Leasing

do some quick google searches on stuff like "lease versus buy" and you'll find a ton of data.

leasing is nice for tax purposes if you can (legitimately) run it through your company.

otherwise it's a financial return game - can you do better putting your cash into appreciating investments for the term rather than sinking it into a depreciating asset.

doody.

 

Another (less advantageous, but still worthy) approach is to simply buy a car on a home equity line of credit, and enjoy the tax deduction from the interest.

In that scenario, you build ownership --albeit in a depreciating asset -- and still get some marginal tax savings.

In the end, I'm a "cash" kinda guy. If you don't have the $$ don't make the purchase. That's why God divided the world in Amex holders, and Visa/Mastercard holders.

-d

 

The two players in Fcar leases are Putnam and Premier.

They are reallly purchases as there is a payment schedule and you can see how it amortizes.

You buy the car out at the end or sell it. You don't "turn it in" with the miles questions, condition, and all that.

So to keep it simple:

Purchase:

Lower interest rate
No pre-payment
You pay sales tax up front on entire amount

Lease:

Higher interest rate
Sometimes a pre-payment
You pay sales tax on your down and payments as you go.

On a $200,000 car tax is maybe $16,000 here in Calif.

So figure the interest rate diffence and go from there on how long you have to own it before the other option makes sense.

There is a credit union in texas that is sooo cheap. But they want a large down, and no dealer will deal with them that I know of...and they are kind of scared of exotics. Won't do Lambos now cause they just ate one. Credit Union of Texas. 4.55%!!!!!!! I could not get a deal through them. Why?????

I have no history of leasing a car of that type. Duh. My fico is 775 and I paid for my other cars, including another 360. They are very wary.

I used Premier on my new car.