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Started By
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re: New SUV question
Posted on 1/7/15 at 1:23 pm to Breauxsif
Posted on 1/7/15 at 1:23 pm to Breauxsif
quote:
If you're leasing a car that's in the $60-100K range leasing is the only way to go without absorbing depreciation.
OP isn't spending that much, and also isn't financing. So then it comes down to how good a deal can be negotiated on the asking price to mitigate the initial depreciation hit. On an American truck/SUV, leasing is pretty much never the answer because of the deep discount off sticker price you can get.
The truck Coach is asking me about, I bought new for $29,300. I traded it in 2 years and 30k miles later for $26,000. Factor in the sales tax on the original purchase, it cost me about $3000 a year, or less than $250/month to drive that truck. A lease payment would have been more than that, and I'd have had milage restrictions, deposits and down payments, etc. Leasing wouldn't have made any sense.
0
Posted on 1/7/15 at 1:24 pm to Coach Guidry
You must work at a high end shop.
Posted on 1/7/15 at 1:24 pm to Coach Guidry
And not a single thing to show for it all.
Posted on 1/7/15 at 1:24 pm to TigerHam85
quote:
However I now know that you are horrible with money management.
That's not really fair to say. His hobby may be cars instead of hunting and cooking.
Posted on 1/7/15 at 1:25 pm to Breauxsif
quote:
What car brings positive equity nowadays
0
Posted on 1/7/15 at 1:28 pm to Coach Guidry
While not a car, I bought a motorcycle "used" (had 1.4 miles on it), rode it for a few months and put 1000 miles, then sold it for $1000 more than I paid for it (including tax and registration :lol).
This is obviously the exception
This is obviously the exception
Posted on 1/7/15 at 1:28 pm to Breauxsif
quote:
What car brings positive equity nowadays?
OK, let's talk personal, not business, situations.
My point is that at end of a 48 or even 60 month term, the car will have some residual value, assuming normal mileage and proper maintenance.
A 2011 Explorer, even with 60K miles is probably in the $15K range. (Coach, jump in here if I'm way off).
So now, the consumer has a 15K down payment for the new vehicle.
Posted on 1/7/15 at 1:30 pm to VetteGuy
quote:
My point is that at end of a 48 or even 60 month term, the car will have some residual value, assuming normal mileage and proper maintenance.
A 2011 Explorer, even with 60K miles is probably in the $15K range. (Coach, jump in here if I'm way off).
So now, the consumer has a 15K down payment for the new vehicle.
This has always been my train of thought regarding vehicle purchases.
Posted on 1/7/15 at 1:30 pm to VetteGuy
quote:
A 2011 Explorer, even with 60K miles is probably in the $15K range
All depends on package, but thats fair.
Posted on 1/7/15 at 1:31 pm to LNCHBOX
Mileage Limits = Excel spreadsheet to figure out commute to alter mileage allocation. Easy Fix.
Security Deposit = Waived with good credit.
Excess Fees = You don't know what you're talking about because you can't list any specifics.
Hidden Stuff = Once again, no specifics
How does the APR work on a lease and how does sales tax work?
Yeah, I don't know what I'm talking about, ha ha.
Precious.
Security Deposit = Waived with good credit.
Excess Fees = You don't know what you're talking about because you can't list any specifics.
Hidden Stuff = Once again, no specifics
How does the APR work on a lease and how does sales tax work?
Yeah, I don't know what I'm talking about, ha ha.
Precious.
Posted on 1/7/15 at 1:32 pm to LNCHBOX
quote:
While not a car, I bought a motorcycle "used" (had 1.4 miles on it),
Ive traded in Bikes....talk about an opportunity to make a killing.
Posted on 1/7/15 at 1:34 pm to Breauxsif
quote:
If you're a business owner you can write off the payment and fuel if you're privatized LLC. So leasing is a sound option.
tell me more about this
what can I write off if I buy a vehicle?
Posted on 1/7/15 at 1:35 pm to TigerHam85
You're right 740 to be exact. I'm also a EE major with a minor in Finance.
Posted on 1/7/15 at 1:36 pm to Coach Guidry
I bought a 2006 Nissan 350z Rev-Up for $19,500 in 2009 and traded it in 2012 for $19,700...BOOYA
Posted on 1/7/15 at 1:36 pm to TheCaterpillar
quote:
This has always been my train of thought regarding vehicle purchases.
To execute this, it takes a bit of patience and being able to settle for maybe the mid-tier car instead of the super-loaded car.
You can easily work into the exact vehicle you want on the second or third rotation.
Plus, you're getting the sales tax advantage which adds at least 8% to your trade.
Posted on 1/7/15 at 1:43 pm to yellowfin
Yellowfin.
You're sitting in a very good position. When you lease you can write off the initial down payment on your tax return as a business expense.
The payments are deducted from your LLC rights as a business expense. You can deduct fuel costs and mileage. If you exceed your mileage allocation you can write that off too, depending on state law/revised code. Not to mention, depending your annual revenue for your business can lease an expensive car/truck in the $60-100K range.
Your CPA can handle all the particulars on you 1099 to make sure everything is air tight.
You're sitting in a very good position. When you lease you can write off the initial down payment on your tax return as a business expense.
The payments are deducted from your LLC rights as a business expense. You can deduct fuel costs and mileage. If you exceed your mileage allocation you can write that off too, depending on state law/revised code. Not to mention, depending your annual revenue for your business can lease an expensive car/truck in the $60-100K range.
Your CPA can handle all the particulars on you 1099 to make sure everything is air tight.
Posted on 1/7/15 at 1:44 pm to TigerHam85
That's not a fair assumption.
Posted on 1/7/15 at 1:48 pm to Breauxsif
or I can expense the entire purchase through sec 179 or bonus depreciation in the year purchased if I buy it
Posted on 1/7/15 at 1:49 pm to yellowfin
quote:
or I can expense the entire purchase through sec 179 or bonus depreciation in the year purchased if I buy it
Not for luxury cars, correct?
Posted on 1/7/15 at 1:51 pm to yellowfin
You could if you're interested in paying off the residual value at the end of the term to purchase it outright. It's entirely up to you.
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