how about leasing a 360? - Ferrari Life
 
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post #1 of 7 Old 09-17-2012, 09:12 PM Thread Starter
hng
 
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how about leasing a 360?

Saw a 1999 360 at a local Ferrari dealership and they offer leasing options. Just wanted to know everyone's opinion on leasing as an option. My thoughts on this: leasing may be a good option for such an "old" car in case it needs major work in the future, gives me an option to enjoy the car and be able to purchase it after the lease if I love it, and leasing may have some tax advantages.
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post #2 of 7 Old 09-18-2012, 06:41 AM
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Saw a 1999 360 at a local Ferrari dealership and they offer leasing options. Just wanted to know everyone's opinion on leasing as an option. My thoughts on this: leasing may be a good option for such an "old" car in case it needs major work in the future, gives me an option to enjoy the car and be able to purchase it after the lease if I love it, and leasing may have some tax advantages.
Consult your CPA. Leasing can have advantages depending on your corporate structure and tax exposure. I have always leased high-end NEW cars through my companies (essentially as "equipment," and therefore an operating expense) and have enjoyed the tax benefits there.

When it comes to leasing a used car, my CPA hasn't given me the final word yet. Doesn't really matter to me since, at the end of term (loan or lease with large cash first-month payment and a small buyout) I want the asset. I'll convert the equity remaining in the 360 into the cash down for the next car, probably an F430 Spider.

In the end, consult your CPA. No matter what people on the internet tell you, your CPA will likely know the best advice for your individual situation.
Good luck.
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post #3 of 7 Old 09-18-2012, 06:46 PM
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Quote:
Originally Posted by hng View Post
Saw a 1999 360 at a local Ferrari dealership and they offer leasing options. Just wanted to know everyone's opinion on leasing as an option. My thoughts on this: leasing may be a good option for such an "old" car in case it needs major work in the future, gives me an option to enjoy the car and be able to purchase it after the lease if I love it, and leasing may have some tax advantages.
I don't think the lease will protect you from major repairs. I believe you are responsible for returning the car in good condition.

Dan
Current: Scuderia
Past: 330GTC, 512TR
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post #4 of 7 Old 09-19-2012, 04:38 AM
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I don't think the lease will protect you from major repairs. I believe you are responsible for returning the car in good condition.
Yeah, I didn't understand this logic either. If you lease a used car, and it ends up needing a major repair / service, guess what? You're paying. Good luck getting someone else to pay for it, unless you have some sort of warranty or service contract in place.

And if it did need major work and you refused to fork over the cash, then you're left paying rent on a car that doesn't work? I don't get it.

I guess to the OP's point, it probably depends on the length of term of the lease, and it also depends on the specific maintenance or repair event..... But there are a lot of "depends" in that statement.

Regardless, ask the accountant. That's why we pay them.
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post #5 of 7 Old 09-20-2012, 10:24 AM
 
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The only reason I would see to lease is if there is a very, very nice waranty in place during the lease term. Otherwise, dependant on CPA input - financing is probably your best bet.
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post #6 of 7 Old 09-20-2012, 08:04 PM Thread Starter
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just some followup on my post. I talked to my CPA and he said that I can only deduct the cost of the car (lease, gas, maintenance, etc) that exceeded 2% of my gross adjusted income. So it really wouldn't have been any major savings to lease. Also, the car comes with a warranty from the ferrari dealership. I'm not sure if it would cover major repairs, but I was thinking that the warranty would protect me from major expenses. In any case, it looks like no leased ferrari for me. The search continues...
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post #7 of 7 Old 09-21-2012, 07:08 AM
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Originally Posted by hng View Post
just some followup on my post. I talked to my CPA and he said that I can only deduct the cost of the car (lease, gas, maintenance, etc) that exceeded 2% of my gross adjusted income. So it really wouldn't have been any major savings to lease. Also, the car comes with a warranty from the ferrari dealership. I'm not sure if it would cover major repairs, but I was thinking that the warranty would protect me from major expenses. In any case, it looks like no leased ferrari for me. The search continues...
Nothing wrong with buying it out right. I'm still on the fence about what I'll do - the CPA hasn't gotten back to me just yet. My suspicion is she'll say to buy, rather than lease. We'll see.
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