BigVIPness

[background]A year ago I started up a videography company that makes personalized documentaries for the elderly to pass down from generation to generation. Unlike the profiteering competition I offer unbeatable prices and quality (you could say we are Lexus of family history videos ) Business has been good, really good actually. What hasn't been good is the professional relationship me and my business partner are having. I came to him with the idea, it was our company, but my idea. %90 I had completed when I approached him but he would forget this fact and problems arose. Well it became too much and we recently dissolved the partnership agreement, transferring full rights of the company to myself. He still gets a percentage of sales.[/background]

My job is not 9-5, its a awake till asleep. The fact that I am helping so many families preserve their memories for generations (and the money) is what keeps me going everyday (not in a negative way, I really enjoy what I do) another thing about me is I go thru cars pretty quick. In the past 3 years as i've built my success i've gone from: 93 camry -> 91 supra -> 94 GS -> 02 IS -> 99 LS -> 06 Commander. The commander is a work truck for the shop i'm opening so it stays. I ran into this website:

http://www.rpmexotics.com/lease.htm

The example they give is a F1 Ferrari 360. $17,250 REFUNDABLE deposit. $550 in lease fee's, and then $2,530 a month. Mileage is limited to 500 miles a month but I wouldn't get to drive it that long much, and since they only charge you $1-1.5 every mile you go over... $500 for 500 more miles a month sounds pretty sweet to me.

So lets be realistic:

$17,250 refundable deposit - well that's realistic, thats less then i’d put down on a GS450h
$550 in lease fee’s - Thats... pretty realistic...
$2,530 a month for 4 months (July thru October, this is minnesota after all)
Apparently insurance is “cheap” due to the fact that its only additional insurance, again, realistic
~$1,000 to go drive and pick it up, Ferrari road trip!!!


So when all is said and done i’m taking a small amount of my earnings per month and I get a Ferrari?? I don’t have anywhere near the cash to straight buy one (unless I can eat ferrari exhaust fumes for sustenance) but this way seems very realistic. $2,530 a month may seem allot but with depreciation and taxes of buying it straight out I figure after 4 months the cost of leasing (for the 4 months) is still a bargain compared to buying it.

BUT, you are the all knowing club lexus collective... is there something i’m missing here? For my situation would this not seem like a realistic choice?

jwa

If you want to rent an exotic car for a few months, then I'd say 2500/mo is OK, but if your looking at this as an alternative to purchasing, then you may need to redo the math. Without putting much research into this, a used F360 with low miles is about 150K and financed for 72 months has a monthly payment of about $2500. I would say buying is the obvious choice.

You didn't ask, but I'll give some broader financial advice anyway. Keep your $2500/mo and invest it wisely. In time, income from your investment will provide you with the means to afford lifes luxuries. Don't waste 30K/year on a car you can't afford!