Feb 9, 2006 2:51:19 AM
- 911godspeed
- Junior
- Loc: IL, USA
- Posts: 55, Gallery
- Registered on: Jan 8, 2006
Feb 9, 2006 2:51:19 AM
Feb 9, 2006 3:02:27 AM
Feb 9, 2006 3:15:27 AM
Feb 9, 2006 2:35:06 PM
Quote:
The Groom said:
If you loaded your car with options but do not intend to keep the car for a very long time, don't buy.
Buying + Selling = you lose almost all of the options value (most private buyers don't care about non-essential extras)
Leasing/Balloon + turning in = you only lose half of it (the residual value is based on the purchasing price, hence includes options).
Of course, your mileage may vary.
Feb 9, 2006 11:08:36 PM
Feb 10, 2006 6:46:49 AM
Feb 10, 2006 3:36:21 PM
Quote:
ajcastaneda said:
I use the options program. I also plan to purchase the car at the end of the term - well my little brother is going to get it and hopefully he'll have the cash to pay via retail financing the buy out price.
For the options program, the buy out price at the end of the term also serves as a tax deduction on your NEXT purchase if you decide to return the car and not payout the remaining balloon. So if the buy out price is 30K, and you are looking to get a 100K car next, you'll be taxed as if it was a 70K car.
Mar 11, 2006 1:22:51 AM
Mar 11, 2006 3:43:52 AM
Quote:
Deven said:
The main advantage to lease is to run it through your business. In that case compare pre-tax dollars. Also when comparing to buying, it is better to make the comparison when doing traditional financing (example 5 years). At 6% your 76000 car would cost 88140 over 5 years or 83232 over 3 years. So when you compare lease to buying the difference is not as much as you think (maybe 6K). I think the difference is even less when doing a 4 year lease (makes sense since the car has a 4 year warrentee). If you look at my note above, I had planned on keeping the car after the lease expires so I wanted to have the lowest residual possible. Factor in that I am leasing through my business, my 'out-of pocket' expenses for the Porsche is actually much less than the MRSP + finance charges (at the end of 4 years my out of pocket expense will be about 66% of MRSP+taxes). That means if I bought the car or financed it, vs leasing through business and then buying out car personally I will have payed 33% less for the car. (Think about it, a 100K car add taxes, financed charges etc, will cost me 80K or so 'out of pocket' at the end of 4 years, and I have a car that should be worth about 50K. That means if I sell the car privately, I had the privalege to drive a Porsche for about 600 dollars a month for 4 years for a 100K car).