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re: Lease vs buying vehicle advice
Posted on 7/29/15 at 12:55 pm to Bullfrog
Posted on 7/29/15 at 12:55 pm to Bullfrog
quote:
I lease all my vehicles, claim 90% as business miles and write that shite off.
This doesn't make sense. I hear this all the time but nobody can ever articulate how that saves them any money. I think people just like saying they write shite off because it sounds cool.
1
Posted on 7/29/15 at 12:55 pm to Bullfrog
quote:
I lease all my vehicles, claim 90% as business miles and write that shite off.
Friends usually make me feel good when I pull up and they say "wow" the first time the see my current rides.
You don't get a vehicle allowance? Poor people problems.
Posted on 7/29/15 at 12:56 pm to N2cars
Employee business expense. Multiple locations.
Partial mileage reimbursement.
Partial mileage reimbursement.
Posted on 7/29/15 at 12:57 pm to Napoleon
quote:
They uses to have a loophole with a lot of Toyotas like the Tacoma and Four runner. You could lease, and then after three years sell it for a a good bit over what the balloon payment was to get the car. It was actually a good deal
Yep, the flip side of something like that was in 2007 when gas went way up. People were dumping their big SUV's at the end of the lease and the dealers couldn't give 'em away.
Posted on 7/29/15 at 12:57 pm to Wtodd
quote:
Lease - you don't own shite
Buy - you own shite
Each is a purchase in a sense though.
A lease is a 36 month rental agreement with a residual 37th payment option, if you choose to buy it. (secure a new loan)
A purchase you do not own that vehicle until it's paid off, in fact with most purchases you owe more than it's worth the first year or two. (depending on what you put down)
Posted on 7/29/15 at 12:58 pm to Bullfrog
quote:
Employee business expense. Multiple locations. Partial mileage reimbursement.
That can make sense, but you've gotta admit, that's a rare deal.
Posted on 7/29/15 at 1:01 pm to Napoleon
quote:
quote:
Lease - you don't own shite
Buy - you own shite
Each is a purchase in a sense though.
A lease is a 36 month rental agreement with a residual 37th payment option, if you choose to buy it. (secure a new loan)
A purchase you do not own that vehicle until it's paid off, in fact with most purchases you owe more than it's worth the first year or two. (depending on what you put down)
This is the way I've always viewed it but people seem to ignore it
A lease could essentially be a purchase with some GAP protection in a way
If after 3 years, the car is a POS, you have a guaranteed value you can get for it with no hassle
Posted on 7/29/15 at 1:03 pm to Croacka
Maybe I'm just insane, but my whole life I've only purchased moderately priced, affordable (within my means) vehicles with cash and never had a car payment. It's suited me just fine.
I can't imagine paying rent on a car for a few years then having nothing to show for it afterwards.
I can't imagine paying rent on a car for a few years then having nothing to show for it afterwards.
Posted on 7/29/15 at 1:04 pm to Barf
quote:
This doesn't make sense. I hear this all the time but nobody can ever articulate how that saves them any money. I think people just like saying they write shite off because it sounds cool.
I tend to agree. A business owner "writes off" any expense, anyway.
Now, a leased vehicle may pass an audit easier. Let's say the owner wants to drive a new luxury vehicle and wants the business to pay for it. As a lease, it just goes on the books as an expense. If the company buys the vehicle (cash or finance)it is now an asset with depreciation, etc. In both cases, the payment would still be an expense.
There's a lot more to it, but leasing can make sense for business owner.
Posted on 7/29/15 at 1:04 pm to Croacka
quote:
If after 3 years, the car is a POS, you have a guaranteed value you can get for it with no hassle
I bet that value is no better than a low trade value though. Can't say I've researched it, but it wouldn't surprise me.
Posted on 7/29/15 at 1:04 pm to Makinbacon
quote:
What says the ot pros?
People who lease typically are living beyond their means. Show me 10 people who lease, 75% have more debt than they should. Examples of not overextending:
The total of all of your motorized vehicles should not exceed 1/2 of your annual pay.
Mortgage should not exceed 1/4 of your monthly take home pay (after tax)
Posted on 7/29/15 at 1:06 pm to Supermoto Tiger
quote:
The total of all of your motorized vehicles should not exceed 1/2 of your annual pay.
According to whom?
Posted on 7/29/15 at 1:08 pm to LNCHBOX
Probably so
It's just a fail safe for people who don't want any hassle
I have never leased but I haven't gotten burned on a new vehicle either.
Sure, it costs money to own a new vehicle compared to a "paid for cash" beater, but I accept that.
It's just a fail safe for people who don't want any hassle
I have never leased but I haven't gotten burned on a new vehicle either.
Sure, it costs money to own a new vehicle compared to a "paid for cash" beater, but I accept that.
Posted on 7/29/15 at 1:09 pm to Supermoto Tiger
quote:
not exceed 1/2 of your annual pay
Ok, I'm good then
Posted on 7/29/15 at 1:12 pm to Croacka
lightly used cars are pretty expensive these days. ever since "cash for clunkers", the advantage in buying used has decreased
Posted on 7/29/15 at 1:16 pm to Supermoto Tiger
quote:
The total of all of your motorized vehicles should not exceed 1/2 of your annual pay
I heard this somewhere (I don't remember where), but for some reason it stuck with me.
Posted on 7/29/15 at 1:17 pm to Makinbacon
You drive too many miles. I lease vehicles for my wife because she always wants to upgrade. Most people trade in their vehicles before they pay them off anyways. You have to remember that in a lease you only pay depreciation. Now on a Tahoe or Yukon they drop fast. It's probably easier to just buy one
Posted on 7/29/15 at 1:19 pm to SlowFlowPro
quote:
lightly used cars are pretty expensive these days. ever since "cash for clunkers", the advantage in buying used has decreased
Big time
Yet in every car thread, people are ridiculed for buying new and we hear plenty of stories about cousins uncles buying a 1 year old accord with 15k miles for half price of new
Posted on 7/29/15 at 1:20 pm to Supermoto Tiger
I NEED A MORE EXPENSIVE CAR.
Posted on 7/29/15 at 1:20 pm to winston318
Buy a Silverado or Sierra. They are essentially the same thing, but cheaper and more useful unless you have 4 or more kids.
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