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.
Did not read all of the replies...if you use the leased car for 80% business/20% personal, then you can write off 80% as a business expense. HTH
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Quote Originally Posted by ClubDirt:
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.
Did not read all of the replies...if you use the leased car for 80% business/20% personal, then you can write off 80% as a business expense. HTH
I can assure you there is very little wiggle room on the difference of the interest rate between buying and leasing. They stick with set rates. The rates you hear on the radio or TV ads are for BUYING. There's really nothing else to negotiate except a few thousand off the price, if that.
Then you get down there and think your lease be at that rate.
Not so. The lease rate is SIGNIFICANTLY higher. Sometimes more than triple.
Why do you think that is? Because people rationalize the rate by saying, hey it's only over 3 years then the car is off my hands. And the dealer gets three years of the top tier rate out of 20 30 40 cars leased a day 3x40=120 months of top tier rates instead of the 10 cars they sell for 5 years of payments at the floor rate 10x5=50.
140 high vs 50 low
All hypothetical but this is what drives leases...the interest on the payments.
I read two sentences and it's clear you don't know what you're talking about.
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Quote Originally Posted by scalabrine:
I can assure you there is very little wiggle room on the difference of the interest rate between buying and leasing. They stick with set rates. The rates you hear on the radio or TV ads are for BUYING. There's really nothing else to negotiate except a few thousand off the price, if that.
Then you get down there and think your lease be at that rate.
Not so. The lease rate is SIGNIFICANTLY higher. Sometimes more than triple.
Why do you think that is? Because people rationalize the rate by saying, hey it's only over 3 years then the car is off my hands. And the dealer gets three years of the top tier rate out of 20 30 40 cars leased a day 3x40=120 months of top tier rates instead of the 10 cars they sell for 5 years of payments at the floor rate 10x5=50.
140 high vs 50 low
All hypothetical but this is what drives leases...the interest on the payments.
I read two sentences and it's clear you don't know what you're talking about.
Actually, it is kind of complicated when you're dealing with an asset that will depreciate the way a car does.You're either going to be making payments (lease) or losing value (own).
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Quote Originally Posted by 14daroad:
Gee, this one is real hard to figure out.
Lease = rent
buy = own
Not complicated.
Actually, it is kind of complicated when you're dealing with an asset that will depreciate the way a car does.You're either going to be making payments (lease) or losing value (own).
Actually, it is kind of complicated when you're dealing with an asset that will depreciate the way a car does.You're either going to be making payments (lease) or losing value (own).
It isn't at all complicated.
Lease = down payment, 36-48 monthly payments, return car
Own = down payment, monthly payments, get title.
Again, leasing is for people who want to get into a vehicle they can not afford to purchase.
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Quote Originally Posted by I_Need_A_Detox:
Actually, it is kind of complicated when you're dealing with an asset that will depreciate the way a car does.You're either going to be making payments (lease) or losing value (own).
It isn't at all complicated.
Lease = down payment, 36-48 monthly payments, return car
Own = down payment, monthly payments, get title.
Again, leasing is for people who want to get into a vehicle they can not afford to purchase.
yeah... youre talking math, numbers, reality... not exactly his strong suit historically on this site
Right on cue:
Edmunds evaluated the costs of car ownership versus leasing, based on a new $20,000 car financed with a three-year loan or lease at 6 percent interest. What they found was that, after a five-year period, the real cost of owning a car was actually slightly higher than leasing. With monthly payments, down payments, maintenance, insurance, taxes, state fees and interest, the total cost of ownership came to $32,388 for five years. Under the same circumstances, the cost for leasing cars during a five-year period totaled $32,140.
...
After 10 years of owning a car, your insurance will decrease, your maintenance costs will increase, and you will have finished off the largest financial burden -- the monthly payment -- years ago. With a lease, you continue to make monthly and down payments, though the rest of the costs remain about the same. But when you add up all of the money you've spent over the last 10 years, you see a clear advantage of purchasing a car over leasing cars.
After adjusting for maintenance and other operational costs, you would have spent around $43,000 for that new $20,000 car you purchased 10 years ago. It's a staggering amount, but on the other hand, consider how much you would have spent leasing cars for the same 10-year period: Assuming there are no extra fees or penalties, you would have coughed up more than $64,000. Plus, you would have built no equity.
yeah... youre talking math, numbers, reality... not exactly his strong suit historically on this site
Right on cue:
Edmunds evaluated the costs of car ownership versus leasing, based on a new $20,000 car financed with a three-year loan or lease at 6 percent interest. What they found was that, after a five-year period, the real cost of owning a car was actually slightly higher than leasing. With monthly payments, down payments, maintenance, insurance, taxes, state fees and interest, the total cost of ownership came to $32,388 for five years. Under the same circumstances, the cost for leasing cars during a five-year period totaled $32,140.
...
After 10 years of owning a car, your insurance will decrease, your maintenance costs will increase, and you will have finished off the largest financial burden -- the monthly payment -- years ago. With a lease, you continue to make monthly and down payments, though the rest of the costs remain about the same. But when you add up all of the money you've spent over the last 10 years, you see a clear advantage of purchasing a car over leasing cars.
After adjusting for maintenance and other operational costs, you would have spent around $43,000 for that new $20,000 car you purchased 10 years ago. It's a staggering amount, but on the other hand, consider how much you would have spent leasing cars for the same 10-year period: Assuming there are no extra fees or penalties, you would have coughed up more than $64,000. Plus, you would have built no equity.
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