Ferrari is a luxury sports car that you can pick up on a lease agreement. After you've settled the argument in your mind about whether it's better to lease or to buy, there are a few things to know about leasing before you start the negotiation process. In many cases, leasing leaves you with a large residual payment but if you're careful, you can come away with a Ferrari without getting taken for a fast ride with financial repercussions in the deal. Here are some tips to help you gain the satisfaction of the drive without feeling rooked later on.
Build your knowledge base
Before you enter into a lease agreement for a Ferrari, it's important for you to know all of the facts of the deal that you're getting into. Leasing can help you to save the taxes on an expensive car and after the lease period expires, you'll have the option of making a purchase or letting the car go back without a negative mark on your credit, or any obligations to follow through with the full purchase price. This is true unless it's otherwise noted in the contract that you sign. Make sure that the agreement you sign is crystal clear and that you can live with the terms of the deal.
-Your car might depreciate
Certain models of a brand new leased Ferrari will start to depreciate from the moment you drive it off the lot. This situation only happens in the models that are not in high demand however. It's no longer considered to be brand new. Leasing the car is going to automatically take down its value on the market. If you plan to lease with the intention of purchasing at the end of the lease, go over the contract with a fine tooth comb and make sure that you won't owe more than the car is worth when it's time to purchase. Depending on the model that you lease, the price difference could be significant.
Some Ferraris appreciate after purchase
If you lease a Ferrari that IS in high demand, then there is a chance that it will actually become worth more. It's important to read up on the values of the model you plan to least to find out if it's one that will be worth more, or less so you can plan accordingly. It's about using your money wisely and making the best possible investment. The Ferraris that are most likely to gain in value are the collectibles and limited production models such as the F12tdf, the 288 GTO, the Enzo, the LaFerrari, the 599 GTO, and a few others.
Don't forget about taxes
Purchasing a Ferrari always results in taxes. Its always a good idea to become familiar with the tax rates that are charged in your locale, and times the final balance left on the car by the rate to determine what you'll owe. If you plan to finance the vehicle, consider your credit rating and the total amount of monthly payments you'll be required to make. If you're going to pay cash, then the taxes and licensing fees are worth taking a look at.
Use a lease payment calculator
Prepare yourself with the financial facts by going online to use a convenient lease payment calculator. This will give you a ball park estimate of how much you'll end up paying monthly, and the residual that will be left at the end of the lease. Prior to using this useful tool, there are a few considerations that you'll need to make in advance.
- The year, make, and model of the car
- The estimated true value of the car
- The leasing cost
- The down payment
- The number of months of the lease
Getting an idea of what the lease agreement figures should look like will give you a starting point to determine if you're being offered a good deal or not. Basically, a lease allows the dealer to make a profit and it covers the cost of depreciation.
Negotiate the terms of the lease
It's wise to be aware of the various lease agreements available to you, so it's good to check around. Don't take a dealer's word for it that there is just one standard luxury auto leasing program. There are a few out there. Make sure that the terms of the leas met your individual preferences. If you just want to drive the car for a specified period of time, you won't need to worry about any balloon payments, but if you're trying it out for a potential purpose, make sure that the terms are satisfactory
Another lease agreement options includes an out for the driver. Some contracts provide a clause by which the driver can terminate the lease without any repercussions. This is something to be considered if you believe for any reason that you won't fulfill the full lease duration. It's a safety net for you.
Leasing a used Ferrari
When leasing a used Ferrari it's important to be familiar with the specs of the car and to have it inspected to ensure that it's in top operational order. View the interior and the exterior and make note of any damages or inconsistencies with the description that is rendered in the lease. Take it for a test spin to make sure that it's what you want and that the overall performance is satisfactory.
Leasing a Ferrari is a bit different than the more less expensive vehicles. Although the same common sense terms apply, you're putting a lot of money out there on a temporary agreement. Make sure that the language is clear and that you understand all of the terms before you sign the contract. Know what you're getting into before you make the commitment, so you end up with a good value for what you're getting.
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Written by Benjamin Smith
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