i've read many articles and most of them say the same thing. the only issue i'm not sure about is whether, and how much, i can deduct the monthly lease payment on my taxes but i should have an answer on that soon.
i may be wrong but it seems like many of the negatives of leasing apply similarly to buying depending on how you look at it.
anyone with a strong opinion either way?
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To remove first post, remove entire topic.
i've read many articles and most of them say the same thing. the only issue i'm not sure about is whether, and how much, i can deduct the monthly lease payment on my taxes but i should have an answer on that soon.
i may be wrong but it seems like many of the negatives of leasing apply similarly to buying depending on how you look at it.
The only negatives that I've heard is the exterior has to look like it did when you got it (body, tires, etc). The dealership may also put a mileage restriction. If you are a neat freak and you can maintain it then do it. It puts you in a new vehicle every few years and you usually get a much better price.
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My father lives by it.
The only negatives that I've heard is the exterior has to look like it did when you got it (body, tires, etc). The dealership may also put a mileage restriction. If you are a neat freak and you can maintain it then do it. It puts you in a new vehicle every few years and you usually get a much better price.
i know those arguments are solid. i have no interest in customizing the vehicle and if you drive more than average (around 12,000 miles) then they will hit you with a mileage fee. i probably drive less than average so i would be ok.
i am worried abou8t bringing it back in less than perfect condition (my kids will surely darn it up somehow) but that goes to my earlier point.
if a leased vehicle gets dented or scratched, it costs you money by either having to fix it or paying a penalty to the dealer when you turn it in.
but the same applies to a car you buy. you either have to fix it or you lose money on the resale value. so, isn't that issue largely the same whether you buy or lease?
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i know those arguments are solid. i have no interest in customizing the vehicle and if you drive more than average (around 12,000 miles) then they will hit you with a mileage fee. i probably drive less than average so i would be ok.
i am worried abou8t bringing it back in less than perfect condition (my kids will surely darn it up somehow) but that goes to my earlier point.
if a leased vehicle gets dented or scratched, it costs you money by either having to fix it or paying a penalty to the dealer when you turn it in.
but the same applies to a car you buy. you either have to fix it or you lose money on the resale value. so, isn't that issue largely the same whether you buy or lease?
This is a tough one that can go either way. Depends also on how you view cars. Personally I do not need a new fancy ride every 3 - 5 years so I like the idea of having a car paid off in a few years and then not carrying any monthly payment. We have a 06 Altima (75K miles) and an 09 Civic (30 K miles) both paid off for about 2 years now. We take care of the cars etc... and so will likely drive them for a while.
I do not view them as an investment in the sense that we will make money off of them but I view them as an investment in the sense that for the past two years we have had no payments and if all goes well we will not have any payments for another 5 - 7 years. If you lease you can always trade in every now and then but you will always have a min $350 monthly payment.
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This is a tough one that can go either way. Depends also on how you view cars. Personally I do not need a new fancy ride every 3 - 5 years so I like the idea of having a car paid off in a few years and then not carrying any monthly payment. We have a 06 Altima (75K miles) and an 09 Civic (30 K miles) both paid off for about 2 years now. We take care of the cars etc... and so will likely drive them for a while.
I do not view them as an investment in the sense that we will make money off of them but I view them as an investment in the sense that for the past two years we have had no payments and if all goes well we will not have any payments for another 5 - 7 years. If you lease you can always trade in every now and then but you will always have a min $350 monthly payment.
i've never had a nice car. i drive a 06 toyota camry that i bought 3 years ago. i always looked at a cart as a necessity so i would just buy something reliable and cheap that got the job done.
as to the tax issue, it doesn't seem to make a difference. if you buy a car and use it for work, you can deduct part of the depreciation. if you lease, you can deduct part of the monthly payment.
i guess the main argument that didn't make sense is the one where if you lease, you might make a down payment and then make monthly payments and when you give the car back in 3 years or so, you have nothing left to show for those expenditures. but isn't the same basically of a purchase of a new car?
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i've never had a nice car. i drive a 06 toyota camry that i bought 3 years ago. i always looked at a cart as a necessity so i would just buy something reliable and cheap that got the job done.
as to the tax issue, it doesn't seem to make a difference. if you buy a car and use it for work, you can deduct part of the depreciation. if you lease, you can deduct part of the monthly payment.
i guess the main argument that didn't make sense is the one where if you lease, you might make a down payment and then make monthly payments and when you give the car back in 3 years or so, you have nothing left to show for those expenditures. but isn't the same basically of a purchase of a new car?
Club -- yes it is the same. The difference with buying is that you have nothing to show for it but at a minimum there is a light at the end of the tunnel in terms of eventually having a payment of $0.
And technically speaking, (unless a major accident occurs or you literally drive the car until it won't work anymore) while it depreciates the second you drive it, there is always going to be some trade in value or resale value.
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Club -- yes it is the same. The difference with buying is that you have nothing to show for it but at a minimum there is a light at the end of the tunnel in terms of eventually having a payment of $0.
And technically speaking, (unless a major accident occurs or you literally drive the car until it won't work anymore) while it depreciates the second you drive it, there is always going to be some trade in value or resale value.
I would not be able to get past the the 12k mile restriction, fine print, down payment, and worrying about small things you don't even think twice about.
I always drive nice cars. I just buy em a few years old with a few miles
You can buy a $60-65k Lexus 5 years old in the 20 range
Nice cars are usually taken care of and go forever these days.
My last Lexus had 205,000 miles on it and looked brand new inside and out when I sold it.
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I would not be able to get past the the 12k mile restriction, fine print, down payment, and worrying about small things you don't even think twice about.
I always drive nice cars. I just buy em a few years old with a few miles
You can buy a $60-65k Lexus 5 years old in the 20 range
Nice cars are usually taken care of and go forever these days.
My last Lexus had 205,000 miles on it and looked brand new inside and out when I sold it.
I drive an '85 Buick Riviera purchased 7 years ago. It's in very good condition, has only 183,000 miles, and gets about 23/15 mpg. I'm gonna drive it until either the engine or transmission expires.
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I drive an '85 Buick Riviera purchased 7 years ago. It's in very good condition, has only 183,000 miles, and gets about 23/15 mpg. I'm gonna drive it until either the engine or transmission expires.
I would not be able to get past the the 12k mile restriction, fine print, down payment, and worrying about small things you don't even think twice about.
I always drive nice cars. I just buy em a few years old with a few miles
You can buy a $60-65k Lexus 5 years old in the 20 range
Nice cars are usually taken care of and go forever these days.
My last Lexus had 205,000 miles on it and looked brand new inside and out when I sold it.
I do the same thing. Less for taxes, Less for insurance, no hassles, drive a luxury car for less.
~~~~~ZOSO~~~~~
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Quote Originally Posted by SALTY:
I would not be able to get past the the 12k mile restriction, fine print, down payment, and worrying about small things you don't even think twice about.
I always drive nice cars. I just buy em a few years old with a few miles
You can buy a $60-65k Lexus 5 years old in the 20 range
Nice cars are usually taken care of and go forever these days.
My last Lexus had 205,000 miles on it and looked brand new inside and out when I sold it.
I do the same thing. Less for taxes, Less for insurance, no hassles, drive a luxury car for less.
Matt is correct. There are a few simple equations that can help and take the human thought process/emotion out of it. The tax issues shouldn't be an issue unless you are on the border between tax rates with income.
It will usually work out where buying the car is a better option assuming you get a decent interest rate.
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Matt is correct. There are a few simple equations that can help and take the human thought process/emotion out of it. The tax issues shouldn't be an issue unless you are on the border between tax rates with income.
It will usually work out where buying the car is a better option assuming you get a decent interest rate.
I had my last car for 12 years & would probably still have it but I needed to get a 4wd vehicle. Man, I hated to have car payments again. When you get older you start to realize what a waste of money car payments are. I've got a rig now that suits me great (Nissan Xterra) & I hope to drive it for at least 10 more years. If I had money to piss away I'm sure I wouldn't mind leasing a new rig ever couple years.......
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I had my last car for 12 years & would probably still have it but I needed to get a 4wd vehicle. Man, I hated to have car payments again. When you get older you start to realize what a waste of money car payments are. I've got a rig now that suits me great (Nissan Xterra) & I hope to drive it for at least 10 more years. If I had money to piss away I'm sure I wouldn't mind leasing a new rig ever couple years.......
In the past 33 yrs. I have only owned two cars that I bought brand new.
In 1980 I bought a Ford Mustang, I had it until 1997, when I just gave it away to a friend of mine.
In 1994 I bought a Ford Thunderbird LX, V-8, 4.6 L engine and so for a few yrs I was driving the mustang and t-bird until I gave away the mustang and so up until now I still drive my 94 Ford T-Bird
So pretty soon I'm going to buy another new car and give my T-bird away to another friend...maybe...lol
So no way am I a lease guy, I just buy dependable fords and have them last 17 to 19 yrs...hehehehe!
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In the past 33 yrs. I have only owned two cars that I bought brand new.
In 1980 I bought a Ford Mustang, I had it until 1997, when I just gave it away to a friend of mine.
In 1994 I bought a Ford Thunderbird LX, V-8, 4.6 L engine and so for a few yrs I was driving the mustang and t-bird until I gave away the mustang and so up until now I still drive my 94 Ford T-Bird
So pretty soon I'm going to buy another new car and give my T-bird away to another friend...maybe...lol
So no way am I a lease guy, I just buy dependable fords and have them last 17 to 19 yrs...hehehehe!
I know everyone's situation will be different but I drive a lot of miles in a given year and the mileage restriction would kill me. I've also known people that were hammered pretty hard with mechanical issues and even normal wear and tear, like tires, costs them a great deal. Also they were charged the price of tires at the dealership, not the lowest or most efficient deal they could find.
I'd just rather have no payment i.e. buy a reliable used car and invest the money you would spend on a new car payment or lease and put it to work that way for you instead of trying to limit your tax liability. Give to a charity if you are looking for ways to do that, it doesn't even have to be money either. Give some old stuff taking up space in your garage. Charities are you usually pretty good about value on write offs.
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I know everyone's situation will be different but I drive a lot of miles in a given year and the mileage restriction would kill me. I've also known people that were hammered pretty hard with mechanical issues and even normal wear and tear, like tires, costs them a great deal. Also they were charged the price of tires at the dealership, not the lowest or most efficient deal they could find.
I'd just rather have no payment i.e. buy a reliable used car and invest the money you would spend on a new car payment or lease and put it to work that way for you instead of trying to limit your tax liability. Give to a charity if you are looking for ways to do that, it doesn't even have to be money either. Give some old stuff taking up space in your garage. Charities are you usually pretty good about value on write offs.
Also, the Church of Clubdirt shouldn't be paying taxes anyway. One day you can rise to the levels of Benny Hinn and Joel Osteen and not have any of it taxed.
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Also, the Church of Clubdirt shouldn't be paying taxes anyway. One day you can rise to the levels of Benny Hinn and Joel Osteen and not have any of it taxed.
Leasing verse buying really comes down to your needs and financial situation. If you can afford a new car (specifically monthly payments or the price in full), but plan on driving under 12k a year (you can get leases with 15k miles a year and pre-pay for additional miles if need be), then you should strongly consider leasing.
Regarding concerns over damage, you are allowed normal wear and tear. The rule of thumb is you can bring the car back with a dent on each panel no bigger than a credit card (i.e/ golf ball dent) and you will incur no penalties. Just keep your paperwork.
The nice thing about leasing is its only three years, you have the option to buy at the end of the lease, and you not buying an asset that depreciates immediately after purchase.
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Leasing verse buying really comes down to your needs and financial situation. If you can afford a new car (specifically monthly payments or the price in full), but plan on driving under 12k a year (you can get leases with 15k miles a year and pre-pay for additional miles if need be), then you should strongly consider leasing.
Regarding concerns over damage, you are allowed normal wear and tear. The rule of thumb is you can bring the car back with a dent on each panel no bigger than a credit card (i.e/ golf ball dent) and you will incur no penalties. Just keep your paperwork.
The nice thing about leasing is its only three years, you have the option to buy at the end of the lease, and you not buying an asset that depreciates immediately after purchase.
Leasing intimidates most people because they don't understand important terms like residual value and money factor. The only time leasing shouldn't be considered is if you drive 20k miles plus every year.
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Leasing intimidates most people because they don't understand important terms like residual value and money factor. The only time leasing shouldn't be considered is if you drive 20k miles plus every year.
I leased for about 15 years....I bought about 5 years ago because I was on the Ford A plan (my brother was an employee at the time). I put no money down and got a 72 month no interest loan. I have 53K miles on my Edge and only owe about $6K on it. It's worth about $15K. I'll end up making money on this deal, but mostly because I only put on about 10K miles a year, got a no interest loan, and didn't put a penny down. Best deal on a car I've ever received. I plan on keeping it for a few more years.....mostly because I really like it. Plan to make some $$ when I decide to sell and then will probably lease again.
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I leased for about 15 years....I bought about 5 years ago because I was on the Ford A plan (my brother was an employee at the time). I put no money down and got a 72 month no interest loan. I have 53K miles on my Edge and only owe about $6K on it. It's worth about $15K. I'll end up making money on this deal, but mostly because I only put on about 10K miles a year, got a no interest loan, and didn't put a penny down. Best deal on a car I've ever received. I plan on keeping it for a few more years.....mostly because I really like it. Plan to make some $$ when I decide to sell and then will probably lease again.
i think we can all agree that if you put a lot of miles on your car or may be likely to darn it up a little, leasing is a bad idea. or, if you are one of these guys who drives a car for a long time (i am), then leasing isn't smarter financially.
as for some of the concerns like interest rates, residual value, etc i think all of that is negotiable. obviously, you don't do it unless you understand how it works and have in your mind what a good deal is. but you can get all of that information on the internet.
i could never buy a new, nice car because of the loss you take once it becomes used.
i have a couple alerts out there that will tell me when certain manufacturers are offering good deals on leases. if i see one i like, i may run with it. if i do it, it will have to be a nice car. we'll see if anything works out.
finally, as to the most important point, if the laws in this country were fair, the Church of ClubDirt would be tax free and i'd lease under the company, i mean, church name and have all you guys pay for my car. but who said life was fair?
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Quote Originally Posted by captjohn67:
so what's the decision?? and what kind of ride??
i think we can all agree that if you put a lot of miles on your car or may be likely to darn it up a little, leasing is a bad idea. or, if you are one of these guys who drives a car for a long time (i am), then leasing isn't smarter financially.
as for some of the concerns like interest rates, residual value, etc i think all of that is negotiable. obviously, you don't do it unless you understand how it works and have in your mind what a good deal is. but you can get all of that information on the internet.
i could never buy a new, nice car because of the loss you take once it becomes used.
i have a couple alerts out there that will tell me when certain manufacturers are offering good deals on leases. if i see one i like, i may run with it. if i do it, it will have to be a nice car. we'll see if anything works out.
finally, as to the most important point, if the laws in this country were fair, the Church of ClubDirt would be tax free and i'd lease under the company, i mean, church name and have all you guys pay for my car. but who said life was fair?
Leasing verse buying really comes down to your needs and financial situation. If you can afford a new car (specifically monthly payments or the price in full), but plan on driving under 12k a year (you can get leases with 15k miles a year and pre-pay for additional miles if need be), then you should strongly consider leasing.
Regarding concerns over damage, you are allowed normal wear and tear. The rule of thumb is you can bring the car back with a dent on each panel no bigger than a credit card (i.e/ golf ball dent) and you will incur no penalties. Just keep your paperwork.
The nice thing about leasing is its only three years, you have the option to buy at the end of the lease, and you not buying an asset that depreciates immediately after purchase.
The not so nice thing is you lose 3 years of equity...and that's a huhe chunk of change to give up.
I want you all to realize something.
The minute you walk into a major new car dealership (not one of these mom and pop used car lots) and talk about buying and leasing I PROMISE YOU when it comes down to deciding, the salesmen will try to steer you toward a LEASE.
Think about that. Who's interest is he/she looking out for? YOURS or HIS?
Buying is the better option if you can afford it, period.
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Quote Originally Posted by Gooey_911:
Leasing verse buying really comes down to your needs and financial situation. If you can afford a new car (specifically monthly payments or the price in full), but plan on driving under 12k a year (you can get leases with 15k miles a year and pre-pay for additional miles if need be), then you should strongly consider leasing.
Regarding concerns over damage, you are allowed normal wear and tear. The rule of thumb is you can bring the car back with a dent on each panel no bigger than a credit card (i.e/ golf ball dent) and you will incur no penalties. Just keep your paperwork.
The nice thing about leasing is its only three years, you have the option to buy at the end of the lease, and you not buying an asset that depreciates immediately after purchase.
The not so nice thing is you lose 3 years of equity...and that's a huhe chunk of change to give up.
I want you all to realize something.
The minute you walk into a major new car dealership (not one of these mom and pop used car lots) and talk about buying and leasing I PROMISE YOU when it comes down to deciding, the salesmen will try to steer you toward a LEASE.
Think about that. Who's interest is he/she looking out for? YOURS or HIS?
Buying is the better option if you can afford it, period.
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