lp560 lease or financing?
#14
Trading the equity of your R8 to help lower your "rental" costs of the LP560 does not seem like a good idea to me. If anything, sell the R8 to a private party then use that cash to buy a slightly used LP560 that someone else has taken the massive hit on. If anything, you can buy the used LP560 using the $100k from your R8 as a down payment and finance the rest. The payment will be much less than $2k per month and you will at least have some equity left in the LP.
I would seriously consider sending your R8 to MTM for some go fast mods before trading the R8 in on one of the world's most rapidly depreciating supercars.
I would seriously consider sending your R8 to MTM for some go fast mods before trading the R8 in on one of the world's most rapidly depreciating supercars.
#15
Else, +1 for a slightly used 560. There's no shortage of them with 3-5k on the clock.
#16
Trading the equity of your R8 to help lower your "rental" costs of the LP560 does not seem like a good idea to me. If anything, sell the R8 to a private party then use that cash to buy a slightly used LP560 that someone else has taken the massive hit on. If anything, you can buy the used LP560 using the $100k from your R8 as a down payment and finance the rest. The payment will be much less than $2k per month and you will at least have some equity left in the LP.
I would seriously consider sending your R8 to MTM for some go fast mods before trading the R8 in on one of the world's most rapidly depreciating supercars.
I would seriously consider sending your R8 to MTM for some go fast mods before trading the R8 in on one of the world's most rapidly depreciating supercars.
Sure, nearly all cars depreciate over time, but Lambo might as well be the poster child for a "Autos are a Horrible Investment" movement. That said.. if you're willing to throw away the money, cars are great
@ OP: I still don't know anything about financing or Lease payments, and I dont intend to act like I do, but what BigE said makes a lot of sense to me.. I mean, equity is a pretty basic thing to understand. If I were buying a new car every 2 years like you, I would definitely be a lease-er.. although, i think it would be hard for me to let go of an awesome car every 2 years... I've had my car now for about 18 months and its no where near the level of cars you own/are looking for but I'm completely in love with it and I intend to keep it in the garage right next to the 997TT I plan to buy when I finish med school/residency . <-- kind of a threadjack huh? sorry
#17
After reading through the thread...
If you are determined to stick to your strategy/policy of holding on to hot, desirable cars for only two years or so, I think that you should lease. There's no reason for you to finance a depreciating object during the heaviest period of depreciation and then gift it to a dealer or a private buyer to move on to the next big "gotta have it" thing.
That said, to give the best advice for your situation, we would need more information: How do your cashflows look? Do you own your own business? What's your FICO score? etc. This isn't the place for that, so for anyone here to argue unequivocally that leasing is "bad" or "stupid" is simply mistaken.
I probably wouldn't get the car either way if it were a big deal for me whether I financed or leased, and if it didn't matter then I would be in it tomorrow.
If you are determined to stick to your strategy/policy of holding on to hot, desirable cars for only two years or so, I think that you should lease. There's no reason for you to finance a depreciating object during the heaviest period of depreciation and then gift it to a dealer or a private buyer to move on to the next big "gotta have it" thing.
That said, to give the best advice for your situation, we would need more information: How do your cashflows look? Do you own your own business? What's your FICO score? etc. This isn't the place for that, so for anyone here to argue unequivocally that leasing is "bad" or "stupid" is simply mistaken.
I probably wouldn't get the car either way if it were a big deal for me whether I financed or leased, and if it didn't matter then I would be in it tomorrow.
#18
If you can help it, never put anything down on a lease because it doesn't build equity. If you finance, then put down as much as you can. That said, you need to see what kind of lease payments they offer vs. finance rates (unless you're writing a check). My guess is a lease on a car like that through a mfg is going to be ~1.5 to 2x what it'd cost to finance.
#19
leasing is just fine in many situations. yeah it can be seen as rent.. but the car will lose value and if you switch cars frequently, then why invest in a sinking boat, tie up capital, and pay sales tax each time?
if you will keep the LP560 for a long time, buy it.
compare the leasing MF and the financing IR.
however, i would not put almost 50% down payment on a lease. that kind of defeats the purpose. if you will finance, the r8 as trade makes sense..
good luck.
sounds like you should sell the R8 and finance a lightly used LP. or trade the r8 in so you can save on some sales tax. if you do lease, then sell the r8 privately.
if you will keep the LP560 for a long time, buy it.
compare the leasing MF and the financing IR.
however, i would not put almost 50% down payment on a lease. that kind of defeats the purpose. if you will finance, the r8 as trade makes sense..
good luck.
sounds like you should sell the R8 and finance a lightly used LP. or trade the r8 in so you can save on some sales tax. if you do lease, then sell the r8 privately.
Last edited by wyatth; 05-23-2009 at 05:16 PM.
#20
leasing is usually makes much more sense if you can write it off as a business expense when filling your taxes, in any other situation financing is the way to go.
if you choose to lease then make monthly payment with little or zero down, then sell the R8 privately (keep the money or use it to make payments)
assuming a payment of 3500/month 3500*12*2 = 84,000 < 100,000
If you choose to finance then use the r8 as a downpayment and finance the rest. which is esssentially transfering the 100k of the r8 into the lambo.
if you choose to lease then make monthly payment with little or zero down, then sell the R8 privately (keep the money or use it to make payments)
assuming a payment of 3500/month 3500*12*2 = 84,000 < 100,000
If you choose to finance then use the r8 as a downpayment and finance the rest. which is esssentially transfering the 100k of the r8 into the lambo.