if you're talking me to I am referring to the post above you... or are you referring to the post above me as well?

 

"Not!"

His first mistake was that in evaluating the purchase, he uses a loan-term that is the same length as the lease that he's comparing it to.

Why, pollofrito?

If we're trying to see whether buying a car can give you monthly payments that are equal to or less than lease payments, why do you stack the deck against the purchase by insisting on a short-term loan? And don't give us the "apples to apples" thing, because when you're comparing a lease to a buy, it's inherently apples to oranges. If you want to honestly see which one is less expensive, for each one you have to use the variables that are most favorable to it, or else you're stacking the deck.


Regarding what my pal Bob said about the deductibility of SUV's or whatever, up to $75K or $100K or ten billion K: In the U.S., last I looked, there's a limit on how much depreciation you can deduct per year. If the car's initial cost was extremely high, you're still stuck with the annual limit each year. I think it maxes out when the car's initial cost is about $35K or more.

And, regarding the idea that the deduction won't stand up for a luxury car, actually that has nothing to do with it. You can get the deduction regardless of what car it is, as long as you meet the usual "tests" -- but, you're limited by that annual ceiling, in terms of how much of the depreciation you can take each year.

 

You know, what I dont. Nor do I really care to search the forums and Find out. I was just trying to "enlighten" the board to the misconceptions of leasing mostly spread by people like you that dont have a clue. And obviously you dont becuase you proved my point for me in your scenario.

If you are a moderator by any chance, i really mean no direspect. I just wanted to enlighten my fellow board members. I do like the TSX and get some good info on here and would like to attain one next spring hopefully when the demand has cooled and there a bit cheaper. Just wanted to shed some light on a few board members.

 

How long have YOU been in sales. Inception fees on a lease is not down payment. They are two different things. I DID NOT use a down payment with the sample lease. The 1,500.00 was to pay for the bank fee, first payment and DMV fees. Now go ahead and tell me thats part of the dealers front end gross. Oh wait YOU wanted to roll it in to the lease...excellent idea...now you have to pay interest on the inception fees too...way to go smart guy.

 

Who cares rather Im a mod or not. This part is for free.
What I do for a living is not.

 

Im not insisting my scenario was, but the other guys wasnt the same length. We're not trying to see what "way of financing" gives the lowest payment. We are debating as to which is the best way to finance. And everything equal (money down, interest rates, etc) the lease is a better choice if you find yourself trading cars in every 3-4 years. IF not then buying is the key. GUYS I DIDNT JUST SPLIT THE ATOM. Its all there in black and white with my scenario, and if you insist on using a longer "buy" term vs a shorter lease term i disected justins to. Just reread it. Its no bullshit. Its right. You guys are just convinced leasing is bad, when in fact its not. JUST READ!

 

Smart salesman, I said the upfront expenses would be more in the 36 month period if you finance the car vs leasing it. So why don't YOU read what I wrote.

And 98% of the people do not know that they will end up paying more if they did buy the car after the lease is over.

 

OK guys im tired of arguing with the same guys, im tryin to help you but you insist on not listening, so keep gettin screwed at the dealership. Im tellin you all those fees are bullshit. Its front end gross. I do this everyday. The only thing thats not is the DMV fees. Everything else is gross.

And in the end it doesnt matter anyway. I proved your scenario wrong and now you guys are getting mad cuz im right and leasing makes sense. STOP FIGHTING IT!

 

So first payment is front end gross? Bank fee is front end gross? You are smart!

Nobody said leasing was bad...I sure didn't.
You are the one thats getting MAD.

Now go sell a car Mr. Saleman.

 

You make me laugh....people like me.

Now go find out what I really do for a living.

 

Separating the wheat from the chaff (of which there's been a lot), I think this thread really does answer most if not all the questions. And the answers are different for different people, because we're interested in different things.

IMO a lot of the emotional stuff on here is mainly the result of people with different priorities emphasizing different things, which is understandable -- but (again IMO) they weren't always realizing that it's not necessarily differences of fact, but differences of emphasis -- differences of what exactly you look at, and how you weigh it.

But indeed, IMO, there are also a few mistaken facts on here. I think anyone who genuinely wants to learn the bare facts can do so from this thread, just by looking closely at what's been said, and how the people back it up, and what's been said to counter it.

I don't think many opinions or plans are going to change in terms of buying or leasing -- but I do think we've clarified some facts.

 

Excellent comment. This thread definatly explains the differences and i agree with you 100%

 

all i know is leasing makes sence for me, i could care less what anyone else thinks, im the one making my payment afterall.
i already stated my reasons for leasing and definitly leasing is not for everyone.

 

He was right, I was wrong.

This was about Bob Shiftright saying that SUVs weighing over 6000 pounds and up to $100,000 are deductible as a business expense. Ordinarily that would indeed be limited by what I said, but, it turns out, there's a loophole by which it's not limited. Seems that this was a thing intended to help farmers and the like, not SUV owners. Looks like Congress is moving to close the loophole, by increasing the threshold to 14,000 pounds, which would exclude SUV's. (You don't have to tell me, I know it's chancy ever to include the words "Congress" and "moving" in the same sentence. )

As to how this affects the buying vs. leasing debate, it doesn't much. Obviously it has nothing to do with the cars that most of us are talking about. About an SUV, I guess you could definitely get the full deduction if you BUY (at least till they close the loophole), but maybe not if you lease. And of course you'd have to meet the usual deductibility tests.

 

I'm buying my car. 60 month purchase.

There is one arguement that I disagee with... When someone says, "I don't lease because I like owning my vehicle." Unless you paid cash for your car you do not own it. When you make that last payment you own it.

 

Actually you do own it, the bank only is a lienholder... but let's not get into technicalities.

I prefer a purchase due to the fact that it affords me a greater deal of control over said property.

 

Stop making payments for 2 months and we'll see if its still "YOUR" car.

 

... or try to sell it without the pink slip...

Santa Rosa Steve

 

So..... you dudes think you don't own your house if you have a mortgage?

 

Even if you don't have a mortgage, try skipping a property tax payment and see what happens.

 

The "repossession" concept:

1. owner stops meeting a financial obligation to the lienholder
2. lienholder asserts his rights to the property
3. a court of law determines the validity of the lienholder's claims
4. if valid, the court will award ownership to the lienholder
5. the lienholder is now the owner of the property
6. upon reciept of the property, the former owner must be compensated for the difference between the unpaid financial obligation (+ repo fees) and the actual value of the vehicle.

The difference between a lienholder and an owner is the degree of control one exercises on their own property. If you're leasing a car and you do all kinds of mods... you're technically interfereing with the leasing company's property rights. If you're making payments to own... you could paint your car like a Pokemon and the finance company could care less.

 

 

heh I actually saw that car at E3 a few years ago and hence the example.

 

They put a lien against your house. If you still don't pay they will put your house up for auction to satisfy the lien. You still have the option of satisfying the lien and preventing the auction. Once the auction has been completed, the gov't satisfies the lien and pays you the difference minus fees.

It doesn't matter if you have a mortgage or if you paid for the house in cash... the gov't can still come after you with a property tax lien irrespective. It's not that the gov't OWNS your house... it's that they have the power to force a sale. Although many people go years without paying property taxes... and then settle before the sale... I would not recommend this.