Buying a car vs leasing....

[BradShaw]

Buy or lease a car? I am thinking of getting a new s55(If I win the powerball lottery). Probobly keep it 3 years, put maybe 20k total miles on it. Lease or Buy?



Last edited by BradShaw at Jul 9 2003, 12:28 PM

[Jesse_DD]

I just talked to my acct about this not too long ago. There are benefits to both. I think it came down to how long you were planning on keeping the car - If you are only going to keep 3 yrs then lease.

- you can write off both payments whether you lease or buy
- I was thinking of actually taking out an equity line on my house when I go to purchase my next car. The rate is at prime + principle is fully tax deductable + all the same write offs.

[Mike AI]

Brad with the way you turn over cars, leasing is a good thing for you. Just make sure its a tight lease.

I have never sold a car in my life. I did lease a suburban for 3 years, but then bought a new one....

[BradShaw]

What about the large tax credit for over 6,000lb's, anyone taking advantage of that?

[SweetT]

Originally posted by BradShaw@Jul 9 2003, 05:07 PM
What about the large tax credit for over 6,000lb's, anyone taking advantage of that?
Have you seen my fleet?? ;)


SUVs baby!!!


--T

[BradShaw]

Originally posted by Mike AI@Jul 9 2003, 02:06 PM
Brad with the way you turn over cars, leasing is a good thing for you. Just make sure its a tight lease.

I have never sold a car in my life. I did lease a suburban for 3 years, but then bought a new one....
Yeah my garage is not quite as big as yours! Actually had my navigator 3 years now, longest I have ever had a car.

Only downside is for the tax credit, car has to be in company name, and thus insurance is much higher. Right?

Also looking to unload a 59 Porsche if anyone is interested.



Last edited by BradShaw at Jul 9 2003, 02:13 PM

[Hooper]

Originally posted by BradShaw@Jul 9 2003, 05:07 PM
What about the large tax credit for over 6,000lb's, anyone taking advantage of that?
I thought you had lost all the weight? :yowsa:

[Peaches]

Originally posted by BradShaw@Jul 9 2003, 06:10 PM
Only downside is for the tax credit, car has to be in company name, and thus insurance is much higher. Right?

My CPA steered me away from putting my car in the company name because of our sue happy society. Someone sees a company name and thinks big $$$ and suddenly their neck hurts in fender bender.

I'm little and just a subchapter S corp and with the 0% interest rates, it was better for me to buy than lease since I can write off my car use even if the car's in my name.

The 6000 GW vehicles are a pretty large list going as small as an Expedition.

But if you're Dad's buying it for you, isn't all this talk of leasing and doing it through your company useless? :unsure:

[Mike AI]

What about the large tax credit for over 6,000lb's, anyone taking advantage of that?


Suburban and Escalade is under this.

You might be able to set up a sole propritorship or something....

http://hirise.biz/escalade/e1.jpg

It's not actually mine, I just clean it for a guy...

http://hirise.biz/escalade/e7.jpg

HEHE First time Katie said she has seen me do manual labor....

All the rest of the photos, WITH music http://hirise.biz/escalade/

:D

[Diamond Jim]

Those HAVE to be the only spinners in the neighborhood....hahaha

I bet those rims cost more than both of my cars...

I officially change your name to Bling AI..

[Toolz]

Bling AI? Come on your the one with DIAMOND in their name.

If Mikey were big pimpin's those would be 26's with half the body cowling cut away to sqeeze them in.

How those 26's running on your Bronco there DJ, ya big pimp

[Diamond Jim]

Originally posted by Toolz@Jul 9 2003, 07:50 PM
Bling AI? Come on your the one with DIAMOND in their name.

If Mikey were big pimpin's those would be 26's with half the body cowling cut away to sqeeze them in.

How those 26's running on your Bronco there DJ, ya big pimp
This coming from the guy who changes Rolex's more often than I change my socks..

[Mike AI]

24s ride pretty rough as it is....

But it gets a lot of looks...

Still have a few more things I want to do with it.

DJ - Didn't you know GM is offering 0% down and 0% finaning?

And my other secret? Rent-a-Rim!

[BradShaw]

Rent-a-rim may be something to look into, homies (&mike) like to spend bling on wheels.

[Hell Puppy]

The general rule of thumb for finance is if it appreciates you buy it, if it depreciates you rent it.

But where cars are concerned there's alot more to consider. Leasing is a good idea if you meet a few conditions:

1) You dont like to keep a car more than a couple or three years.

2) You take good care of your car.

3) You can keep the mileage under 10K or so a year.

4) Your like fairly upscale rides that will retain their value.

Where most people get burned is on mileage or "excessive wear and tear" if they rag their cars out. Leasing also doesn't work on a vehicle that doesn't hold it's value as the residual value will be shit. MB, Lexus, BMW, etc all lease very well as they retain their value and are easy to resell.

I'm a big fan of leasing as I have multiple vehicles and can keep the mileage under control, take good care of the cars and like to change them out on a regular basis. You get a lot more car for the dollar by leasing, but the downside is it is never an asset. You're renting. But since cars (other than collectibles!) depreciate in value, this isn't a bad thing.

If you make them a company car, leasing is the only way to go without really making the taxes complicated. To do that though, you'll want to make sure you still have at least one car in your name and not the company's, so that you can call it your personal vehicle. Otherwise the IRS likes to crawl up your ass and dispute your business mileage.

[gregtx]

Originally posted by Mike AI@Jul 9 2003, 03:14 PM


HEHE First time Katie said she has seen me do manual labor....


Is "Manual" the guy who owns the escalade :groucho:

[Hell Puppy]

Originally posted by Mike AI@Jul 9 2003, 06:14 PM

All the rest of the photos, WITH music http://hirise.biz/escalade/

:D
You mean there's a SUV on those web pages too? All I saw was Katie in a bikini.... :yowsa:

[Mike AI]

HAHAHA funny Greg!! haha

HellPuppy I snapped some others but she would not let me post them... I think they were hot, but I do value my balls....

[Timon]

I always buy, leasing is inconvenient and more expensive. I think it's better to get the payment over with and not have to bother with it every month.

[Pornwolf]

My first year in LA I rented cars. I travel a lot so it's in my nature to make friends with high end rental company owners. I had a different top of the line Lexus, Mercedes or BMW every month for under $1200 per. If you factor in the insurance and the down it's actually a better deal. I should have kept doing it like that instead of leasing my cars. <_<

[Mike AI]

. I had a different top of the line Lexus, Mercedes or BMW every month for under $1200 per.

I am confused. You had a different car every month for $1,200 per month?

[Diamond Jim]

I rode in a top of the line Mercedes one time....

[Mike AI]

Jim I have one you can ride in, but I will have to charge you $12 a mile....

[Hell Puppy]

There was a company a couple of years ago called dreamlease.com that had this deal where for one monthly fee you could have 4 different "exotic" cars in a year. They even had an affiliate program, so you'll still find their links all over the web even though it appears they've gone tits up.

Basically they had a fleet of exotics, you pick what you want and ride for as long as you like for the monthly fee. You could trade it in on anything else in their fleet up to 3 times a year. I forget what the fee was, it wasn't too high actually, I seem to recall like $1500 a month.

Interesting idea that obviously didn't work.

For me, the flaws were the selection and the fact that you were getting someone else's sloppy seconds (or thirds or fourths or worse) unless you just happened to get a new one as it entered the fleet. I want new car smell when I get a new ride! The selection wasn't "exotic enough" for my tastes. Mostly cars in the $60-80K range.

There would be more temptation with a plan with some of the really ultra expensive stuff that I'd like to play with for a month or two but would never consider actually buying even if I were engaged to Brad Shaw's money. I'd love the opportunity to try to get myself killed in a McLaren for instance

[Pornwolf]

Originally posted by Mike AI@Jul 9 2003, 09:01 PM
. I had a different top of the line Lexus, Mercedes or BMW every month for under $1200 per.

I am confused. You had a different car every month for $1,200 per month?
Yep. I just called and found out what was coming in and traded cars after my monthly contract was up.

[Timon]

Hey Mike, post some sound clips so we can your whistle tip!

WOO WOOOO!!

[slavdogg]

a white guy driving an Escalade with 24s in New Oreleons ?
that doesnt sound right..

[Timon]

Originally posted by slavdogg@Jul 10 2003, 04:21 AM
a white guy driving an Escalade with 24s in New Oreleons ?
that doesnt sound right..
His windows are very dark so BlingAI actually looks black driving it ;-)

[Toolz]

Originally posted by Diamond Jim+Jul 9 2003, 06:29 PM--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Diamond Jim @ Jul 9 2003, 06:29 PM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin--Toolz@Jul 9 2003, 07:50 PM
Bling AI? Come on your the one with DIAMOND in their name.

If Mikey were big pimpin's those would be 26's with half the body cowling cut away to sqeeze them in.

How those 26's running on your Bronco there DJ, ya big pimp
This coming from the guy who changes Rolex's more often than I change my socks..[/b][/quote]
LOL,

Didn't you know they have a leasing program for those too :)

Yeah I rode in a high end Mercedes once too, yours. And who can forget the need to empty my pants after the ride in Marc's SL55 down a country road at excess speeds.

[Mike AI]

Timon did you actually hit the webpage? I have some music up....

Stan did this a month ago http://hirise.biz/woowoo/

[Mike AI]

Slav, you are a very wise man....

There is NO way I wold drive this car in New Orleans. :D

The Escalade is in Tampa....

[shawcutie]

LOL
OMG! I love that page!!
Hey Mike, do you make Katie wear her do-rag when she rides in the "bling bling mobile"?!

:biglaugh: :biglaugh:

[Mike AI]

Hey Mike, do you make Katie wear her do-rag when she rides in the "bling bling mobile"?!

HAHA No, but she does wear her Chris Webber jersey!!

[Torone]

Frankly, leasing don't make sense to me. You still have all the headaches of ownership, plus you get to pay almost as much as new at the end of the lease...

I used to be in the tv/stereo rental business...we made several times as much renting a unit as we would have selling it. Then we would sell it and get almost full price. Guess who got screwed? The customer!

[Hell Puppy]

Originally posted by Torone@Jul 10 2003, 10:21 AM
Frankly, leasing don't make sense to me. You still have all the headaches of ownership, plus you get to pay almost as much as new at the end of the lease...

I used to be in the tv/stereo rental business...we made several times as much renting a unit as we would have selling it. Then we would sell it and get almost full price. Guess who got screwed? The customer!
It's a little different with autos.

If you're the type of person who is going to constantly make a monthly car payment because they trade often anyway, you can ride in a lot more car for a smaller payment by leasing.

Take a BMW 745iL for instance. Reasonably equipped, you'll drop $75K. It leases for around $1150 for 36 months. Finance that, even at today's interest rates, and you'll be out close to $1400 per month even at 60 months.

With the lease, you know you can get out of the car worst case at 36 months. Even if at that point gas costs $5 a gallon and the car is worth $20K less than the residual value, you're out of the car owing nothing.

[Pornwolf]

Originally posted by Hell Puppy@Jul 10 2003, 07:24 PM
[QUOTE=Torone,Jul 10 2003, 10:21 AM]
Take a BMW 745iL for instance. Reasonably equipped, you'll drop $75K. It leases for around $1150 for 36 months. Finance that, even at today's interest rates, and you'll be out close to $1400 per month even at 60 months.

With the lease, you know you can get out of the car worst case at 36 months. Even if at that point gas costs $5 a gallon and the car is worth $20K less than the residual value, you're out of the car owing nothing.
Yeah, nothing not counting the $50k plus you just said bye bye to over 3 years. I think a full on purchase of any car is the best option.

[Hell Puppy]

Originally posted by Pornwolf@Jul 11 2003, 12:49 AM
[QUOTE=Torone,Jul 10 2003, 10:21 AM]
Take a BMW 745iL for instance. Reasonably equipped, you'll drop $75K. It leases for around $1150 for 36 months. Finance that, even at today's interest rates, and you'll be out close to $1400 per month even at 60 months.

With the lease, you know you can get out of the car worst case at 36 months. Even if at that point gas costs $5 a gallon and the car is worth $20K less than the residual value, you're out of the car owing nothing.
Yeah, nothing not counting the $50k plus you just said bye bye to over 3 years. I think a full on purchase of any car is the best option.
Your math is a little faulty. Total of the lease payments is $41,400.

At $41,400 into a 60 month traditional finance program, you're 30 months in and still owe $54,000 on a 2.5 year old car. Bad news is a 2.5 year old 7 series, even in good shape, is going to be worth about $10K less than that.

Depreciation is a bitch.

I do agree that just buying the car outright and paying cash is the best option if you can do it though.

[Timon]

Don't you guys take pride in your cars?

If I take pride in something I want to own it.

Leasing a car is not owning it, you just borrow it in exchange for money. It's like flashing fake gold with glass diamonds or taking an escort to a party pretending it's your girlfriend.

A lease car is basically a whore and people driving them are tricks :-)

[Peaches]

I always leased cars until I started needing a 4X4 and lived on gravel roads. I paid several $100-300 charges for "dings" and such on leased cars (though one inspector from Nissan looked at where I'd knocked over a neighbor's mailbox and said "I'm not putting that down - if they catch it, then it happened between the time I inspected it and you turned it in." Having boobs is SO cool! :rolleyes: ) and my cars here in the boondocks get abused.

Eventually I want to keep a car PAST the warranty period and drive it until the wheels fall off. Unfortunately I haven't found something I like enough and has been mechanically good enough to do that with. I take the 1 year old Explorer back next week to have the AC checked for the 3rd time that's their problem. In addition to THEIR problems, I've already had to replace and clean out the filters twice due to mice nests - I can't blame Ford for that. :awinky:

I love driving different cars - even old ones. My Dad always said I should marry a car dealership owner. :okthumb:

[Hell Puppy]

Same thing here, I dont get attached to any one car. Within a couple of years I start to crave a new one. And to switch up every couple of years, it's cheaper and less hassle to lease.

Though I do usually have at least one vehicle that is all paid up and I actually own, typically truck or SUV.