Does anyone have concrete figures for an open ended lease on exotic cars? I was told they’re a good fit for exotics and operate like balloon financing where the lessee assumes the depreciation risk.
So if you’re to lease something like a Ferrari how would the payments come out to? I was also told there would be a down-payment of at least 10% which is OK as long as the rest of the figures balance out.
Look at an amortization table on the financed amount using a 10 year term (for example). Then look at the remaining balance after 3 or 5 or 7 years or whatever your chosen lease term is. Pick an interest rate that’s reasonable.
If the car is worth less than the remaining balance then you lose or vice versa.
That’s all you need to know.
I can do the math but I’d like to see the reality of it all.
Was there a real question in there somewhere ?
What exactly are you asking about ?
here’s some fun with a calculator…
For your $330k (with tax and fees) Farrari. If you put $30k down and finance $300k over 10 years at 5.25% then your payment will be about $3219/month.
After 3 years you’ll have the balance down to only $225,851
That ($225.851k) would be your balloon payment after a 3 year lease.
If you want a 5 year lease your balloon payment at the end of lease would be only $169.533k
I’d like to see an actual deal sheet on it. How far out do the terms go? 7 yrs? 10 yrs?
Bottom line: how low can you get the payment with an open end lease on an exotic?
The mathematics of an open end lease is identical to the mathematics of a closed in lease (i.e., payments are computed the same way). The only difference, as you know, is that you’re liable in the event of a residual deficit in an open end lease per the terms set forth in the lease agreement. Some fund providers will not underwrite open end leases.