If at the end of the lease the car is worth more than residual, you can sell it and pocket the cash. If it's worth less (for any reason), you eat it!

"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."

This is a myth. Look at the value of 355s post 360 roll out and get ready for the same slamming on the 360 upon arrival of the 430.

"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."

I have a friend who didn't put down anything and pays about $2600 ish on his (w/ 7 3/4% tax).

"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."

That and the fact you get no sales tax credit on trade ins in CA is exactly why I did it. If I keep the car for 2 years, includinig the sales tax saved, the rate is appx 2.6%. If I can't make a lot more than 2.6% after tax on my money, I'm a moron.

 

"That and the fact you get no sales tax credit on trade ins in CA is exactly why I did it. If I keep the car for 2 years, includinig the sales tax saved, the rate is appx 2.6%. If I can't make a lot more than 2.6% after tax on my money, I'm a moron."

I agree completely, in Massachusetts you pay sales tax on the monthly payment not the cap cost

 

the lease calculation goes as follows:

MSRP and Sales price are 190000
Residual is .5
term is 60 months
tax rate is .07
deposit is 15000
money factor is .0027 (6.48/2400)

A lease payment is made up of two fees, the depreciation fee and the finance fee.

Depreciation fee = ((190k-15k)-(190k*.5))/60 = 1333.33

Finance fee = ((190k-15k)+(190k*.5))*.0027 = 729

Before Tax Lease Payment = 1333.33+729 = 2062.33

After tax payment = 2062.33*1.07 = 2207

 

Your point about the 355 market falling is well taken.

I suppose I should rephrase to say that if you can buy a new model Ferrari (at MSRP) within the first 1-2 years of its release, you will be sitting pretty in 4-5 years, or until the release of the next model is imminent.

 

Exactly Ben

 

Steve - double check your finance fee. It should be $216 per month, not $729.

$80,000 x .0027 = $216.

 

that's not how to calculate a finance fee. My numbers are correct.

To calculate the finance fee you ADD the net cap and the residual amount, not subtract. I know this is counter-intuitive but the reason lies in the calculation of the money factor. I'd be happy to explain the math behind it if you're really interested but it will be easier if you either take my word for it or look it up yourself on google.

 

I stand corrected. Thanks for your patience with my "new math" steve.

 

haha no problem. i may not be able to tear down a motor or drive a 7:46 around the Ring, but i most definitely can do math.

 

Ben -- Actually this isn't true any longer. Chase has a "closed end" lease program on Ferraris available through authorized Ferrari dealers only, and I believe only on new cars . Chase's money factor is a bit higher than Putnam's or Premier's, depreciation schedule is about the same and they base it on 5K miles per year. FYI

 

I didn't know Chase was doing it, but I swore off Chase after our M3 lease.

 

It is true that lease payments are determined in part by the depreciation of the vehicle. But what many are forgetting is the bank is still purchasing the car outright for say $165k. One who leases, pays the depreciation of the car over the term of the lease, but also pays the interest on the full price of the car. Remember, the bank pays $165k of their own money to purchase the vehicle. The lessee must pay for this interest on the 165k the bank is out on top of the depreciation of the vehicle. This is why Ferrari's cost more than say a cheaper car that depreciates more. You must still pay the interest for the whole vehicle since the bank basically paid outright for the car.

Hope this makes since.

 

Not to open another can of worms, but the depreciation assumptions many here are using on P-cars aren't always valid.

Here's my real world example: bought my 996 in April '98 for $75k (MSRP), drove it 5k miles/year, sold it in July for $41k (market rate). That equates to 45% depreciation for 6 1/4 years of ownership.

 

Steve, thanks for your correction on my lease calculation. Years ago I knew the correct formula, then forgot it. Still, this seems like a good way to purchase a car like a Ferrari or a vintage car that will not suffer from massive depreciation. Forget it on a Lamoborghini or Porsche!

 

Seattle - thanks!!! That was a great, clear explanation.