Have some questions? Take a look at our FAQ below.
- Is leasing a viable way to finance an exotic or vintage motorcar?
- What are the shortcomings of ‘traditional’ leasing?
- How is The PFS Simple Lease different?
- Can I lease my vehicle in my business name?
- Do I need a down payment?
- Are there mileage limitations?
- Explain how The PFS Simple Lease works.
- What happens when they want to end a lease early or switch cars?
- Are there hidden fees at the end of my lease?
- Are there tax benefits associated with leasing?
- Are there any restrictions regarding where a car is purchased?
- What’s the #1 myth regarding leasing?
- Are auto-enthusiasts making a mistake if they don’t lease?
- What’s the best way to learn more about leasing?
1. Is leasing a viable way to finance an exotic or vintage motorcar?
Leasing is a viable option for those who like to switch cars frequently, as well as for those who are looking to make a long-term investment. The benefits of leasing include:
- Lower monthly payments
- Drive more car for your money
- Preserving your capital for other investments
- If used for business purposes may be tax deductible
- Sales tax paid monthly in most states
- Ability to switch cars frequently
2. What are the shortcomings of ‘traditional’ leasing?
The traditional leasing structure is based on a rental concept: the lessee pays an upfront fee and monthly fees for a fixed period; mileage without penalty is limited; and the vehicle is eventually returned. For obvious reasons, this arrangement is unsuitable for most exotic and vintage car collectors, and also does not meet the needs of people who wish to change cars frequently.
3. How is The PFS Simple Lease different?
Leasing is now far more customized and user-friendly. At Premier we provide The PFS Simple Lease designed for car collectors enabling them to drive more car for their money, and to end their lease at any time without the penalties normally associated with early termination.
4. Can I lease my vehicle in my business name?
Yes, you can lease in a business name. Many of our leasing clients use their cars for business purposes. A Ferrari 458 or a Rolls Royce Phantom, for example, can certainly impress prospects and customers. This can be beneficial because it allows you to use pre-tax dollars to make monthly payments. Of course, it is always wise to consult with your accountant or financial advisor regarding any tax decisions.
5. Do I need a down payment?
Down payments vary depending on the type of vehicle you are interested in, the price of the vehicle, and your credit rating.
6. Are there mileage limitations?
Federally standardized lease requirements dictate that leases must be written with mileage limitations. However, by satisfying the terms of the lease agreement all mileage charges will be waived.
We simply agree on a lease-end residual value for the car, and while the lease is in place the lessee makes payments based on the difference between the amount financed and that residual. When the lease expires, the lessee has four options:
- Pay the residual and own the car.
- Sell the car privately, pay the residual, and keep any difference.
- Trade the car in, the dealer pays the residual, and you keep any difference.
- Refinance the residual through a new lease without a large cash outlay, and continue to own the car.
8. What happens when I want to end my lease early or switch cars?
That’s the beauty of The PFS Simple Lease. Our Early Termination Program allows an owner who wants to end their lease early to pay the balance owed, which is calculated based on a simple interest formula. Owners also have the option to switch cars within their lease without penalty, simply by paying any difference in value between the two cars. The lease’s residual value and payments remain unchanged.
9. Are there hidden fees at the end of my lease?
There are no hidden fees. At the end of your lease term the balance due is the agreed-upon residual value, the disposition fee and any applicable sales tax if you are purchasing the car. By configuring our leases this way, there are no surprises when your lease term is up. From the inception you know what you will owe at the end of the lease.
10. Are there tax benefits associated with leasing?
Sales tax on a purchased or financed vehicle is due immediately. With a lease, in most states, tax is based on the monthly payment schedule. This provides the car owner with the use of that money over the term of the lease. More significantly, if the car is leased under a business name, not necessarily a corporate entity, pre-tax dollars may be used to pay for the lease.
11. Are there any restrictions regarding where a car is purchased?
There are no restrictions. Premier’s customers purchase cars from anywhere in the world including dealers, private parties, auction houses, or even EBay. Premier is not in the business of buying, selling or trading cars, our primary goal is to make it easy for people to own cars through leasing.
12. What’s the #1 myth regarding leasing?
The #1 myth regarding leasing is that it is complicated, restrictive and costly.
The PFS Simple Lease provides a simple, flexible and economic option:
- Full disclosure with transparent lease terms
- Early termination with a favorable payoff
- Lower monthly payments than traditional financing
- Potential sales and income tax savings
13. Are auto-enthusiasts making a mistake if they don’t lease?
We don’t think leasing makes sense for every situation. We do, however, believe that it is prudent to consider all your financing options when purchasing a vehicle. And leasing is an extremely viable option.
14. What’s the best way to learn more about leasing?
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