Owning a supercar is a coveted dream for many. However, deciding between buying and leasing can be a tough choice. Let’s explore the pros and cons of both options, so you can make an informed decision that suits your needs.
Should I Just Pay Cash?
When you purchase a supercar outright, you have complete ownership. You can customize it to your heart’s content and enjoy the freedom to do as you please. Consider track days – when you own the car, you can unleash your inner Verstappen without worrying about excessive wear and tear fees. Maintenance and repairs can be expensive, but with full ownership (our resident Porsche expert Terence owned a Taycan), you have the flexibility to choose where and how the car is serviced. No restrictions!
Recently there has been a steady rise in interest rates. Paying for a supercar in full may seem like a large financial commitment, but you avoid any interest fees that may come with leasing. This means that you will end up saving money in the long run. Only you can determine at what price level it makes the most sense to use your own funds or borrowed funds, or what length of time you foresee keeping the car.
With ownership comes the peace of mind of knowing that you have complete control over your prized possession and eliminates the risk of unexpected fees at the end of a lease agreement.
Leasing provides an opportunity to experience the thrill of driving a supercar without a long-term financial commitment. When you lease a Supercar, the structure of the contract has a high degree of flexibility to suit your current needs. Are you looking for tax advantages by leasing through your company? Maybe you want lower monthly payments or a different amount down? Are you in the middle of other financial transactions and would prefer not to have your lease registered against your credit? Yes, some leasing companies are happy to not register the debt.
There can be a lot of volatility in the Supercar market. Leasing doesn’t just work for a new car, it is a financial instrument that can be applied to cars a few years old, or to classics and collectibles. A lease can still protect your equity through the lease term.
For instance, UK-based companies like Pink Car Leasing offer lease options for high-performance vehicles such as the Porsche 911, Maserati MC20, Jaguar F-Type, any many more. These leases are offered for both personal and business.
While Maserati cars are known to experience above-average depreciation, certain models also have the potential to command a premium due to their desirability.
Opting to lease a supercar like the Maserati MC20 not only helps mitigate financial risk but also offers a convenient exit strategy should market demand or resale value fluctuate after the lease term.
How About Mileage And Maintenance?
Photo Credit: Supercar Service UK
You bought it and paid for it in full, so no one can tell you how much to drive it, or who must perform the repairs. When the air suspension fails on a Bentley, this can be a substantial repair bill at the dealership. But many specialist mechanics can easily handle this sort of out-of-warranty repair at a far better price.
Maybe you love driving your Bentley so much that you know that you will exceed a 5000-mile-per-year lease restriction within the first 4 months. If you own it outright, this worry doesn’t exist.
By leasing the same Bentley, you have the opportunity to include a maintenance package in the lease agreement. Regular upkeep is necessary for the vehicle, and organizing the associated expenses can alleviate stress during ownership and when transitioning to a new or upgraded model at the end of the term. Numerous leasing companies are willing to collaborate on a maintenance plan that benefits you and safeguards the car’s future value.
If you anticipate the vehicle will be utilized without significant mileage, you have the flexibility to tailor the annual mileage allowance in a lease to meet your specific requirements. A distance restriction in a lease does not have to be a limiting factor.
Is Arranging A Lease A Hassle?
Photo Credit: Automotive News Canada
Leasing companies have evolved their business practices well beyond those of traditional lenders. I would argue that dealing with a bank for funds on a vehicle is more difficult for some high-net-worth individuals, because your income may come from new, or non-traditional sources. When your income varies due to multiple income streams, and a bank is used to just seeing a pay stub or tax return, that may not at all be reflective of your ability to pay your debts. Many leasing companies can work with you and your ongoing proof of cash flow, to find a solution to your needs.
We live in a world of nontraditional occupations and income paths. Not all lenders understand Cryptocurrency, NFTs, monetized social media incomes, or even the modern professional sports contract.
I Want To Change Cars
Photo Credit: Porsche.com
Selling a used Supercar can be a daunting and challenging task. The market for high-end vehicles like Supercars is relatively small, making it harder to find potential buyers. Factor in the price of a used Supercar being significantly higher than that of a regular car, there are simply fewer people who can afford it.
While trading in your current car for the next Supercar you desire is an option, its success can be uncertain depending on the current market conditions. Perhaps you indulged yourself when ordering your Porsche GT3RS, going all-in on Exclusive options. As much as the Purple exterior over Tangerine leather may appeal to you, recovering the money spent on those options can be extremely challenging.
Leasing a Supercar can be an attractive option for those looking to stay in the most current model, or keep up with the latest trends. The backend of the lease, or the buyout, goes beyond just knowing what the end-of-contract value will be. It also means you have a place to turn the vehicle in and move into a new one, in a very seamless way.
Supercars often fall into the category of “wants” rather than “needs”, although I must admit, as I say that, I’m prepared to passionately argue about why I “need” a Pagani in my garage. Since this is a desire-driven item, it makes sense for many of us to maintain a consistent cost structure through leasing. Knowing that, after a couple of years, I’ll be contemplating my next car only adds to the appeal. Partnering with a leasing company sets in motion a team of professionals dedicated to helping you keep your four-wheeled dreams alive and well.
All in all, the decision of whether to buy or lease a Supercar comes down to your individual needs and aspirations. Whether you decide to purchase it outright — and bask in the luxury of ownership — or enjoy the short term benefit of leasing, you can’t go wrong. After all, driving around town while listening to the exhaust from your Supercar is an experience worth having! So don’t waste any more time mulling it over, go for it and get behind the wheel!
