View Poll Results: Loan or Buy?
I am leasing my car
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33
20.00%
I have bought my car
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132
80.00%
Voters: 165. You may not vote on this poll
You leased or bougth your cars?
#5
leased, but plan on paying it off during lease term...
...and my realtor said its a good thing i leased...cause i wouldnt have a chance on loan for house if i had bought...!!!
#7
You should read this article from edmunds. It should help you decide to buy or lease. I think if you can afford it buy the car. It will save you money in the long run.
http://www.edmunds.com/advice/fiw/ar...9/article.html
http://www.edmunds.com/advice/fiw/ar...9/article.html
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#11
You should only lease if:
1. your car is a tax writeoff
or
2. you know for a fact that you will trade the car after the lease is up AND you will be very close to but not over the km limit
or
3. you are buying a North American car because they are almost never worth the residual value.
1. your car is a tax writeoff
or
2. you know for a fact that you will trade the car after the lease is up AND you will be very close to but not over the km limit
or
3. you are buying a North American car because they are almost never worth the residual value.
#12
Bought....I would NEVER lease unless I were to ever find myself employed where my employer provided a car allowance. i.e. if it's on the company, I would lease and change out every couple of years.
#15
No, you are a dork.
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Leasing a bad idea? Hardly.......
Originally posted by busterkw
bought, why pay all that money and then have to give the car back in the end?
bought, why pay all that money and then have to give the car back in the end?
I hear alot of people say, "I am leasing the car, I am not taking care of it like it were mine". If they only knew their options...........
PS> I cant drive the same car for more than 2 1/2 - 3 years anyway....
D
#16
No, you are a dork.
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Originally posted by busterkw
bought, why pay all that money and then have to give the car back in the end?
bought, why pay all that money and then have to give the car back in the end?
I hear alot of people say, "I am leasing the car, I am not taking care of it like it were mine". If they only knew their options...........
PS> I cant drive the same car for more than 2 1/2 - 3 years anyway....
D
#19
Drifting
I leased mine, mainly for a tax writeoff, and I can decide @ the end of the lease if I want the car or walk away.
Basically, leasing allows lower payments, and a better car. I do not like to have high payments or it may leave me short, With the mortgage and family debt commitments, etc. Otherwise I would be driving an Accord.
Basically, leasing allows lower payments, and a better car. I do not like to have high payments or it may leave me short, With the mortgage and family debt commitments, etc. Otherwise I would be driving an Accord.
#21
Racer
Join Date: Jul 2001
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Originally posted by hemants
You should only lease if:
1. your car is a tax writeoff
You should only lease if:
1. your car is a tax writeoff
You can take a business deduction for a car if it is leased or purchased. There is a limit to the deduction that you can take on any car. Just because you have a $500 per month lease payment, doesn't mean that you can write off $500 per month...
#23
Oracle Apps/Database Dude
Originally posted by SlyTLS
Bought...I don't believe in leasing. I can't justify paying for a car I won't own when my payments are up.
Bought...I don't believe in leasing. I can't justify paying for a car I won't own when my payments are up.
#25
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I lease and have leased my prior three cars.
Leasing for me has several advantages. First I must qualify and say that the write off is the main reason. I am an attorney and have my own practice. By leasing I am able to write off approx. 80% of the lease payment, gas, insurance and repairs. If I were to purchase, I would have higher monthly payments and then at the end of four years when the payments are completed, I would no longer have the deduction. While you can take a mileage deduction, it would not be as much as the payment deduction.
So, I lease which puts me in a new car every three years (though the Acura lease is now 42 months) all my repairs are covered except for tires, brakes, oil change and major service. I don't have to hassle with a resale at the end of the lease. The disadvantage is I always have a payment and have to repair any damage at the end of the lease (but then you would repair if you were selling also). I am told that the Acura lease waives up to $1,500 of wear and tear but each item can't be more than $500.00.
Bottom line it all depends what your needs are, what you can afford and what your long term plans are with cars.
Leasing for me has several advantages. First I must qualify and say that the write off is the main reason. I am an attorney and have my own practice. By leasing I am able to write off approx. 80% of the lease payment, gas, insurance and repairs. If I were to purchase, I would have higher monthly payments and then at the end of four years when the payments are completed, I would no longer have the deduction. While you can take a mileage deduction, it would not be as much as the payment deduction.
So, I lease which puts me in a new car every three years (though the Acura lease is now 42 months) all my repairs are covered except for tires, brakes, oil change and major service. I don't have to hassle with a resale at the end of the lease. The disadvantage is I always have a payment and have to repair any damage at the end of the lease (but then you would repair if you were selling also). I am told that the Acura lease waives up to $1,500 of wear and tear but each item can't be more than $500.00.
Bottom line it all depends what your needs are, what you can afford and what your long term plans are with cars.
#26
Instructor
Join Date: Jul 2001
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Originally posted by Closer
Leasing is for people who don't like money or have too much of it.
Leasing is for people who don't like money or have too much of it.
Leasing can also work nicely on the deductions if you own your own buisiness. I believe you can deduct the whole lease payment, but only the miles if you are purchasing (not a tax expert here, so you may want to check that out with your accountant before trying it on your next 1040)
We're currently buying the TL and the Max, and leasing the Truck, but we used to lease 3 cars for a good deal less than it would have cost to purchase two.
Yes, there is the residual factor, but a car is a depreciating asset and when I worked out the numbers, leasing was only costing me a few cents more per mile than buying (leased cars were VW, Nissan and Infiniti). At 30,000+ miles a year that's around $1000 total on 3 new cars with no service/maintenance issues (except for the VW, but that's another story). Besides, I got a new ride every 36 months with little or no$$ down.
However, if you drive big miles (as we now do), leasing is out of the question - the TLS lease for 18,000 miles a yr for 4 yrs was less than $100 away from the 60 month buy price. And with Honda's excellent residual rates, we may actually have some equity left in the TL-S when it's paid for, even though it will have close to 100K miles on it.
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#27
I purchased my TLS.
However, I am self-employed and leased my BMW, with a 15,000/year mileage limit. The key for me at the time was that it was a very small down payment to get out the door with reasonable payments, and then it got me $9,500 in tax deductions each year for the life of the lease. When the lease was up, I just paid off the residual. With 270,000 miles and still running strong, 14 years later, I think I did pretty good.
I would have benefitted from the outright purchase just as much tax-wise, but the down payment would have killed me at the time. In reality, I just made the down payment on the back end.
However, I am self-employed and leased my BMW, with a 15,000/year mileage limit. The key for me at the time was that it was a very small down payment to get out the door with reasonable payments, and then it got me $9,500 in tax deductions each year for the life of the lease. When the lease was up, I just paid off the residual. With 270,000 miles and still running strong, 14 years later, I think I did pretty good.
I would have benefitted from the outright purchase just as much tax-wise, but the down payment would have killed me at the time. In reality, I just made the down payment on the back end.
#28
Three Wheelin'
Ok, my statement is pretty broad. But, You can deduct the
depreciation of a purchased car for business, so that advantage
of leasing is minimal. When you also factor in higher minimums
for insurance (so higher rates) and gap insurance... your savings
is even less.
Atleast that was my understanding of it. But, then again... thats
why I hire a tax guy.
depreciation of a purchased car for business, so that advantage
of leasing is minimal. When you also factor in higher minimums
for insurance (so higher rates) and gap insurance... your savings
is even less.
Atleast that was my understanding of it. But, then again... thats
why I hire a tax guy.
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#29
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We ourchase our cars because we never want two simultaneous car payments. When my wife's car is 5 years old I replace my car that will be 10 years old. When her car is 10, we replace it and so on. I'm not shallow enough to feel the NEED to drive a new car every 3 years but I am practical enough to know that if I'm going to keep a car for 10 years it needs to be from a VERY RELIABLE manufacturer and should hold some value.
Example. I bought my first Honda - 1988 CRX Si (yeah it was yellow) for $10,330 March 1988 and sold it Feb 1997 for $4200 cash with 95,000 miles and no problems or damage. OK that was only 9 years but we just bought a house and trips to Home Depot are limiting to say the least when you have a car that small.
Current 93 Civic purchased Aug of 92 only has 88,600 miles on it - for 9 1/2 years old that is very low mileage and will last me until my time to replace with hopefully the redesigned TL or something else.
I understand why people lease but I personally cannot justify making payments to drive something I never really own. Did the CRX cost me $10,000? No, I was able to get something back when sold it. That's a nice justification for spending a little more to get what you want - it'll be worth a little more when the time comes to sell it.
Example. I bought my first Honda - 1988 CRX Si (yeah it was yellow) for $10,330 March 1988 and sold it Feb 1997 for $4200 cash with 95,000 miles and no problems or damage. OK that was only 9 years but we just bought a house and trips to Home Depot are limiting to say the least when you have a car that small.
Current 93 Civic purchased Aug of 92 only has 88,600 miles on it - for 9 1/2 years old that is very low mileage and will last me until my time to replace with hopefully the redesigned TL or something else.
I understand why people lease but I personally cannot justify making payments to drive something I never really own. Did the CRX cost me $10,000? No, I was able to get something back when sold it. That's a nice justification for spending a little more to get what you want - it'll be worth a little more when the time comes to sell it.
#30
Originally posted by crmsnidol
We ourchase our cars because we never want two simultaneous car payments. When my wife's car is 5 years old I replace my car that will be 10 years old. When her car is 10, we replace it and so on. I'm not shallow enough to feel the NEED to drive a new car every 3 years but I am practical enough to know that if I'm going to keep a car for 10 years it needs to be from a VERY RELIABLE manufacturer and should hold some value.
We ourchase our cars because we never want two simultaneous car payments. When my wife's car is 5 years old I replace my car that will be 10 years old. When her car is 10, we replace it and so on. I'm not shallow enough to feel the NEED to drive a new car every 3 years but I am practical enough to know that if I'm going to keep a car for 10 years it needs to be from a VERY RELIABLE manufacturer and should hold some value.
#31
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Originally posted by pianoman41
I got a chuckle out of this one. This is the *exact* same thing we do at my house. Wife has the '97 Maxima SE and I've got the TL-S. Hers is paid in full and next up for replacement in 2006. Only one car payment and two decent cars. Works good for us poor working stiffs.
I got a chuckle out of this one. This is the *exact* same thing we do at my house. Wife has the '97 Maxima SE and I've got the TL-S. Hers is paid in full and next up for replacement in 2006. Only one car payment and two decent cars. Works good for us poor working stiffs.
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#32
f-a-b-o-l-o-u-s
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Leasing and selling outright is a great idea if your car holds its value and depreciates well.
My previous car was a 98' Integra, and after completing a 3 year lease term with low monthly payments (all the while using the lease for tax writeoffs), I sold the car outright and paid off the residual. When everything was all said and done, I netted more than 2k profit from this transaction.
What did I do with this 2k? I used it as a DP for my current lease. When my current 4-year term is over, I'll probably do the same thing again (lease-hop to a M3 maybe...).
My previous car was a 98' Integra, and after completing a 3 year lease term with low monthly payments (all the while using the lease for tax writeoffs), I sold the car outright and paid off the residual. When everything was all said and done, I netted more than 2k profit from this transaction.
What did I do with this 2k? I used it as a DP for my current lease. When my current 4-year term is over, I'll probably do the same thing again (lease-hop to a M3 maybe...).
#34
Burning Brakes
Originally posted by mawaru
You should read this article from edmunds. It should help you decide to buy or lease. I think if you can afford it buy the car. It will save you money in the long run.
http://www.edmunds.com/advice/fiw/ar...9/article.html
You should read this article from edmunds. It should help you decide to buy or lease. I think if you can afford it buy the car. It will save you money in the long run.
http://www.edmunds.com/advice/fiw/ar...9/article.html
But you need to make sure you don't go over the mileage allowance or you get slammed at the end.
#35
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Bought...But my cars from now on will be leased...I see buying a car a waste. They'd never appreciate in value, on depreciate. A house will appreciate. I'd rather spend my money on a house..
Ed
Ed
#36
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I bought my TL-S. I like the fact that there isn't any guilt felt when modifying the vehicle(s). That is one of the major reasons I bought... plus I got 4.9% for 5
My 2 cents.
SGT C.J.
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My 2 cents.
SGT C.J.
#37
10th Gear
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I'll have to let my accountant know about this $500 limit on writing off a leased car. Wrote of my wife's lease on her $715/month (24 month lease) Land Rover for the full two years without any problems. In fact, I was told that as long as the lease stayed under $900, it shouldn't be a red flag to our friends in the IRS.
I lease my TL-S, just like I have every car I've had in the last 6 years. If you have the cash for a big down payment, invest it in a competitive stock or mutual fund. If you negociate good lease terms (residual and lease factor), you can take the money you invested and buy the car at the end of the lease with it. Rather than throwing money away up front, invest it and earn interest. After all, a car is a depreciating asset. Not a good investment.
Best choice of all is buy a used car with cash. Depreciation is worst in the first year.
My $.02 This works for me because I never put more than 10K miles on a car a year.
I lease my TL-S, just like I have every car I've had in the last 6 years. If you have the cash for a big down payment, invest it in a competitive stock or mutual fund. If you negociate good lease terms (residual and lease factor), you can take the money you invested and buy the car at the end of the lease with it. Rather than throwing money away up front, invest it and earn interest. After all, a car is a depreciating asset. Not a good investment.
Best choice of all is buy a used car with cash. Depreciation is worst in the first year.
My $.02 This works for me because I never put more than 10K miles on a car a year.