In the world of classic and exotic cars, experience always shines brighter than chrome. Putnam Leasing CEO Steve Posner has been in the leasing business since 1977 and has not just survived a fiercely competitive industry but has risen to the top. Focusing primarily on collectibles and exotics, it was an honor to talk with Steve about how auto leasing originated and its current benefits. We will then offer real-world leasing numbers on a Mercedes that will soon be auctioned in Scottsdale next week. Let’s get started.
Steve: “Back in the 1970s, there were no leasing programs for any cars other than Cadillacs, Chevys, and Oldsmobiles through General Motors and some through Chrysler. There were no leasing programs by any manufacturer in the exotic car market. Factories like Ferrari, Mercedes, BMW, and Lamborghini had no leasing arms. The only leasing that was done on those cars was through individual companies with credit lines, which they guaranteed through the various banks they did business with, and leased these cars on an open-ended basis. People leased Mercedes, BMWs, and Cadillacs, not so much for how much it cost every month, but for the tax advantages available.”
The Ugly 80s
Tax law changes, particularly in the late 1970s and early 1980s, reduced the tax advantages of leasing cars. The Tax Reform Act of 1986 limited interest deductions and imposed stricter depreciation and lease payment rules. These adjustments aimed to eliminate tax shelters, making leasing less beneficial for many taxpayers. Steve summed things up nicely, “The days of Uncle Sam paying for your car were over.”
European Manufactures Enter The Game
When big Euro car manufacturers struggled to sell their cars in the eighties, a solution was needed. Steve explained what happened next.
“There was a glut of Mercedes, Porsche, BMW, and Ferrari cars that weren’t selling. So, the manufacturers said, let’s go into the leasing business and create a program where we can put our cars on the street at a very low price with a very high residual and worry about these cars at the end of the lease. When that happened, the smaller leasing firms, like the ones I was involved in, had difficulty competing. Many of the smaller firms eventually failed or were bought out. Some went to the specialty car business for limos or funeral cars.”
Fast Forward to 2025
By now, most manufacturers have established leasing divisions because of the competitive nature of luxury automobile sales. While you might conclude this would put people like Steve out of business, it’s just the contrary, as he explains.
“Even with manufacturers like Ferrari and Lamborghini offering their in-house leasing programs, we still manage to do around a quarter of a billion dollars a year in net lease financing. We’ve been around the longest, and we’re the largest. When you deal with someone who wants to lease a million-dollar car, they want to have a conversation with someone who knows what they’re doing. We have nine or ten salespeople throughout the United States. They’re all car enthusiasts. They’ve been with us for anywhere from five to twenty years. And we have a full support team here in our corporate office in Greenwich of about 35 people who are departmentalized and can handle any question anybody may have, whether it be switching insurance companies, moving to a different state, getting the car registered, etc.”
Application Denied!
It’s not uncommon for a successful person to get denied by a manufacturing leasing department. Entertainers and athletes, for example, often have non-national income streams, and Putnam Leasing has a long history of leasing vehicles to those who don’t qualify with a manufacturer. Steve comments:
“Putnam Leasing is not like doing business with a bank where there’s a box; if you fall outside of this box, you’re automatically rejected. There are credit criteria, but we look at the individual’s ability to pay. We look at the vehicle’s value and the amount of equity they may have to put down. And we make a decision right away. Banks and manufacturers leasing arms only deal in black and white, while we can also deal in the gray. I always say when your bank says no, Putnam says yes.”
Obvious Benefits
Steve explained many benefits of car leasing, whether a 1920s Rolls Royce or a new Lamborghini. Since I live in California, Steve listed two big ones that are often cited as the reason to lease versus buy. For one, unlike purchasing, where the entire sales tax is paid upfront on the vehicle’s price, leasing requires paying tax only on the monthly lease payments, reducing initial costs. This allows for better cash flow and affordability, particularly for high-value vehicles. Secondly, leased cars are not declared as personal assets since ownership remains with the lessor. This distinction can benefit individuals or businesses seeking to minimize reportable assets for financial or legal purposes.
Scottsdale 2025
With the Scottsdale auctions days away, I thought it would be fun to ask Steve how Putnam deals with auctions in the collector car world. Steve:
“I’m going to be at the Scottsdale auctions with two of my salespeople; we have a lot of customers that go there annually. When one of our customers wins a car, we will interface with the auction houses…we know them all. We will arrange to buy the car and deal with the paperwork, and they’ll ship to the winner based on our relationships.
Getting started
If you have never leased with Putnam, don’t worry—it’s easier than you may think to become qualified. Depending on how much credit you’re looking for, it’s usually an online application and maybe a few extra documents. Decisions are usually made within an hour or two. It’s good to know your budget BEFORE you head to the auction, and that’s why Putnam is quick in returning those answers. Apply HERE
Real Example
We asked Steve just for fun, if he could give us some ball-park numbers on one of my favorite Porsches of all time, 1962 Mercedes-Benz 300 SL
- Estimated selling price: $1,500,000
- $300,000 down
- $1,200,000 lease
- 60 months at $18,339+ tax
- $500,000 buyback open end
- These figures do not include auction fees charged by the auction company, which the customer is responsible for paying.
Once again, it was a real pleasure meeting Steve Posner, CEO of Putnam Leasing. With over four decades of leasing experience in the classic and exotic car world, he’s one of the survivors who has a lot of wisdom to share. As always, thanks to Steve for his time and to IBP media for arranging this interview.
Above images © 2025 RM Sotheby’s
Above Interview © 2025 IBP Media, reviewed and edited by Rex McAfee
